Features
Any justification for National Development Bank in Ghana?
“The Development Bank is going to play a very important part in the rapid economic transformation of Ghana, following the onset of COVID-19”.
These words came from President Nana Addo Dankwa Akufo-Addo during at the signing ceremony on Wednesday, May 19, 2021, when he held a meeting with the President of European Development Bank (EDB), Dr Werner Hoyer, as part of his official visit to Belgium.
According to President Akufo-Addo, the design and operation of the Development Bank Ghana (DBG) in Ghana had been on the drawing board over the past two years and when established, would satisfy the highest standards, scrutiny and best practices of development banks across the world.
He further assured that the €170 million facility being provided by European Investment Bank (EIB) for the establishment of the Development Bank Ghana (DBG), “signals the determination of the country to continue partnering with the EU to continue to finance other projects in the pipeline as the country works to recover from the impact of COVID-19 as well as assist in the rapid recovery of the Ghanaian economy from the ravages of the pandemic.”
Any need for a National Development Bank?
One question that comes up immediately is whether there is the need for a bank for developmental purposes when, indeed, other banks are already operating in the country. It has even been argued that to prevent the collapse of certain banks and strengthen the banking sector, the government in collaboration with the Bank of Ghana, recently sanitised the sector to ensure that it is strengthened up for business in the country.
And if this is the case, why should another bank be established if it is aimed at promoting the same economic development that we are all seeking?
Development Banks and economic growth
Generally, development banks serve as important instruments to promote economic growth. They usually do this by providing credit and a wide range of advisory as well as capacity building programmes for stakeholders. The stakeholders here include households, small and medium enterprises and even large private companies. Usually, the financial needs of the huge private companies are not sufficiently served by private commercial banks nor by local capital markets.
A National Development Bank, therefore, comes in as a specialist bank to provide medium and long-term lending facilities for both the private and public sectors. The objective of a development bank is to serve public interest rather than earning profits. This means that a development bank provides financial assistance for both private and public sector institutions.
Crucial role in rural capital formation
It is also the aim of a national development bank to play a crucial role in rural capital formation. Indeed, development banks are able in this case to bring in dispersed savings of rural people through different deposit schemes after which loans, based on the savings, are distributed to rural people to begin productive ventures in line with their self-sufficient economic activities.
It is for the purpose of all these that the Ministry of Finance and the European Investment Bank have signed an agreement for the provision of a €170 million facility. The purpose of the facility, as pointed out already, is meant for the establishment of a new national bank to be known as the Development Bank Ghana (DBG).
This bank will apply stringent investment conditions aimed at safeguarding financial sustainability, transparency, environmental and social accountability. The ultimate purpose is to promote job creation, and sustainable economic growth.
Are our banks too many?
With regard to the argument that many banks already exist so there is no need for any new national bank, the point must be made that a national development bank is a specialised financial institution set up to provide medium-term and long-term lending facilities. Here, medium-term facilities include three to five years programmes while long-term ones last from five to 10 years or even more.
It is these medium and long-term facilities that make finances available for institutions to carry out developmental programmes for the ultimate benefits of a country. For this reason, there is any justification for such a national bank if Ghana is to operate independently and be able to re-structure its economy in line with Ghana Beyond Aid strategy.
There is no doubt that the establishment of this national bank signifies long-term ambitious financing programme that seeks to gather finances for numerous sectors in the economy. The sectors include manufacturing, agriculture, agro-processing, housing sub-sectors, mortgages and Information, Communication, Technology (ICT), among others. Positive developments in these sectors are meant to generate ambitious initiatives to unlock funds in these sectors and improve domestic revenue mobilisation.
Economic growth and transformation
It is such initiatives that will propel growth and transformation in various sectors of the economy. Without such transformation, the country will remain producer of raw materials for other countries and receiver of tiny incomes from the developed countries, thereby perpetuating the status quo since independence in line with the negative ambitious objectives of the colonial master.
It is not easy to break away from this cycle of poverty, but it calls for determination and realistic programmes of development based on a transformational agenda to extricate a developing country like Ghana from the shackles of control emanating from our master-servant colonial experience. Unpleasant as it is, this fight for economic independence should have come earlier than today but none of our past leaders was able to put up this economic fight since, even if they had come to this realisation earlier on, it would not be easy to overcome these economic challenges.
Overcoming structural economic problems
Over the years, many Ghanaian scholars and politicians have been able to rightly point out the economic disparities between Ghana and other colonised countries, on one hand, and their previous colonial masters, on the other. It is a fight that is on-going and is, therefore, never too late for the right things to be done and to correct all wrong doings in the past.
