Ensure wide stakeholder involvement in establishment of DBG – UPSA research centre to government
The RCC of UPSA is calling on the government to engage in wide stakeholder involvement before launching the DBG
The Research and Consultancy Centre (RCC) of the University of Professional Studies in Accra (UPSA) has called on the government to ensure that it engages in wide stakeholder consultation before launching the proposed Development Bank of Ghana (DBG).
The RCC, as part of its efforts to contribute meaningfully to Ghana’s economic development, has decided to release policy briefs periodically on specific fiscal initiatives.
“The purpose of this policy brief examines Ghana’s peculiar credit situation, by contextualising the global and other country-specific development banks with the view to offering policy recommendations that may enhance the successful establishment and operation of the proposed Development Bank of Ghana,” the RCC policy brief says.
“The DBG, as outlined in the 2021 Budget Statement and Economic Policy presented to the Parliament of Ghana on the 12th of March, 2021, is one of the core pillars of Ghana CARES Obaatanpa programme. This policy brief highlights the fundamental constraints in Ghana’s financial system that the proposed DBG seeks to address, and offers expert view on its successful implementation,” the brief further says.
Ensure a solid base
In what is the second policy brief in the series for 2021, the RCC focused on the government’s proposed Development Bank of Ghana (DBG), proposing four important considerations to which they believe the government must pay attention before setting up the DBG.
The four policy recommendations are: first, the initial source of funding for the DBG is a clear case for concern. The bank should be well capitalised before it takes off.
Second, there is a need for sensitisation and education of the Ghanaian public at large, and micro, small and medium-sized enterprises (MSMEs) in particular, about the DBG and its functions. This will ensure adequate knowledge and access of the credit system to be offered.
Third, there may be a need to retrain the participating bank and non-banking financial institutions on the modalities and operations of the DBG, particularly with regard to the new focal areas in which the financial institutions have hitherto not operated.
Finally, there is a need for the government to ensure that there is wide stakeholder involvement in the setting-up process. Recruitment of staff for the DBG should be competitive and based on merit.
The policy brief also takes into account the global perspectives of development banks, the specific setting in Ghana, better ways of establishing and implementing the new Development Bank of Ghana, as well as the operations, supervision and management of the DBG.
Click on the link below to read the full policy brief of the UPSA RCC:
Wilberforce Asare
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