EXIM, GEXIM banks bring financial relief to SMEs
As part of efforts to empower private sector business operators and promote industrial development, the Export-Import Bank of the United States (EXIM) and the Ghana Export-Import Bank (GEXIM) have exchanged a cooperation framework agreement to finance US exports through the establishment of small-scale industries in each of Ghana’s administrative districts.
The framework agreement currently in effect, was signed earlier in April by the Executive Vice President and Chief Operating Officer of EXIM, Jeffrey Goettman and CEO of GEXIM, Lawrence Agyinsam.
According to the partners, the agreement is a statement of intent to cooperate in utilizing EXIM’s medium term loan guarantees to support financing by GEXIM for on lending to qualified Ghanaian small and medium sized enterprises (SMEs) for their purchases of US goods and services.
EXIM has set a ceiling of $300 million that can be disbursed in transactions of up to $10 million under EXIM ‘s medium-term guidelines.
In a statement, Chairman and Acting President of EXIM, Ambassador Jeffrey Gerrish emphasizes the commitment of the US government in collaborating with GEXIM to curb unemployment in Ghana.
He said, “This cooperative framework agreement confirms EXIM’s commitment to President Trump’s Prosper Africa initiative and demonstrates our sincere interest in partnering with GEXIM to create economic opportunities and jobs in both Ghana and United States.”
“We anticipate that EXIM-backed financing will support the Ghanaian government’s initiative to create sustainable employment throughout Ghana and also will support American exporter and supply-chain jobs in multiple industries in the United States,” he added.
CEO of GEXIM, Lawrence Agyinsam believes the framework agreement will position his outfit to effectively support private sector businesses by creating an enabling environment free from financing challenges to ensure growth.
He is optimistic the framework will ensure projects earmarked under the 1D1F receive the needed support and strategically empower private sector clients to create jobs to curb unemployment.
“I’m extremely delighted about this cooperation framework under which EXIM can provide up to $300 million in guarantees for GEXIM’s clients to source and procure machinery and equipment from the United States for their factories,” he stated.
According to Mr. Agyinsam, “As the lead financing institution mandated to support government’s One-District, One-Factory program, GEXIM will be better positioned to empower and equip private-sector operators situated in each district to add value to their raw materials through processing and final export.”
About the EXIM-GEXIM cooperative framework agreement
Under the agreement, EXIM and GEXIM will create an on-lending structure that allows HEXIM to serve as a borrower and the primary source of repayment for EXIM.
GEXIM will on-lend in transactions of up to $10 million to Ghanaians businesses as the end users of the financing, up to a total of $300 million as approved by EXIM.
All transactions would be approved individually and are subject to EXIM’s policies.The cooperative framework agreement exchange ceremony was attended by US representatives, Ambassador Stephanie S. Sullivan and Acting Vice President at the Industrial and Project Finance Division of EXIM.
Finance Minister Ken Ofori Atta and GEXIM CEO Lawrence Agyinsam were Ghana’s representatives.