AGI decries declining growth in Ghana’s manufacturing sector
The growth of Ghana’s manufacturing sector has declined over the last three years, and is a “great concern” which needs to be addressed urgently, the Association of Ghana Industries (AGI) has said.
Quoting statistics, the President of AGI, Mr. James Asare Agyei, said, while industry growth was pegged at two percent in 2012, the manufacturing sector recorded a negative growth of – 0.4 and – 0.5 percent in 2013 and 2014, respectively.
Mr Agyei was speaking at the commissioning of the Groupe Ndoum Industrial Estate, the latest addition to the Groupe Nduom (GN) conglomerate, at Elmina in the Central Region.
Located at Elmina, the estate consists of four industries – Fresh Pak Products Limited, GN Electronics, GN Printing and GN Logistics – which specialises in food packaging products, electronic products, printing and logistics, respectively.
Mr. Agyei stated that indigenous industries are capable of taking advantage of market opportunities, if the right environment is created and the necessary incentives provided, and challenges such as power supply, high inflation and interest rate are resolved.
Although he acknowledged efforts being made by the Government to resolve these challenges, he emphasised that the situation needs urgent and permanent solutions, else industries cannot thrive.
He urged Ghanaians, majority of whom he said have no confidence in local brands, to purchase made in Ghana goods and also commended Groupe Ndoum for complementing the AGI’s efforts of developing the local supply chain and the capacity of local industries.
Dr. Papa Kwesi Nduom, the President of GN, urged the Government and traditional leaders to support local industries, saying the challenges involved in managing industries in the country is sometimes overbearing for the private individual.
He bemoaned the virtual non-existence of private sector support from government and said despite that, GN is determined to achieve its goals.
He hinted of plans to explore business opportunities related to the Komenda Sugar Factory when completed and, therefore encouraged the Government in its efforts to revamp the once vibrant sugar industry.
The Managing Director of Ghana Growth Fund Company, Mr. Kwame Ofori Asomaning, underscored the significant role industrialisation plays in the economic growth and development of a country.
He said it was regrettable that successive governments after Dr. Kwame Nkrumah, Ghana’s first President, failed to build on his Seven-Year Development Plan, which saw lots of industrial set ups to grow the national economy.
“Industrial development in the country lacks a coherent and focused Industrialization Policy and as a result it has been left to only a few, most of whom are owned by foreigners,” he noted.
Mr Asomaning said the free zones enclaves, for instance, has been mismanaged with most of its lands given out for private or residential development instead of their intended industrial set ups.
He commended Groupe Ndoum for its commitment to revive and lead the way in Ghana’s industrialisation, especially at a time when the economy is going through a difficult phase and has become unattractive to both local and foreign investors.
He urged the Government to set up an authority or body to oversee the creation of industrial estates in every region.
Source: GNA