During the presentation of the 2018 Budget in parliament last Wednesday, the Minister announced that government will soon launch a National Development Bank to focus on the Agriculture and Industry sectors.
Mr. Ken Ofori-Atta also stated that government is planning to launch the National Development Bank with a seed capital of 500 million US dollars.
An investigation has proven that government intends to launch the bank in December or early 2018 to provide cheap credit to players in the agricultural and industrial sectors of the economy.
The Agric Development Bank (ADB) was formed to focus on investing in the agricultural sector but the bank has seen less investment into the sector. NIB has also struggled to fulfil its main responsibility of investing in the industry sector.
Meanwhile, Economist and Head of the Economics Department at the University of Ghana, Professor Peter Quartey has lauded government’s decision to launch a National Development Bank.
He explained that;
The current system where ADB, NIB are not giving the sectors the needed finance, we need to create a new bank that will serve that purpose.
Ideally we should reform the existing ones but its proven difficult, therefore we need to create a new development bank that would be very focused, will have a special need, will have special focus to ensure that credit goes to agric and manufacturing and these are the two critical sectors of the economy that will create jobs for our youth.
Prof. Quartey was of the view that the move will help address the challenges of funding in those sectors