The Association of Ghana Industries (AGI) has called on the government to implement policies to develop the local value chain to scale up Ghana’s industrialization drive for businesses.
The Association said this would help address key constraints and leverage opportunities to enhance productivity, competitiveness, and value addition in various sectors.
The AGI President, Dr Humphrey Ayim Darke, speaking at the 64th annual general meeting in Accra said, efforts towards industrialization ought to be targeted at the growth pillars of the economy, which have potential to create a multiplier effect.
He said Ghana’s industrialization drive over the years seemed to have stuck in the mud, adding that “we need to re-examine the policies and strategies deployed in the past. It will take deliberate policies to address these concerns,” he said.
“The unfair practices continued to give way to the influx of imports of electrical cables, wheat flour, beverages, vegetable cooking oil, and foam mattresses, among others, and it took the AGI and Ghana Standards Authority in an operation to close production sites of sub-standard mattresses.”
The AGI President said these practices required a 24/7-hour monitoring and until there was a sustained surveillance of Ghana’s borders and vigilance by the Ghana Revenue Authority, the unfair practices would fester.
He said although the AGI was in support of sustainable environmental management, eco-friendly technology, and green energy, the announcement of the Emissions Levy Act, 2023 (Act 1112), without clear guidelines unsettled the local industries.
However, he commended the government for the dual benefits of the upfront Value Added Tax (VAT) relief and the in-bond manufacturing dispensation that granted a duty deferment on imported raw materials.
“While the VAT waiver on locally produced textiles remains in force, the waiver of VAT on locally manufactured sanitary pads took effect this year to make the sector competitive. This has a huge cash flow implications and I commend the Government and GRA for heeding to our call,” he said.
Mr Edward Apenteng Gyamerah, Commissioner, of the Domestic Tax Revenue Division, GRA, encouraged industry players to always separate policy issues from that of tax, saying that businesses should engage the Ghana Revenue Authority (GRA) on their specific tax needs.
He called on businesses to adopt and adapt the trends of technology into their businesses to be relevant and eliminate wasteful practices.
Mr Seth Twum-Akwaboah, Chief Executive Officer, AGl, also added that there were plans to strengthen advocacy efforts and to provide a lot more business development services for members.
He pledged the Association’s commitment to advocating for policies and reliefs to tame the economic headwinds that industries face.
“We have engaged government in several fronts, particularly on taxes, forex issues, influx of imports and unfair practices amongst others,” he added.
