Government will intensify investment promotion

Kumasi (Ashanti), 17th July 99 ?

President Jerry John Rawlings on Friday said the government would continue to intensify its investment promotion drive.

It would also provide a stable macro economic environment, deepen physical discipline and forge closer partnership with the private sector to ensure that investing in Ghana continues to be mutually rewarding.

This was contained in an address read on his behalf by Mr Owusu Bempah, member of the Council of State at the commissioning of a new 40 billion-cedi modern equipment and technology brew house for Guinness Ghana Limited (GGL) in Kumasi on Friday.

President Rawlings noted that through the collective efforts of Ghanaians there has been improvement in the economy adding that recent development in monetary, fiscal and exchange policies have been generally positive

In 1997 the company commissioned a new packaging line at a cost of 18 billion cedis. With the new brew house, the company has increased its annual production capacity from 300,000 hectolitres a year to 575,000 hectolitres.

President Rawlings said there was a significant decline in the growth of money supply, during the first half of the year, due to increased deposit mobilisation efforts by the commercial banks.

He added that a significant decline in the growth rate of credit to the government by the Central Bank has led to a reduction of the interest rate on treasury bills.

This has in turn, is led to the lowering of interest rates and consequently, to lower cost of credit to the private sector.

On the investment by GGL in the past three years, President Rawlings said they are a clear testimony of the company's faith in Ghana, her economy, people and in the future.

"Those potential investors, who hesitate to invest in Ghana now are losing time and the opportunity to be part of our accelerated development process in the next millennium" he added.

He said the beer industry's contribution to the Ghanaian economy in terms of revenue generation, employment and direct and indirect supply and services linkages is very significant. "As a government, we shall continue to support the industry for the mutual benefit of all the parties".

President Rawlings expressed concern about developments on the labour front and said the spate of industrial actions, where laid down procedures are not followed, are turning the clock of the country's investment drive backward.

Worst still, such actions have an understandably negative effect on potential investors, he said, adding that while worker-management problems would persist, there was the need to approach them in a matured manner by following the rules, which have been set for the resolution of such problems.

Mr Peter Peperah, a Deputy Minster of Trade and Industries, said the major consumers of skills of the products of these institutions to start a "practical industrial attachment programmes to complement the theoretical grounding of students in these institutions".

He assured the private sector that the government would continue to rationalise the tax and tariff regimes in order to improve the incentive generally so that domestic industries could enhance their competitiveness.

"We shall continue to count on the co-operation and collaboration of the entire business community in arriving at acceptable and supportive tariff", he added.

Sir Anthony Grinner, Chairman of the DIAGEO, a joint company of Guinness International and Grand Metropolitan, a major world food and drink manufacturing company, said the new brew house has the most modern beer brewing and processing equipment in Africa.

He said the investments made by the company demonstrate their confidence in the economy, adding that the government's policy of controlling inflation is necessary for a continuous growth in the beer industry in the country.

Sir Anthony noted that further reduction in taxes on beer would help consumers to buy more for economic growth and to enable the company continue with its assistance to the community within which it operates

Guinness International operates in 150 countries on all the five continents of the world and has been operating in Ghana for the past 30 years.

Otumfuo Osei Tutu II, Asantehene, who chaired the function, said the government's investment policy is commendable, as it has led to an improvement in the private sector participation in the country's development drive.