The Development Bank Ghana (DBG), a state-backed institution created to drive economic growth, is facing criticism for alleged reckless spending of funds from international partners, including the World Bank and the European Investment Bank.
A prominent critic claims the bank’s spending decisions have strayed from its mandate to support sustainable development in Ghana.
The accusations
According to Bright Simons, a prominent Ghanaian policy analyst, DBG has been funneling large amounts of capital into questionable investments and administrative expenses rather than prioritizing high-impact projects.
Allegations include:
- Lavish spending: Reports of significant amounts being used on administrative and operational costs, with limited transparency.
- Investment misalignment: Funds, originally meant to stimulate productive sectors like agriculture and manufacturing, may have been directed toward lower-impact projects.
- Lack of oversight: Mr Simmons points to an absence of rigorous monitoring mechanisms, raising concerns about the bank’s accountability.
Context
DBG was launched with high expectations to support Ghana’s long-term economic development through financing small and medium-sized enterprises (SMEs) and other growth sectors.
International donors, particularly the World Bank and European Investment Bank, provided capital to help stimulate this growth sustainably.
Why it matters
DBG’s approach could affect Ghana’s relationships with international financial institutions and risk undermining the country’s development goals.
Mismanagement of funds may also stifle economic opportunities for local businesses that were intended to benefit from this capital.
