AGI wants 30% of govt procurement sourced locally

The Association of Ghana Industries (AGI) is pushing for government to seed at least 30 per cent of its procurement to its members.

 

It said such an initiative will help grow indigenous businesses, majority of which are small and medium scale enterprises (SMEs).

The move the association said could help boost the industrialisation drive in the country.

The Vice President of the association in-charge of Large Scale, Dr Dawson Amoah, made the appeal at this year’s Africa Industrialisation Day (AID) in Accra.

The AID, which coincided with the 13th AGI National Industrial Week celebration, brought together industrialists, government officials, students and international organisations to discuss what Africa and Ghana in particular can do to develop its industrial sector.

The day was set aside by the United Nation’s General Assembly in 1989 to raise awareness as well as solicit international support for industrialisation on the continent.

This year’s celebration was on the theme ‘Job creation and entrepreneurship development, a means to accelerate industrialisation in Africa.’

Speaking on the need to stimulate industrialisation in the country, Dr Dawson, who is also the Strategic and Corporate Affairs Director of GHACEM, said government’s clout as the biggest buyer in the economy could be used to support the growth of indigenous businesses and industrialisation for that matter.

“We are suggesting at least 30 per cent of government procurement should be sourced locally” Dr Amoah said, noting that such action will help provide ready market for businesses operating in the country.

He also bemoaned the rising patronage for imports as against locally produced goods, noting that such a trend contributed to the consistent decline in the growth of industry.

Look beyond Ghana

The Trade and Industry Minister, Hon Haruna Iddrisu, also challenged members of the association and other manufacturers and related service providers to look beyond the shores of the country in their quest to find markets for their respective products.

He said the growing number of enterprises and competition in the business arena meant that the search for new and additional markets was key to the survival and expansion of individual companies.

“It is, therefore, imperative for industry to move beyond just satisfying consumers in Ghana and also be export-oriented by producing for the international markets,” the minister said.

He also reiterated government’s commitment to supporting the growth of industry and thus called on the association to partner government and the ministry in that regard.

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