The Development Bank Ghana (DBG) has revealed that the Agricultural Sector will receive a chunk of its allocation in the next phase of funding through commercial banks and other financial institutions.
The institution is looking at setting aside more than GH¢1 billion to support the sector from 2025.
The Bank is expected to advance about GH¢5 billion in various sectors of the economy from 2025. This is DBG’s next phase of funding after disbursing more than GH¢1.6 billion since it started operations in 2022.
These are long term funds the bank received from its partners like the World Bank, German Development Agency, KFW and the African Development Bank to support various sectors of the Economy. The Chief Executive, Kwamina Duker noted that, agric sector will be number one in the next phase of funding.
Why Agric Sector?
Duker explained that attention has been given to the agric sector due to the capacity it holds to help turn around the economy.
It also has the tendency to help improve the country’s employment situation in the informal sector”, he said.
Duker revealed that through the bank’s workings with the Ghana Incentive-Based Sharing System for Agricultural Lending (GIRSAL), it has been able to de-risk lending to some sub-sectors in agric.
The commercial banks are now more willing to lend to some areas that was seen as risky in the past. Through our workings we have also ensured that every bankable agric project gets the required funding from the commercial bank”, he added.
“We are working with the GIRSAL to help deal with funding challenges in the sector”, Duker added.
DBG and lending to various sectors of economy
Duker disclosed that the DBG has advanced GH¢1.6 billion through participating financial institutions to the private sector.
We intend to increase the funding. We hope to do some GH¢3 billion before the end of this year, “he said.
Duker pointed out that the bank remains resolute to provide the needed financial assistance to areas that have not been given the needed attention.
He also revealed that DBG is planning to increase funding to the small businesses in the country,
We want to make sure that start-ups that have bankable deals get the needed funding from our participating banks”, he concluded.