If President Akufo-Addo’s administration has come to this realisation and taken up steps aim at righting all the economic wrongs, then this positive agenda ought to be supported by all the political parties, especially those who claim to be social democrats and are also seeking independence of all colonial appendages.
Right-wing party and economic development
A right-wing party like the New Patriotic Party (NPP), led by President Akufo-Addo has put in the right measures to salvage the country from its long-standing colonial appendages and make it truly independent. If this is the case, then there is no time to waste on the part of any political party but to move in quickly to support this positive agenda of transforming the national economy and making it truly independent.
At the time of independence, Kwame Nkrumah rightly declared that our independence would not have any meaning unless it was linked up with the whole of the African continent. While this is true to some extent, we should know that political independence is what was achieved and that the second phase of the battle is to struggle for our economic independence in line with Ghana Beyond Aid strategy.
If Ghana’s independence is to become realistically meaningful, then its economic independence cannot be compromised on any grounds for which reason the national development bank, with its positive agenda, must be implemented in a realistic manner for the attainment of our national aspirations which has been dwelling in us in form of “God bless our homeland Ghana, and make us great and strong”.
By Dr Kofi Amponsha-Bediako
Features
The Cop, press and lost fingers
The job of a policeman, whether he is short or tall, is not a cheap one. He is supposed to keep the peace, protect society and monitor the activities of local magicians and money doublers who are specialists in making civil servants lose their pay within seconds.
By far the most difficult job of the policeman is when he is expected to arrest a murderer who is not only armed but also has a record of appearing and disappearing at will. Even if the tough cop is in the company of other policemen all armed to the teeth, his stomach will turn to water when the criminal suddenly appears.
He is terrified not because the criminal is a better marksman, but because nobody dies twice. The problem also is that a criminal might be prepared to die in a bid to shoot his way to freedom. But is the police-man prepared to risk death in the course of duty when he has a family to rear.
If he had just acquired a new girlfriend with whom he is enjoying life, should he not run away with his tail between his legs and tell his boss that the criminal is uncatchable?
Before some policemen go on patrol duties, they actually pray solemnly. “God send me into the wilderness and bring me back safely with my nose intact because I’m worth more than a common rat. I also do not want to die like a stray dog. If a bullet is targeted at my forehead, Holy Spirit please let it go over the bar, because six children is not a small palaver. If I die, who will look after them? Lord keep me safe day by day. Amen!”
The Sikaman policeman’s job is a risky one because he is not properly equipped with even a trained dog to help track down criminals easily. So he has to use his own nose judiciously in sniffing out suspects while making sure a bullet doesn’t catch him square on the jaw.
My friend Sir Kofi Owuo, a.k.a. Death-By-Poverty was telling me journalists are in an even riskier profession. Apparently, he had been reading about the palaver of journalists in places like Algeria and Columbia. Algeria, even women journalists are not spared assassin’s bullet. You’d see them lying in front of their homes with their heads full of bullet holes.
In Columbia, no journalist is safe. When a journalist is leaving home, he has to tell his wife. “Darling, when I don’t come back by 7 p.m. check the mortuary
The drug trade in Columbia has made journalism a profession not worth practising. If you write on cocaine and the harm it is inflicting on society, you’ll certainly receive a phone call.
“Hello, Mr Journalist, your article yesterday was great. Congratulations! We never knew you were such brilliant writer, championing the cause of society. Again we say congrats! But you know something, by your article, you want to take the bread out of my and that of my family. You don’t want us to beak. We are aggrieved beyond measure”
“Oh, I was just… “You’d try to say something
“You don’t have to explain. The harm has already been done by your award-winning masterpiece. We have an appointment with you. You’ll hear from us.
Rest In Peace!” After such a phone call, you just have to pray to your soul, sing a hymn or two and get prepared fort appointment with death. For, death will surely come
I think pressmen in Sikaman would also have start informing their families appropriately before leaving for work now. “If I don’t come back early, I’m probably at the Ear, Nose and Throat Department of Korle- Bu checking a leakage in my left ear due to a gendarme slap from an AMA official. If you don’t see me there, track me down to the emergency ward. If you see a newly-made cripple, I’m the one”
What about referees? These days they are guarded during football matches so that the risk they bear in terms of lost teeth is minimal. Formerly, it used to be a job full of woes and tribulations.
You were expected to oversee a match in such way that would favour a particular team. If that is not done, you’ll get back home and your wife will not recognise you. She’ll mistake you for Frank Bruno who had just lost a bout. When she finally recognises you, she’ll fix some hot water to massage your poor face.
