Guinness Explores Use of Sorghum for Products

A joint committee is to be set up soon to work out modalities for giving tax incentives to Guinness Ghana Limited to enable it to use an improved variety of locally grown sorghum - kapala - for its products.

The committee will comprise representatives from the Ministries of Finance and Trade and Industry, Internal Revenue Service, Customs, Excise and Preventive Service and Guinness.

Vice President Aliu Mahama, who announced this in Accra on

Thursday, said the incentives would be in line with World Trade Organisation (WTO) regulations.

He announced this when a six-member delegation from Guinness, led by Mr David Hampshire, Managing Director for Africa and Middle East, called on him at the State House.

The delegation had asked the government for incentives, including tax exemptions, to complement investments the company will make in the project.

Alhaji Mahama said the substitution of malt with sorghum was in line with the government's policy to encourage industries to use local raw materials to facilitate economic growth.

"The government is committed to assisting you to achieve this goal, but as far as taxes are concerned, the government can only give tax incentives that are consistent with WTO regulations," he said.

Alhaji Mahama said the substitution would save Ghana foreign exchange used to import malt and would also provide job opportunities.

Mr Hampshire said Guinness would invest about one million dollars to install a new plant and an additional 500,000 dollars to provide social amenities for communities that would cultivate the sorghum.

About 5,000 farmers in 50 communities are to cultivate kapala, developed by the Savannah Agricultural Research Institute at Nyanpkala, in an out-growers' scheme.

Mr Hampshire, who is on a two-day visit, expressed satisfaction with the performance of Guinness Ghana, saying the stability of the cedi in recent times was good for its operations.

He will attend the company's annual general meeting, visit the Stock Exchange and interact with a cross section of business people.

Mr Hampshire will also make donations to non-governmental organisations, including the Ghana Heart Foundation.

Guinness manufactures alcoholic and non-alcoholic beverages.

The delegation included Mr David Devlin, Managing Director of Guinness Ghana.