The Chief Executive Officer (CEO) of Development Bank Ghana (DBG), Kwamina Duker, has said the bank is committed to supporting and building bankable and competitive local businesses that can compete with foreign brands.
Mr Duker said as a development bank, the DBG was focused on changing the mindset of local businesses to adopt measures that would make them bankable even in the wake of stiff competition on the global market.
He added that the DBG would assist small and medium-sized enterprises (SMEs) to have a paradigm shift from exporting raw materials in their raw form to value addition.
Again, he observed that the situation where local businesses over-relied on raw export of goods had caused little investment into human capital, “thus denying us the opportunity of moving up the value chain”.
Mr Duker said as a development bank, the DBG was focused on changing the mindset of local businesses to adopt measures that would make them bankable even in the wake of stiff competition on the global market.
He added that the DBG would assist small and medium-sized enterprises (SMEs) to have a paradigm shift from exporting raw materials in their raw form to value addition.
Again, he observed that the situation where local businesses over-relied on raw export of goods had caused little investment into human capital, “thus denying us the opportunity of moving up the value chain”.
The discussants delved into the challenges relating to value addition in the extractive sector, stressing the need to ensure that value was added to raw materials before exporting to foreign markets.
They also explored ways of breaking the cycle of exporting finished and unfinished goods, stressing that such a tendency was detrimental to African economies.
The discussions also centred on how to take control of Africa’s commodities and expand the value chain systems to create the necessary socio-economic development.
Diligence
Mr Duker said local businesses in the SMSE space needed to brace for the move towards value addition.
“Moving up the value chain is critical but also complex because once you move up from the extraction or the out-grower phase, you come into the market forces phase which you must be able to respect to thrive,” he said.
He further explained that it was essential for businesses that have been able to move up the value chain to have a mindset to compete for consumers.
He emphasised the importance of setting “criteria for success” for local businesses.
He observed that after a period of receiving support, local businesses must be able to take off and run by themselves to achieve sustainable prosperity.
Background
Afreximbank is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade.
Afreximbank deploys innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialisation and intra-regional trade, thereby boosting economic expansion in Africa.
DBG is a development finance institution established by the government in accordance with the Development Finance Act, 2020.
DBG acts as an enabler for businesses in Ghana and as a long-term capital provider in the market.
DBG’s mission is to foster strong partnerships to finance economic growth, create jobs and build capacity for SMEs, and provide long-term financing and de-risking services underpinned by technology and evidence-based research/insights.
The bank aims to promote Environment Social and Governance (ESG) excellence within the businesses the bank supports.
The bank has received funds from the World Bank, European Investment Bank, Kreditanstalt Für Wiederaufbau (KfW), and the African Development Bank.
SOURCE: GraphicOnline
