GEPA leads talks on ‘One District, One Export products’

 The Ghana Export Promotion Authority (GEPA) is in serious talks with all the 216 districts assemblies to identify exportable products within their localities, as part of measures to boost non-traditional exports.
 

Ms. Gifty Klenam, the Chief Executive Officer of the Ghana Export Promotion Authority (GEPA) told the B&FT in an interview “letters have been distributed to the various regional authorities to consider “one district, one export products,” thus each district identifying an exportable portable product that can be facilitated as an export oriented commodity to ensure a true sustainable exports. This is basically to ensure the acceleration of export at the district level.”

Ms. Klenam told the paper that as a first step, GEPA would hold sensitisation meetings with the officials of all Metropolitan, Municipal and Districts Assemblies, including members of Parliament, across the country to see how they could move forward with the programme.

“We believe that each district can identify one exportable product, which GEPA could facilitate as an export-oriented commodity just to ensure that the sustainability of export is real,” she said. 

Ms. Klenam indicated that as much as the Strategy is targeting production for exports, the produce could be used for value addition to support and strengthen the raw material base for the factories that would spring up under the ‘One District, One Factory Programme’

“We believe that it is not all the produce that we’ll be used for exports, it can also be used for the value addition to ensure that the raw material base is strengthened for the factories,” she said. 

Mr. Eric Amoako Twum, the Deputy Chief Executive, said there is no conflict between the government’s ‘One District, One Factory’ and what GEPA is doing under the National Export Strategy (NES)   which the districts had been tasked to identify a product they have competitive advantage to produce for export.

“What we are going to do is to have a conversation with the officials of the various districts plus the Members of Parliament to agree on a framework of those exportable products, which invariably will lead to servicing the one district one factory,” he said.

Mr. Twum said GEPA would serve as the facilitation authority to support the districts in areas such as market access, packaging and quality related information.

He said GEPA’s move was to create a collaborative framework in each district and not limiting them to one product but also supports individuals who have unique products to export.

Mr. Twum noted that already 11 projects teams had been set up to concentrate the 11 priority products identified, adding that there would be first time support to the various districts when it comes to the products.

He said other measures to boost NTEs included setting up regional offices in all the 10 regions of the country, the establishment of technical services teams to offer real-time technical advice and support to farmers, producers and exporters.

The implementation of the National Export Strategy (NES) would be dovetailed into the government’s one district, one factory programme to help accelerate exports at the district level.

President Nana Addo Dankwa Akufo-Addo promised the establishment of “One District, One Factory” as a sustainable means to open up the rural economy through massive rural industrialisation and to create the much-needed jobs for the youth.

About 150 proposals have so far been received from both foreign and local investors keen on partnering government in its proposed plans to establish a factory in each of the 216 districts in the country.

The Trade and Industry Ministry envisages the cost of each project to range between US$1million and US$5million.

“If we are talking about replacing imports by exporting and job-creation, then obviously, size and scale become important.  Why do we want to limit our own potential? So this is the average size of investment we are looking at,” Trade and Industry Minister, Alan Kwadwo Kyerematen said.

However, in specific cases, particularly for existing companies that are being adopted, Mr. Kyerematen said it is possible that all that is required may be between “US$200,000 and US$500,000 because there is an already existing investment in place.”

“So, this is a comprehensive program to make sure that the districts enterprise project becomes successful. So, with or without government equity, there is still extensive support from government that will be coming to the promoter,” he added.

He added that additional government contribution will be provided to each project in the form of infrastructural support, roads, extension of energy and other utilities. It also includes tax incentives, subsidies and facilitating access to credit for investors.

Tax raw cashew exports--GEPA

The Ghana Export Promotion Authority (GEPA) is advocating the imposition of taxes on the export of raw cashew to encourage more local processing.

Ms. Gifty Klenam, CEO of the Authority told the B&FT that: “We believe that exporting the cashew raw doesn’t earn us more revenue. Besides, the foreign exchange that is earned from the export is also not always returned to the country to support the cedi.

As part of our strategy to implement the National Export Strategy of the government, we are considering having a conversation with the appropriate Ministry to surcharge the export of raw cashew that is done in the country.”

Available data from the GEPA shows that cashew has, over the years, become the leading non-traditional export earner in the agriculture sub-sector, contributing US$196.7 million in 2016.

Approximately 75,000 farmers in the country are engaged in cashew cultivation, with most farmers located in the Brong Ahafo, Northern, Ashanti and Volta Regions.

The price of raw cashew nuts has also soared. A kilogramme of raw cashew nut, which sold on the market for GH¢1.5 in 2013 is now trading for GHC4, representing an increase of 166 percent.

Currently, about 90 per cent of cashew is exported raw, much to the chagrin of local producers who struggle to get the raw materials for processing.

The proposal, when fully considered and adopted, will help revamp the local cashew industry and prevent the further collapse of processing plants in the country, Ms. Klenam said.

