The Development Bank Ghana (DBG) is preparing to support at least two textile projects by approving and disbursing credit before the end of 2026.

The projects are among five that have emerged from a dedicated textile sector deal room created by DBG and its development partners.

DBG Chief Executive Officer, Prof Randolph Nsor-Ambala, said the five projects have already been presented to various participating financial institutions for consideration.

“As we speak, we have currently road-showed five of those projects that came out of that deal room across various participating financial institutions, and they’re at the various levels of approval,” he said.

“My sense of it is that before the end of the year, at least about two of them would have received credit approval and then disbursement.”

Prof Nsor-Ambala said textiles is one of DBG’s priority areas under manufacturing.

He said the bank is focused on textiles, pharmaceuticals and energy transition as key areas within its manufacturing mandate.

The CEO said DBG’s support goes beyond providing credit.

It is also working on market development, capacity building, technical assistance and policy advocacy to address constraints within the sector.

DBG signed a three-year Memorandum of Understanding with the Association of Ghana Industries specifically to support the textile sector.

The agreement includes financing for textile businesses, market development and technical assistance to help businesses develop investor-ready projects.

Prof Nsor-Ambala said the bank’s interventions have also contributed to policy changes affecting the sector.

He said concerns raised during a textile sector roundtable organised by DBG included delays in the textiles and garment policy.

“Based on policy advocacy initiatives that we participated in, that policy has now been signed and approved by Parliament,” he said.

DBG has also worked with partners, including GIZ, Palladium, and JET, to strengthen capacity in the sector.

Prof Nsor-Ambala said the bank recently supported training involving international experts and subsequently established a deal room with GIZ and Palladium.

The initiative is helping identify projects that can attract financing but require further preparation.

He said a nationwide feasibility study into the textile sector has also been undertaken with support from KfW.

The study identified challenges facing the industry and bankable projects held back by specific constraints.

“As we speak, we are working with those businesses with a timeline of up to the end of November to make them investor-ready and then help them through our participating financial institutions to receive adequate funding.”

Prof Nsor-Ambala said DBG’s broader strategy is to provide value-chain solutions rather than simply lines of credit.

He said the bank also prioritises youth-led and women-owned businesses and seeks to extend investments beyond Greater Accra.

“Currently, about 40% of our investments, or a little bit above 40% of our investments, are into hard-to-reach areas that are outside Greater Accra or what you call the Golden Triangle.”

The CEO said development partners remain critical to DBG’s financing model.

“They have predominantly put their cash on the table. They have put their technical agility and technical expertise on the table. They’ve put their man-hours on the table.”

He said their support has been instrumental in addressing market failures and binding constraints within DBG’s mandate areas.