The Association of Ghana Industries is raising alarm over an influx of imported goods as the cedi strengthens.
The group says some importers are under-declaring cargo to evade duties, flooding markets with foreign products.
The cedis has in recent times seen a significant appreciation against major trading currencies like the US dollar.
However, the gains are presenting a new challenge of import influx, threatening the survival of the local business community.
Speaking at the annual general meeting of the AGI in the middle belt, Chief Executive Officer of the association, Seth Twum Akwaboah observed the challenges the fluctuating currency presents to businesses.
“Even though we appreciate the significant gains of the cedi, we must pay attention to the influx of imported goods. When these imports become cheaper, then the local companies cannot compete. They begin to lose market share,” he said.
Mr. Akwaboah is urging enhanced surveillance and tax policy enforcements at Ghana’s ports of entry as he believes the new development could defeat the government’s flagship 24-hour economy.
“We think that this is the time the government policy and institutions of regulators must work. While they are bringing the imports, some persons are taking advantage of interest in the imported goods and actually maneuvering – not paying the right duties, they’re undervaluing and under-declaring. They are cheating the system,” he noted.
The annual general meeting of the Association of Ghana Industries assembled small, medium and large scale businesses in the Ashanti, Bono, Ahafo and Bono East regions.
The meeting highlighted the theme “Creating a Conducive Business Environment for Industrial Competitiveness: 24 Hours in Perspective.”
Ashanti Bono Ahafo and Bono East Regional Chairman of the Association of Ghana Industries (AGI), Akwasi Nyamekye,
underscored the urgent need for a more conducive business environment to sustain Ghana’s industrial growth.
He stressed that this focus could not have been more timely, given the global disruptions, rapid technological changes and the increasingly competitive markets industries are forced to navigate.
“Industrial competitiveness does not happen by accident. Instead, it requires deliberate policy, smart investment, and strong collaboration between the public and private sectors,” he noted.
The event held in collaboration with the Mastercard Foundation saw the opening of a trade fair, attracting local SMEs and patrons from the region.
Access to finance remains one of the major challenges confronting the local business community despite contributing approximately 70% of Ghana’s gross domestic product (GDP).
Mr. Nyamekye lamented the high interest rates continue to stifle local industry and appealed to financial institutions and regulators to design tailored products for manufacturers, especially SMEs, with affordable rates and longer repayment periods.
“Ghanaian industries still grapple with high costs of credit, unreliable power supply, multiplicity of taxes, and limited access to skilled labour,” he stated.
The AGI reaffirmed its commitment to remain the voice of industry while working closely with government and international partners to accelerate industrial growth.
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