By Michael Eboh
Africa Finance Corporation (AFC) has signed a N3 billion (US$20 million) trade finance agreement with Fidelity Bank Ghana to boost availability of petroleum products in Ghana.
According to a statement by the AFC, the agreement will see both organisations providing the amount to part-finance the importation of petroleum products into Ghana.
Commenting on the transaction at the signing ceremony in Accra, last week, Mr. Andrew Alli,Â President and Chief Executive Officer, AFC said: â€œAs a non-oil producing country for now, the Ghanaian economy is heavily dependent on oil imports, which consume a considerable portion of the governmentâ€™s annual budget.
â€œThis situation will, no doubt, change for the better once current operational and financial challenges in the oil refining sector are overcome.
â€œAs a private sector-driven organization, AFC is pleased to be able to play a significant role in a trade finance deal of this kind, whose outcome will have positive implications for the local economy.â€
Mr. Edward Effah, Managing Director of Fidelity Bank Ghana, expressed satisfaction at his bankâ€™s partnership with AFC.
He said, â€œGhanaâ€™s downstream oil industry is key to the economy. Oil-derived products supply 70 per cent of Ghanaâ€™s commercial energy needs.
â€œFidelity Bank Ghana is pleased, through this important partnership, to be able to make a significant contribution to the local economy and better enable the delivery of retail petroleum products to Ghanaian consumers.â€