Since national independence, our traditional banks and their foreign counterparts, like Barclays and Standard Chartered, had had their focus on trade and commerce, with their customers largely merchants and small and medium scale businesses.
The huge chunk of informal economy players were locked out of the party, essentially because of their informal character, and so had to depend on other sources to keep their informal economic activities on course in their respective communities.
State banks like the Ghana Commercial Bank played similar roles till we launched the National Investment Bank and Merchant Banks that were no different in terms of focus, except that the NIB was more tilted towards very serious actors in the industrial sector, including those in the import-export and manufacturing sectors.
When we later launched the Agricultural Development Bank with a special focus on agriculture, we got trapped in the very informality that we failed to tackle, as huge amounts of loans went to farmers without hitting the bank’s account back.
The excuse had been lack of markets, though it is expected of any serious businessman going into production to explore and make sure of the existence of markets or buyers before producing.
That same fate hit the erstwhile Merchant Bank, pushing it to the precipice, like it happened to the NIB before and after aces like Yaw Osafo-Maafo, Mr Samuel Welbeck and Dr Nana Yaw Opoku Atuahene had exited.
Continental banks
When we had continental banks re-emerging, we thought that our vision of having those banks partner our traditional banks to support industry to expand and create jobs would be realised and concretised. Unfortunately, it was the same ‘circus of mediocrity’.
Though on paper we have had these banks making profit, it turned out that it was at a cost to us, including job loss and closure of some branches. As for most of the lesser banks, their emergence only culminated in growing informality and more economic actors unserved, instead of partnerships at the grassroots that would help grow the economy.
Again, it turned out that in their obsession with avoiding risks, they would focus on buying out with their ‘Mafias’ in the real estate the chunk of farmlands in Greater Accra, Eastern and Central regions to build houses that ordinary folk cannot access.
Hope
The report that government has launched a new bank that would focus essentially on development, at a time our economy has a focus on national transformation, including infrastructure and job creation drive, is refreshing.
The huge difference as far as most Ghanaians are concerned is that, enabled with the recent programme of sanitising the banking sector, government would be having more resources freed to support the previously unserved informal sector and SMEs in growing businesses at the grassroots upwards.
Additionally, we would be freeing adequate resources that would drive development faster in sectors like ICT, agribusiness and tourism – with huge potential for creating jobs in line with prescriptions for faster development in the sub-region and the continent.
That is aside of the impetus it would generate in helping to realise the Africa Free Continental Trade Area, which has been identified as an essential initiative in economic growth and development on the continent.
Caution
It is, however, our belief that while we fly this landmark initiative in continental banking, we would be guided by the lessons of the past. In this regard, we need to avoid the politics that has all too often resulted in our banks degenerating into havens of crooked, cliquish, Mafia games, with the future heritage of the nation thrown to the dogs.
Thankfully, we have put in charge of the new bank a cream of accomplished, independent-minded professionals, who have proven themselves and who we trust would keep Ghana at the centre of their collective vision. That is what we all expect from them, as we say “Welcome” to the newly formed Development Bank Ghana (DBG).
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