The Association of Ghana Industries (AGI) has urged for a shift towards concrete actions rather than mere discussions in the effort to enhance domestic production and drive economic growth during the current economic challenges.
Emphasizing the pivotal role of the industrial sector in a robust economy, the AGI has advocated for intentional incentives to strengthen the industry’s resilience in the face of ongoing economic difficulties.
The AGI asserts that this approach will yield numerous positive macroeconomic outcomes, including stimulating commercial activities, fostering the establishment of new businesses and investments, and creating job opportunities.
They contend that a robust domestic manufacturing sector has the potential to significantly expedite and revitalize endeavors aimed at restoring economic stability. This can be achieved by boosting exports, increasing revenue generation, and reducing the pressure of imports on the country’s currency, the cedi.
“Discussions on the need to develop our local supply chain in a sustainable manner have taken centre-stage since the COVID-19 pandemic outbreak. However, these discussions cannot yield desirable results without government incentivising local industry to invest in the production of certain key raw materials industry needs,” said AGI’s Chief Executive Officer, Seth Twum-Akwaboah.
Speaking at the 6th Ghana Industrial Summit and Exhibition organized by the AGI in Accra, Mr. Twum-Akwaboah expressed concern that without intentional policies and initiatives aimed at incentivizing the industrial sector and attracting investments, especially in areas where the country possesses a comparative advantage, all discussions and plans to transform the nation into an industrial hub will remain mere rhetoric.
The AGI pointed out that ongoing challenges such as high financing costs, transportation and logistics issues, regulatory compliance hurdles, port and Customs clearance difficulties, taxation, and imbalances in the tariff regime for imported versus locally manufactured products continue to place local industries at a disadvantage.
Dr. Humphrey Ayim-Darke, President of AGI, similarly emphasized that with the appropriate support from the government, domestic producers can expand their operations and contribute significantly to meaningful economic growth.
“Indeed, only a private sector-led industrial development with meaningful support from government implementing the right policies will create a robust Ghanaian economy and sustainable jobs. Let’s be mindful that our local supply chains have a bearing on current rates of inflation,” he said.
The 6th annual AGI summit, themed “Industrialisation through sustainable and efficient supply chains”, seeks to address challenges of industry which impede the development of sustainable supply chains and proffer solutions.
Goverment calls for deeper engagement
Kobina Tahir Hammond, the Minister of Trade and Industry (MoTI), responded by urging greater industry involvement in order to find durable solutions to the problems plaguing businesses.
“I have had the privilege of engaging with leadership of the AGI, and issues raised include the cost of financing, transport and logistics, regulatory compliance, port and Customs clearance, and taxation as well as industry-specific imbalances in the tariff regime for imports versus locally manufactured products.
“I have a simple request to make in this regard: when you complain, arm me with specific evidence – and do so in time to make my advocacy precise and effective,” he said.
However, the minister emphasized that his ministry is unwavering in its commitment to collaborate closely with the industry to fortify vital supply chains within the industrial sector, particularly those associated with local raw material producers and suppliers.
Ziobeieton Yeo, the Managing Director of Fanmilk PLC, echoed these sentiments, highlighting that industrialization fosters enhanced productivity, increased job prospects, and an elevated standard of living. Ultimately, it results in the creation of positive social benefits for citizens. He further noted that sustainable value chains facilitate technological progress, improved infrastructure, and enhanced access to resources.