The Bank of Ghana (BoG) is issuing a warning to exporters regarding the necessity of repatriating proceeds to the country.

Under the Foreign Exchange Act, 2006, Act 723, and the associated Letter of Commitment (LOC), exporters are mandated to bring back proceeds of merchandise through a bank, excluding those with retention arrangements. This repatriation should constitute 100 percent of the export value of all merchandise exports.

Despite these regulations, some exporters are reportedly violating the law.

Mr. Eric Kweku Hammond, Assistant Director of the Banking Department at the Bank of Ghana, highlighted that exporters found guilty could face a fine of 5000 penalty units, equivalent to Ghc60,000, or a prison term of up to ten years, or both.

Speaking at a forum organized by the Ghana Shippers’ Authority (GSA) and BoG, Mr. Kwaku Hammond stressed the significance of repatriating export proceeds. This practice contributes to building reserves, strengthening the local currency, boosting trading activities, and supporting Ghana’s transformation agenda.

Mr. Kwaku Hammond emphasized the enduring nature of the LOC and assured exporters that collaborative efforts with the BoG could address challenges encountered with the system.

Charles Darling Asiedu Sey, the Tema branch Manager of the Ghana Shippers Authority, explained that the forum aims to tackle specific challenges faced by exporters.

He said export holds deep significance for national development stating that “It is the lifeblood contributing significantly to our Gross Domestic Product (GDP), job creation, and government revenue. It plays key role in shaping our economy, fostering international trade relations and positioning Ghana on the global stage”.

The National Export Development Strategy (NEDS), according to Charles Sey, lays out a bold course for the ensuing ten years.

“It envisions the growth of non-traditional exports(NTEs) from 2.8 billion dollars in 2020 to a substantial 25.3billion dollars in 2029.This growth is coupled with a profound structural transformation aimed at positioning Ghana as a competitive export -led industrialized economy”.

He emphasized that the Ghana Shippers’ Authority (GSA) is collaborating with service providers to improve the quality of shipping services. This involves a thorough review of export-related policies, simplifying procedures, reducing bureaucracy, and fostering a more conducive business environment.

Mr. Sey advocated for ongoing assessments of the export value chain to pinpoint bottlenecks, enhance Ghana's exportable capacity, and facilitate trade with other countries, with a specific focus on addressing non-tariff barriers.

The 1st Vice President of the Ghana Institute of Freight Forwarders (GIFF), Paul Kobina Mensah, provided insights into the fundamentals of exports. His presentation covered aspects such as insurance, negotiating favorable trade conditions (INCOTERMS), sales contracts, freight negotiation, high freight charges, and strategies to reduce shipping costs.

During the forum, participants expressed various concerns, including the surge in freight charges, challenges with the Letter of Commitment (LOC) system, the application of exchange rates higher than the BoG rate at ports, bureaucratic hurdles, and the absence of financial and technical support from the government and regulators.