The Government of Ghana has highlighted in the 2021 first quarter budget that it will use part of the cash allotted to fight the pandemic as seed capital for the yet to be established development bank.
A careful look at the 2021 first quarter budget presented by Finance Minister Designate, then Ken Ofori-Atta in October 2020 vividly shows as part of the GHS4.7billion allotted for the coronavirus related expenditure, more than GHS312millon has been earmarked as seed funds to establish the development bank this year.
Of this amount, GHS78.2million will be released in the first quarter.
Meanwhile, the finance minister designate who is currently a minister designated for the same sector, indicated during a speech read on his behalf last week in the 72nd Annual New Year school that GHS50million has been released for the project.
He further revealed that government will look to both foreign and domestic sources through issuance of bonds, diaspron instruments and direct borrowings from international financial institutions and capital markets to support the bank’s establishment.
The World Bank, in October last year, also approved US$250million to support establishment of the development bank. Mr. Ofori-Atta said he expects about US$558million from international institutions to provide funding for establishment of the bank that is expected to be capitalised with US$1billion.
The bank is to focus on supporting the transformation of industry, agriculture, agro-processing, and housing over the medium- to long-term.
