Government secures $250m to establish National Development Bank in 2020

Government has secured $250 million from the World Bank as initial capitalization to kick-start the operations of the National Development Bank (NDB) in 2020.

Presenting the 2020 Budget in parliament, Finance Minister Ken Ofori-Atta said, “In view of the high level of interest generated, other Donors such as DFID, KFW, AfDB are expected to provide additional capitalization for the Bank once it becomes operational in 2020.”

According to Mr Ofori-Atta, the government has completed a feasibility study for the establishment of  envisioned to refinance credit to industry and agriculture as a wholesale bank; and also provide guarantee instruments to encourage universal banks to lend to these specific sectors of the economy.

He said, “The National Development Bank (NDB) will be an independent institution with a strong corporate governance framework, and would be globally rated to enable it to leverage foreign private capital for industrial and agriculture development in the country.”

According to Mr Ofori-Atta, “It is expected that the National Development Bank will provide cheaper and long term funding for the growth and expansion of key companies operating in the agriculture and industry sectors.”

He said the development bank will also lend through specialized banks to key anchor industries at the Metropolitan, Metropolis and District Assemblies level to support the governments IDIF initiative.

Mr Ofori-Atta in the 2019 Budget announced that they have made some progress in establishing the National Development Bank, which is expected to focus on industry and agriculture.