Business News Wed, 25 Feb 2004

No political connection to access EDIF- Seshie

Ho, Feb. 25, GNA- Mr Herman Seshie, a member of the Export Development and Investment Fund (EDIF) Board on Monday said that no political connections were needed to access the fund.

He said the fund which has a lower interest rate than the mainstream commercial loan is a strictly business credit facility with all the important securities to ensure that only eligible and promising ventures benefited.

Mr Seshie was speaking at the launch of the Fund in Ho, attended by about 140 people comprising business associations, technocrats, consultants, business executives, public officers and District Chief Executives (DCEs).

He advised prospective applicants to make sure that their businesses were properly documented, had referable performance figures and had confidence of the banks.

Mr Seshie stated that the EDIF would not be like the Poverty Alleviation Funds where one could get some money with promises to a District Chief Executive regarding one's political affiliation. EDIF was established by an act of Parliament in October 2000 to provide financial resources for the development and promotion of the export trade by wholly or partly owned Ghanaian companies.


It explained that individuals, enterprises or companies which are eligible to access the loans provided under the scheme are export marketers, producers and exporters, producers of export goods and investors undertaking infrastructure projects that provide services to exporters.

Togbe Afede XIV, Paramount Chief of Ho Asogli Traditional Area in an address read on his behalf appealed to government to take further steps to make the citing of industries in the regions attractive since Accra and Tema still held better attraction for industries despite tax rebates announced in the budget.

Mr Timothy Obeng, Chief Executive of EDIF said funding sources for the fund are 10 per cent net proceeds realised from divesture of state enterprises, 0.5 per cent of Cost Insurance and Freight (CIF) value of commercial imports excluding petroleum products, grants from government and other sources, recoveries of loans and interest payments.

He said funding also could come from other credit facilities that the Board of Directors of the fund may obtain with government guarantee. Mr Obeng said to date, however, EDIF operates with only income accruing to it from CEPS collection of import tariffs and from loan recoveries and interest payments as well as a 30 billion cedis payment from divestiture sources.

He said by the end of 2003, loan approvals on account amounted to 206.6 billion cedis.

Source: GNA