The Alliance for Development and Industrialization,
(ADI), one of the leading think tank groups in the country is urging the Akufo
Addo led administration, together with Association of Ghanaian Industries, the
Ghana Chamber of Commerce and Industry, Ghana Export Promotion Authority to
swiftly raise US$5 billion in the next 5 years to support industries to unable
them take advantage of the Africa Continental Free Trade Area.
This lifeline support to these industries would help them to expand, grow, and
give job opportunities to the youths which would make the government rake in
more taxes to support its developmental agenda.
It is also imperative for government and the private sector to catapult the
drive of this continental free trade. Associations such as the Association of
Ghanaian Industries, the Ghana Chamber of Commerce and Industries, Ghana Export
Promotion Authority could also take advantage of this and use it as a launch
pad for their members.
The government must support and promote these institutional make ups, as matter
of urgency, so they can explore the opportunities to enable them make an entry
into these countries.
Ghana has been politically stable after assigning to democracy in 1992 and it
has proven to the whole world its political stability. ‘We however pay a
gratitude to our former presidents, Jerry John Rawlings, John Kuffuor, John
Mahama and our current president Nana Akufo Addo and more especially, our Trade
Minister John Alan Kyeremanteng, for creating the conducive environment for the
country’, it said.
This is the time for Ghana to take the lead as well as take the advantage of
this continental free to grow and strengthen its export market, as it has
already begun with the 1D1F and the Planting for Exports Rural Development
initiatives.
“Ghana’s economy can easily pay back the US$5billion credit facility that we
are calling for through the exports of key commodities such as avocado,
pineapple, coconut, sweet potato, among others” it said.
The United Nations Economic Commission for Africa estimates that the agreement
will boost intra-African trade by 52 percent by 2022.
According to the ADI, “the government should be able to raise the US$5 billion
to take advantage of this opportunity which would put a stop to the way the
government siphons the economy and still demand output. If we fail to take
advantage of this opportunity then there is the likelihood that the economic
growth of this country would be stagnant. We must take advantage of this
opportunity to redeem our credibility integrity, capability in terms of
industrialization”, said Francis Mensah, Convener of ADI.
“The government’s support to these industries should be scetorial base, such
that the agriculture sector be focused through the Ministry of Agriculture,
also the textile and tourism sectors should handled by the Ministry of Trade
and Ministry of Tourism respectively. Indeed, we need to think over these
entire sectors so they can grow”, he said.
“We thank the government especially the Trade Minister for his role in pushing
such an agenda but this throws a big challenge and the demand that industrial
sector becomes strong” the statement said.
The main objectives of the ACFTA are to create a single continental market for
goods and services, with free movement of business persons and investments, and
thus pave the way for accelerating the establishment of the Customs
Union.
It will also expand intra-African trade through better harmonization and
coordination of trade liberalization and facilitation and instruments across
the RECs and across Africa in general.
The ACFTA is also expected to enhance competitiveness at the industry and
enterprise level through exploitation of opportunities for scale production,
continental market access and better reallocation of resources.
The establishment of the CFTA and the implementation of the Action Plan on
Boosting Intra-African Trade (BIAT) provide a comprehensive framework to pursue
a developmental regionalism strategy.
The African Continental Free Trade Area (AfCFTA) is a free trade area, outlined
in the African Continental Free Trade Agreement among 54 of the 55 African
Union nations. The free-trade area is the largest in the world in terms of
participating countries since the formation of the World Trade Organization.
The agreement was brokered by the African Union (AU) and was signed on by 44 of
its 55 member states in Kigali, Rwanda on March 21, 2018.The agreement
initially requires members to remove tariffs from 90% of goods, allowing free
access to commodities, goods, and services across the continent.
By Kobla Agbenyegah
