Mr Silver Ojakol, Chief of Staff of African Continental Free Trade Agreement (AfCFTA) Secretariat, has challenged the Association of Ghana Industries (AGI) to take advantage of the automobile industry value-chain under the African Continental Free Trade Agreement and leverage on non- originating parts of vehicles to justify inclusion.
Mr Silver Ojakol noted that about 40 per cent of vehicle parts were up for grabs in the automobile value-chain in addition to agro-processing and pharmaceutical sectors and urged AGI to expand its scope and explore rules of origin to advantage. He urged the AGI to Identify entry points in the value-chain of these sectors, which are in tandem with the aspirations of AfCFTA.
Mr Ojakol disclosed these during the 63rd Annual General Meeting (AGM) of the Association of Ghana Industries and the first to be held in the Volta region. It was under the theme: “Industrialization Through Sustainable and Efficient Supply Chains.” He noted that there is a value chain fund for development and expansion of businesses with the availability of US$1 billion for the automobile sector in Africa.
Through the Afreximbank, Mr Ojakol disclosed that an amount of US$1 billion was committed to the Adjustment Fund to catalyse short-term disruptions from the implementation of the Agreement.
Mr Ojakol intimated that the Adjustment Fund is a critical instrument in the realisation of the AfCFTA and consisted of the Base Fund, the General Fund, and the Credit Fund with resources expected to increase to US$40 billion over the next five to 10 years, available to the private sector to scale-up businesses.
The Chief of Staff noted that two Memoranda of Understanding (MoUs); one with the United Bank of Africa (UBA) and Equity Bank, each valued at US$6 billion, set aside for small and medium enterprises (SMEs) and a quantum available for Ghana amount to US$75 million.
Mr Ojakol stated that discussions have been activated with Africa’s commercial banks, including ABSA Bank, ECOBANK and Zenith bank and before concluding it ABSA has rolled-out an initiative towards the value -chain development, which he commended.
“We have to use the AfCFTA to lift-up our businesses. And if we are to lift our businesses, it means that we have to upscale our production, we have to up our game, we have to up our innovation, we have to up entrepreneurship and we have to have everything that makes a business grow. We have to use the AfCFTA as a tool that lifts our businesses to the one that we can be able to up scale everything that we are doing.”
Mr Silver Ojakol
Africa’s Population
Mr Ojakol noted that Africa’s population stands at 1.3 billion with additional 260 million living in the diaspora with population projections by 2050, thus in the next 27 years to 2.5 billion and 3 billion with the diasporan figure and between 60-70 per cent of the population being 35 years old.
He Indicated that 54 member states had signed the agreement with 47 ratifying by their Parliaments with gross domestic product (GDP) now at US$3.3 Trillion and expected to rise to US$7 trillion by 2035.
Mr Ojakol noted that AfCFTA is looking up to the private sector, entrepreneurship, innovation, right investment, right trade and right development in the continent and this must succeed.
He averred that Ghana led the political independence in 1957 and must lead the economic independence of the continent and the siting of the AfCFTA Headquarters Secretariat in Accra must lead from the front.
Madam Audrey Abakah, Director of SME, Agency Banking and Partnerships, ASBA bank told the Ghana News Agency, its ‘Absa SME loan’ at 10 per cent is a special offer of incredibly low interest rate to women SMEs, agribusinesses within the agricultural value chain, youth-owned businesses and fintechs seeking to expand their businesses and create jobs.
Madam Audrey Abakah noted that ABSA is looking at young entrepreneurs up to 35 years and its clients could access up to GHS 1 million collateral- free loan to augment working capital but up to GHS 11 million loan for business growth is collaterised.
Dr Humphrey Ayim-Darke, President of the Association of Ghana Industries (AGI), on his part said AGI would strengthen its advocacy efforts towards sustainable industrialisation, knowledge exchange on best practices and provide platforms for collaborations.
“We will continue to work hand-in- hand with government agencies, development partners and other stakeholders to create an ecosystem that foster innovation, efficiency and sustainability.”
Dr Humphrey Ayim-Darke
READ ALSO: NPP To Elects Parliamentary Candidates In Orphan Constituencies Today
