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Bank Of Africa Receives US$10mn Boost   
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Bank of Africa (BOA-Ghana), with a current branch network of nineteen, stands poised to improve its competitiveness in Ghana’s retail and corporate banking space.

BOA-Ghana’s strategic intent as captured in its approved 3-Year (2011-2013) Strategic Business Plan, is to be among the top-50% of commercial banks in Ghana by end of the year 2013.

The achievement of this medium-term goal and the associated strategic objectives required the Bank to focus on areas such as Business Reorganisation and Re-orientation; improvements in service excellence; development of robust marketing communications and image building programmes; and Business Volume Growth -- growing all aspects of BOA-Ghana’s business focusing on loan book (risk assets), liabilities (customer deposits and long-term funds) and treasury.

The Implementation of the Strategic Plan is largely on course, with immediate success being chalked up in the areas of Business Reorganisation and Risk Management.

BOA-Ghana has however had two main challenges that hampered business development. These were: 1) Single Obligor Limit; and 2) Non-availability of Trade Credit Lines.

While the issues of Trade Lines have been resolved with the support of the BOA Group, the SOL still poses a major challenge for development, making it difficult for the Bank to play in a number of key strategic sectors such as Oil & Gas, Cocoa and Mining -- which are the mainstay of the Ghanaian economy.

To address this, the BOA-Group has injected US$10m into the Ghana business. This brings the total capital injected into the Ghanaian operation by BOA Group since its acquisition to about GH˘70m, a demonstration of the Group’s commitment to Ghana.

The additional capital will be utilised primarily as working capital to boost Shareholders' Funds and thereby enhance BOA-Ghana’s lending operations, and to support business growth through investment in critical service delivery infrastructure and platforms.

Some of the key strategic benefits of this injection include an expansion of BOA Ghana activities in SME and Corporate segments. In anticipation of the in-flow, BOA-Ghana SME customers have been presented with a new overdraft proposition that is making significant impact in the businesses of recipients.
Source: Business & Financial Times

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