The government has received a new proposal from the Ghana Union Traders Association (GUTA) to encourage the manufacture and selling of items from Ghana.
The president of GUTA, Joseph Obeng, dubbed it the "tripod system," which would entail the government allocating funding to various businesses so that they could grant distributors supplier's credit in support of the made-in-Ghana objective.
Distributors would be able to purchase products created in Ghana without having to make an upfront payment, making it simpler for them to market these products to customers.
The President of GUTA stated that because members of GUTA frequently struggled to obtain suppliers' credit locally, they were forced to look outside of Ghana's borders. As a result, they were able to obtain 90 to 180 days of suppliers' credit from foreign manufacturers to pay for the importation of goods made elsewhere into Ghana.
According to him, the tripod system enables for government-guaranteed loans to be made accessible to companies that export locally manufactured items to other countries, much like the EXIM Bank arrangements that are in place in other nations.
According to Mr. Obeng, this makes it simpler for enterprises to obtain the funding they want to export their goods and it also helps to encourage the sale of items made in the country.
Mr. Obeng made the decision while leading the leadership and a few representatives of the various GUTA factions on a tour of Tema's Avnash Industries, which manufactures Royal Farmers' rice as well as the Golden Drop and Lafia vegetable oils.
The purpose of the tour was to learn more about the amount of production and how the organization may source products from regional producers as part of GUTA's local industry outreach effort.
A tour of the company's 500 metric ton per day edible oil refinery was given to the group.
The largest rice milling facility in the sub-region, Tamale's 500 metric tonnes per day factory, is likewise run by the firm and offers 290,000 nearby rice farmers a ready market.
Avnash officials claim that the company, like every other local manufacturer, has encountered its fair share of difficulties, such as high production costs, the importation of less expensive edible oils that have driven their products out of the market, and trade policies from neighboring nations that have made it difficult to export their goods to markets within the sub-region.
According to Mr. Obeng, supporting products created in Ghana shouldn't just be a matter of lip service; rather, "pragmatic policies" that would encourage the manufacturing and sale of such products should be put in place.
He said that the "tripod scheme" would also be a more efficient way to spend the startup money the government would be giving young people to increase the competitiveness of local manufacturing.
"The start-up funding that the government is talking about should not be provided to those who do not even know how to start up, rather it should be given to identified enterprises that can source locally manufactured goods," Obeng added.
He continues to have faith that the government will establish a scenario where both consumers and businesses benefit in order to strengthen the Ghanaian economy.
Vipul Jain, the Group Head in charge of Industries at Avnash, stated in his remarks that the company, which in the past exported 3,000 to 4,000 metric tons of edible oil to Senegal, is currently unable to do so because Senegalese officials have imposed a $200 per metric tonne levy.
#GUTA #Ghana
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