Accra, May 7, -The Association of
Ghana Industries (AGI) Business Barometer for the first quarter of this year
showed that Business confidence fell marginally as compared with that of the
last quarter of 2017.
The business confidence index
dropped to 100.5 from 107.9 recorded in the fourth quarter of last year.
Dr Yaw Adu Gyamfi, the President
of the AGI, said while the first quarter of 2018 saw a number of positive signs
including a good mix of the macroeconomic indicators, the business confidence
seemed to be waning.
“Businesses have been under pressure from the
high cost of credit, access to credit, delayed payments, particularly our
contractors, the high cost of electricity prior to the announcement of the
reduction of tariffs by the PURC,” Dr Adu Gyamfi said.
Dr Adu Gyamfi said the AGI
National Council would want to see proactive government policies to deal with
the challenges facing businesses.
First, the AGI would want to see
that only a private sector-led industrial development with mutual support from
public institutions to enforce import regulations will help check huge revenue
loses, create sustainable employment and growth of the Ghanaian economy.
AGI further notes that
manufacturing which represents a critical mass of the real sector of the
economy was becoming less competitive.
It called for enhanced
collaboration between the AGI and the Customs Division of the GRA to help check
malpractices such as under-invoicing, under-declaration and erroneous
description of imports in order to save manufacturing from the threat of
collapse.
According to the Association,
delays and charging of unofficial fees still persisted, undermining trade
facilitation programmes and reforms introduced last year.
The AGI also says duplication of
mandates and services by some regulatory bodies at the ports was very worrying.
It says the industry cannot bear the cost of such services already being
delivered hence recommended the augmentation of existing structures to avoid
excessive bureaucracy and undue costs to the businesses.
“The paperless system is a welcome initiative,
though it has not fully addressed all the challenges. To this end, AGI
appreciates the discussions and institutional collaboration with the GRA and
relevant institutions to help check malpractices at the ports,” Dr Adu Gyamfi
said.
The AGI while commending the
passage of the Ghana International Trade Commission (GITC) said it would want
to see the impact of the work of the Commission on cases of consumer protection
and unfair trade practices against the local economy.
However, AGI pledged its support
for the Commission and had set up a private sector committee to closely monitor
the work of the GITC, the AGI President said.
On the One-District-One Factory
initiative, the AGI urged Government to expedite action on the initiative, considering
the slow pace of implementation, saying businesses were anxious to see a clear
support from Government.
The AGI lauded government for the
recent reduction in electricity tariffs, saying it had brought some relief to
industry and non-residential customers.
“The high cost of electricity has
often emerged as the number one difficulty facing businesses and the Association is optimistic the reductions
would open up new prospects for businesses and inure to competitiveness as a
country.
“The Association is calling for
the passage of the local content law for the construction sector.
“AGI recommends a form of credit
certificate to offset outstanding statutory payments to local contractors.
There is also the need for a legislation to cushion contractors who suffer
delayed payments in view of the huge pre-financing costs,” AGI President said.
The Association also called for
government’s attention to the development of tourism in Ghana, considering the
fact that it was the fourth highest foreign exchange earner in the country.
It called on the government to
strictly implement the 15-year tourism development program and also ensure that
tourist destinations were well-developed.
The AGI has also challenged the
government to establish a state-of-the-art hospitality training institute.
GNA
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