DBG earmarks GHS 100m for green Ghanaian businesses

The Development Bank Ghana (DBG) has earmarked funding of about GHS 100 million for green businesses in the country.

Norvanreports understands that the bank is already seeking new partners and exploring ways to increase the earmarked funds.

Green businesses have minimal negative impact and potentially have positive effects on the global or local environment, community, society, or economy and use sustainable materials to make products.

Such businesses use minimal energy and raw materials as possible utilising materials in renewable and eco-friendly ways thereby cutting down on carbon emissions.

The International Labour Organisation (ILO) estimates that the green economy has the potential to create over 24 million jobs if countries put in place the necessary measures to boost the development of green businesses in their respective countries.

The GHS 100 million earmarked fund is linked to the DBG Green Climate Investment Programme, which aims to provide financing solutions for green and climate-resilient projects, contributing to the nation’s efforts to combat climate change.

“At DBG we have developed what we call a DBG taxonomy that identifies what a green business is and whether it is a climate mitigation project or investment that we will be lending to, so there is funding already earmarked for green businesses in the country,” he remarked speaking on the sidelines of the ongoing Environmental and Social Risk Management Training of Trainers (ToT) Programme for Banks and Specialised-Deposit Taking Institutions (SDIs) being spearheaded by the DBG, World Bank and Finance Ministry.

The six-day workshop is being participated by staff from 35 financial institutions comprising commercial banks and selected SDIs and finance houses in the country.

Director of Wholesale Financing and Credit Origination at DBG, Otwiwa Offei-Akoto, delivering an address on behalf of the CEO of DBG, Kwamina Duker, at the six-day workshop, noted the training is to enhance the understanding of Environmental and Social Risk Management systems and deepen its implementation by financial institutions, particularly in regards to their credit decisions.

Adding that, the DBG maintains a strong commitment to monitoring outcomes of capital deployments made to partner banks and SMEs.

DBG increased its lending portfolio for the first quarter of 2023, signaling its commitment to supporting the growth and development of businesses in Ghana.

The bank disbursed GHS 57.2 million to three participating financial institutions (PFIs) for on-lending to SMEs in the agriculture and manufacturing sectors, bringing its loan book size to GHS 302 million.

Since its inception in June 2022, the bank has made over GHS 451m in fund disbursements to businesses through its eight partner banks.