The history of the Bank can be traced to the end of the Second World War. Agitations from the indigenes against foreign imports led to a general boycott by the local population led by Association of West African Merchants (AWAM). The colonial administration decided to establish an entity that would facilitate the involvement of private indigenous persons in business. The Gold Coast Industrial Development Corporation (GCIDC) was therefore established in 1952 with budgetary appropriations to enable it provide financial support to the indigenes for the establishment of their own businesses.
The Gold Coast Industrial Development Corporation (GCIDC), encouraged entrepreneurship among the indigenes in the areas of furniture making and baking. This intervention helped to develop the skills of the local carpenters and bakers in the use of mechanized saw mills and electric bakeries. In addition GCIDC also upgraded the skills of people who were using manual labour in washing to mechanized laundry since the Gold Coast intelligentsias had to send their suits to the United Kingdom to be laundered.
Purpose and Role
After independence, the GCIDC became known as the Ghana Industrial Corporation (GIDC) with the Government of Ghana as the controlling body. The government transformed the GIDC into the National Investment Bank (NIB) by an act of Parliament (Act 163). The NIB was incorporated as an autonomous joint state-private institution on March 22, 1963. It was established primarily to promote and strengthen rapid industrialization in all sectors of the Ghanaian economy. NIB was therefore the first development bank in Ghana.
The Act also enabled, NIB to set up joint ventures because the Ghanaian manufacturers or the private sector did not have the required funding for start-ups. NIB on the other hand could lend to enterprises and put in equity. NIB set up over 100 joint enterprises including some of the defunct regional development corporations. Most of the major existing industries including Nestle Ghana Limited, Novotel, Kabel Metal, Aluworks benefited from NIBâ€™s equity participation or funding.
Development of Competitor Banks
NIB’s support to the agro-processing industry, in 1965, the Agricultural Department of NIB was transformed into the Agricultural Development Bank. As a result of its expanding services to the corporate sector, NIB saw the need for a specialized banking and set up a Merchant Bank to concentrate on trade finance. The now defunct Merchant Bank was a joint venture with NIB.
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P.O. Box 3726
Accra, Greater Accra Region
Tel: Tel: 233 21 240001-18
Cables & Telegrams: “INVESTBANK ACCRA”
Telex: 233 21 2161 (NIB) GH/2481 (NIB) GH
Fax: 233 21 240034/673124
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