I hear that these days, apart from the protection referees receive, some are well-armed with Damfo Dzai, a kind of jack-knife that can carve a rowdy supporters face in several designs.
My Press Secretary and part-time bodyguard Devine Ankamah, was telling me if he happens to be a referee, he’d surely carry a Kalashnikov AK 47 rifle with him, complete with loaded magazine, before officiating matches. According to him, that is the only way to do the job without fear or favour. Anyone dares will lose his jaw.
Anyway, risky jobs require good remuneration. As Kwame Korkorti once said, risky jobs require risky salary. A policeman would require a good pay so that when a criminal targets his left ear it would be worth the ‘amputation’. Same for journalists and cameramen.
But go round private workplaces and factories and you’d see really risky occupations where workers are receiving salaries they can’t see with the naked eye.
In fact, in some private workplaces, environmental safety is completely absent. Workers breathe in fumes, poisonous gases and risk lung and respiratory problems. Their employers do nothing about protecting them against these hazards. Check out their payer.
In other places, workers have their fingers chopped off on the job, some losing as many as four fingers in stretch. The compensation they get can best be described as “wicked”. Their employers live big, chop big, ride big but are not willing to pay more than ¢120,000 for lost fingers.
Actually the more fingers you lose, the more money you get. So if you intend losing your fingers on the job, it is advisable to lose as many as possible so that you can get more cash. Those who have lost one finger have not benefited much and are encouraged to lose more next time around.
Sikaman Palava is undertaking to investigate some of these cases of very risky jobs in private setups and companies where workers are being exploited to unnecessarily but not offered protection against health hazards, and not properly compensated when they sustain injuries.
This article was first published on Saturday, September 28, 1996
Features
Position yourself for God’s blessings
Motivated by the impending 40-day fasting and needless to add prayer programme, preceding the Greater Works Conference scheduled for August in Accra, I would like to draw attention to how believers can receive blessings from God.
There is a scripture in Hebrews 11:5 that “By faith Enoch was translated that he should not see death; and was not found, because God had translated him: and before his translation, he had this testimony that he pleased God”.
This clearly shows that in order to receive blessings from God, you must please God. How can one please God? You can only please God by obeying him and walking in line with God’s word. Just like how children who obey their parents, enjoy special treatment, so does God deal with his children who obey his word.
There are ways by which people receive blessings from God and holiness is an important criteria in the whole equation. Holiness is a process and not a one day event.
It is a mindset borne out of walking in obedience to God’s instructions i.e. his word. In order to have a mindset of living to please God, requires studying God’s word coupled with praying and fasting.
This helps us to develop trust in God by knowing his nature, what he likes and dislikes. This is what will enable us to live to please him and for our faith in him also to increase.
The Bible says in Hebrews 11:6 that “But without faith it is impossible to please him: for he that cometh to God must believe that he is, and that he is a rewarder of them that diligently seek him”
Fasting is one of the required criteria for blessings to be released and it goes with prayer because fasting without prayer is just a physical exercise. Fasting enables a person’s inner man to be in tune with the spirit of God and also becomes spiritually empowered to hear from God and also obey God.
Fasting enables a person’s spirit to feed on God’s word in a much more focused manner as compared to studying God’s word in normal times. As a result our spirit gains the upper hand to dominate the body and the soul, so that we are more conscious of the presence of God in our lives which causes us willingly the desire to live to obey God.
Holiness which is a prerequisite for pleasing God, can only manifest in our lives if we are able to overcome the desires of the flesh and this only happens when the flesh is subject to the spirit.
Apostle Paul said that “But l keep under my body, and bring it into subjection: lest that by any means when I have preached to others, I myself should not be castaway”, according to 1 Corinthians 9:27.
In order to bring the body or flesh into subjection so that believers will be able to live to please God, we have to study, God’s word in a certain state of mind which fasting and prayer appropriately provides.
Our minds are the battle grounds for decisions that either please God or the Devil. In order to please God so his blessings can be released upon our lives, we must continuously engage our minds with thoughts that is in line with God’s word.
Philippians 4:8 says that “Finally Brethren whatsoever things are true, whatsoever things are honest, whatsoever things are just, whatsoever things are pure, whatsoever things are lovely, whatsoever things are of good report; if there be any virtue and if there be any praise, think on these things”. May God help us to live to please him by meditating on things that please the Lord, so we shall be blessed in all aspects of our lives. God bless.
NB: ‘CHANGE KOTOKA INTERNATIONAL AIRPORT TO KOFI BAAKO INTERNATIONAL AIRPORT’
By Laud Kissi-Mensah
