Gov’t targets higher industrial capacity, investment to boost business growth
– Mr Augustus Goosie Tanoh, the Presidential Advisor on the 24-Hour Economy, says the Government is implementing measures to reduce supply-chain costs, address financing constraints and strengthening business ecosystem to enable industries to expand production and improve capacity utilisation.
He said the measures to prevent businesses from adding between 30 and 40 per cent to wholesale costs along the supply chain, thereby reducing their cost burden and improving their competitiveness.
Speaking at the 24-Hour Economy Media Engagement in Accra on Wednesday, Mr Tanoh said the broader objective was to move factories from low-capacity utilisation levels to between 90 and 100 per cent, while creating opportunities for them to establish new production lines and operate multiple shifts.
He, however, cautioned that moving industries from about 30 per cent capacity utilisation to full capacity could not be achieved within one year, stressing the need for government to first identify and address the constraints confronting industries.
The Presidential Advisor said finance remained one of the major constraints facing businesses, hence the introduction of a credit guarantee scheme and efforts to build an ecosystem capable of enabling banks to finance about 1,000 Small and Medium-sized Enterprises (SMEs) annually.
He said the financing initiative would cater for businesses at different levels, ranging from smaller enterprises to much larger companies, adding that the programme was deliberate and carefully planned.
Mr Tanoh said the Government was now developing the actual policies and agreements required to implement the programme and create the conditions for businesses to expand and increase production.
He also mentioned that government was pursuing between 30 and 40 investment opportunities, with the lowest investor commitment among the opportunities currently standing at 237 million dollars.
Efforts were also underway to establish an integrated chemical plant, including the production of caustic soda, to reduce Ghana’s dependence on imported industrial inputs and strengthen domestic manufacturing capacity.
Mr Tanoh said that a potential investor in Ghana’s pharmaceutical sector had committed $2 million with a Memorandum of Understanding (MOU) being advanced towards a Development and Deferred Agreement (DDA).
“Plans are also being developed for industrial parks and housing as part of a broader investment ecosystem,” he added.
GNA