Member of Parliament (MP), Collins Adomako-Mensah, Afigya Kwabre North has expressed his endorsement of the government’s move to restrict the importation of certain food commodities.
The Minister of Trade and Industry, Kobina Tahir Hammond, is advocating for a regulation with the aim of bolstering Ghana’s currency and supporting local industries.
This regulation is set to limit the importation of strategic products, including rice, fruit juice, margarine, cement, fish, sugar, and 16 others.
However, this initiative has faced strong opposition from the minority in parliament and various business associations.
During a press briefing on Thursday, November 22, the Minority Leader criticized the regulation as a flawed policy and called for its immediate withdrawal.
“We are urging the President to have a rethink because this is not a policy that we should encourage, and they have to withdraw it,” he implored.
coalition of business associations, including the Ghana Union of Traders Associations (GUTA), Food and Beverages Association of Ghana (FABAG), Importers and Exporters Association of Ghana, Ghana Institute of Freight Forwarders (GIFF), Chamber of Automobile Dealership Ghana (CADEG), and Ghana National Chamber of Commerce and Industry (GNCCI), has strongly opposed the proposed import restrictions bill. They contend that the bill, if enacted, would have adverse effects on their businesses. In response, these associations have submitted a petition to Parliament, urging lawmakers to reject the bill presented by the Ministry of Trade and Industry.
Despite the opposition, Hon. Collins Adomako-Mensah supports the government’s stance on import restrictions, asserting that such measures are essential to foster the growth of local businesses and fortify the Ghanaian cedi. During an appearance on Peace FM’s “Kokrokoo” morning show, the MP provided a detailed breakdown of the annual importation costs incurred by the government, revealing a staggering expenditure of $10.8 billion.
Enumerating the major imports and their associated costs, Hon. Collins Adomako-Mensah highlighted that the yearly imports include $164 million for tripe, $200 million for beverages, $100 million for toilet papers and tissues, $100 million for fresh tomatoes, $800 million for rice, and $300 million for sugar. Other significant imports comprise poultry and meat ($400 million), textiles and apparel ($250 million), cooking oil ($300 million), tiles and ceramics ($200 million), plastics ($500 million), papers ($600 million), iron and steels ($600 million), furniture ($250 million), and home appliances ($900 million).
The MP emphasized that a substantial portion of the importation costs is attributed to tin tomatoes, cars, and spare parts, amounting to $1 billion and $2 billion, respectively.
“These are the monies we spend to import these things each year…All these things I have stated are quoted in dollars, not cedis. What it means is that we have to make sure that we have this import cover to ensure that when a trader wants to import something, government should be able to or must make sure that it has this amount of dollars”, he stated.
“Once you continue to transfer the money outside, you are creating jobs outside,” he added, and he asked the host, Kwami Sefa Kayi; “Is it still shocking to you that there is pressure on our cedi?”
To him, when the government restricts imports, “businessmen in Ghana can see an opportunity out of it,” hence enhancing local production.
He, however, called on the government to hold a stakeholder meeting to keep the associations, especially the opposing parties, abreast of the policy.