A Ghanaian producer and exporter of Made-in-Ghana cosmetic products, Mr. Moses Atobrah, has called for the establishment of industrial zones or enclaves for small and medium-scale enterprises which will offer a boost to businesses to produce increasingly and efficiently.
Speaking on the Eye on Port programme on strategising for the future of Ghana’s non-traditional exports, he said the establishment of these industrial enclaves will come to solve a lot of capital-related problems and prime SMEs for competition at the regional level.
He said small and medium-scale manufacturers are preoccupied with making profits to offset expensive loans, making it difficult to invest in factories by themselves.
“Funding has been a challenge for us – securing bank loans for our businesses. It is really tough using your working capital to invest in building a factory. Manufacturing is very expensive if you consider the entire supply chain – from raw materials to distribution. Things like packaging and barcoding alone cost a lot,” he lamented.
The CEO of Debbies Products Ltd. entreated government to ease the ordeal of manufacturers by setting up these all-purpose factories in every region, in which SMEs can operate at a subsidised fee.
He said these factories with the necessary amenities such as electricity and good transportation networks linking to raw materials and distribution centres will propel Ghanaian SMEs to do more, and boost their export potential.
“At the end of the day, government employs about 600,000 people, and we spend over 70 percent of our GDP on salaries of these workers. Private sector employs a chunk of Ghanaians and can do more when supported. We do not want free money, but create an enabling environment. What can be more enabling than setting up these enclaves with factories?” he quizzed.
Mr. Atobrah said this model has proven to be successful, citing the example of the United Arab Emirates, where only little start-up capital and a good business strategy is required from indigenous companies to be supported.
The producer of African-herb-based cosmetics nonetheless expressed a lot of hope for Ghana’s trade prospects with other African countries, citing the success of a GEPA-led exhibition in Kenya, which his company benefitted from.
“We attended the Ghana Expo 2023, and for the cosmetics, the response has been very good. In about a week or two we are going to ship to Kenya already.”
He, however, called for expedited harmonisation of standards to enable smoother business processes between African traders.
Mr. Moses Atobrah said Africa is blessed with so much and Africans should not cease to look within to find unique products to sell among themselves and outside the continent.
He opined that the Africa Continental Free Trade Area, when implemented well, can catapult the African economy on an unprecedented path of success.
