What is the Export Development Fund?
Export Development Fund (EDF) is a development Financial Institution whose major objective is to increase the export productive potential of the country through facilitating of financing.
How can I benefit?
The benefits of EDF are directly linked to the services that EDF provides, namely;
- Agriculture loans
- Performance bonds
- Equity participation
- Export Advisory services
Depending on your specific needs as an exporter, you can choose a service that suits your needs.
Are there any restrictions or limits?
Certain businesses are not entertained under the EDF, especially those that are illegal or involve imports for trading. Imports substitution will only be considered if they are a strategic input for exports such as fertilizer, hybrid seeds e.t.c.
What are the procedures for partnering with EDF?
First and foremost you have to be an exporting company or wanting to venture/ diversify into export business. People with just mere ideas will not be entertained unless they demonstrate that they are taking practical steps in they themselves investing in the idea. Other procedures are outlined in EDF’s products and services.
How does EDF differ from other initiatives such as YEDEF, MARDEF?
The difference is that EDF is a commercial entity, and it is in export business. It is not a grant giving institution as such every business seeking services of the EDF must demonstrate viability with a proven and established export market.
What is the role of banks?
In most cases EDF will not directly deal with customers; it will assist a client through their banks. Customers will approach their banks for the required financial assistance. The banks will independently assess the proposal. If convinced the bank may choose to approach the EDF to seek assistance.
Does EDF require collateral?
Yes the EDF requires collateral, depending on the type of service being provided. In addition, businesses are expected to contribute at least 40%.
What is the price or interest rates for edf loans?
In order to promote exports, the EDF is considerate on its pricing. The actual rate will vary from business to business.
How long does it take to have a loan approved?
This is dependent on the bank the customer is working with. Each banks policy and procedures apply, EDF cannot influence the duration.