Set up bank for shipping - Alhaji Banda

Accra (Greater Accra) 17 June '99

Alhaji Asuma Banda, Chairman of OTAL Africa Line, on Wednesday called for the establishment of a sub-regional maritime bank to fund African shipping ventures.

He said African shippers collect substantial funds that could help establish and build up sufficient venture capital for the proposed bank.

Alhaji Banda was speaking on "shipping and the exigencies of globalisation" as part of activities to mark Africa's Shipper's day in Accra.

The bank, which could be called Maritime Bank, is important because it can guarantee the independence of the shipping industry, and provide collateral securities to meet shipping mortgages using private resources.

The bank could also play the role of monitoring the individual shipping company's operational and financial performance and encourage African shipping enterprise.

Alhaji Banda called on African governments to stay away from the shipping business.

He said governments should act as business facilitators and create the necessary conditions and the legislative securities for the shipping industry to flourish.

Alhaji Banda said private commercial operators are more suited to changing with the times and competing on a global basis.

He also urged governments to reduce bureaucracy, harmonise tax and customs regimes, develop ports and transport infrastructure and nurture inland markets.

Mr Jobbe Duval, Managing Director of Maersk Line, a shipping company, announced that the company had developed a strategy to expand business in Africa.

He said it would operate door-to-door services and focus on partnerships.