March 12, 2014 • 0 Comments
The Export Development and Investment Fund (EDIF) was established by Act 582 dated 4th October 2000 to provide financial resources for the development and promotion of the export trade of Ghana.
By the Export Development and Agricultural Investment Fund Act 823 dated 25th October, prostate 2011, symptoms Act 582 was amended to include the provision of financial resources for the development and promotion of agriculture relating to agro-processing and agro-processing industry. In view of the amendment, the Fund is now known as Export Development and Agricultural Investment Fund (EDAIF).
Financing the development and promotion of Ghana’s non-traditional exports on concessionary terms to ensure the growth and prosperity of export firms, improve export competitiveness and enable the export sector to contribute towards the economic growth and development of Ghana.
To evolve into a unique, client-oriented and proactive export development finance institution, acknowledged as the most reliable source of direct funding and leveraging of funds for development and promotion of Ghana’s exports.
- 1. Export Development and Promotion Facility
The Export Development and Promotion Facility (EDPF) supports activities of groups and institutions in the development and promotion of export products and provision of services to the export sector.
Scope of Operation
- Product Development and Promotion;
- Capacity Building, Market Research and Development of Infrastructure;
- Development and Promotion of other entrepreneurial activities;
- Export trade-oriented activities of institutions.
There are two main categories of beneficiaries of the EDP Facilities. These are:
- Public and private sector stakeholders in the export trade sector such as the Ministry of Trade and Industry (MOTI), Private Enterprises Foundation (PEF), Ghana Export Promotion Council (GEPC), Federation of Association of Ghanaian Exporters (FAGE), Council for Scientific and Industrial Research (CSIR), etc.
- Association of Cooperatives/ Associations of farmers and artisans.
The assistance provided under the EDPF is expected to benefit a group, sector or industry and not one exporter.
2. Edif Credit Facility ( CF)
The Credit Facility (loans) can be accessed through Designated Financial Institutions (DFIs).
Designated Financial Institutions (DFIs) are institutions which on application are appointed by the EDIF Board to participate in the EDIF Scheme. Such institutions are incorporated under the laws of Ghana and recognized by the Bank of Ghana as carrying on the business of banking or providing credit to exporters. The DFIs include three non-bank financial institutions, namely Export Finance Company Ltd, Empretec Ghana Foundation and Exim guaranty Company Limited.
Unlike the other DFIs who on-lend the Fund’s facility to clients, Exim guaranty provides credit guarantee services to some beneficiaries of the Fund’s credit Facility.
Individuals, corporate exporters and producers of export goods are eligible to access the Credit Facility for loans are:
- Export Marketers;
- Producers who are also Exporters;
- Producers of export goods (manufactured items/ agricultural produce); and
- Investors undertaking infrastructural projects to provide services to exporters.
To benefit from the Fund, companies or enterprises must be wholly Ghanaian owned or partly owned but with Ghanaian majority shareholding. Both existing and new businesses qualify for EDIF assistance under this Facility.
Evaluation and Approval of the Credit Facility
An applicant seeking credit facility from EDIF must obtain a prescribed application form in triplicate from a DFI of his/her choice. One completed form with supporting documents is submitted to the DFI and one to EDIF as advance information copy and one retained by the applicant for his/her records. The required supporting documents are:
Business plan / Feasibility study/ Cash flow statement;
- Export Order/ Export Contract;
- Audited accounts for past three years or Statement of Affairs (Sole proprietorship) prepared by competent accounting firm;
- Security: copy of title deed, valuation report or other collateral security; and
- Certificate of Company Registration and Regulations.
The DFI will evaluate, appraise and give provisional approval to an application and submit its report and recommendations to EDIF. After review, final approval or otherwise shall be granted by EDIF. For successful applications, EDIF shall lend the specified amounts to the DFIs who shall on-lend same to the applicant. The DFIs bear full credit risk for loans granted.
A major attraction of the EDIF Credit Facility is the low interest rate. The current interest rate is 12.5% p.a. This is to enhance the competitiveness of the country’s goods on the international market.
The Credit Facility is granted over the following periods:
- Short term – for a period not exceeding twelve months;
- Medium term – for a period not exceeding five years;
- Long term – for a period exceeding five years.
Securities to be provided for EDIF loans are flexible and accommodating in order to make funds accessible to exporters.
3. Agriculture And Agro-Processing Development Facility (AADF) & Agriculture And Agro-Processing Credit Facility (AACF)
The Agriculture and Agro-processing Development and Credit Account (the “Agric. Facility”) is one of three accounts of the Fund as stipulated in the amended Act, for which the Board of EDAIF is responsible.
The following processes and procedures serve as a guide for managers of the Fund and as a source of information to persons, groups or organizations interested in accessing the Agriculture and Agro-Processing Development and Credit Facility of the Fund.
For operational purposes the Agriculture and Agro-Processing Development and Credit Account of the Fund is divided into two components:
- Agriculture and Agro-Processing Development Facility ( Grant Facility)
- Agriculture and Agro-Processing Credit Facility.
The Agriculture and Agro-Processing Development Facility (i.e. the “Agriculture Grant Facility”) supports activities of persons, groups and institutions in the development and promotion of agriculture and agro-processing products, and provision of services to the agriculture and agro-processing sector.
Activities financed under the Agriculture Grant Facility include:
- Product development and promotion;
- Capacity building and research;
- Development of infrastructure and common user facilities for agriculture relating to agro-processing and agro processing industry;
- Development and promotion of other agricultural and agro-processing entrepreneurial activities; and
- Agriculture and agri-business trade oriented activities of both public and private institutions.
- Public and private sector stakeholders in the agriculture and agro-processing sector.
- Limited liability companies may in appropriate cases be considered if:
- Funds required are to be utilized for minor infrastructural works (subject to financial limit);
- Works to be undertaken would enhance the beneficiary’s agriculture or agro-processing activities; and
- Projects funded under the grant facility will benefit the general public.
- Applications from Associations or Cooperatives must be endorsed by MOFA Agriculture Extension Services or Ministry of Trade and Industry (NBSSI).
- Other entities to be determined by the Board.
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