New industrial competitive law out soon

Government is to promulgate an Industrial Competitive Bill to promote, maintain and harmonise business operations within the country.

Cabinet has approved the industrial competitive bill and is expected to be rolled-out in the course of the year, disclosed Hanna Tetteh, Minister of Trade and Industry - the lead promoter of the regulatory framework.

The national industrial competitive framework seeks to expand employment and technological capacity in the manufacturing sector, promote agro-based industrial development and spatial distribution of industries.

For this to be achieved, a spectrum of industrial policy instruments across policy thematic areas will be implemented.

The areas have been categorised into production and distribution, technology and innovation, incentives and regulatory regime and cross-cutting issues.

The formulation of the new competitive policy, according to the sector minister, was accomplished through a comprehensive and inclusive process based on analysis and wide consultation with stakeholders in the country to ensure that it becomes a broad-based policy that will be embraced by all stakeholders.

“The policy is to support local content that does not conflict with the World Trade Organisation’s rules,” Ms. Tetteh told journalist in Accra.

“This policy is set within the context of Ghana’s long-term strategic vision and is fully aligned with trade policy, which will ensure that a consistent and stable environment is created for accelerated industrial development.

“The policy will encourage Ghanaian manufacturers to produce quality goods, processes and services through the use of modern technology to enhance and sustain industrial production. The policy will ensure that markets work efficiently and effectively to deliver economic welfare and growth,” she emphasised.

The Country’s draft Competitive Bill has been considered by government since 1992, but it has not been enacted. No legislation on anticompetitive practices exists - except for the National Communications Authority and the Banking Supervision Department of the Central Bank, which have sector specific legislation to monitor the telecommunications and the banking markets.

Modern Competition law has historically evolved on a country level to promote and maintain competition in markets principally within the territorial boundaries of nations.

An industrial analyst says: “Ghana needs to pass a competitive law and establish an authority to monitor and research into complaints of industry players who feel cheated by acts of their peers.”

National Competitive policy facilitates international competitiveness, private sector development, employment creation and makes an important contribution to the wider economic growth of developing countries.