The Ghana Union of Traders (GUTA) has admonished the Minister-designate for Trade, Agribusiness, and Industry to prioritise assisting businesses to produce more.
The union says several of their members are interested in venturing into the manufacturing sector, but the cost of production was an albatross on their necks.
National Welfare Officer for GUTA, Mr. Benjamin Yeboah, stated that the pledge by Minister-designate Elizabeth Ofosu-Adjare that President Mahama’s 24-hour economy will provide solutions to the One District, One Factory (1D1F) initiative by former President Akufo-Addo is a positive development.
Answering questions from the appointment committee during her vetting, Ofosu-Adjare argued that inadequate raw materials for factories under the IDIF initiative were a key factor affecting the activities of such businesses.
She noted that with the introduction of President John Mahama’s 24-hour economy policy during her administration, the challenges experienced by the IDIF initiative will be dealt with.
Reacting to this, the welfare officer stated that there was then a need to also ensure these businesses have access to machinery to help them be more efficient.
He then proposed the need for the government to deal with the other side of the problems these factories face.
“One of such problems is the cost of production. Several traders have plans to migrate to manufacturing, but the cost of production is a disincentive that is preventing us from doing that.
The cost of production is scary, and it is something we want the new minister, if approved, to deal with. Utility costs, such as water and electricity, are too high for production. Access to credit and interest rates are the other threats to these manufacturing companies.
These are the challenges that are preventing our members from taking that bold step. With these challenges, those who import compete unfairly with the manufacturers because it becomes cheaper. So as she plans in dealing with the raw material issues, we want her to also focus on the cost of production credit-related issues, interest rates, and the cost of production,” he said on Frontline on Rainbow Radio 87.5FM.
By: Rainbowradioonline.com/Ghana
