Partnership between DBG and GAB set to drive sustainable growth, says John Awuah
The establishment of the Development Bank of Ghana (DBG) is being hailed as a timely and strategic move that will provide a much-needed boost to the country’s financial sector. The bank is set to increase the availability of loanable funds for participating financial institutions (PFIs) and create an enabling environment for long-term funding, all while deepening financial intermediation in the process.
Speaking at the DBG/GAB assessment of Ghana’s Medium-Term Outlook amid an IMF Programme on Thursday, April 13, 2023, CEO of the Ghana Association of Banks, John Awuah, noted the strategic partnership between the DBG and the GAB will lead to the provision of long-term funding and financial products at affordable prices to businesses, generating resilience in the business environment and addressing the country’s unemployment challenges.
At a time when Ghana is facing significant economic challenges, the establishment of DBG is seen as a positive step towards achieving a more stable and competitive economy. The bank’s positive relations with PFIs will drive sustainable growth in liquidity through the banking system, resulting in a significant increase in the value of money circulating in the broader economy, including forex transactions.
The DBG is expected to play a complementary role within the broader financial system, and its establishment is likely to result in a significant increase in the value of money that circulates through the broader economy. This will, in turn, provide a much-needed boost to the country’s economic growth, and help to address some of the challenges that are currently being faced by businesses operating in Ghana.
The DBG’s strategic partnership with the Ghana Association of Banks is seen as a significant step towards achieving sustainable economic growth in the country. Through this partnership, the DBG will be able to provide long-term funding and other financial products at affordable prices to the country’s business community, enabling them to generate the resilience that is needed to weather economic challenges.
Moreover, the establishment of DBG is an opportunity for participating financial institutions to stimulate the financial architecture, and deepen sustainable financing within the productive sectors of the economy. This is expected to create a positive multiplier effect, as businesses will have access to the funds they need to grow and create jobs, which, in turn, will drive economic growth in the country.
The establishment of the Development Bank of Ghana represents a positive step towards achieving long-term economic growth in the country. By providing increased access to loanable funds, creating an enabling environment for long-term funding, and deepening financial intermediation, the DBG and its strategic partnership with the Ghana Association of Banks have the potential to stimulate the financial architecture and deepen sustainable financing within the larger and productive sectors of the economy. The benefits of this will be felt throughout Ghana’s economy, contributing to its resilience, robustness, stability, and competitiveness at the sub-regional, regional, and global levels.
