Government Asked to Take Stake in Struggling Local Businesses

Date: 2019-12-02

The Association of Ghana Industries (AGI) has proposed to the government to provide equity financing to local businesses to cushion and support them to expand.

Dr. Yaw Adu Gyamfi, President of the AGI, said equity financing was necessary to enable the struggling businesses to stay off bank loans which overburdens them with high interest.

"The time has come for businesses to be supported. Instead of the government asking of businesses to go to the banks to borrow money, it has to look at it from a different view in the sense that it will take equity and give us money and that the ownership, governance, management of the company will be run hand in hand with the government until the money is paid off."

He said, "We think it is a very laudable idea that government needs to pursue with us."

He was speaking in Accra yesterday at the 59th annual general meeting of the AGI.

It was on the theme "Positioning Local Industries for Global Competitiveness."

According to Dr Gyamfi, the government taking up stake would make local companies productive and efficient and increase productivity to spur the transformation of Ghana's economy.

To be able to attract the needed support, he urged members to provide data on their businesses in order to help create business partnerships and linkages in the ECOWAS bloc and position the companies to compete favourably in the Africa Continental Free Trade Agreement (AfCFTA) which would take off next year.

Minister of Finance, Ken Ofori-Atta, said the government would consider a review of the 50 per cent benchmark value on import duties, which had been a major concern of businesses.

He said the government would intensify campaign on tax compliance and revenue mobilisation and establish the National Development Bank to provide support to the country's industrial policy to make Ghana a net exporter.

The Chief Director from the Ministry of Trade and Industry, Patrick Nimo, said the Ministry would soon launch the Business Consultative Portal which was an interactive portal to enable policymakers effectively consult affected businesses and individuals in a transparent and timely way, and at considerable cost savings soon.

 

Source: Ghanaian Times