Government's 1D1F programme receives a great boost following the signing of US$300 million MoU between Ghana Export-Import Bank and United States of America Export-Import Bank

Ghana Export-Import Bank (GEXIM) and United States of America Export-Import Bank (EXIM) signed an cooperative agreement which helped the Government's One-District One-Factory (1D1F) programme to receive a remarkable boost.

 

The agreement makes sure that EXIM provides the funds in guarantees for clients of GEXIM to derivate and obtain machinery and equipment from the United States of America (USA) for their factories under the 1D1F initiative.

 

Ken Ofori-Atta, the Minister of Finance, represented Ghana in the signing ceremony, while Bonnie Cybulko, Acting Vice President, Industrial and Project Finance Division, EXIM, signed on behalf of the United States in Accra.

 

It was done in the existence of the United States Ambassador to Ghana, Stephanie Sanders Sullivan, Deputy Minister of Trade and Industry, Robert Ahomka-Lindsay, Board of Directors and management of GEXIM, as well as other officials of the US Embassy in Ghana and EXIM Bank.

 

Ofori-Atta said, increased production provided Ghana added opportunities to take advantage of the African Growth and Opportunity Act (AGOA) to export goods and services to the USA market.

 

Ambassador Sullivan stated that the agreement was to mark challenges faced by Ghanaian businesses and entrepreneurs in acquiring credit at affordable rates with soft repayment terms to aid business growth.

 

"This cooperation between our respective Export-Import banks creates a welcome opportunity for companies to embrace cutting-edge USA technologies and equipment and to finance them at competitive rates. That means companies can grow, become more competitive, hire more workers and pay taxes that can finance Ghana's development," Ambassador Sullivan added.

 

Also, the agreement would support the government's goals to boost industrialisation, create jobs, expand the economy and transform Ghana's manufacturing sector for increased exports to the USA, noted Ambassador Sullivan.

 

As an Ambassador, she said, it was one of her top priorities to expand and grow investment and trade between the two countries, which totalled US$1.4 billion in 2018, significantly over the next three years.

 

Chief Executive Officer, Lawrence Agyinsam, GEXIM, said that, "as the lead financing institution of 1D1F, the funds would better position GEXIM to entitle and equip private sector operators to add value to their raw materials for export."

 

He said,under the agreement, GEXIM would serve as the borrower and the main source of repayment for EXIM, adding that businesses could receive maximum support of US$10 million.

 

As a development partner, Ms. Cybulko noted that the collaboration would improve government's initiative to create sustainable employment in Ghana and boost export and assured of EXIM's commitment to support Ghana's industrial growth.