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NIB and ADB to merge?

The Finance Minister, Ken Ofori-Atta, said that a merger of the two publicly owned banks could help create a development-oriented bank that can then finance the government's vision of transforming the economy through increased investments in agriculture and industrialisation.

The Finance Minister, Ken Ofori-Atta, has hinted that the National Investment Bank (NIB) and Agricultural Development Bank (ADB) could merge to form the National Development Bank which was announced in the 2018 budget.

He was speaking at a post-budget forum held on Wednesday (November 22, 2017).

He said that a merger of the two publicly owned banks could help create a development-oriented bank that can then finance the government's vision of transforming the economy through increased investments in agriculture and industrialisation.

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"We could also look at a possible merger between the NIB and ADB into the National Development Bank to actually finance development through agriculture and industry.”

He said the successful establishment of the new bank would help in the realisation of the government's agenda to create a 'Ghana Beyond Aid.'

If this merger happens, some have said it will only be a reunion since ADB was carved out of NIB's agricultural department.

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Sources have said that the government is considering a recapitalisation of the proposed development bank to the tune of GHS1 billion to GHS2 billion.

The bank will then serve as a source of patient, low cost and long-term capital to businesses in the agricultural and industrial sector, where investments are mostly long-term and capital intensive.

The minister said the government was also looking at setting up about "four to five big local banks" that can support economic transformation.

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