Rising cost of doing business, production could hamper Ghana's AfCFTA benefits – AGI

Producer Price Inflation PPI1212.png Manufacturing sub-sector recorded the highest year-on year PPI for April 2022

Mon, 6 Jun 2022 Source: www.ghanaweb.com

PPI for April rises to 31.2%

Manufacturing subsector records highest PPI for April – GSS

Adopt pragmatic measures to address high cost of production in Ghana – AGI

The Association of Ghana Industries (AGI) has cautioned Ghana could likely miss out on the expected gains from the implementation African Continental Free Trade Area (AfCFTA).

According to the Greater Accra Regional Chairman of the Association, Tsonam Akpeloo, the increasing cost of doing business and production in the country could hamper Ghana’s efforts in the free trade regime.

Speaking in an interview with Citi Business News, the AGI regional Chairman called on government to adopt pragmatic measures to help drive down the cost of doing business and production citing an example such as countries like Kenya.

“Dividends from the recent increase in excitement around the AfCFTA may not be realized. This is because producing locally in Ghana is not competitive compared to other African countries. The cost of inputs is increasing at a rate that can’t be compared to anywhere else in the sub-region,” he is quoted by Citi Business News.

“For us to be competitive and for us to favourably trade and benefit from the AfCFTA we need to make sure steps are taken to produce cheaply because at the end of the day consumers in the open market will only consider price and quality. Our competitors in other countries like Kenya are receiving massive support which makes us uncompetitive,” Tsonam Akpeloo added.

Meanwhile, the Producer Price Inflation (PPI) for April rose to 31.2 percent from 29.3 percent in March this year driven mainly by high manufacturing cost.

The Ghana Statistical Service said the increase represents a 1.9 percentage point increase and a month-on-month change rate of 1.1 percent.

The Producer Price Index measures the average change over time in the prices received by domestic producers for the production of their goods and services.

Source: www.ghanaweb.com
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