Multilateral companies urged to buy into SMEs

Accra, April 20, GNA - Mr Kwamena Bartels, Minister of Private Sector Development and President's Special Initiatives (PSI), on Wednesday challenged multilateral companies to buy into small and medium scale enterprises (SMEs) to ensure their growth for mutual benefits. He noted that multilateral companies had humble beginnings and encouraged industry captains to adopt SMEs as part of their corporate and social responsibilities in developing infant industries, social infrastructure, job creation and skills provision.

Mr Bartels threw the challenge in Accra at a forum held on the theme: "Global Players Growth Strategies in Ghana's Near Future-Opportunities for Local Companies", organized by the Ghanaian-German Economic Association (GGEA).

The forum featured industry and business captains from Nestle Ghana Limited; Coca Cola Bottling Company of Ghana Limited; Unilever Ghana Limited; GHACEM Limited and Scancom Limited.

Mr Bartels said it was a healthy sign that big companies were recognizing their limitations in producing all aspects of the product line and agreed that that global competition necessitated adoption of best practices.

Speaking on the production activities of the Coca Cola Bottling Company of Ghana, Mr William Adjei, Internal Control Manager of the Company, said the Company, was investing to rejuvenate the Astek Fruit Company, to produce fruit juices to satisfy the taste of consumers. He said the Company had also outsourced the production of Bon Aqua mineral water, and invited Ghanaian companies to venture into the production of glass to support the company.

Mr George Owusu Ansah, Head of Supply Management of Unilever Ghana Limited, observed the necessity to have a global mindset in business to meet the stiff competition in the business world, underlining stringent quality and benchmarking against world standards.

He said Unilever Ghana was looking to double its growth by 2008 and added that the Company was inviting professionals in haulage, insurance and management; as well as third party manufacturers to supply its products to the vast national and West African markets.

Mr Morton Gade, Managing Director of GHACEM, said GHACEM produced 1.6 million tones of cement against its target of 2.6 million tonnes in 2005 and the Company had improved waiting time for cement on demand at its Tema and Takoradi production points form eight days to a day. Mr Gade said 20 per cent of the raw material was obtained locally. He called for more investment to address shipping, poor infrastructure, transportation and human resource development concerns of the Company. Mr Ahmad Farouk, Managing Director of Scancom Limited (Areeba), said there were 275,000 fixed telephone lines and 2,780,000 mobile phone lines, with Scancom taking 1.8 million of the customers. Penetration rate of telephony was 13 per cent.

He spoke of problems such as lack of information, power outages and fuel pricing and invited investment in the areas of construction of telephone towers, and road construction, stressing the need for a good maintenance culture.

German Ambassador to Ghana, Mr Peter Linder called for an increase in Ghana's exports to correct her trade imbalance with Germany.