Development Finance Institutions operating in Ghana

What are the BoG authorised development finance institutions in Ghana?

The Bank of Ghana (BoG), under the Development Finance Institutions Act, 2020 (Act 1032), defines the business of Development Finance Institutions (DFIs) as the provision of short, medium and long-term funding, guarantees and other credit enhancement structures to key sectors of the economy in a financially sustainable manner.

Based on the BoG’s regulatory framework, DFIs are specialised institutions with the following defining characteristics:

1. Core Mandate: To promote economic growth and development by providing funding, guarantees, and other credit enhancement structures to key sectors of the economy in a financially sustainable manner.
2. Funding Focus (Medium- to Long-Term): They are required to invest a minimum of 75% of their loanable funds in medium-term (3–7 years) and long-term (exceeding 7 years) loans.
3. Prohibition on Deposit-Taking: They cannot accept deposits from the public, differentiating them from commercial banks and specialised deposit-taking institutions.
4. Primary Purpose: To address market failures by providing long-term, patient capital to critical sectors (like agriculture, manufacturing, and SMEs) that struggle to secure funding from traditional commercial banks.
5. Regulatory Body: They must be licensed and supervised by the Bank of Ghana under the Development Finance Institutions Act, 2020 (Act 1032).
6. Lending Types: They are permitted to engage in direct/indirect debt or equity financing, refinancing, and loan syndication.

Development Finance Institutions in Ghana

Ghana has only one BoG authorised development finance institution operating in Ghana.

ADVERTISEMENT

Below is a list of the Bank of Ghana’s authorised development finance institutions operating in Ghana.