The Ghana Shippers’ Authority (GSA) and the Bank of Ghana (BoG) are embarking on a nationwide sensitization program on Letters of Commitment (LoC) for the repatriation of export proceeds.

The second of the series of seminars held in Kumasi saw local exporters equipped with the requisite knowledge to address infractions associated with the Letters of Commitment. 

In 2021, the sector recorded a 17% increase in proceeds, accruing more than US$3 billion from non-traditional exports such as horticulture products, prepared foods and beverages, and handicrafts. 

But, Deputy Shipper Services Manager of the Ghana Shippers’ Authority, John B.A. Glover, believes repatriation of proceeds on exported goods could increase astronomically if exporters are abreast of its Letters of Commitment.  

Most exporters are reported to infringe processes associated with the legal agreement, affecting cross border trade. 

“Following concerns expressed by some exporters on challenges they experience with the implementation of the Bank of Ghana’s LoC, it became necessary to sensitize exporters and other stakeholders on the subject, and address their concerns. The shipper education is needed to equip shippers to be competitive on the international trading scene,” he said.

The export sector is one of the major contributors to building Ghana’s resilient economy. 

The Bank of Ghana since July 2016 incorporated the Letters of Commitment into the electronic export monitoring platform to track export proceeds. 

The Bank of Ghana is therefore mandated to block exporters who fail to repatriate proceeds within 60 days. 

Head of Shipper Services and Trade Facilitation at GSA, Monica Josiah, says a robust export sector would contribute to stabilizing Ghana’s macroeconomy. 

“Ghana benefits immensely from exports by way of contribution to the Gross Domestic Product (GDP), employment and job creation, industrialization, economic growth, government revenue and stability of the national currency.

The national currency has suffered serious depreciation in relation to the dollar and other foreign currencies. A robust export sector cannot happen without repatriation of export proceeds into the country to shore up the country’s foreign exchange reserves,” she said.

The exercise forms part of a series of activities by the authority in consolidating efforts to strengthen the export sector for a resilient economy.

The Ghana Shippers’ Authority is presently working assiduously to establish a Shipper Complaint and Support Unit (SC & SU) at the Hamile Border to educate shippers and address cross-border trade concerns.