Spio-Garbrah urges banks to fund export companies
The Minister of Trade and Industry, Mr Ekwow Spio-Garbrah, has appealed to banks in the country to complement government’s efforts by revising their financing strategies to support export-oriented companies.
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According to him, while the government had established the Ghana Export-Import Bank (Ghana EXIM) Bank to provide financial support to exporters and also provide credit facilities for the importation of goods or services for use in the manufacture of export goods, the banks could lessen the financial burden of export-oriented companies by reducing their lending rates as a way of supporting the growth of the sector.
In a speech read on his behalf at an Exporters Breakfast Forum, organised by the National Investment Bank (NIB) in partnership with the Ghana Export Promotion Authority (GEPA) in Accra last Wednesday, Mr Spio-Garbrah indicated that export, as a key driver of every nation’s economic development, could not be overemphasised.
The forum, held on the theme: “Improving the Business of Non-Traditional Exporters for Economic Growth”, was attended by representatives from export companies.
The programme, which is the first of its kind by NIB, was aimed at establishing partnerships with various stakeholders in the export trade facilitation processes, as well as finding solutions to the export financing challenges.
“Ghanaian businesses deserve to have access to financial credit from banks at much lower interest rates”, the minister said.
Challenges
He said challenges with technology, quality issues and finance had overburdened the export companies, making it difficult for them to fully outlive their potentials.
He also commended the NIB for taking a lead role in export financing and thus asked players in the financial sector to diversify their portfolio as a way of contributing to the country’s overall economic transformation.
“Don’t focus your energies in funding the formal sector alone. There is a huge market out there in the export sector and if you can help individuals and companies to come out with best accounting practices, it will afford you the opportunity to recoup the investments you made in the sector,” Mr Spio-Garbrah emphasised.
He also announced that the implementation of the national export strategy would take off in the ensuing months.
“Structures have been put in place to commence the implementation which will be coordinated by the GEPA. I am hopeful the various stakeholders will assist in realising the $5 billion target by the 2020 deadline,” Mr Spio-Garbrah added.