Businesses cry out to trade minister

The Swiss-Ghanaian Chamber of Commerce yesterday hosted the Minister of Trade and Industry, Haruna Iddrisu and expressed their grievances.

Chairman of the chamber’s board, Dr Nortey Omaboe, told the minister that the falling local currency, unstable electricity supply and high cost of credit, among others, were obstructing the operation of businesses lately.

“Doing business in Ghana or in Switzerland has always been a challenging undertaking since both countries have relatively small domestic markets and are highly reliant on exports.

Mr. Iddrisu, for his part, stressed that “if we don’t correct the huge fiscal deficit, then we will suffocate the private sector more.” He also called for a revision of the Export Development and Investment Fund (EDAIF).

“One of the weaknesses of EDAIF’s operation in the last two decades is that it cannot do anything. So, Ghanaian enterprises which are in deep distress cannot find any intervention from the fund. They still have to rely on traditional financial institutions which are sometimes not available.”

He said one of his ministry’s policy decisions is to revive EDAIF to be able to do equity so that even when it is difficult, government can decide to absorb between 5 and 15 percent risk which gives some capital and relief.

Touching on SMEs, he said: “There is apparently no support for them. The cost and access to credit remains the bane of the Ghanaian private sector. We have improved globally in the regime of access to credit but we can do better. With the cost of credit, it is for many of our financial institutions to begin to take risk. Many of them won’t give up anything for lack of collateral and other related issues. Part of the revision of EDAIF is to look at this. For instance, while we lend to commercial banks at 12 percent, they give it to companies at 23 percent.”

Hon. Haruna stated that part of the EDAIF revision would cover investment in agriculture.

“For instance, what prevents government from investing in irrigation? If we invest very well in smallholder irrigation facilities, we will be promoting horticultural crops which can be exported.”

Commenting on the Tema Port, he said Government intends to put three additional scanners and a mobile scanner at the port at the request of the Ghana Ports and Harbours Authority.

“Many destination inspection companies are using their old scanners. But there was a meeting convened at the instance of the chief of staff and he noted that the president has called for immediate measures to decongest the port. In fact, in subsequent meetings, I have actioned a public private partnership agreement in relation to guide that particular initiative.”

Outgoing Swiss Ambassador to Ghana, Nicholas Semadeni, was presented with a citation for helping to entrench the operation of the chamber.