Manufacturing subsector’s contribution to GDP growth has stalled over the last eight years, averaging about 11%, says the AGI President, Dr. Humphrey Ayim-Darke.
According to him, this was due to the non-existence of medium to long-term funding for the stakeholders in the manufacturing sector.
He said this at the 63rd Annual General Meeting of the Association of Ghana Industries (AGI) held on the theme “Industrialization through sustainable and efficient value chains.”
He explained that in the instance when funding was available, financial institutions refused to lend to the industry at a rate below the 30 per cent policy rate.
“We reckon that advocacy thrives on persistence and we are happy to discuss, engage, negotiate, renegotiate, evaluate, and recommend as need be, for the benefit of us all and the collective development of our beloved country,” he said.
Dr Ayim-Darke commended the government for the duty and Value Added Tax (VAT) waivers on items in some selected sectors such as automobile, manufacturing, and agriculture as it would ease the cost burden on their members and help chart a competitive path for industry.
“Despite the challenges this year has presented, we have also experienced some stability. We are not yet out of the woods. A lot is being done on our part, to drive investments across all sectors,” he said.
He further charged the government to put in place sustainable policies that will drive industrialization in the country and in turn support the growth of local businesses.
Representing the Ministry of Trade and Industry, Mr Kwasi Ofori-Antwi said that industrialisation was a key driver of economic growth and development in the country hence the need to address its accompanying challenges such as environmental degradation, resource depletion, and social inequality.
He added that inefficient supply chains led to challenges such as pollution, emissions, congestion, and delays which harm the environment and reduce businesses’ profitability and performance.
“Not quite long ago, the disruptions in the global supply chains caused by the COVID-19 Pandemic have taught both economies and industries the need to develop sustainable supply chains. That’s why we need to rethink our industrial systems and make them more sustainable,” he explained.
He commended the AGI for their contribution towards the government’s transformation agenda to reshape the industrial landscape of Ghana’s economy.
The Volta Regional Minister, Dr. Archibald Letsa in his remarks noted that businesses could experience significant growth if the economy operated on the producing end rather than the reviving end.
Dr. Letsa noted that trade and investments are major sources of employment, making goods and services available to consumers at very competitive rates.
The event was attended by key industry leaders, government representatives, and stakeholders.
