Only 20% of stimulus package for industries disbursed so far

Only 20% of stimulus package for industries disbursed so far
Source: Goldstreetbusiness.com
Date: 18-09-2019 Time: 12:09:55:pm

Although government has fully introduced the National Industrial Revitalization Programme with the stimulus package for industries that have been identified as viable, yet distressed, the Association of Ghana Industries is describing it as currently not very impactful.

In an interview with Goldstreet Business, the Chief Executive Officer of AGI, Mr. Seth Twum Akwaboah said, “the stimulus package is a good intention but we don’t believe there have been enough resources put into it, to really make it have the impact we are expecting.

“If the stimulus package had worked to the extent that we had expected, perhaps we would have been better positioned today than before.”

As at December 2018, GHc 237 million had been disbursed to 16 companies, translating into an average support of GHc 14.81 million. But this is well short of the total amount promised for disbursal by government. Another 35 companies have been considered for support under the initiative however.

Currently, it remains unclear the number of Ghanaian companies that have being supported under the National Industrial Revitalization Programme for 2019, and AGI itself is equally in the dark.

The strategic pillars of the programme include the creation of a quickly disbursed Stimulus Fund of up to US$ 200 million to revamp distressed but viable companies; provision technical assistance to such distressed but viable companies; as well as the provision of business development services, and facilitation of access to markets, among others.

Some members of the Association at the end of April, 2018 were shortlisted to receive stimulus packages from the Ministry of Trade and Industry.

The president, Nana Akuffo Addo noted at the annual awards ceremony of the Association of Ghana Industries (AGI), in December last year that, at least 35 more companies were expected to receive financial support under the government’s stimulus package program for businesses.

Shortlisted businesses were assessed to determine their viability and the needed support to revamp their operations.

However Seth Twum has given public economic policy makers the thumbs up saying most of the government initiatives are “brilliant and beautiful.”