Government to set up independent body to manage EDIF

Accra, April 29, GNA - An independent body is to be established to manage the Export Development and Investment Fund (EDIF) to provide funds for the development and promotion of the export sector.

The move is to provide financial support to beneficiaries directly from the corporate body rather than the banks that have been authorized to provide the services.

Mr Mahama Ayariga, Deputy Minister of Trade and Industry, said this on Wednesday when he visited four operators in the textile and garment industry to find out challenges facing the industry and how these could be addressed.

The companies were Tex Styles Ghana Limited (TSGL), previously known as Ghana Textiles Print (GTP), a subsidiary of the Vlisco Group of companies with its headquarters in Holland, Global Garments and Textiles Limited (GGTL), Sleek Garments Export Limited (SGEL) and Dignity Industries Limited (DIL).

Mr Mahama said the banks had been selling their own forms of credit products that are quiet expensive with higher interest rates though they had been authorized to provide EDIF services to prospective clients.

"Since the banks sell the same products to prospective clients, they do not talk about the EDIF which has lower interest rate and is cheaper than the financial product the banks sell to their clients," he said.

The EDIF was established by Act 582 on in October 2000 to provide financial resources for the development and promotion of the export trade of Ghana.

Operation of the fund however started in July 2001 with the appointment of a Chief Executive, the inauguration of a 13-member Board and the establishment of a secretariat.

EDIF's mission is to enhance the economic growth of Ghana by providing funds on concessionary terms for the development and promotion of the country's export.

Madam Nora Bannerman, the Chief Executive Officer of SGEL, said there was the need for the country to learn from the success stories of other countries which had harnessed the economic potentials of the textiles and garments industry.

The others called for financial assistance from government to increase their companies' production.

GNA