EXPORTERS AND IMPORTERS WANT THE GOVERNMENT TO GO SLOW ON TAX AND OFFER FINANCIAL SUPPORT

The Government through Agencies and private institutions to offer financial assistance to exporters and importers. PHOTO /CORRESPONDENT

EXPORTERS AND IMPORTERS WANT THE GOVERNMENT TO GO SLOW ON TAX AND OFFER FINANCIAL SUPPORT

By Chris Ojow

When the exporter or an importer is eligible and

in the good records of Export Credit Agency

(EAC), through export finance, the entrepreneurs

has a high chance of getting a financial boosts

from the Government of Kenya.

The same process is deeply practiced by

developing Nations Globally and Kenya has not

been left behind.

The Country has employed several officials

financial supports to bridge the current

infrastructure financing gap in different

departments like Water Dams, Energy and

Transport.

The support may be initiated by various

Government Financial Agencies through

insurance, direct financing support to exporter

and importer.

The export credit agency has rules and

normally guided within the regulated frame

work, under arrangements exporters competes

on basis of the quality of their goods and

rendered services.

ECA finances the export of goods and services

from origination to the intended beneficiaries in

other States.

Whereby they insure the products, offers

financial guarantees or simply loans and direct

loans and own up for any eventualities like the

political interferences resulting to non

payments under the export finance contracts.

Export Finance is a Government financing

system through it’s Agencies on specific

contracts between an exporter and an importer

on certain products available to suppliers and

buyers on long and midterm.

Where Export Credit Agency as a Major

Government agent and institution or any private

company offering services on behalf of the

government finances the export of goods.

Amount eligible for Export Credit Agency

usually depends on the contract structure,

exporting Country and the insurance.

The Country of origin becomes very vital during

the financing of exported goods and services.

With export finance, the interest rates are lower

than the existing market price and chances of

the Contract being extended longer is always

higher.

The Contracted Government agencies services

are always stable and reliable despite the risks

encountered when it comes to environmental

challenges.

It also mitigates commercial and political risks,

on non payments, bankruptcy, political

instabilities and the commonly experienced

challenges Globally of currency in convertibility.

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