The Development Bank of Ghana (DBG) has received a seed fund of US$70 million for its partial credit guarantee program, which will add another level of support for participating financial institutions (PFIs) to better manage risks related to loan defaults.
The remaining US$20 million came from the Development Bank of Germany, with the World Bank Group contributing US$50 million of the total.
This program is expected to increase investments in high-risk economic sectors because PFIs continue to provide effective services to the SME sector while sharing investment risk with DBG.
It also supports the bank’s strategy of encouraging banks to use their funds to make investments in the economy’s productive sectors.
As a result, DBG intends to increase its PFI network to at least 10 before the end of the year.
As of now, DBG has added Zenith Bank to its roster of partners, enabling it to engage more SMEs across different sectors and grow its partner network.
