1 EXPORT TRADE, AGRICULTURAL AND INDUSTRIAL DEVELOPMENT FUND (EDAIF) AGRIBUSINESS ENTREPRENEURSHIP BOOTCAMP 2014 PRESENTATION BY: NANA ADWOA ADADEY AUGUST

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EXPORT TRADE, AGRICULTURAL AND INDUSTRIAL DEVELOPMENT FUND (EDAIF)

AGRIBUSINESS ENTREPRENEURSHIP BOOTCAMP 2014

ORGANISED BY THE DAIN NETWORK

TUESDAY, 22nd AUGUST 2014KOFI ANNAN CENTRE OF EXCELLENCE IN ICT

PRESENTATION BY: NANA ADWOA ADADEY

AUGUST 2014

Export Trade,Agricultural and Industrial Development Fund

OUTLINE

Who we are Our Purpose Sources of Funding Facilities under the Fund Collaborations Conclusions/Way forward

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WHO WE ARE 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.

Act 582 (2000) gave birth to the Export Development and Investment Fund (EDIF) with the object to provide financial resources for the development and promotion of the export trade of Ghana.

Act 823 (2011) amended Act 582 to include financing for agriculture relating to agro-processing and agro-processing industry.Export Trade,Agricultural and

Industrial Development Fund

Consequently, the Fund was christened Export Development and Agricultural Investment Fund (EDAIF)

Act 872 (2013) further amended Act 823 to include the provision of financial resources for Industrial Development and Equity financing.

In light of the amendment, the Fund is now known as Export Trade, Agricultural and Industrial Development Fund but the acronym "EDAIF" remains unchanged.

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WHO WE ARE


To provide financial resources for the development and promotion of:

1. export trade,

2. agriculture related to agro-processing and

3. industrial development.

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OBJECTIVE OF THE FUND UNDER ACT 872


Monies from the Fund are available for the following activities;i. Development and Promotion of products for export

ii. Development of agriculture relating to agro-processing and agro-processing industry

iii. Capacity building, market research relating to exports and development of infrastructure.

iv. Export trade and agriculture oriented activities of institutions and bodies both in the public and private sector.

v. Fostering the development of SMEsvi. Equity funding

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AREAS SUPPORTED BY THE FUND


The Fund is sustained by inflows from the following sources:

0.75% of value of non-petroleum commercial imports.

10% of net divestiture proceedsSuch other monies as the Minister of Finance

in Consultation with the Minister of Trade and Industry with Parliament’s approval may determine to be paid into the Fund.

Recoveries of loans and interest payments,

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SOURCES OF FUNDING


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CATEGORIES OF ACCOUNTS OF THE FUND

Credit Account

Research, Development and Promotion Account

Project Account

Equity Account.


Eligibility/ Interest Rate:

Institutions and organisations in the public and private sector engaged in the provision of services to the export sector, agriculture relating to agro-processing & agro-processing and manufacturing.

To benefit from the Fund, companies or enterprises must be wholly Ghanaian owned or partly owned but with Ghanaian majority shareholding.

Interest Rate Applicable is currently12.5%. This is however subject to review by the board from time to time

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THE CREDIT FACILITY


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Tenor of Facility/Security:

Credit facilities granted shall cover the following periods: ◦ Short term facility for a period not exceeding two (2)

years;◦ Medium term facility for a period not exceeding five

(5) years;◦ Long term facility for a period not exceeding ten (10)

years.

Security for Loans to be determined by DFI (traditional security de-emphasized)

DFIs bear full credit risk for loans granted to them for on-lending Export Trade,Agricultural and

Industrial Development Fund

Supports all sizes of companies – Small, medium and large.

No prescribed minimum amount of loan.

Currently, maximum loan amount of GH¢10,000,000.00) per beneficiary.

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Loan Amount:


Sectorial Distribution of Loan Approvals (2002- 2013)

Export Trade,Agricultural and Industrial Development Fund 12


How to apply

An applicant seeking credit facility from EDAIF must obtain a prescribed application form in triplicate from a Designated Financial Institution of his/her choice.

