…As Salt Producers Weep (Part 1)
Ghana, as a nation relies on the consumption of salt for their daily survival which is undisputed and yet the government policies is passionately breaking the wings of the industry players.
Ghana’s consumption is estimated to be approximately 750,000 metric tons per year required for domestic food use and industrial applications with local production output averages 250,000 to 300,000 metric tons annually.
This huge deficit calls for a national concern as past and present government contributed little to close the gap to both the import and locally produced salt due to factors which can be resolved.
Some local producers attribute major factors as unstable weather patterns that affects their productions as well as stringent government policies such as huge benchmark taxes.
It is observed that some of the large scale salt producers mainly Electrochem which produces about half of Ghana’s locally produced salt at the Songor Lagoon is subjected into operational challenges due its inability to meet up with its huge taxes same as a gold mining company in Ghana.
This huge taxes is gradually swallowing and collapsing the industry as there have delays in meeting expected productions.
It is however worrying to note that such challenges affecting the local salt producers is widening Ghana’s consumption expectation.
Whiles governments both past and present continue to rely importation to fill the gap, it is appropriate for the government of the day to consider suporting and investing into the salt mine industry with relief taxes and partnership that would help to cushion the local producers expand their operations to mitigate the prevailing situation at hand.
Some of the local producers who spoke on anonymity lamented uncomfortable situations where their businesses are collapsing due to hefty tax margins which are same as that of gold mining companies and appealing to the government to review that margin as their operations are of high risk and susceptible to unstable weather conditions.
A major challenge affecting their business is due to heavy downpours leading to flooding which mostly affect their investments to go waste.
They noted that their operations have hugely been slapped with debts due to high interest rates from their bankers, high regulatory fees that is sinking their businesses rapidly.
A passionate appeal is made to the sector minister to put in strategic measure to come to their rescue to enable them sustain their businesses.
The salt industry employers over ten thousand of the youth, both direct and indirect to enable them sustain their families and livelihoods and due to the prevailing situation that has affected some major producers such as Electrochem, about five thousand youth are currently been sent home due to the unstable operations.
The cause for their displacement is due to the company’s challenges in meeting the Minerals Commission’s high fees demands leading to the suspension of the company’s operating licence.
With an over $ 100-million-dollar investment and wholly Ghanaian project mainly to produce salt to feed the nation, would the government supervise and oversee its collapse due to stringent regulatory fees?
THE BUSINESS MAIL
