2023 Budget: DBG to inject GHS 500m into agric sector

The Development Bank of Ghana (DBG) is set to support the agricultural sector with some GHS 500 million financing through its Special Credit Programme.

Making the 2023 Budget Statement presentation in the floor of Parliament on Thursday, November 24, Finance Minister Ken Ofori-Atta averred the DBG through the Special Credit Programme, will support the production of poultry, rice, cereals, pharmaceutical manufacturing, tourism, garment and textiles to help build economic resilience.

Speaking further, the Finance Minister noted the DBG is in the process of establishing a private equity fund with an initial capitalization of about GHS 400 million ($30m). Additionally, he stated that DBG has engaged some other four financial institutions that will support in offering loan on a large scale to businesses.

“Mr. Speaker, Government through the Development Bank Ghana (DBG) has established a GH¢500 million special credit programme: the DBG Emergency Economic Programme (DEEP) to support businesses in the agribusiness value chain over the next five years.

“The priority sectors are Poultry, Rice & Cereals,
Pharmaceutical manufacturing, Tourism, Textiles & Garments for investments to help build economic resilience.

“Mr. Speaker, to support SMEs with equity funding, DBG is also in the process of establishing a private equity fund with an initial capitalization of about GH¢400m (US$30m).

“DBG has fully on-boarded four Participating Financial Institutions (PFIs) and will engage other financial institutions to expand its loan channels. A total of seven loans amounting to GH¢ 245,322,000.00 was disbursed to SME’s saving over 1,000 jobs. DBG has partnered with a PFI to build a digital lending platform to shorten the processing time for lending to SMEs and increase its ability to reach a lot more businesses across the country,” he stated.

Source: norvanreports

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