Sylvester Adinam Mensah, Chief Executive Officer of the Ghana Export–Import Bank (GEXIM), has disclosed that the Bank is grappling with a total credit exposure of about GH₵1.5 billion, with close to 30% of that amount currently classified as non-performing loans (NPL), a development he admits poses serious risks to the Bank’s balance sheet, reputation and long-term sustainability if not decisively addressed.
Speaking at an end-of-year media engagement in Accra, Mr. Mensah explained that the exposure should not be misconstrued as losses already incurred.
Rather, it represents credit facilities extended to clients across strategic sectors of the economy, some of which have stalled due to governance weaknesses, poorly timed disbursements, incomplete project execution and, in some cases, the outright refusal of borrowers to honour repayment obligations.
He stressed, however, that the scale of the non-performing loans has heightened the urgency for a comprehensive reset of the Bank’s lending philosophy, risk controls and recovery mechanisms.
Development banking comes with higher risk
Mr. Mensah acknowledged that GEXIM current NPL ratio, estimated at just under 30%, is higher than that of commercial banks, whose industry average hovers around 21 to 22%.
He argued, however, that such comparisons must be properly contextualised.
According to him, GEXIM, as a development finance institution, deliberately operates in the riskiest segments of the market, providing long-term, patient capital to sectors such as agriculture, agro-processing and export-oriented manufacturing—areas that commercial banks are largely unwilling to finance.
Even so, he warned that elevated NPLs have serious implications, including constraining the Bank’s ability to recycle capital, weakening its capacity to support new projects, increasing provisioning pressures and threatening its credibility as a custodian of public development finance.
Left unchecked, he said, the situation could undermine confidence among policymakers, international partners and private sector clients.
Strategic reset of loan portfolio
Against this backdrop, Mr. Mensah announced a far-reaching strategy to realign the loan portfolio of GEXIM, strengthen governance and aggressively pursue loan recovery, while refocusing lending on sectors with the strongest development impact.
He revealed that the Bank has taken a policy decision to channel not less than 70% of future lending into priority value chains, particularly poultry, rice and other productive sectors, with the remaining 30% directed towards complementary activities that stabilise and support the wider economy.
He said all future lending decisions would be guided strictly by data, sector studies and international benchmarks.
Lessons from Côte d’Ivoire and Europe
As part of this data-driven approach, Mr. Mensah disclosed that teams from Ghana Exim Bank had undertaken study visits to Côte d’Ivoire to understand how deliberate policy and financing choices transformed that country’s domestic poultry industry.
He explained that in Côte d’Ivoire, strict laws prohibit the importation of dead or frozen chicken, allowing only live birds into the market.
This policy, he said, has led to a dramatic increase in domestic production, strong local entrepreneurship and reduced dependence on imports.
Mr. Mensah said the Bank believes similar outcomes are achievable in Ghana if financing is properly aligned with supportive policies and market realities.
He added that technical studies in Italy and other countries have also informed the Bank’s thinking, particularly in addressing the persistent gluts in Ghana’s poultry sector.
He described it as paradoxical that Ghana is unable to fully meet domestic demand for poultry, yet periodic oversupply continues to hurt producers.
Value addition to tackle poultry gluts
To resolve this imbalance, Mr. Mensah said Ghana Exim Bank is supporting innovative value-addition solutions, including liquid egg processing, a product with growing demand on the export market.
By converting excess production into export-ready inputs, he explained, the Bank aims to stabilise prices, reduce waste, open new revenue streams for producers and improve foreign exchange inflows into the economy.
Governance gaps and loan restructuring
Mr. Mensah admitted that part of the NPL challenge stems from structural weaknesses in how some facilities were previously designed and disbursed.
He explained that development loans are typically intended to finance three key components—infrastructure, equipment and working capital—but in some cases, clients received only partial funding.
This left projects incomplete, while repayment obligations commenced before the investments had matured into viable income-generating operations, creating predictable default risks.
According to him, these governance gaps have now been identified and addressed.
Partially disbursed facilities are being restructured, and stricter rules are being enforced to ensure that projects are fully funded, properly sequenced and aligned with realistic cash-flow timelines before repayment begins.
Tougher recovery stance
At the same time, Mr. Mensah said the Bank has adopted a much tougher stance on loan recovery.
He disclosed that several delinquent clients have already been referred to the Economic and Organised Crime Office (EOCO) and the Attorney-General’s Department, with more cases currently under review.
“The era of treating Exim Bank loans as free money is over,” Mr. Mensah declared, warning that borrowers who deliberately refuse to repay, despite repeated engagements, will face decisive recovery actions through the appropriate state agencies.
He added that the recovery drive applies across the board. Where evidence emerges that internal staff breached procedures or improperly waived conditions precedent to loan disbursement, such cases would also be subjected to scrutiny, with accountability enforced wherever wrongdoing is established.
Five-year plan to strengthen the Bank
Beyond recovery, Mr. Mensah said Ghana Exim Bank is implementing a five-year strategic plan aimed at strengthening its institutional resilience.
The plan, he explained, includes organisational restructuring, enhanced internal controls and the establishment of a sustainability and strategic impact department to ensure value for money and compliance with environmental, social and governance standards.
He added that cost-efficiency measures are also being rolled out, including a contributory staff welfare scheme that shifts certain financing responsibilities from GEXIM to commercial banks, freeing up more capital for productive enterprise support.
Confidence in turnaround
Despite the challenges, Mr. Mensah expressed confidence that the reset agenda will restore the Bank’s financial health and developmental relevance.
The CEO of GEXIM argued that decisive action on non-performing loans, combined with disciplined, well-targeted lending, would strengthen Ghana Exim Bank’s balance sheet, improve repayment performance and enhance its credibility as a catalyst for national development.
In the broader economic context, he said the reforms would help Ghana reduce its dependence on imported rice and poultry, support small and medium-sized enterprises, boost exports and improve foreign exchange inflows—outcomes that would also support currency stability, job creation and food security.
For Ghana Exim Bank, Mr. Mensah concluded, how effectively it manages its GH₵1.5 billion exposure and reins in non-performing loans will determine not only its own sustainability, but also its ability to deliver on its mandate at the heart of Ghana’s industrial and agricultural transformation.
