Dr. Humphrey Ayim-Darke, the President of the Association of Ghana Industries (AGI), has proposed that the Akufo-Addo administration should intentionally foster the growth of local companies to compensate for the departure of multinational corporations from Ghana.
Nearly ten multinational corporations, including Nivea, Glovo, Jumia Foods, Game, and Dark and Lovely, have relocated from Ghana.
In an interview in Accra; Dr. Ayim-Darke urged the government to implement measures to develop the capacity of local businesses as a remedy for the situation.
“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 stressed the need for the government to implement policies that will regulate the importation of goods into the country, thereby instilling 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.”
