1D1F receives $ 300 million in US EXIM credits

Company News of Monday, April 29, 2019

Source: Graphic.com.gh

2019-04-29

The US Export and Import Bank (EXIM US) has made available a $ 300 million credit to help businesses operating under the One District, One Factory (1D1F) program.

As part of this agreement, EXIM US will make loans through the Ghana Import-Export Bank (GEXIM) to companies for the purchase of machinery and other equipment. in the United States as part of their manufacturing activities.

The funds will be paid to businesses through a lending structure developed by GEXIM and US EXIM.

Each industrial establishment or potential business will have access to $ 10 million.

Industrial landscape change

During the exchange of the cooperation framework for the agreement between GEXIM and US EXIM in Accra, Finance Minister Ken Ofori-Atta described the agreement as a landmark agreement which would change the industrial landscape of Ghana.

He added that this would allow operators in the export sector to buy machinery from the United States, retool and operate efficiently.

He noted that with the availability of funds, the country's industrialists would be better able to take advantage of the African Growth and Opportunity Act (AGOA).

Mr. Ofori-Atta revealed that currently, food imports into the country amounted to $ 2.4 billion a year. He added that this initiative would help to replace imports with domestic food and non-food production.

"The facility will show the government's commitment to the program" A district, a factory ".

The country has not witnessed such a private sector intervention.

This is a necessary intervention to strengthen the president's vision to industrialize the economy, "he said.

The Minister of Finance said the country was struggling with the stability of its currencies because it was important, including toothpicks, and stressed the need to produce and transform Ghanaians into entrepreneurs and manufacturers. rather than in traders.

Positive vision

Mr. Ofori-Atta has painted a positive picture of the economy over the past two years and said that careful management of the production and consumption of goods and services had led to stabilization.

What was needed now, he added, was financing, technology and good economic advice to achieve growth.

He said the government would work extremely hard to achieve the economic growth the country needed.

Transform business

Mr Robert Ahomka-Lindsay, Deputy Minister of Trade and Industry, said that Ghana could not achieve the desired economic growth and create wealth it would not bring a added value to its exports.

One of the ways to ensure added value and wealth creation, he said, was to build factories in the districts, as was done under the 1D1F.

The provision of advanced technology was a major challenge for value addition, adding that the provision of US technology and technical know-how would stimulate industrialization and business in Ghana and establish a framework for cooperation. solid between the United States. his Ghanaian counterpart.

American Ambbadador

Stephanie Sanders Sullivan, US ambbadador to Ghana, said in her speech that most companies in the country were having trouble getting affordable credit with realistic payment terms to grow their businesses.

The agreement between GEXIM and EXIM US, she said, offers Ghanaian businesses the opportunity to obtain financing at competitive rates.

"This means that businesses can grow, become more competitive, employ more workers and pay more taxes to finance development," she said.

GEXIM Tip

Mr Kwadwo Boateng Genfi, Chairman of the Board of GEXIM, said he hoped that private sector customers would be able, after gaining access to the facilities, to create jobs, jobs and businesses. increase exports and help industrialize the Ghanaian economy.