Dr. Humphrey Ayim-Darke, President of the Association of Ghana Industries (AGI), has urged that the Akufo-Addo administration purposefully promote the growth of local businesses to compensate for international enterprises’ departure from Ghana.
Nearly 10 global firms, including Nivea, Glovo, Jumia Foods, Game, and Dark and Lovely, have moved from Ghana.
In an interview with Citi TV’s The Point of View, hosted by Bernard Avle, Dr. Ayim-Darke urged the government to implement measures to strengthen local firms as a solution to the crisis.
“Deliberately build local enterprises to fill in the gap, as others move out, others will fill in the space. So Ghanaian enterprises will stand up to that and they will make deliberate conscious efforts, some might be hand-holding. Because they might not have all the capacity, but technical support in selected priority areas will lead to a balance of payments.
“How do you hold the hands of enterprises deliberately in two or three, four years you can recover easily. The IMF transitional period is flexible, it gives you room for such interventions, and the structure of the economy will begin to change,” he opined.
The AGI President emphasized the importance of the government implementing rules to regulate the importation of goods into the country, encouraging confidence in manufacturers about a secure market.
“To revamp this economy, one needs to look at the micro stability. For purposes of manufacturing, we must look out for the extent of imports, and let them meet the standards of the Food and Drugs Authority. Once they do, in terms of quality, pricing and invoicing, the Ghanaian companies can compete. The policy should come in quickly in the short term to look at how best you could regulate import lines.
He added, “The extent of imports coming in by virtue of the tax burden and other associated burdens are now allowing the market which is already established. Products are being smuggled in, and oils, flour and other products are under threat. If you don’t bring in policy and regulate them in the short term, to give confidence back to the producers, that your market is secured, they should produce and expand, we will tax you to match the gap because we are in difficulties.”
