Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Ghana consolidates export supportTuesday, March 08, 2016 > 14:11:57
(Global Trade Review)
The Ghanaian parliament has approved the merging of existing institutions into one Export-Import Bank to better support the country’s transition to an export-led economy.
The government is expected to appoint a transaction advisor to guide the integration of Export Finance Company Limited (EFCL), Eximguaranty Company Limited (ECL) and Export Development and Agricultural Investment Fund (EDAIF), into Ghana Exim.
“Ghana’s export financing institutions have not been able to make a meaningful impact on the export sector because of poor capitalisation and a vague definition of their mandates,” says finance minister Seth Terkper as to explain the consolidation decision.
The bank will be regulated through the ministry of finance, a proposal that caused a lively debate in the country’s parliament, with some arguing that the Eximbank should be put under the Bank of Ghana like any other banking institutions.
Based on the model of other export-import banks, like US Exim, the new entity will instead operate as a quasi-government institution and act as an intermediary between the government and exporters to issue export financing. It will also function as a non-deposit bank and provide exporters with insurance and finance facilities to support their overseas activities.