Transcript ASSOCIATION OF GHANA INDUSTRIES Presentation by: James

ASSOCIATION OF GHANA
INDUSTRIES
Presentation by: Mrs Nora Bannerman-Abbott
(National Executive Committee Member, AGI)
About Ghana
Africa’s Golden Gateway to a Safe and
Stable Investment Destination
Most peaceful nation in West Africa with
population of about 26million
Ghana
Boasts of diverse and abundant Natural
Resources
OVER-VIEW OF ECONOMYGHANA’S INVESTOR-FRIENDLY ENVIRONMENT
•Country has witnessed six peaceful elections since 1992
•Continuous, stable multi-party political environment since 1992
•Competitive corporate tax rates in the sub region
•Fast developing financial infrastructure, institutions and services
•Abundant supply of skilled and trainable labour
•Proximity to both the European and American markets
AGI, who we are
AGI, the leading voice of the private sector in Ghana. Established as a not for
profit private sector organization. Speaks for 1500 member companies in Gh.
KEY MILESTONES
1958
Formed as Federation of Ghana Industries by 10 indigenous industrialists
Founding president: The late Dr. Esther Ocloo
1961
Membership extended to non-Ghanaian industrialists. Change of name to Ghana
Manufacturers Association
1984
Service industry invited to join. Change of name to Association of Ghana Industries
(AGI)
2008
50th Anniversary-Further evaluation of performance, amendment of AGI Regulations and
developing a strategic plan to guide our operations for next 5yrs
Key services
• Policy Advocacy
To lower cost of doing business, ensure sustainable growth
and improved business climate to enhance competitiveness
• Business Development Services
Business development support services for our SMEs
such as business plans preparation, business advisory
services etc.
• Business Networking
Creating the platform for businesses to interact and
exchange business ideas
Diversity of AGI sectors
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Advertising
Agri-Business
Automotive & Transport Services
Chemicals
Energy
Electricals & Electronics
Food
Beverages
Financial Services
Garments, Textile & Leather
Hospitalities & Industry
Information & Communication
Technology
• Metals, Building & Construction
Products
• Oil and Gas Services
• Business Promotion &
Consultancy services
• Pharmaceuticals
• Printing, Stationery & Packaging
• Rubber & Plastics
• Toiletries & Cosmetics
• Wood Processing
• Associates
KEY PRIORITY SECTORS FOR
INVESTMENT IN GHANA
Energy
Infrastructure
Agric and Agric-business
Manufacturing and Industry
Tourism
Information Communication &Technology
Financial Services
Key areas for investment-AGI’s perspective
Infrastructure
 Energy
Total peak demand- 2,100 MW
Available generation capacity hardly meets total peak demand
Renewable energy Act 832- Act promotes local manufacture of
components to facilitate the rapid growth of renewable energy sources and
also recommends for exemption from customs levies/duties on equipment
& machinery necessary for the development, production and utilization of
renewable energy sources. Apart from Ghana’s legacy hydro which is
shrinking, only 2MW solar plant has been added at Navrongo.
 Road & Railway network
Roads leading to key areas of economic activity lacking
 Housing
(about 1.7million housing deficit)
INFRASTRUCTURE
Roads
Public Housing And
Property Development
Rail Transport And
Ports
PORT INFRASTRUCTURECONTAINER TERMINAL, TEMA PORT
TOURISM
• Tourist attractions
• Tourist accommodation –
(hotel resorts, business hotels,
Lodges/inns, hostels,camping sites)
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Tourist Information Shops
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Tourist Transport/Travel Services
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Food and Beverage Services
Entertainment
Leisure/ Sports
Shopping
Meeting Facilities
KINTAMPO WATERFALLS
Key areas for investment-AGI’s perspective
Agro-processing, Agric. employs majority of population, yet
contributes the least to GDP. Need for value-addition
Agric. (20.3%) Industry ( 25.3%) and Services (54.41%) for 2015
Manufacturing (Electricals, pharmaceuticals, textiles/garments)
• Need for expansion of pharmaceutical supply chains
• Need for modern facilities for drug & medical tests
• Textiles & Garment employs significant number
 Food processing (F &B sector contributes significantly to GDP)
Agric. declining
AGRIC. contribution to GDP
35
30
Percent
25
20
31.8
29.8
25.3
22.9
22.4
21.5
20.3
15
10
5
0
Yr 2009 Yr 2010 Yr 2011 Yr 2012 Yr 2013 Yr 2014 Yr 2015
Key challenges for growth of businesses
• Availability & reliability of power supply
Electricity drives economic activity including manufacturing,
yet supply remains cyclical problem.
Manufacturing-subsector grew by -0.5%, -0.8% & 2.2% in
2013, 2014 and 2015 respectively
• Unstable macro-economic situation
Weak local currency & heavily import-dependent economy.
About $600million rice imported annually. Opportunity exists
for export development under the National Export Strategy
• Lack of medium to long-term facility for
Industry. Needed for expansion, retooling etc
Key challenges contd.
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Access to Credit / Capital
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Cost of Credit / Capital
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Influx of Imports (competition)
70% of foods/goods in markets imported
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Infrastructure deficit
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Multiplicity taxes
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Special Levies (2% on all imports, except petroleum products)
Opportunities available in local partnerships
• PPP to deliver huge infrastructure projects as supported
by the National Policy on PPP
• Easy access to office space/ land
• Availability of labour
• Access to ECOWAS market
• In-depth knowledge of the local market
• Strong networking opportunities
Expectations of local partner
• Technology transfer
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State of the art equipment
Best business practices
Transparency in business dealings & vice versa
Partnerships that enhance competitiveness
Funding
Market development opportunities
Garment factory
Garment factory
Garment factory
Garment factory
Contact
The C.E.O
Association of Ghana Industries
2nd Floor, Addison House
Trade Fair Centre, La, Accra
P. O. Box AN-8624, Accra North, Ghana
Phone: +233-0302-779023/4
Email: [email protected]
Website: www.agighana.org
THANK YOU!!!