The Ministry of Trade, Agribusiness and Industry in Ghana has signed an international convention aimed at facilitating trade financing for goods in transit. This development is expected to address a major constraint on trade financing across Africa. The convention will enable goods moving by road, rail, and other transport modes to be used as security for bank loans, thereby increasing access to finance for traders and businesses.
The signing of the convention is a significant step towards unlocking financing for goods in transit, which has been a major challenge for traders and businesses in Ghana and across Africa. By using goods in transit as collateral, businesses will be able to access loans from banks and other financial institutions, thereby increasing their ability to trade and grow their businesses.
The Ministry of Trade, Agribusiness and Industry has been working to implement policies and programs aimed at increasing access to finance for small and medium-sized enterprises (SMEs) and large businesses. The signing of the international convention is part of these efforts, and is expected to have a positive impact on the country's trade sector.
According to industry experts, the use of goods in transit as collateral for bank loans will help to reduce the risk associated with lending to traders and businesses. This, in turn, is expected to increase the availability of finance for businesses, particularly SMEs, which often struggle to access finance due to lack of collateral.
The international convention signed by Ghana is an important step towards implementing the United Nations Economic Commission for Africa's (UNECA) recommendations on trade facilitation. The UNECA has been working with countries across Africa to implement policies and programs aimed at increasing trade and economic growth.
The signing of the convention has been welcomed by stakeholders in the trade sector, who see it as an important step towards increasing access to finance for businesses. The Ghana Chamber of Commerce and Industry, for example, has welcomed the development, saying that it will help to increase trade and economic growth in the country.
The implementation of the international convention is expected to have a positive impact on Ghana's economy, particularly the trade sector. The country's businesses, particularly SMEs, are expected to benefit from increased access to finance, which will enable them to grow and expand their operations.
Key points
- The Ministry of Trade, Agribusiness and Industry in Ghana has signed an international convention aimed at facilitating trade financing for goods in transit.
- The convention will enable goods moving by road, rail, and other transport modes to be used as security for bank loans.
- The development is expected to increase access to finance for traders and businesses, particularly SMEs, and promote economic growth in Ghana.
