Government needs to take tougher action on cheap imports — Industrialist

The Government has been called upon to prioritise some sectors of the economy and reform its customs procedures to reduce the burden on the state.

As part of this plan, the government needs to be tougher on cheap imports to save local industries from collapsing and help the nation derive the needed revenue to support national development.

The Group Chairman of B5 Plus Limited, an iron and steel manufacturing company, Mukesh V. Thakwani, made the appeal last Friday, when the Minister of Trade, Industry and Agribusiness, Elizabeth Ofosu-Adjare, paid a working visit to the factory.

He said currently, the company was well positioned to produce various steel products to serve Ghana and the West African sub-region; however, the import of similar products into the local market was a disincentive.

“Currently, we have put up West Africa’s biggest fabrication plant here in Ghana, but we are seeing that there are a lot of cheap imports, which are really going into it, and people are getting exemptions on that.

We need to see how we can support and bring in the local content so that we can run this our factory 24 hours,” the Group Chairman of B5 Plus Limited said.

24-hour policy, challenge

Mr Thakwani said B5 Plus from its humble beginning when it was importing steel and metal products from Ghana’s neighbouring countries, including Togo and Cote d’ Ivoire, had grown to become a net exporter of steel products to the entire West African sub-region.

He stated that the factory, in line with President John Dramani Mahama's 24-hour economy initiative, was well positioned to support and produce more goods right here in Ghana and create more jobs for people.

Mr Thakwani, however, appealed to the government to address the issue of land litigation in Ghana which, he said, was a major challenge for foreign investors.

Assurance

Mrs Ofosu-Adjare gave an assurance that her ministry would work together with the Ministry of Finance to pursue policies that would address the issue of cheap imports to protect local industries and boost revenue.

“We want imports, yes, but not cheap imports. We do not want smuggling. Because I'm told that people smuggle in cheap imports and don't make the standard goods competitive. We will work closely with the Minister of Finance, Ghana Revenue Authority and others to ensure that all these things are resolved,” she said.

Responding to the challenge of land litigation, the Trade, Industry and Agribusiness minister said her office would liaise with the National Security Coordinator and convene a meeting with all the stakeholders to address the issue.

She also pledged to promote the use of dialogue and Alternative Dispute Resolution to have such challenges resolved. 

IFC

In an interview on the sidelines of the visit, the International Finance Corporation (IFC) Country Director, Kyle Kelhofer, outlined the organisation's commitment to strengthening Ghana's industrial capacity.

Highlighting recent success in the steel and iron industry as evidence of Ghana's growing industrial potential, particularly in creating employment opportunities, he said by producing the steel here in Ghana, the nation was not only reducing imports into Ghana but improving the foreign exchange earnings for Ghana.

He also indicated that by producing steel here with recycled steel, B5 Plus was also contributing to its efforts at improving climate change.

He disclosed that last year, the IFC invested $450 million to support the private sector and was targeting similar amounts intending to accelerate job creation and stimulate economic growth across the nation.

Writer’s email: Benjamin.glover@graphic.com.gh