Economic Watch Africa has said Ghana’s export and industrialisation drive is likely to experience major setbacks if the government goes ahead to borrow $100 million credit facility from offshore investors to support the operations of Ghana Exim Bank (GEXIM).
According to the economic think thank, the government would mortgage the country’s industrialisation, especially the One District, One factory if it fails to suspend the transaction immediately.
“How can we mortgage the country’s export opportunities because of this paltry US$100 million”, Economic Watch Africa asked in a statement.
“We are asking the government to hold back to this transaction. The $100 million facility which is just a drop in an ocean would come with so many conditions, which means that everything that GEXIM would do, it has to seek approval from them,” Economic Watch Africa said.
Recently, the government constituted a committee to investigate the free fall of Ghana cedi.
But many economists believe the solution to the cedi’s problems is to strengthen the country’s export base.
Economic Watch Africa is also of the view that the $100 million facility cannot finance the country’s export programme, arguing that the government needs to look for a better alternative.
“We are not quite enthused about the government decision to borrow this lesser amount, whilst an institution in France is seeking to lend up to $200 million to GEXIM under the same terms for the advancement of the government’s beyond aid agenda,” according to the statement issued in Accra by Economic Watch Africa.
“You cannot limit a development bank to $100 million if the opportunity is there why don’t you go for the higher amount, more especially when the EXIM bank needs money to support government’s flagship programme, the One District, One Factory,” said Elikem Agbenyegah, the Convener of the group.
The Economic Watch Africa also said that it has learnt that there is currently a confusion and frustration at the Ministry of Finance over the decision of the government to borrow $100 million from Europe for EXIM Bank when an institution in France is ready to borrow up to $200 million to support GEXIM’s operations.
“The Economic Watch Africa is reliably informed that some senior officials at the Ministry of Finance are being coerced to support the lesser amount which has a shorter tenor and higher interest rate than the higher loan amount. We are appealing to the President, Nana Addo Dankwa Akufo- Addo to intervene and also stop the process as he did in the PDS saga”, the statement said.
Latest Stories
-
My efforts led to remarkable transformation in Appiatse – Lands Minister
1 min -
13th Ghana Information Technology and Telecom Awards launched
17 mins -
Comedy of electioneering campaign policy: NDC’s 24-hour economy tricks
24 mins -
We will remain vigilant in our oversight operations of all financial institutions – Governor
24 mins -
Ghana’s economic recovery has been strong and steady – Finance Minister
26 mins -
Government completes 50 premix fuel automation machines at landing sites – Fisheries Minister
35 mins -
FBNBank changes its name to FirstBank Ghana
42 mins -
Akwaboah Jnr ties the knot
49 mins -
Women’s FA Cup semis: Army Ladies face FC Epiphany; Police Ladies up against Supreme Ladies
2 hours -
Police haul in Kwadaso MP, EC officials in probe of Ejisu by-election ‘bribery’ case
3 hours -
Ghana’s press freedom ranking: Are we actually improving?
4 hours -
Reflections: 50 Lessons at 50
5 hours -
NCCE briefs Council of State on civic plans for 2024
5 hours -
Ecobank Group reports Profit Before Tax of $581m, on net revenue of $2.1bn for 2023
5 hours -
More businesses are working to move out of Ghana – Food and Beverages Association
5 hours