EDIF poised to provide more funds to export sector

Accra, Oct. 16, GNA - The Export Development and Investment Fund (EDIF) with a current fund size of 700 billion cedis and 547 billion cedis disbursement so far since 2000, should provide more credit to the Non-Traditional Export Products Sector.

Mr Alan Kyeremanten, Minister of Trade, Industry and President's Special Initiative tasked the new EDIF Board of Directors reconstituted by the President John Agyekum Kufuor, when he inaugurated it in Accra on Monday.

EDIF was born in 2000 to provide financial resources on concessionary terms for the development and promotion of exports. It has a recovery rate of about 80 per cent.

Mr Kyeremanten said the Government had projected to earn one billion dollars as revenue from the export of non-traditional exports by 2007; a figure which would outstrip that from cocoa currently.

This, he said, could only happen if the country diversified its export base and reduced the over reliance on a few traditional exports, such as cocoa and gold.

Mr Kyeremanten noted that it was revenue earned from exports that underpinned the strength of the local currency, since it provided funding for imports, which were critical for vital development expenditure.

He said the optimization of the production capacity and ability to compete in the global market would all be possible through export development but its growth was hampered by factors such as lack of finance and high cost of credit.

Of the 547 billion cedis disbursed in the Non-Traditional Export Sector, 450 million cedis were released as credit while 97 billion cedis was given out in the form of grants to support product development and promotional activities.

Dr Anthony Osei, a Business Executive, chairs the 12-Member Board.