We’ll Create Robust Economy

– With right government support – AGI

Story: Isaac AIDOO, Accra

Ghanaian businesses are on a determined path to scale up and build local production capacity, with the goal of becoming African giants. According to Dr. Humphrey Ayim-Darke, President of the Association of Ghana Industries (AGI), this ambition can only be realized with the right government support.

“The AGI believes only a private sector-led industrial development, with mutual support from government to implement the right policies, will create a robust Ghanaian economy and sustainable jobs,” Dr. Ayim-Darke said during the opening of the 2024 AGI Ghana Industrial Summit and Exhibition.

The three-day event, themed “Promoting Value Chains for Competitive Industrial Development,” brings together key industry players to discuss how value chains can drive the country’s industrialization.

AfCFTA Offers an Avenue to Boost Exports

Speaking on Ghana’s export potential, Dr. Ayim-Darke emphasized the importance of the Africa Continental Free Trade Area (AfCFTA) agreement in promoting the country’s National Export Development agenda. According to him, AfCFTA provides a unique opportunity for Ghana to increase exports within the free trade area.

“Under the Continental Free Trade, Rules of Origin is central to the tariff treatment of the goods a country produces locally,” he noted. This, he explained, places Ghana in a strategic position to capitalize on its manufacturing capabilities and expand its reach across African markets.

Dr. Ayim-Darke also highlighted the role of value chains in making local industries competitive. “Our efforts towards industrialization must be first targeted at the growth pillars of our economy. The promotion of value chains is critical to drive innovation, enhance competitiveness, and foster the sustainable industrial growth we need as a country.”

Addressing Ghana’s Food Security Concerns

The AGI President expressed concern about recent reports from the Ministry of Food and Agriculture, warning of potential food shortages due to droughts affecting the country’s main grain-producing regions. These regions contribute over 62% of Ghana’s grain supply annually, and any significant crop failure could have far-reaching implications for food security.

“Government is taking steps to address this worrying development in a timely manner,” Dr. Ayim-Darke said, acknowledging the efforts being made to mitigate the effects of the drought. “Agriculture is critical to our industrial drive, and food security must be a priority in our policy discourse on value chains for competitive industrial development.”

Strengthening Value Chains for Industrial Growth

Dr. Ayim-Darke stressed the importance of value chains in enhancing Ghana’s industrial capabilities. “We need to re-examine the policies and strategies deployed in the past, as our industrialization drive seems to have slowed. Promoting efficient value chains is key to achieving competitive industrial development.”

He called on stakeholders to explore ways to attract investments that would quickly develop the country’s raw material base. “While deepening our industrialization drive, we must focus on building the raw material base for what we grow and consume. This is essential for sustainable industrial growth,” he added.

Adding to the discourse, Deputy Minister of Trade and Industry, Mr. Michael Okyere Baafi, stressed that the summit’s theme aligns with the government’s industrial transformation agenda.

“The theme for this year’s summit underscores the importance of an integrated approach in Ghana’s circumstances, which also aligns with the ministry’s industrial transformation program,” he said.

Mr. Baafi highlighted emerging sector-specific policies under the strategic anchor industry initiatives, such as the automotive component manufacturing policy, the textiles and garment policy, and the pharmaceutical manufacturing policy. These initiatives, he explained, cover the development of entire value chains in their respective industries, reinforcing forward and backward linkages and expanding the industrial base.

“For example, the vigorous promotion of automotive assembly will drive automotive and parts manufacturing, enhancing demand for products like iron, steel, and aluminum,” he added.

He acknowledged the challenges in Ghana’s business environment, particularly high financing costs and regulatory bottlenecks, but assured that the government is taking these issues seriously. “We at the ministry will continue to be your foremost advocates in addressing identified challenges in the manufacturing sector,” Mr. Baafi affirmed.

The Deputy Minister also encouraged industrialists, especially small and medium enterprises (SMEs), to take advantage of the opportunities created by the government to transition into larger businesses. “This is an opportunity for industries to develop and grow,” he concluded. As the summit progresses, the AGI remains committed to advocating for policies that promote value chain development and fostering collaborations to strengthen the industrial ecosystem. “As an association, we have the collective power to drive positive change, not only in boardrooms and factories but in the very communities we serve,” Dr. Ayim-Darke concluded.