Independent body to take charge of EDIF

The Government of Ghana is to create an independent body to take charge of the disbursement of the Export Development Investment Fund (EDIF).

This is as a result of several complaints from some stakeholders in the export sector that the banks responsible for disbursing the fund are reluctant in releasing the funds because they prefer the companies access loans belonging to the banks instead of the EDIF.

This was disclosed by the Deputy Minister of Trade and Industry, Mahama Ayariga on Wednesday, April 28 after touring some Textile and Garment companies to ascertain their operational challenges and the way forward.

Top amongst the challenges of most of the garment export companies is the issue of financing.

According to an exporter, “when you go to the banks for funding support, they keep tossing you till you give up. About 90% of the job is done and all that is needed is the 10% which is the funding, so one can meet order deadlines.”

The exporters appealed to the government of Ghana to come to their aid to help reduce poverty and unemployment.

The Deputy Trades and Industry Minister, Mahama Ayariga however said plans are afoot to set up an independent institution to operate EDIF in addressing the issue.

He said “there is an intention to set up a financial institution that is going to focus on making loans cheap for the textile companies so they can function in the not too distance future.”

“The Trade Ministry has received complains from companies that they are not getting the funds the government has set aside for them. On the contrary, the banks are more interested in selling their products, which is their loans to them instead of the government loans which are cheaper.” He said.

By Citifmonline.com