AGI President, Dr. Humphrey Ayim Darke
Our attention has been drawn to a reduction of the 50% benchmark discount value to 30% for general goods and 10% for vehicles, while consultation was still in progress. This revision by Government does not offer a solution or address the concerns of local manufacturers.
While we acknowledge efforts by Government to address this distortion, we are very dissatisfied with this review. After bearing the brunt of this policy for over two years, it has been our expectation that the revision will spare us further stress.
AGI wishes to state that a review from 50% to 30% for general goods and 10% for vehicles does not restore local manufacturers to the status quo, let alone competitiveness. This will not achieve the desired impact and we consider this not adequate enough to ensure the competitiveness of our manufacturers. Indeed, we are disappointed.
We are anxious to see a reversal of the benchmark discount policy in a manner that does not constraint local industry, to sustain business operations. Our manufacturing sector constitutes a critical mass of our real economy and therefore it is important to retain the 50% benchmark discount for raw materials to help boost manufacturing and export capacity for the Africa Continental Free Trade Area (AfCFTA).
Since Government has indicated a gradual reversal of the benchmark discount policy, we will like to see a road map with timelines for this process.
Policies of this nature should be consistent with the Government’s initiatives of industrialization, in order to create employment opportunities for our youth, especially where the government is seeking to create one million jobs as well as address its revenue shortfalls. We expect to see a policy revision that motivates local production for the growth of our economy and the development of our local supply chains.
AGI believes that the revision of the benchmark discount policy will need to take cognizance of the overarching framework of Ghana’s industrial transformation agenda, the competitiveness of the local industry, and fair-trade practices.
Signed: Dr. Humphrey Ayim Darke
AGI President
For and on behalf of the Association of Ghana Industries
If you need further information, please contact the Chief Executive Officer on 0302-251266 Website: www.agighana.org