The Association of Ghana Industries (AGI) has dismissed claims made by government that the private sector has seen some expansion, leading to massive employment.
According to the AGI, lack of access to funding, high interest rates and increasing cost of operation is stifling growth of the sector.
[contextly_sidebar id=”JFSreylXuqBYCv1Ja0sTAgivQzfJA19y”]Their assertion follows a press release signed by the Minister for Communications; Dr. Edward Omane Boamah, which stated that government through EDAIF has released GHc 245.4 million to local industries in over 125 different projects.
The statement also pointed out that thousands of jobs have been created for Ghanaians through the fund.
However, speaking in an interview with Citi Business News, President of the AGI James Asare Adjei rather blamed government for crowding out the private sector with its increasing borrowing.
“What I know is that for the past eight months to one year, applications from our members were turned down. The fund itself has not operated the way it should as a result of not spreading its operations,” he said.
Mr. Adjei stated that the fund performed well when its mandate was limited to nontraditional exports.
“But when there was an expansion of the funds mandate to cover agricultural it became a bit difficult to really satisfy those who are into export and I think that has been the challenged,”, he said.
He was of the view that, a relook at the fund’s mandate will address pertinent challenges facing it to make it effective.
By: Norvan Acquah – Hayford/citibusinessnews.com/Ghana