Don’t blame us for collapsing manufacturing sector - GUTA

The Ghana Union Traders Association (GUTA) has denied contributing to the decline in the manufacturing sector in Ghana indicating that the support of government was crucial for its sustenance.

Research indicates that between 2000 and 2009, the manufacturing sector in Ghana recorded the slowest growth of 39% as compared to sectors such as construction which grew by 88%; transport, storage and communication which grew by 83% and whole sale, retail, hotels and restaurants grew by 81%.

Manufacturing only accounted for only 8% of the rise in the real value of exports.

Some analysts have identified traders who engage in importation of goods, are the main cause of the problem.

Speaking to Accra based Citi FM on Monday, the President of GUTA, George Ofori, refuted the claims.

In his opinion, it was necessary for the challenges of the industrial and manufacturing sector "to be put in the right perspective."

He added that, though the members of GUTA were engaged in the importation of goods into the country, they were also actively engaged in the retail of finished goods of local manufacturers.

“We are the same people who are retailing their goods which have been kept in the various ware houses for them.

There is a problem of utilities which is confronting the manufacturers; the supply of electricity and water… these are certain ingredients that you cannot do away with in terms of manufacturing.”

Mr. Ofori stated “financial support from the government and the various commercial banks [means] there are a whole lot of problems that are confronted with the manufacturing firms… Even some of these manufacturing firms are importing finished products to come and sell.”

He advised the local manufacturers to address the concerns they face squarely and desist from blaming members of GUTA.