The Association of Ghana Industries (AGI) has raised doubts about Ghana’s economy experiencing some growth in 2016.
The AGI contends that Ghana is uncompetitive when it comes to doing business and will not be able to achieve any significant growth.
The association’s comment follows President John Mahama’s assertions that Ghana’s economic growth will inch up to about 4 percent by the end of 2016 and increase marginally to about 6 percent in 2017.
The World Bank also in its first Africa Pulse report for 2016, projected moderate growth for Ghana citing increased investor confidence, oil production from new oilfields and the solution to the country’s energy crisis.
But the AGI’s President James Asare Adjei in an interview with Citi Business News said until the right polices are put in place for industry especially the private sector to thrive the expected growth will not be possible.
“We seem to be gradually getting over the energy crises but what I will say is that we should not be complacent in our approach to things because seriously Ghana remains uncompetitive when it comes to doing business.
Look at the cost of credit, if you look at interest rate and even if you look at the policy rate which is one of the highest in the world it is worrying.
If we don’t get the fundamentals right then definitely we can’t have the buoyant industrial sector in the economy. It’s unfortunate that we have seen a leapfrog of our economy into a service economy which I will say is good but it coming at the expense of industry or industrialization and this is what the AGI is saying is not good, as it cannot cause the economy to grow as is being projected’.
By: Norvan Acquah – Hayford/citibusinessnews.com/Ghana