‘Businesses must embrace mergers and acquisition’

Ekwow Spio-Garbrah, Minister of Trade and Industry, has advised businesses, especially small and medium-sized enterprises (SMEs) to embrace the concept of consolidation or mergers and acquisition of shares as a paradigm shift worthy to help withstand the increasing operational challenges.

He said the contemporary mode of business ownerships among other things guarantees bigger capital base, attract concessionary interest rates, and warrant surety for government financial interventions.

He pointed out that it is a common catalyst for the success stories of businesses such as multinational companies in industrialised countries, adding: “It is better to be a 50% shareholder of a GH¢10million company than a 100% owner of a GH¢1million company”.

The Trade Minister made this assertion during an interaction with actors of the business community at Dormaa-Ahenkro in the Brong Ahafo Region. The meeting saw in attendance poultry farmers, artisans and commerce players who formed part of the Minister’s three-day familiarisation tour of the region.

Mr. Spio-Garbrah also entreated smaller businesses in the informal sector to register their activities so as to benefit the importance of business registration and formalisation. He announced that the MoTI has a partnership with the Italian government to supply businesses with industrial equipment at a subsidised price, and urged interested parties to take advantage of the package to expand their operations.

During an open forum, the business actors raised concerns about the cost of borrowing in the country, a situation they lamented continues to cripple many businesses -- leading to the closure of a greater number in the vicinity. The poultry farmers implored government to restrict excessive importation of frozen chicken to help save the local industry.

In a related development, the Trade Minister has urged Ghanaian pharmaceutical companies to uphold the high quality assurance and goodwill they enjoy for their products. This, he noted, will help them further consolidate their dominance in the West African pharmaceutical market as a leading brand among their peers.
Mr. Spio-Garbrah said this when he visited African Global Pharma (AGP) in Sunyani. He said: “Ghanaian pharmaceutical products areamong the most highly regarded in the sub-region, and industry players must not lose sight of that advantage to grow their business”. He consequently pledged government’s commitment to supporting the industry to flourish.

Mr. Victor Tornyie, Quality Control Manager of AGP -- the only pharmaceutical company in the Brong Ahafo Region, said it commenced operations in 2012 and produces drugs mainly to feed 35 Catholic hospitals and 19 clinics per an agreement with the Catholic Church.

He indicated that the inability of the National HealthInsurance Authority to reimburse service providers regularly has been starving the company of funds needed to operate effectively.

He stated that AGP, which currently has a workforce of 70 (skilled labour and causal staff), is underutilising its capacity due to financial constraints. According to him, the company can afford to run three shifts per the production capacity of the facility, which would create employment for about 200 people.