DBSA identifies Ghana as key in building Africa’s prosperity

The Development Bank of Southern Africa (DBSA) has identified Ghana as one of the key investment nodes in the continent.

Speaking at their maiden Investment summit in Accra, Luluma Xingwana, South African High Commissioner to Ghana, stated that South Africa regards Ghana as a strategic partner on the continent due to our shared values of democracy, good governance, the rule of law and respect for human rights.

“We have chosen Ghana because there are opportunities for growth and development in the country; but also because Ghana is also one of the most stable democracies on the continent, and therefore South Africa finds it easier to do business in Ghana,” she said.

She further added that South Africa has been a key development partner in Ghana, as evidenced by the number of South African companies which have invested in the country.

Referring to the African Free Trade Continental Area (AFTCA), the Ambassador bemoaned the fact that with about just 15% of African countries trading with each other, the AfCFTA has the potential to raise intra- Africa trade by 15-25% – thus the need for our countries to partner and find innovative solutions to their own challenges, and effectively reap the benefits of the free trade.

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Also, addressing participants at the summit, Mdu Dlamini – Head of Coverage: Financial Institutions and at DBSA, said that Ghana is the second-fastest growing economy on the continent, driven largely by the oil, gas and mining industries which all require urgent and significant infrastructure development. Hence, the need for this partnership.

“We are honoured to have gained such a wealth of insight and networks through this Summit. As one of the leading Development Finance Institutions (DFIs) on the continent, we will turn this knowledge into tailored financial solutions for socio-economic development impact in Ghana and the rest of our continent,” he said.

He stated that the DBSA has already funded a number of key infrastructure projects in the country. These include the US$55.6million development of Terminal Three at Kotoka International Airport, which created more than 760 jobs during the construction phase with a further 900 permanent jobs expected over the next few years. “The project will create a 5,000,000 capacity for the airport over the next 15 years,” he added.

He also noted that another key investment is the US$53million Cenpower project, which will be commissioned this year.

“At full operation, the project will contribute 30% capacity to the national electricity grid,” he said.

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In the last 18 months, the DBSA has approved an additional investment of US$200million toward energy infrastructure in Ghana. These include Genser Ghana Limited (US$100million), which is an Independent Power Producer (IPP) supplying power to the gold mining sector; and Tema Liquefied Natural Gas (LNG) Terminal (US$61million) and Early Power Limited (US$35million) which supply re-gasified LNG and power in the Tema power enclave respectively.

The investment summit was held to assess and gain a deeper understanding of the country’s infrastructure development and financing needs. Public and private sector stakeholders from various countries attended the summit.

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