President of the Ghana Union of Traders’ Association (GUTA), Dr. Joseph Obeng, has urged the Association of Ghana Industries (AGI) to take advantage of the high cost of imported goods in the market by ensuring Made-In-Ghana goods offer competitive prices.
According to him, the current cedi depreciation which has made importation difficult has equally created an opportunity for local manufacturers to show that they have the capacity to take over the market. He indicated that the AGI has always called for the removal of the benchmark “so that imported goods go high”.
Dr Obeng explained that with the soaring prices of imported goods now, local manufacturers have the opportunity of taking over the market.
“My brother the AGI President is talking about benchmark value. He has been dwelling on this benchmark, this is the real time that AGI should prove themselves because cost of importation has been so high it has been doubled, quadrupled ten folds. So then, local industries, if prices of imported goods have gone up, show your ability, your capacity to surprise the market. Let’s take this advantage to patronize your goods.”
Dr Joseph Obeng
Dr Obeng revealed that as imported goods are pricy, made in Ghana products should be made cheaper. With this, he questioned the AGI President what his outfit is doing to advertise the goods manufactured in Ghana.
“Because in every bad situation there should be a good opportunity, and this is the opportunity where imported goods have become very difficult, very expensive then they have to showcase their products because it is made in Ghana and it is not being imported that it will be very expensive. That is what he has to dwell on. But from what he’s saying if even the benchmark is removed it means that they can still not guarantee that they can take the market with that.”
Dr Joseph Obeng
Benchmark policy is negligible
Describing the benchmark as “very negligible”, the GUTA President stated that the AGI has a “golden opportunity” and GUTA will “support them because the way to go is to patronize Made-In-Ghana” goods.
“… The time to do [so] is now as importation has become expensive. Showcase the product and let’s buy.”
Dr Joseph Obeng
Responding to GUTA’s demands, the President of AGI, Dr Humphrey Ayim-Darke, stated that it is not a clear-cut situation for industries in the country. He indicated that the introduction of the benchmark value had derailed the “developmental paradigm” which indicates that the capacity of most factories were being distorted.
Dr Ayim-Darke highlighted that once industries lose capacity when the opportunity comes, they will find it very difficult to even attain it, further entrenching the Association’s call for the scrapping of the benchmark policy.
“The economic metric is not as simple as to say that once the exchange rate factors are displaying a steep depreciation, hence all of a sudden the factories in Ghana should rise up to the occasion and then produce all manner of products.”
Dr Humphrey Ayim-Darke
Dr Ayim-Darke underscored that taking over the Ghanaian market “goes beyond pricing”.
“When you’re doing an economic development paradigm or strategy you look beyond pricing, you look at developmental issue, you look at skills development, market sustainability and it’s a whole bunch of issues you look at. You don’t just look trading, simple trade, you make money and that ends it.”
Dr Humphrey Ayim-Darke
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