Ghana Development Finance Project

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The objective of the Development Finance Project for Ghana is to support the establishment of a financially sustainable development bank to increase access to finance, in particular long-term finance, for viable MSMEs and small corporates. The project has four components. (1) Long-term wholesale financing and technical assistance component will provide a LoC to the DBG to on-lend to PFIs in Ghana, as well as technical assistance to the MoF, DBG, and PFIs. (2) Partial credit guarantee (PCG) facility and digital financing platform component will complement the LoC by leveraging financial institutions’ own resources for MSME financing. It will support the establishment of a PCG Facility and a digital financing platform. (3) Capital market development component seeks to build the foundations for the development of the capital market, which is a potential source of complementary long-term financing in Ghana. (4) Project management, monitoring and evaluation component will cover project implementation costs, including those related to coordination, procurement, financial management (FM), M&E, outreach, and support to the DBG to comply with E&S requirements. Specifically, it will cover consultants’ salaries and related expenses; operational costs; implementation of the Stakeholder Engagement Plan (SEP); data collection for impact evaluations or similar assessments; and other project implementation expenses. Stakeholder engagement will entail the completion of two surveys of beneficiaries (PFIs, MSMEs, and capital market operators) to assess their satisfaction with the products and services (credit and training programs) and share lessons learned.