The Association of Ghana Industries (AGI) has emphasised the need for a robust import substitution strategy and stronger support for manufacturing as key components of government’s 24-Hour Economy agenda.
The industrial body believes that by prioritising domestic production, the country can reduce reliance on imports, strengthen value chains and enhance domestic manufacturers’ competitiveness.
“We engaged with the advisor on the 24-hour economy, with a focus on key sectors such as the poultry value chain, metal fabrication and works, textiles, pharmaceuticals and vegetable oils,” AGI president Dr. Humphrey Ayim-Darke stated.
According to him, prioritising the development of these sectors will position AGI as a pivotal partner in efforts to reset the economy alongside government.
“To the best of our understanding, we believe that once attention is given to these areas and the value chains are developed, AGI will play a significant role in revitalising the economy and boosting the manufacturing sector,” he added.
He made these remarks on the final day of a two-day National Council retreat held in Accra. He stated that the 24-hour economy concept presents a unique opportunity to revamp Ghana’s industrial sector.
He noted that the success of this initiative hinges on a well-structured manufacturing sector aligned with the broader economic restructuring effort.
The retreat, attended by over 60 industry leaders and representatives from 25 sectors, explored key challenges affecting local manufacturing including tax policies, forex instability and trade regulations.
Discussions also underscored the need for policy reforms to address gaps in domestic tax collection, particularly in the areas of Value Added Tax and import duties which continue to hinder industrial growth.
AGI Chief Executive Officer Seth Twum-Akwaboah reiterated that industrialisation is central to the country’s economic fortunes, stressing the need to develop strong value chains across strategic sectors to facilitate a thriving industrial base.
“The 24-hour economy prioritises key industries, ensuring that value chains are properly developed to create jobs and enhance productivity. We examined the poultry industry, where each stage of the value chain has the potential to generate employment and drive sustainable industrial growth,” Mr. Twum-Akwaboah noted.
He added: “The National Council meeting focused on how industry can re-strategise and collaborate with government to drive development and growth in the industrial sector. The 24-hour economy identifies key strategic sectors, ensuring that value chains within these sectors are fully developed and interconnected. If achieved, industries can operate continuously – creating the much-needed jobs for our economy”.
AGI also called for tax reforms to make tax administration more business-friendly. Citing an example, Mr. Twum-Akwaboah stated: “There is a situation where you import raw materials and over 50 percent of their value goes into taxes.
“When we conducted the calculations and simulations, we discovered that approximately 57.17 percent of the raw material’s value is paid in taxes,” he explained. “In such a situation, local products become uncompetitive. By the time production is complete, the cost is significantly high – leaving businesses with no choice but to pass it on to consumers through higher prices.”
For his part, former AGI president Dr. James Asare-Adjei said indigenous businesses, particularly those in the manufacturing sector, must be prioritised to enable them scale up and compete effectively under the African Continental Free Trade Area (AfCFTA).
“To fully leverage opportunities under AfCFTA, our manufacturing industries must expand. Strengthening our import substitution policy through agribusiness is crucial. We discussed this extensively during the retreat and will engage government to ensure that key developmental areas receive the necessary support,” he added.
AGI further advocated structured funding for priority industries, long-term affordable credit options and measures to stabilise the cedi to support the manufacturing sector.
The association also pledged its commitment to working with government to ensure effective implementation of the 24-hour economy agenda.
The AGI National Council Retreat is an annual event that brings together all members of the National Council to deliberate on critical issues and strategies for the year ahead. This year’s retreat was held under the theme ‘Resuscitating industry to spur growth, fiscal balance, and job creation’.
The two-day event provided an opportunity for the AGI National Council to engage with government officials and policymakers on pressing issues affecting the country’s business environment.
Source: thebftonline.com
