Accra (Greater Accra) 27 Oct. '98 Ghanaian and British trade and investment officials have renewed their commitment to increase business opportunities between the two countries as part of efforts to create more investment opportunities and jobs for their peoples.
Speaking at a meeting in Accra, members of the British delegation on a two-day investment exploratory tour of Ghana expressed interest in the power sector, telecommunications, the West African gas pipeline, rural finance, and investment in the export free zones.
The eight-member delegation representing the health, water systems, electricity, and the telecom sectors and the British Department of Trade is led by Sir Martin Laing, chairman of the British Overseas Trade Board.
Dr Frank Abu, Minister of Trade and Industry expressed concern about the financial crisis in South East Asia and said it could have some effect on the economies of developing countries including Ghana since the situation amounts to devaluation.
He said the situation will make products from countries in the region very cheap as compared to that from Ghana and other developing countries.
"This could also affect developing countries such as Ghana, because it will shift the attention of big time investors to them", Dr Abu said.
He however, said "these are minor problems which will not affect us much since we are picking the lessons and learning from them".
When asked if increased electricity tariffs will not affect industries which are already burdened with high interest rates and unfair trade practices, Dr Abu replied that the government has taken a firm decision on this, and signed agreements with independent power producers, adding that "these have started and already yielding some results".
He said government foresaw the energy crisis and came up with the thermal plant idea which helped tremendously during the early part of this year.
The Minister said the crisis with the Akosombo dam has had a terrible effect on the country but said the private sector is capable of readjusting adding that this was evident in the change to generators by a large number of industries during the heat of the crisis. Dr Abu told the delegation that with the prudent fiscal policies embarked upon by government in the last few years, interest rates as well as inflation have fallen to 39 per cent and 18 per cent, respectively.
"This has led to reduction in bank rates; the problem now is with the interest rates which is still considered high as well as a need for a greater improvement in the macro-economic dynamics of the country," he said.
The minister said he wished transformation in the telecom sector could have been faster, adding that there have been a number of complaints which must be solved with the assistance of new partners.
The delegation expressed interest in the entire West African market and said Ghana must ensure that it is not only a gateway to the sub region but a dynamic market as well.
"ECOWAS and agreements between the various member countries must bring this into reality", Sir Laing said.
Dr Abu said 75 British companies have invested in Ghana as at June 30th, this year.
He said they are all involved in joint ventures and represent 11 per cent of the total number of foreign investments in Ghana.
