Pay attention to suffocating industries – AGI implores Akufo-Addo

The Association of Ghana Industries (AGI) has implored incoming President, Nana Addo Dankwa Akufo-Addo, to pay utmost attention to industry as the sector continues to reel under the current harsh economic conditions.

In a congratulatory statement signed by its president, James Asare-Adjei, the association also pledged members’ commitment to the cause of the incoming administration to achieve the broader national industrial objective.

The statement said: “We trust that the challenges facing the private sector will receive the incoming government’s utmost attention and quickly get to work to save suffocating industries, as we work together towards achieving a sustainable economic development.

The AGI is ready to work with you and your government to achieve the industrial objective of this country.”

Government’s continuous imposition and introduction of taxes on businesses is making local businesses uncompetitive locally as well as on the international market.

The AGI boss had earlier argued that these policies, though helps government to raise revenue, over the years have contributed significantly to the collapse of Ghanaian businesses especially in the manufacturing sector which hitherto had prospects to grow and expand.

Growth in contributions of the manufacturing sector to the country’s GDP has been a disturbing trend over the past couple of years.

While the sector experienced a negative growth rate of 0.8 percent in 2014, the Ghana Statistical Service predicted a gloomier picture that pointed to a negative growth of 2.0 in 2015.

The association has on several occasions asked government to relook the various tax components on utility tariffs that have significantly raised the cost of power for businesses in the country.

Chief Executive Officer, Seth Twum-Akwaboah, told journalists on the issue: ““It is becoming obvious that electricity today is expensive; and the key components contributing to that are the levies which have been imposed.

“The cost of supply has to be intact, but the levies on them are additional costs which can be looked at. We are therefore asking for a review of electricity tariffs based on the levies that have been imposed so businesses can cut down on cost.”

It is against this background that the AGI is seeking the attention of the incoming NPP administration ahead of planned engagements with the new president.

The statement continued: “Our business and investor confidence is consolidated and we hope that the trust reposed in you by the people of Ghana will be a source of inspiration to you in the delivery of your mandate as president.

AGI would like to request an engagement within the next one month to further discuss key initiatives and proposals for promoting industrial development and private sector growth in the country.”

The AGI further commended the general public and the various stakeholders in the electioneering process for sustaining the peace of the economy.

“We are proud to say that for the seventh time running in our fourth republic, Ghana has once again stood out as a beacon of democracy among many African countries. Indeed, Ghana has traversed a challenging path in building a strong democracy and the success of our recently held elections deepens our democracy.

AGI also seizes this opportunity to congratulate the Electoral Commission, Political parties and the people of Ghana on holding a peaceful and successful elections,” the statement read.

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