EDIF must solely finance exports-• To make the sector grow faster

Story: Boahene Asamoah

THE Private Enterprises Foundation (PEF), the umbrella association of all business associations in the country, has called for a restructuring of the Export Development and Investment Fund (EDIF) to be solely responsible for export financing, since existing structures do not address the needs of exporters in the country.
The association has, therefore, called on the government to decouple EDIF from commercial banks.
Presenting a position paper on, “Enhancing the regulatory environment for an accelerated development and growth of the export sector”, the association said the existing financial framework did not sufficiently address the needs of the export sector.
It also observed that the current interest charge of 12 per cent by EDIF should be lowered to five per cent, since it was too high.
The PEF said it acknowledged the availability of credit facilities for the export sector but indicated that such funds were expensive to access, apart from the high interest charges demanded by the banks.
According to the study, the Ghana Standards Board (GSB) and the Food and Drugs Board (FDB) were the cause of unnecessary delays, given the duplication of functions by the two organisations.
“The functions are not clearly defined, making it difficult for exporters to know where they can immediately go to seek assistance,” it said.
Complaints were made about double taxation by the Internal Revenue Service (IRS), especially in the fisheries sector, which increased operational cost and made products less competitive on the world market.
It said an arbitrary increase in port tariffs by the Ghana Ports and Harbours Authority (GPHA), without consulting stakeholders, was a major concern to exporters.
It cited the recent increase in the ground rent fee from ¢500,000 to ¢70 million as one such instance of arbitrary increase.
The PEF again called for the liberalisation of labour at the country’s ports so that exporters could hire their own labour for loading and offloading at the ports.
It said under the current system, exporters had no option but to use labour at the ports, the cost of which was very high.
On intellectual property rights, PEF said the non-enforcement of laws under the Industrial Designs Law and the Copyright and Trademarks laws did not encourage exporters to be innovative and inventive.
The PEF recommended the creation of land banks for various sectors, such as land banks for exporters of agro- products which could greatly facilitate cold chain and packed house facilities.
It also recommended closer linkages between industry and educational institutions to ensure the right curriculum was developed to suit the job market
“This collaboration is also needed to ensure that trainees acquire practical training necessary for their study,” it said.
The foundation also raised concern about the increase in robbery cases, since it had the potential to drive away investors, especially foreign partners. From the Business Desk