Mr. Alexander Dadzawa, Director of Projects at the Ghana Export Promotion Authority (GEPA), has insinuated that the government does not have the financial muzzle to execute GEPA projects, noting that the funding constraints has put the national export strategy in limbo.
Mr Dadzawa thus, bemoaned the arduous task of raising US$60.9 million annually for interventions under the National Export Development Strategy (NEDS). This, he stated is raising uncertainty over the country’s ability to increase Non-Traditional Export revenue from US$2.8 billion in 2020 to US$25.3 billion in 2029.
“There is a financial crunch we are all going through, and government resources are thin. Government does not have the money to execute its agenda and it may also affect export trade.”
Mr. Alexander Dadzawa
Mr. Alexander Dadzawa disclosed that funding for interventions under the NEDS has so far been mostly from the allocations of the Export and Development Authority.
Filling the Financing Gap
The Project Director indicated that a financing gap of US$10 million is to be filled annually from multiple sources such as: soft loans and grants from development partners, budget allocations to Metropolitan, Municipal and District Assemblies (MMDA), leveraging venture capital funding to support start-up companies as well as stimulus fund provided by GEXIM bank and government.
“Though GEXIM bank could not fully meet its obligations under the NEDS having been overstretched, there have been talks with management for collaboration towards supporting horticultural sector with grant and credit facilities.”
Mr. Alexander Dadzawa
Alternatively, he added that GEPA as the lead implementer of the strategy has been in talk with development partners and agencies to support projects under the strategy.
Stakeholders in designing the NEDS, among other things, recommended the transfer of oversight responsibility of the EXIM bank from the Ministry of Finance to the Ministry of Trade and Industry, and the amendment of the Export-Import Bank Act, 2016 (Act 911) to allow the bank to support Export Business operation of private sector companies.
In effect, Mr Dadzawa noted that work is ongoing to revise and amend the GEPA Act of 1969, which would also inform an amendment to the Export-Import Bank Act, 2016 (Act 911) to mandate the bank, currently under the Ministry of Finance to be able to support export ventures in the country.
Establishment of Structure
Mr Dadzawa averred that processes are ongoing for the establishment of a governance structure for NEDS, where a secretariat would be set up with a steering committee and inter-ministerial oversight committee. This, he revealed may be inaugurated by the end of the first quarter.
“So far, needs assessment for 18 out of top 20 non-traditional exporting companies was conducted, while a strategy to improve access to cocoa beans for local industries is being considered.”
Mr. Alexander Dadzawa
GEPA, the Director asserted, would within the year focus on sensitisation at the district level on NEDS and the AfCFTA, while conducting market research in 15 other countries. He moreover, noted that engagements are also ongoing with the National AfCFTA coordination office to streamline activities such as the assessment of exporting companies in the country.
“The next thing on our radar is the One District one exportable product within the NEDS. This means that, we are going to work closely with district assemblies for each district to identify a core product that it can develop at the base to feed 1D1F.”
Mr. Alexander Dadzawa
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