Govt policies are restoring confidence in the private sector - JAK

Tema, Oct. 15, GNA - President John Agyekum Kufuor on Wednesday said government's policy and good faith in creating a congenial environment for the Private Sector development was gradually restoring confidence in that Sector.

He said they were also motivating investors to develop new businesses or enhance existing ones.

President Kufuor made the observation when inaugurating a 20 billion cedis Central Distribution Centre for Nestle Ghana at Tema. The Centre is equipped with sales, customer service and distribution management at the national level to ensure a reliable and efficient supply of finished products to its customers.

Products of the Company, which was incorporated in Ghana in 1968, include ideal milk, carnation milk, milo, chocolim, cerelac and cerevita.

President Kufuor said government's on-going reforms in the public and financial sectors aimed at strengthening the sectors to support a vibrant private sector were beginning to yield results.

The results, he said were the falling inflation and interest rates and start-up capital was becoming more and more available to small and medium scale enterprises.

"In addition, there is enhanced service delivery at the country's Ports reflecting in faster and more efficient clearing and moving of goods, improvement in the road network, enhanced performance and discipline of internal security personnel manifesting in faster distribution of goods locally", he said.

President Kufuor commended the Management and Staff of Nestle for good performance, saying: "It is a model of the dynamic, well managed companies which government is seeking to attract into the country's private sector through foreign direct investments or nurture carefully locally to promote economic growth".

Mr Dominique Dupont, Vice President of the Regional Management Zone for Africa, Oceania and Asia, said due to the return of confidence on the market the growth in the Company had doubled in their production and sales volumes over the past four years.

Mr Dupont said between 2003 and 2004, the Company's capital investment expenses would reach 136 billion cedis and employment over the past year had increased from 500 to 650 employees.

He said revenue in the Company's operations in 2002 amounted to 283 billion cedis, 90 billion cedis was paid to the State as taxes, duties and dividends and 62 billion cedis for Value Added Tax (VAT). Mr Dupont said the Company was on track with a strategy to become a net exporter within the West African Sub-Region.