Ghana’s New Development Bank Aims To Lend $600 Million

Ghana Statistical Service In a press release titled “Ghana, May 2022 Consumer Price Index And Inflation” shows Ghana’s inflation accelerated to 27.6% year-on-year in May from 23.6% in April, hitting a new 18-year peak.

The Central bank of Ghana hiked its main interest rate in March and again last month to try to stem runaway inflation, but it is yet to halt the rise in prices. Ghana’s central bank raised its main interest rate by 200 basis points to 19% to curb inflationary pressures and promote macroeconomic stability, Governor Ernest Addison said.

A new Ghanaian government-owned development bank aims to lend $600 million to small businesses over the next one to two years, its chief executive said, to help meet demand for credit and contribute to growth in the inflation-wracked West African country.

In October 29, 2020 – The World Bank Board of Executive Directors approved US$250 million from the International Development Association (IDA)* to support the establishment of the Development Bank of Ghana (DBG) to increase access to long term finance and boost job creation for 10,000 enterprises in key sectors including agribusinesses, manufacturing, and high-value services.