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Govt secures US$250m World Bank funds to start National Development Bank in 2020

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Finance Minister Ken Ofori-Atta

The National Development Bank is expected to commence operations in 2020 to provide access to cheaper and long-term funding to some key companies operating in the agriculture and manufacturing sectors.

The Finance Minister delivering the 2020 budget statement to Parliament said the government is set to complete discussions with the World Bank and other development partners to capitalize the bank in 2020 for it to commerce operations.

“We have secured US$250 million from the World Bank as initial capitalization to kick-start the operations of the NDB and an interim board was set-up.”

“In view of the high level of interest generated, other donors such as DFID, KFW, AfDB are expected to provide additional capitalization for the Bank once it becomes operational in 2020.”

“The National Development Bank as envisioned will refinance credit to industry and agriculture as a wholesale bank, and also provide guarantee instruments to encourage universal banks to lend to these specific sectors of the economy,” he added.

The Bank is expected to act as an independent institution with a strong corporate governance framework and would be globally rated to enable it to leverage foreign private capital for industrial and agriculture development in the country.

Mr Ofori-Atta said the government will also provide periodic dedicated funds for intervention in key areas of the economy such as large scale agro-processing, housing, through various schemes and funds as needed for economic and social development and jobs

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