Calls for stimulus plans for local businesses involved in AfCFTA – GNCCI

Economic news for Thursday, January 21, 2021

Source: Goldstreet Company

01/21/2021

Ghana National Chamber of Commerce and Industry (GNCCI) President Clement Osei-Amoako said the government should consider providing a stimulus package for local businesses involved in the African Continental Free Trade Area (ZLECAf).

According to him, the start of the AfCFTA means that Ghanaian companies will now have to compete with companies from other African countries which may have access to credit facilities at lower rates than those currently offered in the country.

In a media interview, Osei-Amoako also noted that a provision in the stimulus package will ensure an enabling business environment which is essential for the competitiveness of the private sector.

“What we’re looking to do is always look at opportunities in the market to take advantage of that and see where we can reap whatever is there. So most of the things we do, until now, were just business meetings in other countries just to look for buyers. But with a market of 1.2 billion, there is a lot of potential. “

“So we have to know the market to know what’s going on. Now we are talking about the cost of funds. It is important, but we must always be competitive, which is why we are asking the government to seek to give us some form of stimulus packages to help us, ”he said.

The African continental free trade area, AfCFTA, which began on January 1, 2021, consolidates a market of 1.2 billion people and a combined GDP of $ 2.5 trillion. As a result of the deal, Africa’s manufacturing output is expected to double to $ 1 trillion, creating 14 million jobs by 2025.

The AfCFTA deal primarily requires members to remove 90 percent of tariffs on goods, allowing free access to products, goods and services across the continent.

According to McKinsey & Company, a US-based management consulting firm, with the right transportation infrastructure and strong integration, consumer goods manufacturers could earn up to $ 326 billion a year.

The World Bank also estimates that this agreement will create the largest free trade area in the world as measured by the number of participating countries.