Importers and exporters in the country have expressed fear the newly launched Exim Bank Ghana will disappoint in delivering on its core mandate, just like the Agricultural Development Bank.
Finance Minister, Seth Terkper, explained at the launch of the Bank that it would offer considerable support to the private sector and other state enterprises whose operations are linked to export and import.
But players in the sector have cast doubt about that, and are using the ADB, which they said has veered off its primary objective of supporting the agricultural sector, as a guage.
“The launch of EximBank is good news. But we always learn from our history. Agricultural Development Bank (ADB) was launched to give leverage to the agricultural sector. But what do we see now? They have geared off and are now plying their businesses just like other commercial banks,” a member of the Importers and Exporters Association of Ghana, Asaki Awingobit said.
Export development finance institution, EximBank Ghana, seeks to boost government’s quest for an aggressive and sustainable export-led economy.
The launch of Ghana’s Exim Bank makes the country a part of a group of developing and developed countries that rely on EXIM banks to mop up long term and stable capital to support both private and state-owned exports companies.
The facility will offer long term capital, export insurance and financial consultative services for businesses in the export industry.
The EximBank has long been touted by economists and business minded think-tanks as the surest relief package whose effective operation could tackle the issue of lack of access to finance stifling the growth of firms in export and import business.
The establishment of the bank is expected to improve the country’s export competitiveness, to rake in much needed foreign exchange and improve balance of trade.
But Asaki Awingobit who says holds a contrary view said: “Before the formation of EximBAnk it was called the EDAIF fund. Ask yourself how well did the EDAIF fund do. It could not realize its objectivity. It has now been changed to EximBank”
Philip Abayore president of Ghana Agric Chamber of Commerce wants the Exim Bank to be fair to all.
“We hope that the EximBank will give funds to deserving and devoid of preferential treatment. We are looking forward for an EximBank which is independent”
Parliament passed the Ghana Export-Import Bank Act in the first quarter of this year, and was followed by the swearing in of a board of directors in July.
With total imports outstripping total exports for more than three decades, Ghana’s total exports as at December 2015 rose to US$10.36billion as against an import of 13.47billion dollars
This resulted in a total deficit of 3.11billion dollars, representing 8.3percent of GDP, a situation government said it is determined to overturn.
In August 2016, the nation’s total exports stood at US$6.79billion, whiles imports stood at US$8.78billion, leading to a total deficit of US$1.98billion, which represents 4.6percent of GDP.
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