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Financing non‐traditional exports in Ghana

Seth N. Buatsi (Senior Lecturer, Marketing and International Business, Department of Marketing and International Business, School of Administration, University of Ghana, Legon, Ghana)

Journal of Business & Industrial Marketing

ISSN: 0885-8624

Article publication date: 1 November 2002

Abstract

In order to provide a better understanding of export financing in Ghana this exploratory study was undertaken on a sample of non‐traditional exporting firms and selected banks. The focus is on export financing in Ghana. Ghanaian exporters hardly obtain finance for export operations. Interest rates are high, and financial institutions prefer granting short‐term credit to medium or long‐term credit, and investing in government treasury bills and bonds rather than lending to small and medium‐sized firms. Small and medium‐sale exporters hardly meet the requirements of banks to access credit, especially collateral. Default on loans has been high. Exporters need to be more responsible in funds utilization, just as the financial institutions have to be more exporter‐friendly to ensure the success of the national export‐led growth strategy. The recent (2000) Export Development and Investment Act is likely to provide greater access to export finance for exporting firms.

Keywords

Citation

Buatsi, S.N. (2002), "Financing non‐traditional exports in Ghana", Journal of Business & Industrial Marketing, Vol. 17 No. 6, pp. 501-522. https://doi.org/10.1108/08858620210442848

Publisher

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MCB UP Ltd

Copyright © 2002, MCB UP Limited