Industrialists worried over Bank of Ghana’s policy rate hike, cedi depreciation

The Association of Ghana Industries (AGI) says it is concerned about the recent upward review of Bank of Ghana’s policy rate from 12.5% to 13.5%.

It said this is because of the anticipated higher inflationary pressures, which could lead to higher interest rates.

In a communiqué issued at the end of its National Council Meeting in Kumasi on Tuesday and signed by the President, Nana Owusu-Afari, the AGI also expressed concern about the sudden depreciation of the cedi over the past few months.

It said the continuous depreciation of the cedi could result in imported inflation and the volatility of the currency, which can disturb the planning of businesses.

The AGI said it supports government’s pledge to ensure the stability of the economy, in spite of the fact that this year was an election year and urged the government to live up to that pledge.

The Association also requested the government to abolish import duties on imported raw materials and rather impose taxes on all primary commodities and raw materials exported from the country.

AGI said it was worried that the country had depended and continued to depend on the exploitation and export of primary commodities such as bauxite, cocoa beans, diamond, gold, timber and lately oil, since independence.

The Association urged the government to promote public-private partnerships and joint ventures to ensure processing of primary products before exporting, to enable the country to generate more revenue and create more employment.

The National Council of AGI said the poor performance of the manufacturing sector over the last five years did not augur well for the development of the country.

He said whilst Ghana could have a competitive advantage in the agro-processing industry, the country had not been able to take advantage of the existing potential for agro-processing.

The AGI therefore appealed to the Ministry of Food and Agriculture to strengthen the linkage between the manufacturing and the agricultural sectors through the development and implementation of policies that would encourage investors to grow raw materials on large scale to feed the industries.

The Association recognised the timely development and the launch of the Ghana Industrial Policy and Private Sector Development Strategy II, and commended Government for that.

“We also commend the government for the broad consultation approach in the development of the policy. However, we would like to see a more private sector-led approach than public sector in the implementation of the policy,” it said.

The AGI also appealed to the government to put in place a legislation that would make it mandatory for all businesses operating in Ghana to register with a recognised business association in the country.

This, it said, would enable the country to generate the needed statistics for national development and help the business associations support the promotion of good business practices in the country.

The AGI also called on the Ghana Shippers’ Authority and the Ghana Institute of Freight Forwarders (GIFF) to resolve their differences, bearing in mind that they both worked to serve the interest of the Ghanaian Private Sector.

“Indeed, AGI is prepared to act as an arbitrator in resolving the pending issues between the two institutions,” it said, and assured the government of the private sector’s continued interest in collaborating with government to ensure success in the industrial and economic development of Ghana.

Source: GNA