The Ghana EXIM Bank will, over the next five years, concentrate its financing on poultry, rice and the apparel sector.
These are part of a major reset to strengthen food security, reduce imports and support export-led growth, the Chief Executive Officer, (CEO) , Mr Sylvester Adinam Mensah, announced.
Speaking at a press soiree organised by the Bank in Accra yesterday, he said the new focus was aimed at cutting Ghana’s heavy reliance on imported food and positioning the Bank as a disciplined development finance institution aligned with national priorities.
The event was aimed to brief journalists on the challenges the Bank faced at the beginning of 2025, the reforms being implemented, and the reset agenda to reposition EXIM Bank as a focused development finance institution.
The soiree also sought to highlight the Bank’s priority sectors, particularly poultry, rice, and garment and apparel production, and explain how these align with national goals such as food security, export growth, job creation and foreign exchange stability.
According to him, Ghana spends about one billion dollars annually importing rice and poultry, a situation he described as unsustainable given the country’s potential to produce locally.
He said supporting domestic production in these sectors would reduce pressure on foreign exchange, create jobs and help stabilise food prices.
Mr Mensah, who assumed office in February this year, said he inherited a Bank facing serious structural and governance challenges.
He noted that the balance sheet was under pressure, loan performance was weak and non-performing loans were high, largely due to poor risk controls, weak governance and high concentration of exposure among a small number of borrowers.
He disclosed that the Bank had total loan exposure of about 1.5 billion cedis, with about 30 per cent of customers accounting for nearly 80 per cent of the non-performing loans.
Some borrowers, he said, had taken full disbursements without repayment, while others received partial disbursements that affected their ability to repay.
Mr Mensah said these challenges were worsened by high inflation, exchange rate volatility and weak macroeconomic conditions in recent years.
He also pointed to poor collateral management, breaches of loan terms and weak internal controls as major setbacks.
He stressed that “Ghana EXIM Bank is a policy and development bank, not a commercial bank, and must focus on its core mandate of supporting exports, generating foreign exchange and contributing to a positive balance of payments”.
In that role, he said, the Bank supported government fiscal policy and the Bank of Ghana’s monetary policy by helping to stabilise inflation, boost food production and support export growth.
As part of the reset agenda, Mr Mensah said management has introduced a new strategic direction focused on quality loans rather than volume, strong governance, improved risk management and alignment with government priorities.
He said the Bank has developed a five-year strategic plan to guide its operations up to 2030.
On agriculture, he said the Bank’s focus on poultry and rice would cover the entire value chain, including feed production such as soya beans.
He cited Ivory Coast as an example, noting that the country has banned poultry imports and now produces all the chicken it consumes, supported by strong policy and development bank financing.
In addition to agriculture, Mr Mensah said the garment and apparel sector would receive strong support due to its high employment potential.
He said the sector could absorb large numbers of workers within a short training period and has the capacity to earn export revenue, noting that Ghana currently supplies less than five per cent of global apparel demand.
He said future lending would be guided by data, sector studies and international best practices.
“Technical teams have been sent to countries such as Italy and Thailand to study poultry production, value addition and how to manage gluts, including opportunities in products such as liquid eggs for export,” he said.
Mr Mensah said the Bank has begun restructuring partially disbursed loans and was taking steps to recover outstanding facilities.
Some defaulting clients, he said, have been referred to the Attorney General’s office, with more cases under review.
He warned that the era of treating EXIM Bank loans as free money was over, stressing that borrowers must meet their repayment obligations.
He added that future disbursements would be timely and aligned with production cycles to improve loan performance.
He also announced internal reforms including organisational restructuring, stronger internal controls, new policy guidelines, a code of ethics and the introduction of sustainability among others to ensure value for money and compliance with environmental, social and governance standards.
Mr Mensah said recent facilities granted by the Bank are performing well and expressed confidence that the new direction would restore confidence in the institution.
He called on the media to support the reset agenda, saying Ghana EXIM Bank was now repositioned to contribute to food security, reduce food inflation, improve foreign exchange inflows, create jobs and strengthen Ghana’s competitiveness.
BY AGNES OPOKU SARPONG
