Mr. Ken Ofori-Atta, Minister of Finance, is assertive that the African Trade Insurance Agency (ATI) will help eliminate investment risks in Ghana, unlock additional investments and reduce borrowing costs.
The Agency aims to support Ghanaian Banks by offering credit insurance coverage, which would provide the much-needed collateral.
Local banks may lend more to businesses to help their development and create more jobs, thus improving the banks ‘ profitability and fostering growth in the private sector.
In October 2019, Ghana became a full member of the ATI with a $176 million shareholding funded with financial support from KfW, a German state-owned development agency.
Under the ATI agreement, the Minister indicated that with new foreign trading partners, exporters pursuing penetration into new markets would be protected to defend them against payment threats.
Trade remains an essential sector in the economy of the country, providing 15.2 percent of the highest sectoral contribution to Ghana’s GDP.
