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StockTrack will be a game-changer in BDC financing by banks – Ghana Association of Bankers

Source The Ghana Report

Chief Executive Officer (CEO) of the Ghana Association of Bankers, John Awuah, has said the deployment of the StockTrack system developed by HFields will be a game-changer in how banks finance bulk oil distribution companies (BDCs) to import petroleum products into the country.

StockTrack is a consolidated software tailored specifically for central petroleum stock monitoring and stock-risk management, targeting Bulk Oil Import Distribution and Export Companies (BIDECs), the nation’s refinery supply chain, petroleum service providers (PSPs), international oil traders (IOTs), financiers and the National Petroleum Authority (NPA), among others.

Core functionalities and benefits of the system collectively aim to enhance supply chain visibility, mitigate risks, and ensure the security and efficiency of the supply chain process.

One of the primary objectives of StockTrack is to provide end-to-end inventory visibility.

Mr Awuah says following engagement with HFields, the association has come to the conclusion that the StockTrack system will give banks full visibility of petroleum product movements within the entire petroleum downstream ecosystem. This, he says, will enable the banks to recoup monies lent to BDCs.

“When [HFields] engaged the banks, what they said they are trying to do is to give the banks visibility on product movement and exposure,” Mr. Awuah said in an interview with JoyBusiness.

“So at any point in time, as the product is moving from a tank into another tank storage, that movement is recorded on a system and it’s approved at the right levels and the banks have pure visibility in the entire process and can follow the product from tank to the OMC to cash and back to the BDC and then to the bank.”

According to Mr Awuah, the StockTrack system as has been explained by HFields, could significantly help reduce BDC defaults.

“This can really help reduce the impairment risks of banks. If this system works the way it is designed, it will be a game changer for how banks finance the BDCs,” he said.

“If there is an infrastructure that consolidates and gives pure visibility to all players in the chain, it helps the BDCs, it helps the bank, it helps NPA and it helps the OMCs as well and banks can then lend safely to the BDCs.”

StockTrack’s design is centered around optimizing stock risk management for financiers.

By providing a clear and detailed overview of stock levels and movements, the system helps de-risk the funding of BIDECs and refinery supply chains.

This, in turn, increases financier confidence, making credit more accessible and sustainable, according HFields.

In an industry where financing is often contingent on perceived risk levels, such transparency can significantly improve funding conditions and promote more robust financial health for the sector.

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