Press Release
July 15, 2014
Accra, Ghana
Dr. APRAKU CALLS FOR
ESTABLISHMENT OF EXPORT-INVESTMENT BANK.
Dr Kofi Konadu Apraku, the former Minister of Trade and Industry
and NPP Presidential Aspirant has called on the government to
undertake a feasibility study that will culminate in the
establishment of Ghana Export and Investment Bank. Speaking in
Accra at a Forum of former Ministers of Trade and Industry, Dr.
Apraku stated that a review of Ghana’s current economic
situation shows that the nation is afflicted by all the ills of
macroeconomic instability: growing fiscal deficits, high
interest rates, high unemployment, depreciating currency, and
trade and balance of payment problems.
He further stated that low commodity prices and reduction in
export volume of traditional export commodities of cocoa and
gold in 2013 adversely affected export earnings of the two
commodities. The continuing exportation of cocoa, gold and even
oil in their unprocessed or crude form tends to expose and make
the country vulnerable to erratic or unstable international
market price of these commodities.
He stated, “Ladies and Gentlemen, a review of our external
payments and external trade performance shows clearly that we
have not performed well over the years. The problems in our
export sector are not different from the problems we face in the
overall economy. While the solutions to our economic problems
relative to our export sector may be specific, the general scope
remains the same. But even more important, we know what is wrong
with the export sector just as we know what is wrong with the
overall economy” he stated.
Dr. Apraku was emphatic when he said, “Mr. Chairman the economic
problems we face in our country today cannot be due to our lack
of understanding of their causes nor appreciation of their
impact. The problems exist because we have not demonstrated the
capacity, the political will or the strength of leadership to
solve them. “
He stated that as Minister of Trade and Industry, he led the
Ministry to prepare an elaborate industrial policy document. The
document outlined in great details what is required to rebuild
Ghana’s underdeveloped and uncompetitive industrial sector into
a modern agro- based productive industrial sector. Today, he
states sadly, “the detailed recommendations are largely
unimplemented”.
Similarly, he initiated the preparation of a National trade
policy document that outlined a comprehensive approach to expand
our export volumes and earnings and diversify our export base.
The document was completed by my successor and adopted by the
Ministry and the country in 2006 but is yet to be fully
implemented.
He argued that while several important issues in the Trade
Policy must be implemented, he believes that “the issue of
financing our exports remains very crucial and important in
building a vibrant and sustainable export sector, creating jobs
for our people, reducing poverty and restoring macro-economic
stability.
Dr. Apraku further stated that a major constraint to the
production, processing and export of our goods is access of our
producers to credit at realistic interest rates. However, this
situation has not been helped by the constantly depreciating
cedi. Indeed, the high interest rates, the unstable exchange
rate, high taxes, high electricity and other utility tariffs,
have all conspired to virtually destroy our industrial sector.
He stated again that Ghana must address the issue of adequate
financing for the industry, the agricultural and the export
sector at realistic and concessional interest rates in order to
save our crumbling industrial sector and declining exports.
Re-emphasizing his earlier point, Dr. Apraku stated “it is on
the basis of the persistent poor performance of the external
sector, the intensity of the macro-economic ills afflicting our
country, and the increasing vulnerability of our economy, that I
am appealing to the government to initiate a feasibility study
aimed at the establishment of the Ghana Export and Investment
Bank.
According to the Presidential Aspirant, the Bank’s mission would
be to enhance the economic growth of Ghana by providing funds on
concessionary interest rates for the development of the
country’s export sector. It would also finance investments that
are focused on production for export. The Bank would among other
services have an Export marketing services Program to assist
Ghanaian companies in the identification of prospective business
partners, export opportunities and facilitating placements of
final orders.
He recommended that the initial seed money for the Bank should
include the funds that are currently available to MASLOC, EDIAF,
Ghana Export Finance Company and perhaps, funds available at
other publicly owned Banks.
In his response to Dr. Apraku’s suggestion, the current Minister
of Trade and Industry, Hon. Haruna Iddrisu who also addressed
the forum, stated that he had been directed by the President to
work towards converting the EDIAF fund into a Ghana
Export-Import Bank within the next five years.
From the Office of Dr. Kofi Kunadu Apreku
Accra, Ghana
July 15, Ghanadot
