Listen to AGI’s concerns

THE call by the Association of Ghana Industries (AGI) to reform Ghana’s Customs Act 891 highlights an urgent need for policies that ease the burden on businesses rather than amplify it.

The AGI, under the leadership of Dr. Humphrey Ayim-Darke, raised valid concerns over the Act’s dependence on fluctuating exchange rates set by the Bank of Ghana, a mechanism that has created serious cost unpredictability for importers and manufacturers alike.

This volatility, AGI argues, fuels inflation and creates cascading effects that impact not just businesses but also consumers across Ghana.

Dr. Ayim-Darke’s address at AGI’s 64th Annual General Meeting was a clarion call for government accountability and more strategic economic policies. He rightly pointed out that the biweekly adjustments in exchange rates directly affect import duties, a critical factor that contributes to inflationary pressures.

A more stable system at the ports, as proposed by the AGI, would bring much-needed predictability, allowing businesses to plan more effectively. If Ghana is serious about becoming a business-friendly environment, it must address the costs that these types of policies impose on businesses.

Additionally, the AGI’s stance on tax reforms is timely. The VAT and flat rate systems require overhauls to alleviate the fiscal strain on businesses, and the AGI has urged the next administration to deliver on its campaign promises for tax reform.

These are not merely business interests; they are central to fostering an environment that supports investment, encourages innovation, and builds a resilient economy.

Furthermore, AGI’s commitment to international partnerships is commendable. By establishing strategic alliances with countries like China, India, and Japan, Ghana stands to gain from essential capital inflows, technology transfer, and a boost in local industry capacity.

These collaborations are vital as they contribute to job creation, particularly for the youth, who form the backbone of Ghana’s future economic aspirations. Ghana’s industrialists should leverage such partnerships to stimulate local production and reduce dependence on imports, thereby easing some of the pressures from exchange rate volatility.

The AGI also deserves praise for championing gender inclusion through its AGI Women in Business group, which recently celebrated its fifth anniversary. Women entrepreneurs play a crucial role in Ghana’s economic landscape, and initiatives to support and expand their involvement in industry are a welcome strategy for balanced and inclusive growth.

Moreover, the AGI’s initiative to introduce a “policy performance rating system” as part of its Business Barometer Survey is a promising move. By tracking and rating government policies and holding ministers accountable, AGI aims to act as a watchdog for the industrial sector. This monitoring system, with transparent and actionable insights, could push policymakers to stay true to their commitments and ensure that Ghana’s economic growth is not hampered by ineffective policies.

Dr. Ayim-Darke’s call for unity and stability as Ghana heads toward elections is a reminder of what is at stake. Ghana’s position as an investment destination hinges on its political stability, and it is up to all stakeholders—from citizens to politicians—to protect this invaluable asset. National interests must be paramount, and it is essential that any incoming administration recognizes the importance of policy stability and continuity in fostering a thriving industrial environment.