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EXPORT TRADE, AGRICULTURAL AND INDUSTRIAL DEVELOPMENT FUND

GHANAVEG BUSINESS PLATFORM MEETING

AGRIC FINANCE OPPORTUNITIES

BY: SARAH BRAINOO ARHIN

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Who we are Activities we support Facilities under the Fund Eligibility Processes

OUTLINE

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EDAIF (The Fund) – a public Investment Fund operating as an agency of the Ministry of Trade and Industry and governed by an Act of parliament.

MANDATE Act 872 which received presidential assent in January, 2014 An agency of the ministry of trade and industry

OBJECTIVE To provide financial resources for the development and

promotion of:◦ Export trade, ◦ Agriculture related to agro-processing and ◦ Industrial development

WHO WE ARE

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Development and promotion of export products, export market development and agriculture related to agro-processing

Infrastructure development

Export trade oriented activities, institutions and bodies in the public and private sector

Small and medium scale enterprise development

Undertaking research, appraisal and studies required to determine the areas of export trade, agro-processing and industry that need support

Provision of credit and re-financing

Equity funding through approved fund managers

SUPPORTED ACTIVITIES

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Research, Development and Promotion Account

Disbursements are grants; non repayable

Applied to projects that have communal benefit

Not for production aimed at sales for the singular benefit of producer or manufacturer

Usually not so huge amounts

Credit Facility Account

Granted as concessionary loans to businesses through designated financial institutions

Current interest rate is ≤ 12.5 per annum

Beneficiary: wholly or majority owned Ghanaian business

CATEGORIES OF ACCOUNTS UNDER THE FUND

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Project Account

Accessed by public/private entities/institutions through MOTI

Monies applied to support EDAIF’s objective (stated above)

Can be either credit or grant

Equity Finance Account

Newest account

Disbursed through government aided equity financing schemes

Disbursed through private Fund Managers

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Research, Development And Promotion Account

The following are eligible and must be approved by a research institution, GEPA or relevant government agency:

Co-operative or association of farmers, artisans engaged in export related activities, agriculture and agro-processing activities

Individual, body corporate or enterprise engaged in verifiable activity covered by EDAIF mandate

MDAs, public or private institution engaged in development and promotion of non-traditional exports and agriculture related to agro-processing and industry

A regional development body and

Beneficiaries identified by the EDAIF board

ELIGIBILITY

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Credit Facility

Person or enterprise registered under the companies Act, private partnerships Act or any other enactment for the registration of business

Majority shareholding should be Ghanaian

Projects Account

A public of private sector entity, body or institution may apply for project funds through the minister (MOTI)

Equity Finance Account

Same as credit facility

ELIGIBILITY

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Completion and submission of application form directly to EDAIF for grants and projects or through Designated Financial Institutions (DFIs) in the case of credit

Applications together with business plans/proposals/ other relevant documentation are appraised either by EDAIF alone or jointly with DFI (In the case of credit)

Board approval obtained or otherwise

Disbursement of monies; direct to beneficiary or through DFI or MDA

Monitoring and evaluation of projects

Maximum amount for grants is cedi equivalent of us$100,000

Maximum for other accounts is cedi equivalent of us$3.0m

Board with approval of minister can exceed limits

PROCESSES

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Application forms can be obtained from:o EDAIF web site, www.edaifgh.orgo EDAIF Secretariat in Accra.o EDAIF office in Tamale.o EDAIF office in Kumasi.o Designated financial Institutions (DFIs)

PROCESSES

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THANK YOU

QUESTIONS AND CONTRIBUTIONS

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Sectorial Distribution of Loan Approvals (2002- 2013)