Beyond the Ledger: Why GEXIM and DBG Must Learn from NIB to Power Ghana’s 24-Hour Economy
Introduction
Ghana’s ambitious pivot to a 24-Hour Economy represents a transformative vision for sustained industrial productivity, economic resilience, and job creation. At the heart of this vision lie two critical institutions: the Ghana Export-Import Bank (GEXIM) and the Development Bank Ghana (DBG). As the nation’s primary development finance institutions (DFIs), their traditional role has centered on providing debt financing. However, a profound lesson from history suggests this model is insufficient for the capital-intensive, long-gestation projects that define round-the-clock manufacturing and agro-processing. This article argues that for the 24-Hour Economy to thrive, GEXIM and DBG must evolve from passive lenders into active equity partners, following the pioneering blueprint of the National Investment Bank (NIB). By embracing strategic minority equity stakes, these banks can align incentives, build institutional resilience, and ensure that the wealth generated from national projects remains partially Ghanaian. This shift is not merely financial—it is a strategic imperative for sustainable industrial policy.
Key Points
- The loan-only model creates a maturity gap and risk mismatch that stifles long-term industrial ventures like 24-hour manufacturing.
- NIB’s historic equity investment in Nestlé Ghana in the 1970s provided patient capital, aligned interests, and ultimately a financial lifeline during economic crises.
- Equity investment allows DFIs to become “Industrial Architects,” ensuring operational oversight, supply chain security, and crowding-in private capital.
- An equity/hybrid model promotes self-sustainability for DFIs through dividends and exits, reducing dependence on taxpayer recapitalization.
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