ECG Importation Saga: AGI expresses concern over total disregard for local content

The Association of Ghana Industries (AGI) has expressed deep concern about the recent developments regarding the Electricity Company of Ghana’s large number of imported containers of electrical cables and the apparent ‘loss’ of over one thousand of such containers, as reported.

Rumours of huge unwarranted imports of material especially aluminium conductors have been circulating for over a year.

According to AGI, for a state institution that is already saddled with huge debts, this is most unfortunate, and it acknowledges the efforts so far by the honourable Minister of Energy.

A statement signed by the Chief Executive Officer of AGI, Seth Twum Akwaboah noted that ECG over the years, has distinguished itself as a proponent of local content and encouraged local manufacturers to set up factories for manufacturing aluminium conductors, treatment of wooden poles and assembly of meters and transformers.

It further noted that to "support ECG, government in 2017 passed the local content law, L.I. 2354 to ensure policy uniformity which gave much credibility to this initiative. As a result, thousands of jobs were created. Local manufacturers further responded and actively started using aluminium from VALCO as raw material. Indeed, this was a classic example of local vertical integration which could have served as a model for the country.

Today, Ghana has a 100% LOCAL production capacity for aluminium conductors with raw material from VALCO and therefore importing such huge volumes breaches L.I. 2354."

The statement however observed that "It is sad to note that our local manufacturers of aluminium conductors who continue to create jobs, are owed huge sums of money, yet importers are promptly paid.

With the foregoing, AGI is calling on the Minister of Energy and Green Transition to:

Strengthen the Public Financial Management Systems with more robust internal controls, to monitor and enforce compliance with frequent audits.

Investigate all imports which are contrary to L.I.2354 and refuse to accept responsibility for such imports as these constitute illegal contracts which must be nullified.

Ensure prompt payment of all local manufacturers, which are in huge arrears. Indeed, payment for local manufacturers must be prioritized in the same manner as local power generators."

It additionally stated that "Without rigorous enforcement of significant local content as a strategic option to accelerate economic growth, Ghana’s quest for industrialization cannot be achieved. AGI wishes to emphasize that local suppliers who merely import finished items do not qualify to be classified as local content suppliers."

According to AGI, it awaits government action on this critical matter and is ready to engage and support in every way possible.

KA

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