A group photograph from the maiden New Year Business Forum
The Chief Executive Officer (CEO) of the McDan Group of Companies, Daniel McKorley, has bemoaned the country’s weak local content law – saying it needs to be reviewed to protect indigenous Ghanaian businesses, especially as the nation pursues economic recovery.
He stated that a stronger legal framework would not only safeguard and assist local businesses but also give them leverage to contest government contracts given to foreign businesses when local businesses have the capability to perform them.
He made these remarks at the maiden New Year Business Forum in Accra organised by the Africa Trade Office in partnership with the McDan Group, where he argued for increased participation of the business community in policymaking.
“We have had very weak local content laws and local content spirit. We have to strengthen the local content base…we have to go the Nigerian way to fight and strengthen our local content. There should come a time when the government gives a contract to a foreign company when one of us – that is, a Ghanaian business can do it – and we all rise up and say ‘no, this is wrong’. If we do that, the politicians will start listening to us,” he explained.
Recounting the economic turbulence of 2022, McKorley said business leaders must invest in the local economy and collaborate with the public and private sectors.
He further urged Ghanaian businesses in the private sector to improve packaging and quality to meet market standards and called on fellow businessmen to support the government with ideas and resources.
“Businessmen in the country must be solution-oriented so that we support the government. I believe in the quest to be big in business, we have to extend our hands to support the system. I believe it is about time we supported the government with our resources and ideas,” he said.
The former Association of Ghana Industries (AGI) president, Dr James Asare-Adjei, sharing his thoughts as a participant was also of the view that the prevailing shocks provide an opportunity to boost local production and reduce importation. “What we need as a country is to boost local production and support Ghanaian indigenous businesses in manufacturing,” he stated.
He said that one key area where significant strides have been made in the past three to five years is in local rice production. He indicated that over the period, rice production in the country has moved from a mere 50,000 tonnes to over 400,000 metric tonnes. He added that if local producers are supported they can bridge the import gap, as the current demand is over 1.2 million metric tonnes.
He added that the economy’s recovery will also rely on the government supporting commercial agriculture, and by extension industrialists who are willing to invest in the sector. “The private sector must also partner with the government so we look at what has been done right and how it can be sustained,” he said.
The inaugural New Year Business Forum brought together about 50 business leaders from various industries in Ghana to discuss the lessons learned in 2022 and the strategies for a successful 2023.
