The Ministry of Finance and Economic Planning has appealed to the African Development Bank (AfDB) to provide adequate logistics to development financial institutions (DFIs) in order to facilitate the financing of long term projects.
According to the Chief Director at the Ministry of Finance and Economic Planning, Nana Juabeng Siriboe Boateng, since governments have only four years in office, coupled with scarce financial resources, it may not be able to finance long term projects, thus development banks should be well capacitated to provide long term funding needed for industrial growth.
Giving a remark at the opening of the ongoing 2007 annual forum of the Association of Development Finance Institutions (AADFI) for Chief Executive Officers in African Development Banking and Financial Institutions being hosted by the National Investment Bank, Nana Siriboe Boateng said the standards and guidelines for DFIs need to be clearly defined and specified, paving way for the supervisory Central Banks to ensure that their roles and functions are in accordance with the objectives for which they were established.
The standards and guidelines should take into account the fact that DFIs are expected to serve the public purpose and also ensure that DFIs policies and objectives are consistent with government initiatives, he added.
He said all the bottlenecks in implementation of the guidelines should be identified early so that FDIs across the African continent gain a reputation in corporate governance.
The Chief Director also called on the AfDB to investigate and find out if some DFIs have strayed away from their functions.
Though the enhancement of commercial banking activities for profitability is not bad, it has led to the point where some banks originally established as DFI's have lost focus, he added.
Government believes profit making should not be the only motive of development banks at the expense of the overall development of the nation, he noted.
The Managing Director of the host bank, the National Investment Bank, Daniel Gyimah said the Association of African Development Financial Institutions will further deliberate on the document proposed by the World Bank, the African Development Bank and the International Finance Corporation (IFC) on the extermination of DFIs.
By Charles Nixon Yeboah