AGI presses for access to funding, further reduction of utilities, Wed, Apr 18, 2018

by Maxwell Kudekor

Issues of Power supply and cost, finance and labour continue to impede the growth of indigenous businesses and companies in Ghana despite government interventions in promoting industrialization and job creation.

The Association of Ghana Industries (AGI) says, even though the Akufo-Addo government has abolished some nuisance taxes for industry, reduced tariffs and utility cost, industries still struggle to produce at full capacity.

Chairman of the Eastern and Volta Chapter for the AGI, Mr. Dela Gadzanku says they look forward to the government to further reduce taxes for industries, produce affordable power and facilitate the financing of industries in order to open their capacities to employ more Ghanaians.

He says, the burden on captains of industries are the high cost of production and lack of access to funding for expansion and growth.

According to Dela Gadzanku, some companies are unable to rely on the national grid for power because of its cost, a phenomenon he believes should be curbed for development.

He consented that, the issues of access to credit cannot be solved overnight but the government can speed up its interventions to creating the opportunities for funding business.

Dela Gadzanku made the disclosure when the Association of Ghana Industries and the Eastern Regional Coordinating Council embarked on an industrial tour to some companies in the Eastern Regional capital, Koforidua, to ascertain the challenges of industries in the region.

Gadzanku added that, the government policy of One District, One Factory is commendable but it would be incumbent on government to consider supporting the distressed businesses that already have markets but are struggling because of capital and other factors of production.

He mentioned that, the AGI is committed to supporting the government in creating employment for her citizens.

The team toured Intravenous Infusions PLC Ltd, the premier producers of infusions in Ghana and West Africa, the Gratis Foundation and B Forster Bakery in koforidua.

At the Intravenous Infusions PLC Ltd, Managing Director Mr. David Klutse lamented the infiltration of cheap Indian infusions on the Ghanaian market competing with local infusion companies.

He says, the phenomenon is killing the local industry and job creation.

Mr. Klutse appealed to the government to take measures in protecting local companies from other multi-national companies who enjoy the advantage of economy of scale.

He also complained of delay in payment of supplies from the hospitals, a situation which has been attributed to the late release of funds from the National Health Insurance Authority.

Eastern Regional Minister, Eric Kwakye Darfour, was impressed about the company’s performance despite their challenges and pledged to communicate with the relevant state agencies responsible for solving their problems.

Eric Kwakye Darfour assured the companies of government commitment to creating a friendly business environment for all.

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