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Country Commercial Guides for FY 2000:
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CHAPTER VIII: Trade and Project Financing
1. The Banking System
Ghana's formal banking sector is comprised of the central bank - the Bank of Ghana - eleven commercial banks, five merchant banks and over one hundred rural unit banks. Until recently the sector was dominated by state-owned institutions and showed few signs of competition. Within the last two years, however, two state-owned banks have been privatized under the government's Divestiture Implementation Program, and others are to follow suit in the near future. Non-bank financial institutions (NBFIs) are comprised of a Stock Exchange, 21 insurance companies, the Social Security and National Insurance Trust (SSNIT), two discount houses, the Home Finance Company, numerous building societies, a venture capital company, a unit trust and 6 leasing companies. The Bank of Ghana is responsible for the overall regulation and supervision of the banking and financial services market.
Commercial Banks
(For addresses, see Chapter XI)
Ghana Commercial Bank Limited Standard Chartered Bank Limited Barclay's Bank Limited The Trust Bank Limited SSB Bank Limited Agricultural Development Bank Limited Bank for Housing and Construction Limited National Investment Bank Limited Cooperative Bank Limited Prudential Bank Limited International Commercial Bank LimitedCommercial banks offer services such as current and savings accounts, telegraphic transfers, safe custody deposits, sale of traveler's checks and foreign transactions including the establishment of letters of credit.
Merchant Banks
Merchant Bank Ghana Limited
Ecobank Ghana Limited
CAL Merchant Bank Limited
First Atlantic Merchant Bank Limited
Metropolitan and Allied Bank Limited
Merchant banks offer services such as acceptances, new issues, private placings and public offers of shares for sale, underwriting of new issues and offers of shares for sale, corporate finance and consulting services, registrar's services for public and private companies, stockbroking services, management of investment portfolios and leasing and hire purchase services. For contact information, please see Chapter X.
2. Foreign Exchange Bureaus (FOREX)
Foreign exchange bureaus (known as Forex bureaus) are in operation throughout Ghana. The cedi can be exchanged for foreign currency at any Forex location.
3. How to Finance Exports/Methods of Payment
The formal banking institutions have been unable to provide much genuine intermediation between savers and investors. Demand deposits are the main source of funds for banks, and loans and advances account for a relatively small portion of their assets. High reserve requirements have prevented banks from building up their loan portfolios, preferring instead the attractive and relatively risk-free returns from holding government securities.
The NBFIs have yet to emerge as significant players in the financial system. That could change in the medium term with the introduction of new legislation for the sector. The contractual savings institutions, too, have undertaken to "play it safe" by investing in short-term government securities. Other than for real estate, NBFIs have provided little medium- and long-term finance to the economy.
4. Types of Export Financing and Insurance Available
Traditional trade finance instruments such as letters of credit, collections, and funds transfer are available to the exporter. If a letter of credit is chosen, the exporter should require an irrevocable, confirmed letter of credit to ensure prompt, reliable payment.
The USDA's GSM-102 and GSM-103 Credit Guarantee Programs and Facility Credit Guarantee Program provide access to financing for imports of wheat, rice, feed grains, vegetable oil, protein meal, dairy products, as well as agricultural equipment. The payment guarantee to the U.S. exporter is for a minimum of 90 days and a maximum of one year.
Participating banks in the program are:
Agricultural Development Bank Limited Barclay's Bank Limited CAL Merchant Bank Limited Ecobank Ghana Limited First Atlantic Merchant Bank Ghana Commercial Bank Limited Merchant Bank Ghana Limited Standard Chartered Bank Limited SSB Bank LimitedThe limit for the West Africa region is USD 50 million. The GSM-102 and GSM-103 programs are generally available only to high quality importers with a good credit history and substantial assets with the guarantor bank. To date, support for the program on the part of Ghanaian banks has been lukewarm at best.
5. Types of Project Financing Available
Several organizations offer project financing and insurance for exporters to Ghana. For example, the International Finance Corporation (IFC) and the Overseas Private Investment Corporation (OPIC) are U.S. Government sponsored agencies offering financing and insurance products to exporters. For a more detailed description on the mission of the agency, access the OPIC website at www.OPIC.gov.
The Export-Import Bank of the U.S. (EX-IM Bank) supports short-, medium- and long-term programs for U.S. exports to Ghana. EX-IM Bank programs support the exports of products and services from the private sector that create American jobs. For a more detailed description on the mission of the agency, access the EX-IM Bank website at www.exim.gov. The U.S. Trade and Development Agency (TDA) provides loans to U.S. businesses bidding for the GOG-sponsored procurement as well as funds for feasibility studies. For more information on the programs of the TDA, access their website at www.tda.gov.
6. Ghanaian Banks and their Correspondent U.S. Banks
A few of the Ghanaian merchant and commercial banks have correspondent U.S. banks. Those banks include the following:
Ghanaian Bank Correspondent U.S. Bank Barclay's Bank Ghana Limited Barclay's Bank P.L.C., NY Ecobank Ghana Limited Citibank, NY Bankers Trust, NY Standard Chartered Bank Limited Standard Chartered Bank of America Ghana Commercial Bank Limited Morgan Guaranty Trust, NY Citibank, NY Chemical Bank, NY SSB Bank Limited Citibank, NY Chemical Bank, NY Agricultural Development Bank Limited Citibank, NY ABN-AMRO Bank, NY Bankers Trust, NY CAL Merchant Bank Limited Chemical Bank, NY First Union National Bank, NJ Merchant Bank Ghana Limited Citibank, NY Union Bank of Switzerland, NY Swiss Bank Corporation, NY National Investment Bank Limited Chemical Bank, NY Citibank, NY
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[end of document] Note* International Copyright, United States Government, 1999 (or other year of first publication). All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U.S. Copyright Law, Title17, United States Code.
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