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Financing non‐traditional exports in Ghana

Financing non‐traditional exports in Ghana In order to provide a better understanding of export financing in Ghana this exploratory study was undertaken on a sample of non-traditional exporting firms and selected banks. The focus is on export financing in Ghana. Ghanaian exporters hardly obtain finance for export operations. Interest rates are high, and financial institutions prefer granting short-term credit to medium or long-term credit, and investing in government treasury bills and bonds rather than lending to small and medium-sized firms. Small and medium-sale exporters hardly meet the requirements of banks to access credit, especially collateral. Default on loans has been high. Exporters need to be more responsible in funds utilization, just as the financial institutions have to be more exporter-friendly to ensure the success of the national export-led growth strategy. The recent (2000) Export Development and Investment Act is likely to provide greater access to export finance for exporting firms. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business and Industrial Marketing Emerald Publishing

Financing non‐traditional exports in Ghana

Journal of Business and Industrial Marketing , Volume 17 (6): 22 – Nov 1, 2002

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References (3)

Publisher
Emerald Publishing
Copyright
Copyright © 2002 MCB UP Ltd. All rights reserved.
ISSN
0885-8624
DOI
10.1108/08858620210442848
Publisher site
See Article on Publisher Site

Abstract

In order to provide a better understanding of export financing in Ghana this exploratory study was undertaken on a sample of non-traditional exporting firms and selected banks. The focus is on export financing in Ghana. Ghanaian exporters hardly obtain finance for export operations. Interest rates are high, and financial institutions prefer granting short-term credit to medium or long-term credit, and investing in government treasury bills and bonds rather than lending to small and medium-sized firms. Small and medium-sale exporters hardly meet the requirements of banks to access credit, especially collateral. Default on loans has been high. Exporters need to be more responsible in funds utilization, just as the financial institutions have to be more exporter-friendly to ensure the success of the national export-led growth strategy. The recent (2000) Export Development and Investment Act is likely to provide greater access to export finance for exporting firms.

Journal

Journal of Business and Industrial MarketingEmerald Publishing

Published: Nov 1, 2002

Keywords: Ghana; Finance

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