Parliament on Wednesday March 2 passed the Ghana Export/Import Bank (EXIM) bill into law.
Following the passage of the Ghana Export/Import Bank (EXIM) bill into law, government is set to engage a transaction advisor to guide the integration of EDAIF, Eximguaranty and Export Finance Company into the new Ghana EXIM, the Business and Financial Times reported on Friday citing a report by the Business Committee of Parliament.
The bill when assented to by president John Mahama is expected to act as an intermediary between national governments and exporters to issue export financing.
The transaction advisor is expected to value the equity stake of Eximguaranty and Export Finance in order to establish the value of minority interest, the B&FT said.
It will also advise on negotiations with minority shareholders of Eximguaranty and Export Finance Company, and also effect the transfer of assets and liabilities of affected institutions to the EXIM Bank. the B&FT said.
Share holding, financing and governance structure of the three institutions have been reviewed, according to the finance minister Seth Terkper.
He indicated that the review’s outcome showed that with the exception of Ghana Export Promotion Authority (GEPA) -- which is primarily an export-promotion agency, the functions of the other three, Export Finance Company Limited (EFCL), Eximguaranty Company Limited (ECL) and Export Development and Agricultural Investment Fund (EDAIF), fit into the proposed functions of the Ghana EXIM; and as such will be integrated into the Ghana EXIM, B&FT said.
“GEPA will however continue to operate as a stand-alone organisation with an expanded mandate for export promotion and development,” he said.
Mr. Terkper added: “Despite efforts through initiatives such as the Export Financing and Guarantee Institution, Export Development and Agricultural Investment Fund (EDAIF) among others, Ghana’s export financing institutions have not been able to make a meaningful impact on the export sector because of poor capitalisation and a vague definition of their mandates”.
He said the establishment of the bank is "part of our agenda to achieve a value-added and export-led economy."
In addition, the bank will improve the capacity of the country to produce goods and services in the competitive international marketspace.