The Executive Director of the Institute for Liberty and Policy Innovation (ILAPI), Peter Bismark Kwofie, has strongly criticised the government’s financial planning over the allocation of hundreds of millions of Cedis to the poultry initiative.
In a sharp public reaction, the policy analyst questioned the rationale behind committing a staggering GH₵245 million of taxpayers’ money to the “Nkoko Nkitinkiti” poultry project.
He argued that such massive resources could yield far greater, sustainable economic benefits if redirected toward building medium-scale manufacturing industries across the country.
“What can GH₵245 million do differently?” Mr Kwofie asked, pointing out that the state could use the same budget to establish highly equipped, medium-scale industrial plants.
According to him, suitable options for Ghana’s current economic climate include a cassava processing and starch factory, a fruit juice and beverage bottling plant, or a solar panel assembly facility.
The ILAPI boss explained that these manufacturing hubs would provide stable livelihoods for a vast number of citizens, noting that “these factories typically employ between 50 and 500 workers. Yes, 50-500 workers.”
Presenting a detailed breakdown, the policy expert matched his alternative proposals with prevailing local and international manufacturing costs to prove their feasibility.
Under his first proposal, a fully operational cassava processing or fruit juice plant would cost between GH₵23 million and GH₵58 million to set up. He detailed that the remaining funds from such an allocation would serve as working capital and cover equipment imports.
He added that a single plant of this nature has the capacity to employ between “150-450 including farmers/aggregators, equipment operators, quality control technicians, and sales personnel.”
For the second alternative, Mr Kwofie highlighted the potential of green technology, estimating that a 50 Megawatt (MW) capacity solar PV assembly facility requires an initial capital expenditure of around GH₵52 million. This budget would comfortably cover assembly lines, testing equipment, and warehousing.
In terms of job creation, he estimated that the solar facility could employ “100-350 workers, comprising engineers, technicians, line operators, and administrative staff.”
Addressing the critical issue of land acquisition, the ILAPI chief acknowledged that “purchasing or leasing land can consume 5% to 15% of your total budget depending on land mass.”
Even when accounting for these land costs, Mr Kwofie maintained that the GH₵245 million budget is more than enough to establish multiple factories.
“Two each of these could be built,” he stated, explaining that this would mean setting up four factories across four different regions of the country. He emphasised that through this strategic shift in spending, “at least 1200 permanent jobs could be created to drive the economy.”
To prevent the mismanagement and political interference that have historically crippled state-backed enterprises in Ghana, the think-tank leader insisted on a strict private sector management model.
Mr Kwofie concluded by advising that the “implementation and management of the manufacturing companies should be private and not government appointees,” ensuring the businesses are run efficiently to secure a return on the taxpayers’ investment.
By: Rainbowradioonline.com/Ghana