By Kofi Ahovi
A draft copy of the bill to amend the operations of Export Development and Investment Fund (EDIF) has been completed by the Ministry of Trade and Industry, in consultation with stakeholders, Business week has gathered.
The bill, after scrutiny by Cabinet, would be presented to parliament for consideration.
The passage of the bill will offer EDIF, which is seeking to operate as a non bank financial institution (NBFI), the free hand to operate to overcome the difficulties it encounters in funding Ghanaian exporters.
After the amendment of the law, a consultant would be appointed to work on the modalities that would enable EDIF function as NBFI. Some consultants have already submitted proposals to the ministry to that effect.
The law, when amended, would enable the fund to operate independently in funding and retrieving its monies to exporters without the help of banks and other financial institutions.
One of the challenges EDIF faces is the competition that its loans pose to that of the regular banks’ export products, hence the unwillingness of the banks to give out EDIF funds to the public.
The main thrust of government’s foreign trade policy has been the promotion of private sector-led export development. It was considered that the policy would offer the country substantial increase in foreign exchange receipts and appreciable opportunity for growth.
The fund’s mission is to enhance economic growth of Ghana by the provision of funds on concessionary terms for the development and promotion of the country’s exports.
The fund also gives grants to strengthen public/private sector institutions and associations which provide services to the export sector to facilitate their work.
As such the fund has two facilities, Export Development and Promotion Facility (EDPF) and the Credit Facility (CF), which can be accessed for financial assistance.
EDIF was established by Act 582 in October 2000 to provide financial resources for the development and promotion of the export trade of Ghana. Operation of the fund however started in July 2001 with the appointment of a chief executive, inauguration of a 13 member board and the establishment of a secretariat to manage the fund.
A draft copy of the bill to amend the operations of Export Development and Investment Fund (EDIF) has been completed by the Ministry of Trade and Industry, in consultation with stakeholders, Business week has gathered.
The bill, after scrutiny by Cabinet, would be presented to parliament for consideration.
The passage of the bill will offer EDIF, which is seeking to operate as a non bank financial institution (NBFI), the free hand to operate to overcome the difficulties it encounters in funding Ghanaian exporters.
After the amendment of the law, a consultant would be appointed to work on the modalities that would enable EDIF function as NBFI. Some consultants have already submitted proposals to the ministry to that effect.
The law, when amended, would enable the fund to operate independently in funding and retrieving its monies to exporters without the help of banks and other financial institutions.
One of the challenges EDIF faces is the competition that its loans pose to that of the regular banks’ export products, hence the unwillingness of the banks to give out EDIF funds to the public.
The main thrust of government’s foreign trade policy has been the promotion of private sector-led export development. It was considered that the policy would offer the country substantial increase in foreign exchange receipts and appreciable opportunity for growth.
The fund’s mission is to enhance economic growth of Ghana by the provision of funds on concessionary terms for the development and promotion of the country’s exports.
The fund also gives grants to strengthen public/private sector institutions and associations which provide services to the export sector to facilitate their work.
As such the fund has two facilities, Export Development and Promotion Facility (EDPF) and the Credit Facility (CF), which can be accessed for financial assistance.
EDIF was established by Act 582 in October 2000 to provide financial resources for the development and promotion of the export trade of Ghana. Operation of the fund however started in July 2001 with the appointment of a chief executive, inauguration of a 13 member board and the establishment of a secretariat to manage the fund.
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