The Ghana Employers’ Association (GEA) is urging government to work with business associations to identify indigenous businesses and support them to locally produce intermediate goods and raw materials to fill the supply chain disruptions created by the pandemic now and into the future.
According to the Association, this will reinforce the government’s import substitution goals and structurally transform Ghana’s economy.
The GEA observes that though the Bank of Ghana directed commercial banks not to loan out excess liquidity derived as a result of COVID-19 interventions introduced by the Central Bank, they hold the view that the banks should loan out only to businesses affected by the outbreak of the pandemic.
GEA believes certain sectors like agro-processing, pharmaceuticals, textiles and garments and the integrated aluminum industry, given that aluminum is the metal of the future need to be supported.
COVID-19 has resulted in mass production shutdowns and supply chain disruptions causing global ripple effects across all economic sectors that is why the suggestion put forward by the Employers’ Association makes a lot of economic sense.
The GEA argues that this will reinforce the government’s import substitution goals and structurally transform Ghana’s economy.
GEA’s Chief Executive Officer, Alex Frimpong believes a dialogue with key stakeholders to fashion out an effective execution system for policy revisions made to the 2020 Budget Statement is imperative and crucial so that the laudable stimulus/relief packages established can be readily accessed by businesses.
This engagement is very crucial for employer associations like the GEA because the COVID-19 supply disruptions had a telling effect for businesses in general and in order that they do not downsize by laying off staff, it is important for such entities to know what is in store for them as they plan for the future.
The GEA also wants government to expedite action on the necessary administrative arrangements required to enable businesses access the GH¢2 billion Guarantee Facility and GH¢150 million additional funds allocated to the Coronavirus Alleviation Programme Business Support Scheme.