One completed application form should be submitted (together with the relevant documents) to the DFI where the form was obtained and one lodged with EDAIF

The DFI will appraise and give provisional approval (or otherwise) to an application. Approved applications are submitted to EDAIF. After review, final approval or otherwise shall be granted by the EDAIF Board.

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RESEARCH DEVELOPMENT AND PROMOTION FACILITY (RDPF)

Supports activities of groups and institutions in the development and promotion of export products and provision of services to the export sector.

The RDPF is administered directly by EDAIF without DFIs


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Scope

Activities funded under RDPF include the following: ◦ Product Development and Promotion,

◦ Capacity Building , Market research and Development of Infrastructure

◦ Development and Promotion of other entrepreneurial activities

◦ Export Trade – Oriented Activities of Institutions


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Eligibility

Institutions, Organizations, Product and Trade Associations in both the Private and Public Sectors which provide services to the Export sector.

The assistance provided under the RDPF is expected to benefit groups, sector or industry and NOT an individual.


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The following should be submitted to the Fund:o A completed application form.o Technical and financial proposal and a

comprehensive business plan o An M&E plan (result framework).

Application forms can be obtained from:o EDAIF web site, www.edifgh.orgo EDAIF Secretariat in Accra.o EDAIF office in Tamale.o EDAIF office in Kumasi.


How to apply

http://www.edifgh.org/

Sectors:• Primary Agriculture• Special Government

Initiatives• Capacity Building• Research• Fairs & Exhibition• Product

Development• Others

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RDP Approvals


Institutions GEPA AGI NBSSI VEPEAG

Eligibility: ◦ A public or private sector entity, body or

institution may apply for project funds through the Minister

Purpose:◦ Projects are designed to promote export trade,

import substitution, agric/agro-processing, export oriented manufacturing and processing

PROJECT FACILITY


Eligibility◦ A person or enterprise may apply for equity funding to a

designated equity fund manager if that person or enterprise: Is registered under the Companies Act or Incorporated Private

Partnership Act Has a majority shareholding held by a Ghanaian citizen Is engaged in export trade, export oriented manufacturing

activities, agric/agro-processing and industrial dev’t.

Management ◦ Shall be disbursed through government aided equity

financing schemes and private equity fund managers.

◦ An equity fund manager shall invest in any business provided in the Regulations and policy guidelines from the EDAIF Board.

N/B: This facility is yet to be Operational

EQUITY FINANCE FACILITY


The new EDAIF Act was enacted to provide financial resources for the development and promotion of export trade, agriculture related to agro-processing and industrial development.

This is for both the Private and Public sectors.

The Private Sector, especially SMEs and Agro-based companies, should therefore take advantage of the opportunities offered.

EDAIF’s doors are opened to give the necessary support to help build our indigenous companies and thereby ensure prosperity for Ghanaians.

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CONCLUSION


HEAD OFFICE ACCRA

3rd FLOOR, GOC BUILDING, P. O. BOX MB 493 ACCRA/GHANA TEL: 0302 – 918968 / 0243690520 FAX: 0302 – 671573

TAMALE OFFICE GUMANI NEW ROAD. ADJECENT MALARIA CONTROL OFFICE P. O. BOX TL 2314 TAMALE TEL: 03720 – 28053 FAX: 03720 – 28052 WEBSITE: www.edaifgh.org

KUMASI OFFICE

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OUR CONTACTS


http://www.edaifgh.org/

THANK YOU

23Export Trade,Agricultural and Industrial Development Fund

Documents

1 EXPORT TRADE, AGRICULTURAL AND INDUSTRIAL DEVELOPMENT FUND (EDAIF) AGRIBUSINESS ENTREPRENEURSHIP BOOTCAMP 2014 PRESENTATION BY: NANA ADWOA ADADEY AUGUST