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29.06.2007 General News

AGI To Investigate Energy Crisis Impact

29.06.2007 LISTEN
By Daily Graphic

The Association of Ghana Industries (AGI) is to be the first body to conduct a detailed impact assessment of the National Load Shedding Programme on businesses in the country.

The assessment will be part of a bigger survey dubbed “Business Climate Survey (BCS) 2007 ” by the private sector body.

Since the energy crisis last August, there has been no independent and detailed impact assessment of the situation on businesses.

The President of the association, Mr Tony Oteng-Gyasi, said this year's study had been broadened to cover the construction, mining and services.

The maiden survey last year, which has been cited extensively by multilateral donor agencies and influenced government policy, sampled chief executives of only manufacturing companies.

The BCS 2007 is expected to enhance dialogue as it provides accurate information, facts and assessment of decision makers, a practice considered to be of world class standard.

Mr Oteng-Gyasi said “the survey will help the association to monitor the business climate from the perspective of the private sector and assess the impact of policies and programmes”.

Last year, the BCS identified the energy crisis, which was just a few months old, as the major constraint to the operations of businesses in the country and after a year, the accuracy of that assessment was incontrovertible.

The AGI president said after the findings, there would be follow-up events to engage stakeholders in dialogue and seminars in order that the constraints could be dealt with adequately.

Funding of the project, which was last year fully shouldered by the German Technical Co-operation (GTZ), is now being led by the local private sector, an initiative by the AGI for the project to be entirely cloaked in the private sector garment.

This year's survey will be conducted between July and November.

The Finance and Economic Planning Minister, Mr Kwadwo Baah-Wiredu, commended the association for the initiative, adding that the outcome would greatly shape government policies and decisions.

Mr Baah-Wiredu said some indicators in the economy were still worrying for the private sector, particularly interest rates, which, he said, were still high and needed all hands on deck for the rates to be lowered.

“Borrowing at between 18 and 20 per cent is still not good enough, and we must all work together to lower it further for businesses to survive,” he said.

The Finance Minister said the government would continue to provide good leadership, a stable macroeconomic environment and infrastructure for the smooth operations of the private sector.

He complimented the AGI for the bold step of assessing the business climate, an exercise, he said, would not have been misplaced even if conducted daily.

Story by Samuel Doe Ablordeppey

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