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The new appointment of a UK Export Finance representative in Ghana is a sign that the UK government is seeking to strengthen trade ties between the two nations. Ghana will be the first West African nation with a UKEF representative based locally.
Steve Gray from the UKEF will be based in the British High Commission in Accra. He will be working closely with a team from the Department for International Trade.MrGray says he is delighted to be joining the UKEF. He comments that West Africa is a fast-growing and dynamic market, which represents a massive opportunity for UK-based export companies.
UKEF Presence in Ghana
The presence of a representative from the UKEF in Ghana will provide strategic support to businesses looking to trade with West African countries. The UKEF provides loan guarantees in local currency to Ghanaian businesses trading with the UK, so companies can buy British goods and services, but pay in Cedi.
Kate Rudd, UK Trade Director for West Africa, made this statement:
“The UK has a long and solid business relationship not just with Ghana, but countries across the continent. UKEF’s local presence, as well as the increase in export finance cover, and the decision to provide loan guarantees in local currency demonstrates the importance the UK attaches to the further development of commercial ties between the United Kingdom and West Africa.”
Boris Johnson Visits West Africa
Boris Johnson’s visit to Ghana last year was another sign the UK government is keen to promote trade relations with West Africa. Mr Johnson met the newly sworn-in president of Ghana, President Nana Akufo-Addo in February last year, as part of a two-day visit to Ghana and the Gambia. He described his visit to the West African country as “really positive”. He told the media that Ghanaians were queuing up to do trade with Britain.
What is the UKEF?
UK Export Finance is a credit agency and government department, which works with the Department for International Trade to devise strategies and trading operations. The UKEF is a valuable tool for businesses seeking to do trade with overseas nations. It helps businesses win export contracts, fulfil their contracts, and secure insurance against buyer default. The agency works with more than 70 private lenders and credit insurers to support companies of all sizes trading in everything from intellectual property to goods and services. It offers very long payment terms compared to other credit agencies and can support many different payment structures.
The UKEF has a total funding limit of £750 million and can offer financing to help mitigate the foreign exchange risk inherent in international trade, which is something day trading experts know a great deal about.
The UK government’s investment in trade with West Africa is a sign that it is looking to promote global trade in a post-Brexit marketplace. With complex negotiations regarding trade agreements with the EU still far from over, the government is looking to support trade relationships around the world. The UKEF has recently approved the Nigerian currency Naira as one of its pre-approved currencies, which will help to support trade between the UK and Nigeria
