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Business News of Friday, 21 February 2020


Ghana now has access to international credit insurance

Finance Minister, Mr Ken Ofori-Atta Finance Minister, Mr Ken Ofori-Atta

Following Ghana’s attainment of full member status of the African Trade Insurance Agency (ATI), the country’s industry and trade sectors stand to benefit immensely by using ATI’s credit insurance to secure commercial financing with which to expand their sales both in Ghana and beyond.

Credit insurance provided by ATI will provide much-needed collateral, increasing access to credit by corporates and small and medium enterprises (SMEs), and thus generating more jobs and private sector growth.

At the launch of the collaboration between the African Trade Insurance Agency (ATI) and Ghana in Accra, the Minister for Planning, Professor George Yaw Gyan-Baffour on behalf of the Finance Minister, Ken Ofori-Atta said this will support Ghanaian banks by providing them with access to credit insurance that will act as much needed collateral for borrowers.

“This will, in turn, allow local banks to be able to lend more to local corporates and ultimately help generate more jobs in the economy while also strengthening the competitiveness of local banks and boosting private sector growth,” He stated.

In 2019, ATI insured transactions across Africa valued at US$ 6.4 billion and expects to insure much of its current pipeline of transactions in Ghana valued at US$1.2 billion.

In view of the opportunities being thrown up by the African Continental Free Trade Agreement (AfCFTA), ATI will support Ghana’s drive to increase trade with other African countries and other continents in diverse ways.

Under the ATI agreement, the Minister noted that exporters seeking to expand into new markets will be insured protecting them against payment risks with new foreign trading partners.

“ATI can also insure foreign importers providing critical inputs into the economy that can help the Government scale-up exports in the manufacturing sector and create higher-paying and more jobs in the sector,” He said.

Trade remains an important sector in the country’s economy, providing the highest sectoral contribution to Ghana’s GDP at 15.2 percent.