The Bank of Ghana (BoG) has issued a cautionary discover to exporters relating to failure to repatriate proceeds into the nation. According to the Foreign Exchange Act, 2006, Act 723, and the accompanying Letter of Commitment (LOC), exporters are obligated to repatriate proceeds of merchandise by the financial institution – aside from these with retention preparations. This repatriation is anticipated to be 100% of the export worth of all merchandise exports. Despite these laws, there have been reviews of some exporters flouting the regulation.
Mr. Eric Kweku Hammond, Assistant Director-Banking Department, Bank of Ghana, highlighted that exporters discovered responsible may face a fantastic of 5,000 penalty items – equal to GH¢60,000 – or imprisonment for a time period not exceeding ten years, or each. Addressing exporters at a discussion board organised by the Ghana Shippers’ Authority (GSA) and BoG, Mr. Hammond emphasised the significance of repatriating export proceeds. This, he said, contributes to constructing reserves and strengthening the native foreign money, in the end boosting buying and selling actions and facilitating Ghana’s transformation agenda.
At the occasion, held on 28th November 2023 in Koforidua, Mr. Hammond famous that the LOC is a everlasting requirement; and if correctly adhered to, challenges expressed by exporters is not going to come up. He assured exporters that the BoG’s door is open to collaborative efforts in resolving challenges encountered with the system.
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Speaking on the identical discussion board, Mr. Charles Darling Asiedu Sey, Tema Branch Manager-Ghana Shippers Authority, highlighted the importance of exports for nationwide improvement. He emphasised their position because the lifeblood contributing considerably to Gross Domestic Product (GDP), job creation and authorities income. They play a key position in shaping the economic system, fostering worldwide commerce relations and positioning Ghana on the worldwide stage.
He additionally talked about the National Export Development Strategy (NEDS), which envisions the expansion of non-traditional exports (NTEs) from US$2.8billion in 2020 to a considerable US$25.3billion in 2029. This progress is coupled with a profound structural transformation aimed toward positioning Ghana as a aggressive, export-led industrialised economic system.
Mr. Sey confused that GSA is collaborating with service suppliers to boost the standard of transport providers. This includes reviewing export-related insurance policies, simplifying procedures, decreasing forms and making a extra conducive atmosphere for companies to thrive. He referred to as for a steady analysis of the export worth chain to determine bottlenecks, improve Ghana’s exportable capability and facilitate commerce with different nations, with a particular give attention to addressing non-tariff obstacles.
During the discussion board, Paul Kobina Mensah, 1st Vice President-Ghana Institute of Freight Forwarders (GIFF), supplied insights into the fundamentals of exports. He targeted on areas corresponding to insurance coverage, negotiating beneficial commerce circumstances (INCOTERMS), gross sales contracts, freight negotiation, excessive freight expenses and methods to cut back transport expenses.
Participants on the discussion board raised varied issues – together with rising freight expenses; challenges with the LOC system; utility of alternate charges above the BoG fee at ports; bureaucratic hurdles; and lack of economic and technical assist from authorities and regulators.