The Association of Ghana Industries, AGI, has reiterated its call for the provision of less expensive power sources to facilitate industrial growth in the country.
President of AGI, James Asare Adjei believes the high cost of power continues to impact on the operations of industries leading to a decline in the sector’s contribution to GDP at least for the past three years.
Mr. Asare Adjei also explains that the continuous rise in electricity tariffs due to the shortfall in generation to meet demand; is becoming unbearable for businesses.
“Indeed industry expects to see a reliable, sustainable and affordable power supply that can keep business running without compromising on competitiveness. Considering the high electricity tariffs that industry is experiencing today in Ghana, we must begin to consider the less expensive sources of power generation for example in the hydro power plants if indeed we can dedicate the country’s hydropower plants as a policy then definitely industry can enjoy lower tariffs,” he stressed.
Mr. Adjei was speaking at the opening ceremony of the 1st ECOWAS industrial summit on Thursday.
The event brought together captains of industry, policy makers and advocate groups within the sub region to deliberate on achieving a common front to promote industry’s contribution to the economies of the respective member states of ECOWAS.
Meanwhile the region’s industrial union is seeking to increase trade with the West African sub-region to 40 percent by 2030 from the current 12 percent.
Currently, fifty percent share of the region’s trade is made up of manufactured goods particularly in the area of energy.
The union is also aiming at setting up manufacturing plants to produce for the local markets and equally export.
Industry’s contribution to GDP declines
Latest figures released by the Ghana Statistical Service showed that the industry sub-sector grew by negative 1.1 percent in the first quarter of 2016 compared to the 7.2 percent growth in the fourth quarter of 2015.
Within the industry sector, Electricity sub-sector grew by 5.8%, against 0.5% recorded in the first quarter of 2015.
The Water and Sewerage subsector recorded a growth of 2.8% compared with 5.8% in the fourth quarter of 2015.
The Mining and Quarry sub-sector recorded the least growth of negative 3.4% compared with a contraction of 2.4% recorded in the fourth quarter of 2015.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana