The Association of Ghana Industries (AGI) has asserted that it possesses the capability to fulfill local demand for goods if provided with a fair playing field and the opportunity to operate within a conducive environment.
Chief Executive of the association, Seth Twum-Akwaboah, emphasized that many of their members are currently producing at levels sufficient to meet the demands of the local market. He expressed concerns about the influx of cheap and substandard goods through imports.
Mr. Twum-Akwaboah made these remarks during an appearance on PM Express Business on November 30, 2023, hosted by George Wiafe.
He refuted claims suggesting that the AGI benefits from excessive protection by the government, particularly in light of the introduction of a Legislative Instrument aimed at restricting the importation of certain selected items.
According to him, “data on the ground doesn’t support the argument that industries are being lazy and don’t want to play in a very competitive environment”.
He argued that safeguarding local industries from inexpensive imports is crucial to prevent potential harm to Ghanaian businesses.
“We have one local industry that is producing so much, but struggle to get market for their goods, because some cheap, and inferior goods have flooded the market and that is affecting them”.
“This company now has to resort to exporting so they don’t import,” he added.
He maintained that industries would have the capacity to compete with imported goods if the business environment is conducive and fair.
Mr. Twum-Akwaboah affirmed that the AGI supports the government’s decision to restrict the importation of certain goods to protect their members.
“We believe that there has always got to be the first step in dealing with some of these challenges. Maybe this import restriction is the way to go. I even thought , there is the need for some review”.
Speaking on the same program, the General Secretary of the General Agricultural Workers Union (GAWU), Edward Kareweh, expressed concern about the underlying motive behind the policy measure. He particularly emphasized that previous actions by the government have significantly harmed many local industries, contributing to his apprehension.
“The Policy Measure in Principle is good, but the way it’s being implemented is wrong” Mr. Kareweh said.
He is of the view that, there should have been some policy programme instituted before the import restrictions were introduced.
Economist Professor Ebo Turkson highlighted that while Ghana may have the flexibility under World Trade Organization rules to restrict certain items, he expressed concern about the message it conveys to other African nations and the potential for retaliation.
“This is because as a country hosting the headquarters of the African Free Trade Area, we should be taking measures that does not send the wrong signal to African countries”, he warned.
He advised government to tread cautiously about the position.
“We don’t want to get into any negative reaction from other African countries”.
However, Mr. Twum-Akwaboah noted that the Ghana Statistical Service Trade Report, showed that majority of Ghana’s imports is coming from one country outside Africa.