Thanks to some transformational lending, Ghana’s Kumasi Market is undergoing a complete makeover, set to transform the Ashanti economy and all it touches. In the first of our next pair of videos, Trade Finance TV hears the story of a project involving three governments, a Brazilian origin contractor and Deutsche Bank’s Structured Trade & Export Finance team. In this episode, we talk to Louis Taylor, CEO of the world’s oldest export credit agency that celebrates its centenary in 2019, UK Export Finance, about his recent trip to Ghana and why the UK is supporting this project.
He explains how the new-look market would “allow the character of the market to flourish, but with running water and refrigeration” and adds that UKEF is also supporting the redevelopment of the airport – thus helping air cargo trade – and a new neonatal hospital. This is the largest uncovered market in West Africa that sees footfall of around half a million people a day – the new-look market covers it and expands the scope from 12,000 stores and stalls to 45,000.
“When we both support British exports and support development in a country it’s a great combination and something we would love to do more of,” says Taylor. This ECA has been busy – it has recently provided support of around £1.2bn for the construction of three hospitals and power infrastructure upgrades in Angola, two new power stations and 14 substation upgrades in Iraq, and 250 rural bridges in Sri Lanka, not to mention a clean gas solution in Ghana. It helps developing economies move up the value chain rather than remaining dependent on exports of raw commodities.
How does export credit support work at UKEF? Provided there is a minimum UK export product or service content of 20, that the project makes commercial sense and meets environmental and compliance requirements, UKEF provides an 80% guarantee of the loan.