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Export-Import Bank of India has extended two lines of credit of US$27mn and US$60mn to the government of Ghana.
The US$27mn has been earmarked for financing India’s exports to Ghana for rural electrification, agriculture, transportation and communication sectors in Ghana. The US$60mn has been earmarked for rural electrification (US$30mn) and construction of a project (US$30mn).
India Exim Bank will reimburse 100% of contract value to the Indian exporters, upfront upon the shipment of goods.
Ghana’s economy is dominated by the service sector; other important sectors are agriculture, forestry and fishing. Ghana has a broad and diversified industrial base, which includes aluminium smelting, sawmills, timber and agricultural processing plants, brewing, cement manufacture, oil refining, textiles, electrical, pharmaceuticals and mining.
All sectors of the Ghanaian economy are improving, claims India Ex-Im, and growth can be largely attributed to the performance of the cocoa sector, following good weather and an increase in gold production.
India recorded exports of US$174mn and imports of US$50mn with Ghana during 2004-05. India’s main exports to Ghana during 2004-05 were manufacture of metals, drugs, pharmaceuticals and fine chemicals, primary and semi-finished iron and steel, cotton yarn fabrics made-ups and machinery and instruments. The lines of credit will pave the way for boosting India’s trade with Ghana substantially.