Beyond the ledger: Why GEXIM and DBG must learn from NIB for 24-Hour Economy

Ghana does not need to reinvent the wheel of development finance, rather it simply needs to remember how the wheel was first greased.

In the 1970s, the National Investment Bank (NIB) made a decision that seemed quiet at the time but proved visionary: it moved beyond being a mere lender and became an owner. By taking an early equity stake in Nestlé Ghana, NIB planted a seed that would eventually save the forest. Decades later, when NIB faced the howling winds of financial instability, it didn’t collapse. It survived by liquidating a portion of those very shares it acquired.

That wasn’t a bailout. It was the fruit of patient capital.

Today, the Ghana Export-Import Bank (GEXIM) and Development Bank Ghana stand at a similar crossroads. As the nation pivots toward a 24-Hour Economy, the banks face a fundamental choice: Will they remain a passive spectator collecting interest, or will they become a partner in production?

The Debt Trap: Why Loans Alone Aren’t Enough

For too long, the Ghanaian developmental model has relied on the “loan-only” approach. While credit is vital, it is often a heavy anchor for a startup industry.

The Maturity Gap: Manufacturing and agro-processing—the backbones of the 24-hour vision—are capital-intensive. They require years to scale. High-interest debt often chokes these businesses before they ever reach a second shift, let alone a midnight one.

The Risk Mismatch: When a business fails, the bank loses its principal. When it succeeds wildly, the bank only gets its interest. The “upside” of national growth remains trapped in private hands, while the “downside” risk stays on the public balance sheet.

The NIB Blueprint: Three Lessons for GEXIM AND DBG

The NIB-Nestlé miracle worked because it followed a logic that modern finance often ignores:

Aligned Incentives: Ownership means GEXIM’s and DBG’s success is tied to the factory’s output, not just its ability to meet a monthly deadline.

Institutional Shock Absorbers: As NIB proved, equity is a liquid asset. It builds a “war chest” that allows the bank to survive economic downturns without begging the taxpayer for recapitalization.

National Wealth Creation: Equity allows the state to retain a share of the value created by its own interventions, ensuring that “national champions” remain, at least in part, national.

Fueling the 24-Hour Economy

The “24-Hour Economy” is more than a policy shift; it is an infrastructure challenge. To keep factories humming at 3:00 AM, you need more than a bank statement. You need guaranteed raw material supply chains, optimised logistics, and secured off-take agreements.

By taking strategic minority equity stakes, GEXIM Bank and DBG transform from a debt collector into an Industrial Architect. It can:

Directly Fund Raw Materials: Ensuring the processing plant never runs out of maize or cocoa.

Operational Oversight: Using its seat on the board to ensure efficiency and transparency.

Crowding-In Capital: Signaling to private investors and the diaspora that the project is “de-risked” because the state has “skin in the game.”

The Numbers Speak: A Case for Diversification

To understand the urgency, one only needs to look at the historical performance of development finance institutions (DFIs) globally compared to local trends:

“Loans expire. Equity endures.”

Conclusion: From Banker to Builder

Development finance should not just be about recovering money; it should be about creating value that outlasts the person who signed the check.

NIB survived because it invested in real businesses and waited. GEXIM Bank and DBG have  the opportunity to do even more. By adopting an equity-led strategy, Both banks can move from being a lender of last resort to a builder of first-class industries. A 24-Hour Economy cannot be sustained on short term funding.

Ghana has shown it can build titans before. It’s time to stop lending to the future and start owning it.