The Association of Ghana Industries (AGI) has expressed worry about the surge in prices of some goods on the local market in recent times, attributing it to a spike in freight charges. 

According to the association, “in some cases, freight has tripled just in recent times and that is not good for industries and consumers”. 

Seth Twum Akwaboah, Chief Executive of the Association, disclosed this to George Wiafe on PM Express Business Edition, which looked at the 'State of Industries in Ghana today'.

Mr Akwaboah noted that most of the shipping lines are attributing this to limited supply of goods due to impact of Covid-19 on their operations, a development that led to freight charges going up and impacted on the general price of goods and some services.

The Chief Executive of the AGI also noted that this challenge has been compounded by the reduction on the benchmark values, which has made some imports cheap, a move which is making most local manufacturing firms uncompetitive.

Economic recovery and industries

 Mr. Akwaboah noted that indeed the much talked about economic recovery has impacted positively on the industry.

“From all indications, we have seen that industries are picking up because the Ghanaian economy is opening as well a as other economies outside the country”.

The construction industry has seen some huge spike over the past months.

He however noted that the same cannot be said for all the other sectors, including the hospitality, food and beverages and the textile industries. 

This is because these sectors are not attracting businesses unlike in pre-covid times..

Industry on economy and expectations of mid-year review budget

 On half-year performance, Mr. Akwaboah said it is slightly better compared to the same period for last year, and he is hopeful of things will pick up strong in the coming months.

On the Mid-Year Review of estimates, Mr. Akwaboah noted that industries want the Finance Minister to be moderate with his review because of the uncertainties ahead as Covid-19 is yet to be fully contained, despite the deployment of vaccines. 

He added that there is an opportunity to review some of the taxes going forward to help reduce the burden on businesses and industries.

Mr. Akwaboah also believed that the time has come to review the policy where industries pay more than domestic consumers with regard to energy consumption.

“We think that the time has come for this to be reviewed, and the Mid-Year review should present an opportunity to review this.”

“I appreciate the initiatives that government have come up with, but we still need to do it when it comes to reviewing the policy environment”, he added.

Industries and the cedi’s stability

The Chief Executive of AGI also want the Bank of Ghana to do everything possible to preserve the stability of the cedi.

 The Ghana cedi has witnessed some sustained depreciation over the past two weeks. 

Mr. Akwaboah, however, said businesses should not panic over the development.