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Manufacturing unlocks poverty –
Panelists
Accra, March 14, GNA – Panellists at a forum on the role of
the manufacturing industry in economic development were
unanimous that accelerated growth and poverty reduction were
only possible if the sector was adequately supported to play
its role.
They argued that the middle income status being envisaged in
2015 would remain largely a mirage when the problems of
energy, access to credit and unbridled trade liberalization
that had been the bane of manufacturing industries were not
dealt with.
The forum organized by the Ghanaian-German Economic
Association (GGEA) on the theme: “Economic Growth in Ghana –
Growth without Manufacturers?,” was to assess the role of
the manufacturing sector in the country.
Mr Alfred Dorn, Managing Director of Ghana Agro-Food
Company, said the only way to bring more people out of
poverty was to invest more in the agro-processing sector
because of its potential to improve the standard of living
in rural and small urban communities.
According to him, although the service sector was growing
more strongly in terms of its contribution to the GDP, it
would not necessarily contribute in terms of spreading the
benefits of growth to the wider society, especially not to
the development of the rural and semi-rural areas.
“Therefore manufacturing which focuses on adding value to
local raw materials will be the way to ensure that these
benefits are able to trickle down to the majority of
Ghanaians and turn the country into a middle income
country,” Mr Dorn said.
Mr Dorn held that the ability of the manufacturing sector to
absorb large quantities of locally produced raw material
would provide the necessary impetus for improvements in the
farming methods, to improve yields and increase productivity
which will all contribute to increasing food security and
improving rural incomes all of which were necessary to
secure Ghana’s economic and social development.
Mr Seni Adetu, Managing Director Guinness Ghana Breweries
Limited said in order for a sustainable economic growth to
take place there must be genuine partnership between the
government and the private sector in dealing with issues of
mutual consent.
Besides there is the need for a favourable tax regime,
provision of adequate infrastructure, legal framework in
place to protect the interest of the business community and
an enabling environment that permits manufacturers to break
away from the old ways of managing their businesses.
Mr Helmut Clever, Managing Director, Neoplan Ghana Limited,
expressed concern about the erratic power supply situation
and the high voltage fluctuations that had been causing
damages to equipment and machinery.
He called for the protection of local industries, saying
that the import of finished products was tantamount to the
export of local working places.
Mr Cletus Kosiba, Executive Director, Association of Ghana
Industries, repeated the call on government to abolish
pre-production taxes and duties on raw materials by
substituting them with taxes on profit and Value Added Tax
since they add up to the high cost of production and make
local products uncompetitive compared with imported ones.
There was also the need to take immediate steps to normalize
energy supply to stem the crisis through which the companies
are going through and to avoid redundancies.
Responding, Deputy Minister of Trade and Industry Gifty
Ohene-Konadu said efforts were being made to promote
investments to enable the manufacturing sector to achieve a
growth rate of between 8 and 12 per cent in line with the
country’s vision to attain a middle income status.
There is also the urgent need to add value to our
agricultural produce for the domestic and export markets.
Mrs Jana Orlowski, Deputy Head of Mission Embassy of the
Federal Republic of Germany said Ghana’s manufacturing
sector was lagging behind macroeconomic and sectoral
development. For instance the sector grew by 7.3 per cent in
2006 whereas the GDP grew by 6.2 per cent.
She said manufacturing industries form the backbone of any
economy, under the aspect of job creation, regional trade,
integration and competiveness.
Mrs Orlowski said manufacturing industries were also the
basis of technical development and innovation.
“The most vibrant service sector cannot replace a sound
national manufacturing industry,” she emphasized.
Mrs Orlowski said a sound manufacturing with working export
opportunities into domestic, regional and international
markets could change the country’s unemployment situation.
Mr Stephen Antwi, President of GGEA, said the current energy
crisis was severely constraining the ability of companies to
achieving their annual production targets, saying it had a
serious implication for employment.
He cited the current high cost of cement on the market and
blamed it on the power situation.
GNA
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