Ghana to record $819million trade deficit

Ghana is expected to record a trade deficit of 819 million dollars this year, Mr. Boniface Abu-Bakar Sadique, Deputy Minster of Trade and Industry, has said.

Speaking at the launching in Accra of Export Credit Protection facility for Ghanaian Exporters, he described the situation as unacceptable for economic growth and said “we need to do everything possible to increase our export in order to bridge the trade gap.”

Last year the country recorded a trade deficit of 759million dollars. The facility that was introduced by Alliance Generalle de Surveillance Ghana Limited (AGDS) in collaboration with Atlas Trade Finance Limited in the UK, has immense benefit for exporters.

Some of the benefits include enabling exporters to offer credit terms, protection against buyer default, exporters not insisting on letters of credit (L/C), buyer saving on L/C charges, exporters discounting bills of exchange for pre-payment, securing per-shipment finance and also facilitates business.

The Deputy Minister noted that this facility would enable Ghanaian exporters to be competitive and also help them offer credit term to their buyers while protecting them in the event that buyers default in payments.

“Additionally, credit protection could serve as a guarantee or collateral for accessing the Export Development and Investment Fund (EDIF),” he stressed. He therefore urged all stakeholders in the export business to collaborate with AGDS to ensure that the facility becomes integral part of the Ghanaian export drive.

Mr Joe Anagbo, Managing Director of AGDS, said the absence of export credit protection scheme had put Ghanaian exporters at a disadvantage leading to loss of market share.

He noted that these were happening at a time the country needed to expand export to earn more foreign exchange for national development; hence the need for this facility as a necessary tool for promoting exports.

The General Manager of the Ghana Export Promotion Council (GEPC), Mr K. Adu Mensah, commended the AGDS for its brave effort and assured them of the Council’s support.

He noted that, a greater portion of today’s international trade was conducted on credit term and was also protected against the associated risks by insurance policies that offer credit protection and the Ghana exporter was yet to get such an opportunity.

The Oseadeayo Agyeman Badu III, Omanhene of Dormaa Traditional Area, chaired the launching which Mr Stephen Coherton, a representative from Atlas Trade Finance Limited and representatives from the British High Commission witnessed.