Business News of Thursday, 18 August 2016
Finance Minister, Seth Terkper has intensified lobbying for private sector businesses to enroll onto the Ghana Export and Import [Exim] bank and promote the country’s exports market.
“I would want to entreat the private sector to partner with government in these institutions, it is true that the State Owned Enterprises will benefit but I think we can be part of changing all these institutions for investment and trade,” the Minister appealed.
Citing the growth witnessed by the country’s cocoa sector with the Ghana COCOBOD adopting strategies to attract investments for the purchase of cocoa beans since 1994, Seth Terkper was hopeful of the prospects of Ghana’s exports with a boost in patronage of the Exim bank targeted at exports.
“We can learn from this model [adopted by the COCOBOD] and from Exim bank practices elsewhere; escrow the export earnings for our private sector who are exporters and through the process, bundle all these earnings together and borrow from the international market at competitive rates.”
Meanwhile the Finance Minister has announced plans by government to re-strategize the Exim bank to enable exporters accrue enough funds and borrow from the international market for expansion.
The Ghana EXIM bank is mandated to support and develop direct and indirect trade between Ghana and other countries by building the capacity and competitiveness of Ghanaian importers and exporters.
The bank would also bridge the imbalances that had over the years, been registered in the trade and infrastructural development.
Reiterating the need for private sector participation, Seth Terkper maintained the move will leverage Ghana’s quest to become a middle income country.
“As we become a middle income country I think we need to also develop these schemes,” he further remarked.
The aim of establishing the Ghana Exim Bank is to create an institution that consolidates past efforts and becomes the key engine for developing Ghana’s exports sector.
The bank, which is to be a non-deposit-taking institution, will assist exporters to compete internationally by providing insurance and financial facilities in support of their activities.