Creating Wealth

In driving towards its target of Economic Growth, leading to Economic Diversification and Structural Transformation, the Government of Ghana has, over the past six years, been of the firm conviction that the surest ways of going about this is through employment creation, poverty reduction and wealth creation.

Thus the Mission Statement of the Ministry of Trade, Industry and President's Special Initiatives reflects these objectives. Its aim, therefore, is to achieve these objectives through developing a vibrant, technology-driven, competitive trade and industrial sector.

In pursuance of its Mission, the Ministry has implemented a number of programmes and projects, with significant success:

PSI on Garments and Textiles
Under the PSI, 3,200 jobs have so far been created in 15 new companies, which are expected to employ 6,000 more during 2007. More than 7,000 sewing machine operators have been trained for the garment industry at two clothing technology training centres in Accra and Kumasi.

Financial assistance has been provided, through the Export Development and Investment Fund (EDIF), to the PSI companies to procure equipment and raw materials. Technical, managerial and supervisory personnel have been recruited to assist them to develop efficient production systems, and market orders have been secured for them from major international buyers.

The "third country fabric" provision under the US African Growth and Opportunity Act (AGOA) is being extended by the US Congress and Senate from 2007 to 2013, partly as a result of the work of the African Ministerial Group, led by Ghana's Minister of Trade, Industry and PSI.

The introduction of the PSI on Cassava encouraged the establishment of the Ayensu Starch Company (ASCo) at Bawjiase in the Central Region in 2002. Some 8,000 farmers and farm hands have been working on 6,000 acres to feed the Ayensu Starch factory, which has the capacity to produce 20,000 tonnes of high grade cassava starch per annum.

ASCo has long-term orders from Nestle Worldwide and there is growing demand for the product from the pharmaceutical, food, textiles and wood processing industries in the local and regional markets.

PSI on Oil Palm
One of the President's Special Initiatives with a high potential for growth is the PSI on Oil Palm, for palm oil is in great demand for domestic and industrial applications the world over.

In its first five years of operation the PSI on Oil Palm was expected to generate employment for 450,000 farmers and farm hands. 30 new nurseries have already been established in five regions to provide four million seedlings annually to plant 100,000 hectares in the first five years and an additional 200,000 hectares in subsequent years.

PSI on Salt
Of all the President's Special Initiatives, the PSI on Salt promises the best returns for, the potential for massive import orders from neighbouring countries is quite high. 

So far 15 medium companies have been assisted to improve their technology and production operations, while community-based artisanal production units are being promoted at two beach towns in the Central Region.  Access to finance for these producers is being facilitated through the Export Development and Investment Fund (EDIF).

District Industrialisation PROGRAMME (DIP)
The DIP is a government programme designed to support the establishment of at least one commercially viable industrial enterprise in each of Ghana's 138 districts, in partnership with communities, the private sector and the district assemblies.
Under the 2007 budget the government has provided seed funding of c138 billion (c1 billion for each district) to support the programme, which is expected to create employment for up to 70,000 people in the first two years of the operations of the DIP.           

Private individuals and institutional investors, as well as Non-Resident Ghanaians are being assisted to acquire equity shares in the DIPs.

Revitalising Distressed Industries
Under this programme a number of selected strategic industries are to be revitalised.

The Pwalugu Tomato Factory - now Northern Star Tomato Company Limited - near Bolgatanga in the Upper East Region, has been reactivated and producing successfully since late 2006. It is providing jobs for 1,300 people, including tomato farmers in its catchment area.

After a long closure and recent comprehensive refurbishment, Juapong Textiles Limited, located south of the Akosombo dam, was expected to recommence operation in May 2007, directly employing some 700 people.         

Promoting New Pioneer Industries
The Ministry is promoting the establishment of new, pioneer industries in strategic sectors (sugar, caustic soda, paper and pulp, iron and steel), to develop critical raw materials for other industries.

A new project with an annual capacity for 100,000 metric tones sugar, eight million litres of ethanol and 60 gigawatts of environmentally-friendly electric power, is to be established in the Savelugu-Nanton District of the Northern Region. It will be fed by sugarcane from 20,000 hectares of plantations. Already nurseries to generate cane sets from selected cane varieties are being developed and field trials carried out.   

Trade Facilitation
GCNet: To facilitate and improve efficiency in import and export operations, the GCNet system has been installed and operating successfully. Designed to reduce paper documentation through electronic linkage between Ghana Customs and other institutions, the time taken to process customs documentation has now been progressively reduced following its introduction.

The GCNet system is designed to connect with all of Ghana's ports and border points and with a number of institutions, such as Ghana Free Zones Board, Statistical Service, Minerals Commission, Bank of Ghana, Export Promotion Council, Internal Revenue Service, VAT, Revenue Agencies Governing Board, Ghana Shippers Council and the Ministry of Trade and Industry, as well as freight forwarders.        

Tracking Transit Trade
An Electronic Tracking system has been introduced to speed up Customs clearance procedures for goods in transit to and from neighbouring landlocked countries.

Industrial Infrastructure

Industrial Estates
In the pursuit of its objective of developing industrial infrastructure, a Multi-purpose Industrial Park (MIP) has been developed at the Tema Free Zone enclave. The MIP hosts a Garments Village comprising five factory units. It is being expanded to include an ICT Park and a Furniture City in 2007.

A Garments Enclave has been developed at Adjabeng in central Accra, where four factories are already operating and three more are under construction. Some 6,000 people are expected to be employed at these two enclaves. Other Industrial Parks are to be established at Boankra, near Kumasi, and Sekondi in the Western Region.

Business Finance
So far c688.6 billion has been provided to the non-traditional export sector in concessionary credit and grants. Supported by the EDIF credit facility, such assistance has been for agro-processing, salt mining and processing, textiles and garments, metal fabrication, wood, handicrafts and pharmaceuticals and market development and capacity building.

Additionally, a E10 million Italian Government Line of Credit has been disbursed to private businesses to buy machinery and equipment. Another project, involving a US$85 million IDA/IFC facility to provide credit and technical assistance to Micro, Small and Medium Enterprises (MSME), was due to commence in January 2007.

Business Development Services

National Board for Small Scale Industries (NBSSI)
Through its Business Advisory Centres (BAC), the NBSSI provides technical training for Micro and Small Scale Enterprises. The number of BACs has increased from 27 to 102 in the past six years, when technical training on the improvement of product quality and of packaging has been provided for more than 4,000 Micro and Small Scale Enterprises.

Export Promotion and Development
There has been a remarkable increase in earnings from the Non-Traditional Export sector, from US$460m in 2001 to an estimated US$890m in 2006. This compares favourably to the US$1 billion in cocoa export earnings for the same year.

Three Export Trade Houses operate as brokers between buyers in selected export markets and Ghanaian Small and Medium Enterprises (SME). These are:

• GNPA Export Trade House for Europe, Asia and North America;
• Ghana Trade Centre for the Mediterranean, North Africa and the Middle East, and
• The Ghana ECOWAS Export Trade House (GEXTRACO) catering for the ECOWAS sub-region

BUY GHANA

Textile business in Ghana

Even while much attention appears to be focused on export trade, there are serious moves to get Ghanaians themselves to develop a greater interest in Ghanaian products. Among these moves are:

• Introduction of the National Friday Wear programme, under which government officials, from the President down, have been spearheading a national awareness campaign by wearing an item of fully Ghana-made clothing, at least each Friday;
• Development of a National Product Gallery to showcase Made-in-Ghana goods; and