Cabinet has approved ?100 billion as seed money for the establishment of the Ghana Investment Fund (GIF). The amount is to help finance small medium-scale industries in the country in agro-processing, as well as export oriented companies in the country.
The Minister of Trade and Industry, Dr Kofi Konadu Apraku disclosed this in an interview after addressing the 7th Ghana Export Sector Development Forum, organized by the School of Administration of the University of Ghana, Legon with support from the DANIDA Centre for International Business in Accra. He said the fund is to encourage the establishment of new firms in the country to propel the country into the middle income economy by 2015 as well as create jobs for the mass of the people.
The minister expressed his disgust at the procedure being implemented by the commercial banks operating under the Export Development and Investment Fund (EDIF) and said that his ministry will move to amend the EDIF Act, if the purpose for which the fund was set up would continue to be undermined. He was however quick to add that any such amendment will not be done to favour any particular group adding that “it will be for the benefit of all companies whose aims are export oriented”.
According to Dr Kofi Konadu Apraku the government is committed to its policy of the “Golden Age of Business” and this, he said, is exemplified by the many financial interventions being implemented. He mentioned the $100 million loan from the African Development Bank (ADB), the Government Loan Guarantee Scheme, EDIF as well as GIF as some of the financial interventions being implemented by the government to help the private sector meet the competitive global market.
Industrial Bank
Dr Apraku suggested the establishment of an Industrial Bank and called for a public debate on the establishment of such a scheme in the country. He said the establishment of such a bank will ensure that start up businesses as well as companies who have the potential to grow and export have access to long-term funding. The minister, however, expressed concern about the default rate of loan repayment by businesses in the country and said this cannot be allowed to continue. He said about 90 per cent of loans granted under the Business Assistance Fund have not been repaid.
Giving an overview of the programmes of the ministry, the minister said a proposed EDIF Two is being worked out to meet the needs of small-scale exporters. He said the government’s aim is to penetrate the sub-regional market by ensuring that Ghana becomes the hub of industrial activity. He said to this end the ECOWAS Trade and Liberalisation Sector (ETLS) is being worked out to ensure the free movement of goods and services in the sub-region
