Ghana’s manufacturing sector registers negative growth

By Dasmani Laary
Posted on Thursday, 5 February 2015 16:11

“The manufacturing sector continues to shrink and Ghana risks losing its industrial base if government policies do not quickly address these challenges to revive the industrial sector,” AGI president, James Asare-Adjei warned in a communiqué.

Ghana risks losing its industrial base if government policies do not quickly address these challenges

The association has, therefore, asked managers of the country’s power sector to institute a “short term, time bound action plan” to reverse the deteriorating energy situation to salvage industries from collapsing.

While captains of Industry try to keep business running, it is imperative for the government to put measures in place to offset any potential setback to businesses, particularly, on account of the current energy crisis, the association said.

Industry players say, as a matter of urgency, the power managers should make available the strategic national energy plan, 2015 to 2030, and also the five-year energy sector strategic development plan covering 2015 to 2020.

AGI Business Barometer reports that the consistent energy crisis and a lack of access to credit were negatively affecting businesses.

It also cited the cedi depreciation, the high cost of credit, unfair competition on the market, high labour cost, the multiplicity of taxes and excessive port charges as some factors which were undermining growth of businesses.

It said although the confidence level of businesses in Ghana had risen from 42% to 98%, the current energy situation, coupled with the difficulty faced by small and medium-scale businesses in accessing financial assistance, continued to affect businesses.

The report said power outages experienced in the last half of last year negatively impacted on businesses, thereby affecting the confidence level of employers.

Ghana’s power crisis has reached crescendo, forcing the main distributor, Electricity Company of Ghana to shed 440 megawatts of power during off-peak periods and 650 megawatts during peak periods, out of a total available generation capacity of 1,494 megawatts.

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