Business News of Tuesday, 10 October 2017
Exporters who do not register with the Ghana Export Promotion Authority(GEPA) risk losing financing from the EXIM Bank, the CEO of Exim bank, Lawrence Agyensem.
The Bank was set up by an Act of Parliament, Act 911, in 2016 to help support and develop directly or indirectly trade between Ghana and other countries and build the country’s capacity and competitiveness on the international market place. The bank also provides credit facilities to exporters to enhance trade and investment opportunities.
According to Mr. Agyensem, exporters will perform better once they are registered with the Ghana Export Promotion Authority, hence must register with them to enable them get financing from the EXIM Bank.
“There can never be a manufacturing industry or company without the raw material base, it is for this reason that I encourage all of you sitting here that if you want EXIM Bank to support and finance you, if you want to become a major player in the export economy that we all desire to have, then you must register and go through Ghana Export Authority”, he urged exporters.
Meanwhile, Deputy Minister for Trade and Industry, Carlos Ahenkorah assured that the ministry will work to ensure that exporters will no longer need collateral to secure loans from EXIM Bank.
“If you get a request to ship two containers of produce to India for example, ask your buyer to send an LC, open a letter of credit through EXIM Bank or an irrevocable confirmed letter of credit. EXIM Bank is going to take this as a collateral and advance probably half of whatever amount there is in the LC for you to carry out your export business”.
He added, “Here all EXIM Bank needs to do is to give you close monitoring to ensure that the export business is actually carried out, once you send the documents to EXIM Bank for them to send to your buyer the money will automatically come to EXIM Bank first, so they take their money and give you your balance”.
Mr. Ahenkorah was optimistic that the move will greatly enhance the operations of exporters.