Peter Quartey hails Government’s approach to setting up Development Bank Ghana

Director of the Institute Of Statistical, Social And Economic Research, ISSER, Prof. Peter Quartey believes the government is on the right track with its approach in setting up the new Development Bank Ghana.

The Development Bank according to the Director of the Financial Sector Division of the Ministry of Finance, Samson Akligoh is being set up as a company under the Registrar General’s Department so that the bank operates independently of government or political influence.

The Minority in Parliament has however taken strong exceptions to the government’s approach to setting up the bank.

Minority Leader, Haruna Iddrisu has said in a media engagement that the government’s approach shields the new bank from parliamentary supervision hence the bank could become an avenue to perpetrate non-porous activities.

Mr. Iddrisu also questioned the premise on which public funds are being allocated to the Development Bank Ghana, when the government claims the bank will be set up as a private entity.

Mr. Iddrisu further warned that the Minority in Parliament will not be a party to the approval of any money to the Development Bank Ghana.

But Prof. Peter Quartey insists the Development Bank is being set up the most sustainable way.

“Previous development banks have not been successful mainly because of poor governance or unnecessary political influences, so I think the Ministry (of Finance) is doing the right thing by setting the bank up in a manner that will reduce the political influence to the barest minimum,” Prof. said in a Citi Business News Interview.

Parliament, in August 2020 passed the Development Finance Institutions Bill (2020), to pave the way for the licensing and supervision of the Development Bank Ghana under the  Bank of Ghana.

The Bank is intended to focus on promoting private sector-led growth. The Development Bank Ghana According to MP for Suame Constituency, Minister for Parliamentary Affairs, Osei Kyei-Mensah-Bonsu, (Who read the 2021 Budget on behalf of the Minister of Finance)  “mobilise private capital from both domestic and international markets and channel such funds to the private sector over the medium to long term through Participating Financial Institutions (PFIs)”.

Osei Kyei-Mensah-Bonsu further noted that “This ambitious initiative is to unlock long term financing and will focus mainly on manufacturing, agriculture, agro-processing, mortgages, ICT, and housing sub-sectors to propel economic growth and create jobs and improve domestic revenue mobilization”.

source: citinews