|
EDIF approves GH˘70 million plus
loans for export trade development
Accra, July 29, GNA – Export Development Investment Fund (EDIF),
which was set up to provide financial resources for the
development and promotion of export trade, says it has
approved loans of GH˘73.8 million to exporters and producers
of export goods over the six years of its existence.
Speaking at a forum organized by the Ghanaian-German
Economic Association on Financing the Private Sector, Mr.
Kwabena Nkrumah, Acting Chief Executive of the Fund, said
the beneficiaries of its funds were the private sector.
He said an additional GH˘23.19 million was also spent within
the same period to facilitate export development and
promotion with 40 per cent of the resources going to the
private sector while the research institutions which
provided support to exporters took the rest.
Mr Nkrumah said both existing and new businesses qualified
for EDIF assistance. To benefit from the Fund, companies or
enterprises must be wholly Ghanaian owned or partly owned
but with Ghanaian majority shareholding.
He said a major attraction of the EDIF facility was the low
interest rate on its loans, which was deliberate to enhance
the competitiveness of the country’s goods on the export
market. Current interest on EDIF facilities is 12.5 per
cent.
Mr. Nkrumah called on entrepreneurs to take advantage of the
fund to expand their businesses.
Other speakers at the forum advised the entrepreneurs to
explore various financing options instead of total reliance
on banks for credit.
They argued that there were currently various opportunities
for businesses to explore to engender long-term growth of
their businesses.
Mr Andy Ojei, Managing Director of Zenith Bank Ghana
Limited, said while the banks could help, the capital market
would remain one of the most convenient and affordable
sources of long-term funding.
He said between 2005 and 2007 about seven companies, which
were listed on the Ghana Stock Exchange, jointly raised
about GH˘ 90m in Initial Public Offers.
Over the past two years, the market has been successful in
raising additional equity to listed companies in rights
issues with Ghana Commercial Bank, HFC Bank and Super Paper
Products Company. These jointly raised approximately GH˘ 57
million.
Entrepreneurs, he said, could also look up to mergers and
acquisitions by pooling together resources - technical,
managerial and financial – to ensure attainment of set goals
due to synergy.
Mr Alhassan Andani, Managing Director Stanbic Bank, said
there was the need for balance between the proportion of
investments going to the public sector and the private
sector.
He said banks and other sources of finances would be able to
meet entrepreneurs’ expectations for funds only when they
had a clear compelling and institutionalised business vision
to deliver outcomes.
There is also need to establish rules, regulations, ethics
and governance principles to sustain business into the
future.
He said the agriculture sector was still not getting a fair
share of credit because of structural rigidities in the
sector.
GNA
|