Ms. Klenam added that: “It was in this context that GEPA is having a conversation that a certain percentage of the cashew grown here be allowed for export, while a larger proportion is processed in the country. The domestic processing of the nuts will create jobs for the youth.”

Mr. William Agyepong Quaitoo, Deputy Minister of Food and Agriculture affirming the proposal confirmed that: “I fully support imposing taxes on the raw cashew export.”

Mr. Quaitoo noted that the Ministry of Food and Agriculture (MOFA) is fully aware of the situation and is therefore developing plantations of cashew.  “When we do that and production goes up, of course the Indians will come and buy and some will still remain in Ghana and local processors can also buy.”

Ghana is one of the few English-speaking countries that have signed onto the consultative International Cashew Council.

The Council is an international organisation, steered by the Ministries responsible for cashew in the member states and meet annually as the decision-making body for the development of the sector. The association aims to create a consultation framework and synergies between member states for a sustainable cashew sector.

Mr. Quaitoo explained that Ghana’s membership of the Council would help contribute to the harmonisation of policies in the region and profit from the exchange in the technical bodies for private sector promotion, cashew research along the value chain and production.

He added that over the last decade, cashew had emerged as an integral part of Africa’s economy, and its production had grown impressively in the past years from 1.2 million tons in 2014 to 1.8 million tons in 2016.

Dr.Adama Coulibaly, Director in charge of Cashew Regulatory Body in Cote d’ Ivoire commended the country for signing onto the convention and expressed the hope that it would support member states to develop policies and strategies for the development of Cashew sector. 

Representatives from the Ministry of Trade and Industry, Ministry of Local Government and Rural Development, African Cashew Alliance, Competitive Cashew Initiative, Ghana Export Promotion Authority, Mennonite Economic Development Association and Cashew Industry Association of Ghana witnessed the ceremony.

Fast Facts

12 processing factories

42,000mt installed processing capacity, representing 60% of national production levels of 70,000mt

2,000 jobs in factories, 75% women

Accumulated wage: US$1.5million with a maximum wage of US$720 per year

Potential of 10,000 direct quality jobs in processing

Cocoa production threatened by plant disease, unproductive trees

A re-emergence of swollen shoot disease in Ghana has affected at least 17 percent of cocoa trees, further threatening output in the world's second largest producing country where nearly a quarter of farms are moribund, industry regulator Cocobod said.

Cocobod Chief Executive Joseph Boahen Aidoo said around 23 percent of cocoa tree stock, covering some 411,000 hectares, is over 30 years and had become unproductive.

"What it means is that at least 40 percent of  cocoa stock is not producing and it's a challenge we must resolve to sustain production in future," Aidoo told journalists in Accra.

The government of President Nana Akufo-Addo aims to raise production to 1 million tonnes by 2020, from the current annual output of 800,000 tonnes.

Aidoo said to achieve the target, Cocobod was seeking funding to undertake an extensive rehabilitation of farms, to be complemented by a hand pollination programme to be launched next week.

Ghana might not pay annual bonuses to cocoa farmers this year due to a drop in global prices which had cost Cocobod around $1 billion in the last two years, Aidoo said.

Cocobod said last month it would maintain the producer price paid to farmers despite the price fall. Top grower Ivory Coast slashed its price for cocoa farmers by 36 percent and reduced taxes for the April-to-September mid-crop.

"Considering the current level of (world) prices, we believe we are paying $400 more per tonne to our farmers. It is a tight situation and we may not be able to pay bonuses this year," Aidoo said. Reuters

A re-emergence of swollen shoot disease in Ghana has affected at least 17 percent of cocoa trees, further threatening output in the world's second largest producing country where nearly a quarter of farms are moribund, industry regulator Cocobod said on Tuesday.

Cocobod Chief Executive Joseph Boahen Aidoo said around 23 percent of cocoa tree stock, covering some 411,000 hectares, is over 30 years and had become unproductive.

"What it means is that at least 40 percent of  cocoa stock is not producing and it's a challenge we must resolve to sustain production in future," Aidoo told journalists in Accra.

The government of President Nana Akufo-Addo aims to raise production to 1 million tonnes by 2020, from the current annual output of 800,000 tonnes.

Aidoo said to achieve the target, Cocobod was seeking funding to undertake an extensive rehabilitation of farms, to be complemented by a hand pollination programme to be launched next week.

Ghana might not pay annual bonuses to cocoa farmers this year due to a drop in global prices which had cost Cocobod around $1 billion in the last two years, Aidoo said.

Cocobod said last month it would maintain the producer price paid to farmers despite the price fall. Top grower Ivory Coast slashed its price for cocoa farmers by 36 percent and reduced taxes for the April-to-September mid-crop.

"Considering the current level of (world) prices, we believe we are paying $400 more per tonne to our farmers. It is a tight situation and we may not be able to pay bonuses this year," Aidoo said. Reuters

- See more at: http://thebftonline.com/commodities/cocoa/24887/cocoa-production-threatened-by-plant-disease-unproductive-trees.html#sthash.iJUTgwjI.dpuf