Amin Adam questions feasibility of Women’s Development Bank

Concerns have been raised regarding the government’s proposal to establish a Women’s Development Bank, with questions surrounding its financial viability and the adequacy of the allocated funding.

During an interview on Channel One TV, Dr. Mohammed Amin Adam, former Finance Minister, expressed doubts about the practicality of the proposal given the current budget allocation.

Dr. Adam pointed out a major discrepancy between the government’s proposed funding of GHS51 million and the minimum capital required to set up a sustainable bank, which is typically around GHS400 million for universal banks.

He further explained that development finance institutions, like the proposed Women’s Development Bank, generally require a capital threshold between GHS600 million and GHS1.2 billion to function effectively.

While recognizing the intent behind the initiative to empower women economically, Dr. Adam emphasized that the current funding allocation is grossly insufficient for such an undertaking.

He argued that without the necessary financial resources, the proposal seems unlikely to succeed and may be seen as misleading.