Strong Governance Structure Key to Development Bank Ghana’s Success

Accra, Ghana - March 2023

The Development Bank Ghana (DBG) has emphasized its commitment to robust corporate governance practices as it continues to play a vital role in addressing market failures and meeting gaps in the Ghanaian credit markets.

Established with a Strong Foundation

Established in 2020, DBG received its license from the regulator at the Bank of Ghana in 2021. As a commercial banking institution governed by the provisions of the Ghanaian Company Act, the bank operates a strict corporate governance structure inline with international standards.

Prioritizing Impact and Integrity

According to DBG’s management team, the bank’s governance framework prioritizes the impact on underlying businesses that it finances and invests in, while ensuring the integrity of its long-term return profile. The Board and senior management are also committed to compliance with regulatory requirements.

Growing Access to Capital Markets

DBG’s long-term objective is to grow access to national and international capital markets, gradually reducing its dependency on government funding and increasing its share of market borrowings at competitive rates of interest. The bank will build a network of strong local and international partnerships for enhanced access to financing and provide value-added business support services.

Promoting Rigorous Corporate Governance

As an active shareholder or lender, DBG’s goal is to promote rigorous corporate governance oversight in its portfolio companies. This includes backing high-calibre entrepreneurs and institutions, and ensuring that the bank’s independent and diverse Board provides guidance and complements management’s leadership.

Key Governance Structure Components

• Board of Directors: Operates on an independent basis, with a statutory responsibility to ensure the protection of the institution’s reserves.
• Risk Committee: Responsible for advising the Board on current and future risks, defining tolerance/appetite and strategy, and overseeing Senior Management’s implementation of the risk strategy.
• Compliance, Ethics & Business Conduct Committee: Has delegated authority to approve new investment and exit decisions beyond a defined threshold for Management’s approval.
• Audit Committee: Supports the Board in its oversight responsibilities by reviewing internal controls, financial reporting, audit, and compliance processes.

Commitment to Transparency and Open Communication

The bank’s management team is committed to working with the Board in an open and transparent manner, providing information on an ongoing basis to enable the Board to effectively carry out its responsibilities and make decisions on behalf of stakeholders.