The National Development Bank is set to commence operations by the end of July 2021.
This is according to the Finance Minister, Ken Ofori-Atta.
According to him, government has now been able to raise the required seed capital of over 500 million dollars for the financial institution to fully begin operations.
It will be recalled that, in November 2020, Parliament approved the financing agreement between the Government of Ghana and the International Development Association (IDA) of the World Bank for an amount of $250 million for the establishment of a National Development Bank.
Outlining some strategies that government has adopted to address issues raised by members of the #FixTheCountry campaign, Mr. Ofori-Atta stated that the National Development Bank is expected to commence operation by the end of July.
“The good people of Ghana have given us the mandate to get things done. This is a clarion call for a national conversation on the shared burden to renew the social contract of our democracy. At our best, we should open for all Ghanaians, an economic system under which each citizen shall be guaranteed the opportunity to show the best in him or her.”
“By the end of July, we will have a new development bank capitalized at over 500 million dollars that will provide long-term wholesale financing not retail as happened in the past to the private sector through commercial banks and non-bank financial institutions such as venture capital companies or SMEs to ensure financing to support the youth,” he said.
The establishment of a Development Bank of Ghana sometimes referred to as the National Development Bank has been part of government’s plans since 2018.
According to Ken Ofori-Atta, the move is aimed at strengthening the financial sector of the economy to move ‘Ghana Beyond Aid’.
According to Ken Ofori-Atta, as envisioned, the bank will refinance credit to industry and agriculture as a wholesale bank; and also provide guarantee instruments to encourage universal banks to lend to these specific sectors and more of the economy.