1 EXPORT TRADE, AGRICULTURAL AND INDUSTRIAL DEVELOPMENT FUND (EDAIF) AGRIBUSINESS ENTREPRENEURSHIP BOOTCAMP 2014 PRESENTATION BY: NANA ADWOA ADADEY AUGUST 2014 EXPORT TRADE, AGRICULTURAL AND INDUSTRIAL DEVELOPMENT FUND (EDAIF) AGRIBUSINESS ENTREPRENEURSHIP BOOTCAMP 2014 ORGANISED BY THE DAIN NETWORK TUESDAY, 22nd AUGUST 2014 KOFI ANNAN CENTRE OF EXCELLENCE IN ICT PRESENTATION BY: NANA ADWOA ADADEY AUGUST 2014 Export Trade,Agricultural and Industrial Development Fund

 Who we are  Our Purpose  Sources of Funding  Facilities under the Fund  Collaborations  Conclusions/Way forward 2

3 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. . 4 Export Trade,Agricultural and Industrial Development Fund

 To provide financial resources for the development and promotion of: 1. export trade, 2. agriculture related to agro-processing and 3. industrial development. 5 Export Trade,Agricultural and Industrial Development Fund

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 SMEs vi.Equity funding 6 Export Trade,Agricultural and Industrial Development Fund

 The Fund is sustained by inflows from the following sources:  0.75% of value of non-petroleum commercial imports.  10% of net divestiture proceeds  Such 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, 7 Export Trade,Agricultural and Industrial Development Fund

8 CATEGORIES OF ACCOUNTS OF THE FUND  Credit Account  Research, Development and Promotion Account  Project Account  Equity Account. Export Trade,Agricultural and Industrial Development Fund

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 9 Export Trade,Agricultural and Industrial Development Fund

10 Tenor of Facility/Security 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. 11 Export Trade,Agricultural and Industrial Development Fund

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Export Trade,Agricultural and Industrial Development Fund13 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.

14 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 Export Trade,Agricultural and Industrial Development Fund

15 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 Export Trade,Agricultural and Industrial Development Fund

16 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. Export Trade,Agricultural and Industrial Development Fund

17  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, o EDAIF Secretariat in Accra. o EDAIF office in Tamale. o EDAIF office in Kumasi. Export Trade,Agricultural and Industrial Development Fund

 Sectors : Primary Agriculture Special Government Initiatives Capacity Building Research Fairs & Exhibition Product Development Others 18 Export Trade,Agricultural and Industrial Development Fund  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 Export Trade,Agricultural and Industrial Development Fund19

 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 Export Trade,Agricultural and Industrial Development Fund20

 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. 21 Export Trade,Agricultural and Industrial Development Fund

 HEAD OFFICE ACCRA  3 rd FLOOR, GOC BUILDING,  P. O. BOX MB 493 ACCRA/GHANA  TEL: 0302 – /  FAX: 0302 –  TAMALE OFFICE  GUMANI NEW ROAD.  ADJECENT MALARIA CONTROL OFFICE  P. O. BOX TL 2314  TAMALE  TEL: –  FAX: –  WEBSITE:  KUMASI OFFICE 22 Export Trade,Agricultural and Industrial Development Fund

THANK YOU 23 Export Trade,Agricultural and Industrial Development Fund