Manufacturers in distress: reduction of more than 50% of reference values ​​and warning against job losses | Economic news

Local manufacturers stated that their situation was aggravated by the 50% reduction in the reference value of imported products that could be produced in the domestic market, particularly those in the agricultural value chain.

They argued that reduced benchmarks cover about 19% of the products they generate along the agriculture value chain; and because of the lower tariffs enjoyed by imported products when imported into the country, it makes them cheaper than those produced here.

"These reduced benchmarks put local players in the manufacturing industry in trouble. Some of our members are reviewing and considering laying off staff and have suspended future investments. Our secretariat is awash in letters of concern about the members, "said Fatima Ali Mohammed, president of the agriculture sector and the Ghana Industries Association (AGI).

"Free trade should mean fair trade, and this is unfortunately not the case today in Ghana after the recent introduction of 50% reduced benchmarks," she added.

Speaking at an AGI agribusiness seminar in Accra, titled "Planting for Export and Rural Development", she said that products such as tomato, rice, poultry among others, suffered from revision.

For example, she said, Ghana's oil palm companies and Wilmar – both in the oil palm sector – are both in distress and are planning to fire workers accordingly.

"The impact felt is not just about the finished product, but about the entire value chain. Oil imports reached 400,000 tons in 2018, while our deficit is only 150,000 tons for a market consumption of 320,000 tons. On rice, we imported 900,000 tons, and on meat we import about 2.8 million kilograms a month. It's just to give us an idea of ​​what to expect for the figures to resemble a later badessment of reduced tariff values, "she lamented.

Unfortunately, she added, importing products from neighboring markets now costs less than producing in factories in the country, and even overseas imports are much cheaper than what is produced in the market. inside.

"In the end," she says, "there are no friends or enemies to protect a nation. It's just companies and countries that are protecting their economies and their interests. As Ghanaians, we must be well placed to protect the interests of our country first and create the best mutually beneficial results for others, and I believe we can and are. "

Although she described the ratification of the Continental Free Trade Agreement for Africa as the main step after the World Trade Organization, she stressed the importance of Ghana leading the way in the sector. agribusiness for the rest of Africa.

She concluded, "At AGI, we are willing to take the lead on this. Our question is: what is the way forward with these reduced tariff values ​​for the agricultural sector, especially for products already manufactured in Ghana? "

Agri-food seminar

The AGI Agri-Business Sector Seminar aims to coordinate relevant stakeholders along the value chain, particularly in the framework of the government's "Plant for Export and Develop Rural Resources" program.

The seminar brought together private sector actors to discuss how they can effectively participate in the program.