Accra, June 23, GNA - A South Africa trade and investment delegation is currently in Ghana to explore business opportunities in the agri-business and agro-processing sector. The delegation, made up of officials of Department of Trade and Industry and five companies, is seeking partnerships in the areas of agro-chemicals, irrigation, post-harvest storage as well as animal production.
The visit forms part of a technical mission of the West Africa Bilateral Unit of the Department of Trade and Industry of South Africa to Ghana from June 23-27 June, 2008. Ghana is currently South Africa's seco nd largest trading partner in West Africa after Nigeria.
Total bilateral trade between the two countries has increased from $135.59 million in 2000 to $1,135.48 million at the end of 2006 with the balance of trade in favour of South Africa.
Speaking at a meeting with the group, Mr Clement Eledi, Deputy Minister of Food and Agriculture, said agribusiness and agro-processing industry held the key to Ghana's economic transformation because of the link between agriculture, industry and commerce. "Promotion and development of agri-business will contribute to the national and also agricultural sector objectives of increased incomes and poverty reduction. It offers employment opportunities for the increasing rural and farm populations," he said.
Mr Eledi told the delegates of the generous incentives that agro-processing companies enjoyed, saying those that used local agricultural raw materials as their main input had corporate tax rates based on location.
Those cited in Accra-Tema will pay 20 per cent while those in other regional capitals and outside the capitals pay 10 and zero per cent respectively. There are also plans by government to facilitate the establishment of cold chain facilities at the port in Tema and the Kotoka International Airport to support the horticulture industry. Papa Owusu Ankomah, Minister of Trade and Industry, in a speech read for him, said the visit provided a unique opportunity for direct business and investment contacts between businessmen of the two countries to enhance trade. He attributed Ghana's negative trade balance with South Africa to technical barriers and sanitary as well as phytosanitary measures, stiff competition from other African countries, poor packaging of Ghanaian products and rising demand for organic products from health conscious consumers.
Papa Owusu Ankomah said government was dealing with the challenges by coming out with various strategies to boost exports, making them more competitive on the international market through public-private partnership. Ghana and South Africa have a joint Permanent Joint Commission for Cooperation to enhance trade, investment, tourism and mining. The two countries are also collaborating to harmonize rules, regulations and standards for import and export of fauna and flora to South Africa.
