Wednesday, May 19, 2010

New industrial policy framework out next month

Parliament is to approve a draft industrial policy bill next month to help promote accelerated growth and enhanced competitiveness in the country’s industrial environment, disclosed Ms. Hanna Tetteh, Minister of Trade and Industry.

The new policy framework, which will be the government blueprint, will also guide the development of industrialisation in the country.

The thrust of the document when approved is intended to provide clear and transparent guidelines for industrial development in Ghana, with a strong emphasis on the development of the manufacturing sector.

It will as well create a consistent and stable policy environment within which the private sector in Ghana can promote competitive industrial activities effectively - and do so with certainty.

Available data indicates that in 2008 the Industrial sector grew by 3.8 percent, down from an annual growth target of 5.9 percent. The lower than expected performance of the sector was driven primarily by activities in the construction sub-sector, the largest contributor to industrial output, which experienced output contraction by one percent against a growth target of eight percent.

The Electricity and Water sub-sector registered the highest growth in the Industry Sector, posting a provisional growth rate of 9.0 per cent against a target of 5.0 percent. The Mining sub-sector also grew at a remarkable rate of 8.0 percent.

The good performance of the mining sub-sector is partly due to the rise in demand for gold which has pushed gold prices to unprecedented high levels. Mining companies in the country have responded positively to the price hikes by increasing production.

B&FT has gathered that among some thematic areas the policy will cover are: Industrial Legislation and Regulations; Strategic Interventions in Industrial Development; Privatisation and Public-Private Partnerships for Industrial Development; Labour and Industrial Relations.

Also, Technology for Industry; Innovation; Research and Development; ICT for Industrial Development; Intellectual Property Rights in Industrial Development; Manpower Development and Training for Industrial Development; and Raw Materials and Inputs Supply and Financing for Industrial Development, among others.

Ms. Tetteh, who made these disclosures in Accra at the opening of the maiden domestic content and matchmaking exhibition/conference in the oil and gas industry, organised by the Association of Ghana Industries (AGI) in collaboration with Ghana National Petroleum Corporation (GNPC) and Tullow Ghana Limited, said: “This concept is based on the utilisation of Ghana’s human material and natural reduces for the provision of goods and services to the petroleum industry, among others, within acceptable quality health, safety and environmental standards as will be determined by an appropriate Ghanaian regulatory body.”

Government will focus on increasing the local content concept in the manufacturing process by encouraging the use of local raw materials and fabrication of plant and machinery locally. This will help promote accelerated growth and enhance Ghana’s international competitiveness in goods and services, she explained.

“To achieve this, there will be need to develop a comprehensive local content Act for provision of clearly outlined regulations geared towards the competence of locals in the oil and gas industry.

“The development of this framework will help reduce conflict, tension and dissatisfaction while ensuring fairness. This will be reviewed from time to time in order to stimulate development of indigenous capabilities.

Meanwhile, Mr. Frank Agyeman, Public Relations Officer of Reroy Cables Ghana Limited, in an interview with B&FT welcomed government’s decision to promulgate the draft industrial policy framework into law as a positive sign, emphasising that it will also help address difficulties in the procurement law, adding that it would seek to provide a lot of opportunities for local procurement.

He indicated that the policy will provide an enabling environment and opportunities for Ghanaians to benefit from the economic wealth that is to be derived from the oil and gas industry through the deployment of the local content policy platform, and should be replicated in other sectors of the economy.

“This will help achieve a degree of influence and control over development initiatives for local and domestic stakeholders, like REROY CABLES, in areas such as the housing sector. This will create several indigenous supportive industries that will reduce the high unemployment rate and sustain economic development.

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