By Naa Dzagbley Ago
GCB Bank PLC has welcomed the coming on board of the Development Bank Ghana, DBG. According to GCB, the new establishment will not only benefit banks but boost the Small and Medium-sized Enterprises, SME sector especially as it forms about 8% of Ghana’s economy.
In a statement, Managing Director of GCB Bank , Kofi Adomako, said collaboration with the Development Bank is key.
”The Bank has come at the right time as it will serve as a wholesale entity which will not operate as Commercial banks do”.
This Mr. Adomako noted will allow GCB to leverage on the opportunities available to support SMEs.
”Though there have been some banks in the past which have tried to play the role of development banks, DBG comes with a unique difference due to its independence, governance and how it was set up”.
DBG he intimated will typically not lend, like many other development banks, to enable Commercial banks to intervene on the markets.
The statement added that DBG is not going to compete with Commercial banks, but ”will bring out the value in Commercial banks”, in the sense that it is going to on-lend over much longer terms, in both foreign currency and Cedis which Commercial banks have lacked for a long time and has thereby stifled the growth of SMEs.
Mr. Adomako said the collaboration with DBG will afford GCB the opportunity to deepen focus in the market and help develop areas in agribusiness, ICT, and tourism for which much needed funding is required. He said the move will also help GCB’s SME clients benefit from support which would position them to favourably compete on the African Continent on the back of the African Continental Free Trade Area and also via other trade arrangements Ghana is a signatory to.
”Through this opportunity, the Bank believes that its SME clients would learn how to compete better internationally and thereby improve its export potential leading to expansion and the creation of more jobs”.
DBG will be launched on the 14th of June 2022. It is expected to begin making loan announcements in the very near future.
