Ghana: DBG to launch equity funds

Development Bank Ghana (DBG) set to expand services with the addition of an equity fund alongside its lending operations.

DBG’s Chief Executive Officer, Kwamina Duker,  announced the bank’s near completion of an equity fund setup, with the goal of offering a broader array of financial products to benefit institutions and borrowers at different development stages.

“We’re in the closing stage of providing an equity fund. It’s going to be small to start off with; but again, when the only thing you can do is lend, guess what? everything looks like a loan, and that’s not the case. So, we need to have other products,” Kwamina Duker stated, emphasizing the importance of diversifying DBG’s offerings. “At the moment, we are in the closing stage with the regulators to set up an equity fund, which will then allow us to have even more patient-capital. So, we can have equity, we can have loans among others., and the other products that we’re coming to the market with. But they’re all intended to provide a virtuous circle of different products that are applicable at different times of an institution’s life or a borrower’s life.”

DBG, since its inception, has remained dedicated to driving economic growth and development in Ghana, disbursing an impressive GH¢731 million across multiple sectors. Kwamina Duker outlined the bank’s future vision, saying, our vision is clear, and our processes streamlined. With our enhanced lending system we’ve become more efficient, enabling swifter disbursements to our partners. We aim to have disbursed a staggering GH¢1billion”.

DBG’s focus extends beyond becoming the largest lender in Ghana, Kwamina Duker stressed; their commitment is to transforming the private sector. “If I become the largest lender without transforming the private sector, I would have failed,” he added.

DBG, a government-established Development Finance Institution, focuses on enabling and reinforcing long-term financing for Ghanaian businesses. In addition to financial services, DBG is committed to providing relevant non-financial support to enrich the nation’s business environment, all while adhering to sustainable and global best practices.

Kwamina Duker reaffirmed DBG’s commitment to fostering the growth of SMEs, job creation, and advancing inclusive and sustainable development in Ghana. To accomplish this, the bank intends to widen its network of participating financial institutions (PFIs) by identifying and incorporating new PFIs. The goal is to have at least ten PFIs by end of the year, with Sinapi Aba being the latest addition to the network alongside existing partners such as Ecobank, Absa and Zenith Bank.

“As we move forward, we will rely on the support of all our banking partners in our initiative to digitally transform financial services,” he emphasized, highlighting DBG’s commitment to innovation. “We seek your continued support as we aim to be a conduit for financial institutions to collaborate on innovations, such as common underwriting standards and co-creating robust alternative credit scoring models. These joint efforts will allow us to better-serve the needs of businesses while also promoting prudent lending practices and risk management within our industry.”

DBG’s venture into equity funding marks a major milestone in its mission to stimulate economic growth, encourage innovation, and facilitate the transformation of Ghana’s private sector. With a well-defined vision and strategic actions, DBG is ready to assume a pivotal role in shaping the future of Ghana’s financial landscape.