Accra, September 15, 2017//-Zenith Bank Ghana Limited has allocated US$50million to support the development of railways within the One District, One Factory programme initiated by the government.
The Managing Director of the bank, Henry Oroh, who disclosed this to journalists at a media interaction in Accra, explained the bank is working in collaboration with International Finance Corporation (IFC) and the World Bank to make $50 million available to support the rail sector.
The US$50 million-dollar facility would be used to support predominantly SMEs in the manufacturing sector within the railway industry, according to him.
Mr. Oroh added that the bank believes the policy initiative is workable and achievable in fostering economic development and, therefore, requires active stakeholder participation.
“The World Bank money is not free; it is a commercial loan but the beauty of the World Bank loan is that, it offers an endorsement of the management of the bank, our quality and corporate governance. We know they don’t deal with so many banks in Ghana and we are probably one of the very few they are dealing with,” he told the journalists.
Mr Oroh therefore encouraged manufacturing companies to take the advantage to access the facility at ‘privileged rates’, meaning beneficiary companies would have slightly improved conditions than the bank’s standard pricing.
Upon assumption of office, President Akufo-Addo, created the new Ministry of Railway Development to carry out hi promise of improving the railway network which he believes is the key to transforming the country’s economy.
The restructuring project would start with the reconstruction of the railways along the Eastern and Western lines. The entire project is estimated to cost US$21billion. Already parliament has approved a GH¢500million budget for the ministry.
As part of works to revamp the sector, the Ministry disclosed that the government is in the process of reviewing the Railways Act 2008, (Act 779) to separate the regulatory function of the Ghana Railway Development Authority (GRDA) from its mandate of improving railway assets and promoting the development and management of sub-urban railway.
Currently, the West African country rail network stands at about 947 kilometres. It is also faced with an obsolete network and poor track infrastructure, leading to the closure of greater part of the Western and Eastern lines and the entire Central line in the country.
African Eye Report
