GITFIC Regional Seminar- AGI Chairman calls on the government to create an enabling environment for SME’s

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AGI Chairman calls on the government to create an enabling environment for SME’s in the AfCFTA .

The Greater Accra Regional Chairman for the Association of Ghana Industry(AGI),  Mr. Tsonam Cleanse Akpeloo has called on the government to create an enabling environment for Small and Medium-scale Enterprises(SME’s)  to thrive in the Africa Continental Free trade Area.

He explained that for any nation in the world to develop rests on its private sector since it is the engine of growth for every economy and can employ a great number of people and, as such, needs access to funds to be invested in their business.

 “Though the government is doing its bit well feel it can do more for the private businesses since the financial burden on them makes it difficult for them to flourish”, he added.

Mr. Akpeloo made the call at the day’s seminar organized by the Ghana International Trade and Finance Conference (GITFIC) and the Association of Ghana Industries in partnership with the Sekondi-Takoradi Metropolitan Assembly (STMA) in Takoradi.

The AGI chairman indicated that the business environment for local businesses is hostile, making it difficult for SME’s to progress and withstand the test of time. 

He noted that the cost of power supply in the country is high, which impedes the success of SME’s and urged the government to create financial facilities that will resource SME’s adding that commercial industries pay more compared to domestic facilities when it comes to utility tariffs whereas in other countries it is the other way round. 

He highlighted some challenges  SME’s are currently battling with, which comprises regulation challenges,  payment of local taxes, and lack of ready markets for local produce.

He said these factors put much stress on businesses and appealed to the government to find means of harmonizing the process so that local business wouldn’t be stressed with financial burdens.

As a solution, he suggested that financial facilities be created where SME’s will be treated differently and loans given to them at reduced interest rates, reduction in power cost to boost the growth of SME’s in the manufacturing industry and called for harmonization of international trading laws.

Mr. Akpeloo, however, urged local manufactures and producers to consider repackaging their products to sell to people in other African countries no matter how small their businesses were and to also produce standardized products that meet the international requirement for the international market noting that,  Kasapreko and Grandeur cosmetics have exported goods under the AfCFTA agreement and encouraged companies in the metropolis to come on board.

He explained that the African Continental Free Trade Area had given room to about 1.2 billion people of the African continent to trade among themselves. “The goal of African union centres around allowing citizens of different countries from  Africa to trade among each other, and that is what AfCFTA seeks to accomplish,” he said. He, therefore, emphasized the importance of the private sector to be involved in AfCFTA. 

Speaking on the theme for the program,  ” Optimizing AfCFTA for Ghanaians; sensitizing all the Regional Business Communities in sync with the Opportunities”, Mr. Akpeloo mentioned that there are many businesses in Ghana that are still not aware of AfCFTA and hence the need to sensitize people across the country come to terms with its importance, stressing that,  the AGI and GITFIC are moving from region to region to educate businesses on the subject. He hinted that the Association for Ghana Industry had created a portal that profiles all companies to give them online visibility to market their products across the continent and beyond.

Touching on the impact f Covid-19 on businesses, Mr. Tsonam Cleanse Akpeloo said businesses should learn to adjust to the existence of Covid-19 and produce products that are in high demand in this era. He added that there are more relief programs for businesses and that the AGI will keep pushing to ensure that the support scheme continues.

Writer: Lawrencia Esi Annan

Source: Wenomedia

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