It is emerging that the Ghana Exim Bank is yet to make any disbursement to exporters almost two years after its establishment.
Some exporters who have been speaking to Citi Business News have attributed the development to the virtual absence of a Board for a greater part of the year .
This is also coupled with the absence of a clear plan to guide potential businesses who may have to benefit from the facility.
According to the 2nd Vice President of the Federation of Association of Ghanaian Exporters (FAGE), Frederick Ayeh, the issue has largely accounted for the country’s relatively low volumes of non-traditional exports.
“Even though it’s been two years now since it was established, they have not been operating because management has not set the formalities with which it will operate. All the modalities will have to be outlined and that will also have to be thought through so that the client will know the clear policies,” he lamented.
The Ghana EXIM Bank was established in 2016.
It followed the collapsing of the Export Trade, Agricultural and Industrial Development Fund (EDAIF), the Export Finance Company Limited (EFCL) and the Eximguaranty Company Ghana Limited (ECL) into the new bank.
The Ghana EXIM Bank is mandated to offer credit at a lower rate to importers and exporters to improve their operation and make them competitive on the international market.
The move is also to increase Ghana’s non-traditional exports as government plans to reduce its imports.
Mr. Ayeh further maintained that exporters of the non-traditional products also shy away from seeking financial assistance from commercial banks due to the high interest rates and risk of inability to repay the loans.
As a result, most exporters have been compelled to rely on personal savings and the ploughing back of profits made on previous exports.
“We are recording lower volumes for the non-traditional exports because we the exporters do not visit the commercial banks’ because they charge very high interest rates. We just rely on our individual resource mobilization. Even though the non -traditional exports are to augment the traditional exports, these developments have contributed to the low figures,” he added.
Source: Citi Business News