The National Treasurer-Association of Ghana Industries (AGI), Ralph Ayitey, has called on businesses to capitalise on the cedi’s relative stability in the exchange market to import capital goods like machinery for agriculture and manufacturing to boost production, stressing that local production is critical for economic stability.
Speaking at the Youth Empowerment Summit, by Tesano Baptist Church, Mr. Ayitey expressed concern about the country’s overdependence on food imports, having an import bill in excess of US$2billion.
“We import a lot of vegetables from fellow African countries, which is not good for the economy. Production needs to be ramped up. Import substitution seriously needs to be considered,” he declared.
He identified agribusiness as the sector that needs critical attention in order to ensure food security in the country – at the same time reducing inflationary pressures. He therefore urged businesses to capitalise on the stable cedi to import agri-processing machinery.
“This is a fine time to import capital goods that can help us to produce more, such as machinery for agriculture and manufacturing rather than consumer goods,” he stated.
Addressing the scale of investment needed to boost Ghana’s ailing manufacturing sector, he suggested collaborative models that will see 2 to 3 individuals or businesses pool resources for a venture. He narrated the story of a poultry farmer who needed , US$10 million to set up a major production line, noting that: “you can start from somewhere. We can also form a consortium”.
To mitigate the finance accessibility challenge entrepreneurs face, Mr. Ayitey proposed a drastic lowering of interest rates and a cultural shift toward patient capital for sustainable business growth. He urged the Bank of Ghana to shift its focus from lamenting past economic woes to outlining a concrete path forward that ensures sustainable lending to expand production and create jobs.
“Ghana should push toward having our interest rates – between six and nine percent maximum – by the end of 2026,” he added. According to him, this will support private sector expansion – which would have a ripple-effect on inflation and other macroeconomic variables.
Mr. Ayitey noted that: “The BoG Governor is doing jolly well with inflation and we should all push interest rates into a single digit, inflation into a single digit. That will create room for private sector patient capital, which is very, very important”.
He argued that the current high cost of borrowing is a major driver of business failures, especially for new ventures. “If you stress somebody with a loan facility that is two, three years, then it’s difficult,” he stated. However, he noted patient capital would allow entrepreneurs to focus on building sustainable businesses rather than being “stressed out wanting to meet that interest rate or principal in a hurry”.
Mr. Ayitey lamented the threat of “unfair competition” from imports to local industries such as pharmaceuticals and cable manufacturing, stating “it makes local production very, very difficult”.
“We need to understand our situation. We need to be deliberate about solving our problems,” he advised.
This comes on the heels of government’s decision to waive import duties on agri-proceasing machinery in an effort to spur local production and value addition, thus reducing the nation’s dependence on food imports.
The Youth Empowerment Summit 2025 forms part of activities marking the 50th anniversary of Tesano Baptist Church.
Source : Business and Financial Times
