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Vice President Mahamudu Bawumia assured Ghana’s construction industry that the Akufo-Addo government is on the right track in its determination to manage and mitigate the debilitating global effect of Covid-19 on the the construction industry and the economy in general.
Addressing members of the construction industry on Friday at the inaugural Ghana Construction Industry Excellence Awards, Dr Bawumia, while praising the immense contribution of Ghanaian entrepreneurs to the development of the country, also highlighted the The devastating impact of global factors resulting from Covid -19 has had on their operations, in particular the increase in the cost of building materials due to the unusual increase in shipping costs from Asia.
“Our country is blessed with great men and women, technocrats, professionals and businessmen in the construction industry who have worked tirelessly to get us here and we must celebrate them. And tonight, we are here to celebrate ours, ”said Dr. Bawumia, in a tribute to members of the construction industry.
“From housing to non-housing, from private construction to public construction, the production of the construction industry is an integral part of national production. Excluding agriculture, construction ranks third after transportation, warehousing and manufacturing for their contribution to national production. Industry is important for its direct and indirect impact on our economic progress.
The Vice President added, however, that despite the remarkable economic management of the general economy by the Akufo-Addo government during its first term, the growth of the construction industry has been severely affected by the global Covid pandemic. -19, with factors locally affecting the prices of building materials such as iron bars and cement.
“The growth and dynamism of the construction industry depends on the growth and dynamism of the economy as a whole. That is why economic management is essential. The economic indicators of our first mandate bear witness to competent economic management. However, the world has suffered a global recession; in fact, it is the worst global recession since 1945, because of Covid-19, which hit us hard in 2020, ”said the vice-president.
“All over the world, commodity prices have skyrocketed. The cost of shipping containers from China to Europe has risen from around $ 2,000 in August last year to $ 13,000 now per container, an increase of 650%. You also have important commodities that have gone up because of Covid and all of you in the construction industry know that the global prices for cement and iron bars have really gone up. So when we see the same things happening in Ghana, we know why it is happening. It is a global phenomenon due to the pandemic. “
Dr Bawumia assured entrepreneurs that just as the government was prudently managing the economy before Covid-19 devastated it, the government is on track to manage the impact of Covid on the local economy and industries, including the construction sector.
“We are trying to manage the impact in Ghana and we are not doing too badly compared to many other countries, and we need to do even better,” Dr Bawumia assured, adding that the government was taking many measures, including a determination to lower the interest rate.
“We have completed projects with most of your members and have decided to consolidate, with prudent macro-fiscal policies that put us back on track to restore economic stability and growth that will foster a resilient financial ecosystem;
“Ladies and gentlemen, the government intends to cooperate and fully collaborate with the Ghana Construction Industry Chamber. We have had fruitful interactions with the chamber, and we must continue to interact with this engagement to increase the job creation potential of the industry. “
“The soon-to-be-established development bank needs to ensure that there is long-term funding and funding for development projects. I fully understand that the cost of borrowing has been one of the constraining constraints in the industry and we hope the development bank will provide low cost interest to entrepreneurs and any project finance activity. “
Dr Bawumia also said that the government’s commitment to strengthening the construction industry is also reflected in the number of laws it has enacted to “clean up, develop and regulate the construction industry in order to facilitate the development “.
Some of the legislations mentioned by the Vice President included Engineering Council Regulations 2020 (LI 2410), Real Estate Agencies Act 2020, Revision of Rent Act 1963, Act 220; Land Law, 2020, Law 1036; Education Regulatory Bodies Act 2020 (ERBA), Skills Development Act 1023, Public-Private Partnership Act 2020, Act 1039.
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