Broad-based industrial policy out

A broad-based industrial policy document designed to provide clear and transparent guidelines for the country’s industrial development, and enhance the national goal of becoming a leading agro-industrial economy in Africa by 2020, has been launched.

The policy framework is government’s blueprint for the industrial sector, which has been growing at an inconsistent rate for long; and the policy is expected to guide and spearhead growth of industrialisation in the country.

Among some thematic areas the policy identifies for focus include: Production and Distribution, Technology and Innovation, Incentives and Regulatory Regime, as well as Cross-Cutting Issues.

Others are: Research and Development and ICT for Industrial Development, Manpower Development and Training for Industrial Development, Raw Materials and Inputs Supply, and Financing, among others.

“This policy is set within the context of Ghana’s long-term strategic vision of achieving middle- income status by 2020 through transformation into an industrial-driven economy capable of delivering decent jobs with widespread, equitable and sustainable growth and economic development,” Ms Hanna Tetteh, Minister of Trade and Industry, the policy’s lead-promoter, told a gathering of business executives, government officials, donor agencies and private-sector operators at the official launch in Accra.

Ghana’s industrial output has been shrinking as a share of GDP for decades, with manufacturing, the mainstay of industry, falling steeply as growth in the sub-sector lagged GDP growth.

Between 1995 and 2000, industrial output averaged 27.5% of GDP. By 2010, the share was 18.6% with manufacturing output a meager 6.8% of real GDP. Four years before, the share of manufacturing was 10.2% but the decline has been consistent year after year.

While this has been happening, the services sector has leapt in performance and become the leading contributor to GDP. This trend has many worried that Ghana may miss out on economic industrialisation, which is so important to growth and development.

To achieve the objectives of the new policy, the plan seeks specifically to address an array of bottlenecks in the manufacturing sector that affect production capacity, productivity and product quality, the Minister said.

“The policy is a set of specific policy instruments and measures to be applied to increase access of the country’s manufacturing sector to competitive factors of production to enhance productivity, efficiency and competitiveness.”

“We are of the view that this combination of measures should put us on the path of industrial growth and development and help us to achieve our goal of accelerating industrial development,” she remarked.

Key development objectives of the policy include expansion of productive employment in the manufacturing sector, promotion of agro-based industrial development and engendering spatial distribution of industries to achieve reduction in poverty and income inequalities.

Ms. Tetteh explained that the implementation of the policy, which will be done through an Industrial Sector Support Programme, has time-bound interventions to speed up the rate of industrialisation over the next five years.

She indicated that the policy will provide clear and transparent guidelines for the implementation of the industrial agenda to ensure the competitiveness and growth of the manufacturing sector.

“Generally, the policy is aimed at ensuring that our industrialists are able to offer high-quality and competitive products to enable them gain access to the global market. It represents a critical component of Ghana's strategic effort to alter the industrial structure by developing a competitive manufacturing sector,” she said.

The ultimate success of the policy will be measured by the extent to which it empowers the private sector to expand and create opportunities for employment and reduce poverty inequalities in the country, she added.

Nana Owusu-Afari, President of the Association of Ghana Industries (AGI), said as a demonstration of its commitment, the Association will set up an eight-member high-level committee at the National Council to co-ordinate activities relating to the implementation of the policy.

“Historically, there is a growing consensus that most developed countries, including United Kingdom, United States, Germany and France, have intervened actively in their domestic economy through industrial policies.

“A policy remains an intent and a mere concept, unless it is effectively implemented to the benefit of society. Over the years Ghana has not lacked good policies, but our challenge has always been effective implementation of such policies,” he observed.