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Business News of Saturday, 29 November 2003

Source: Chronicle

Makola Cloth Sellers Caution Gov't

The Makola Cloth Sellers Association in Accra has cautioned that a total ban on the importation of textiles would be a mistake by the government since they are not the cause of the soaring prices of locally manufactured ones.

According to them, given the weak purchasing power of the average Ghanaian worker, affordability becomes a crucial determinant of the viability of any policy in the textile industry and not a protectionist measure, like a ban on importing textiles.

Speaking on behalf of the Makola Cloth Sellers of Ghana during a press conference, on Thursday, the Secretary, Madam Effie Tsiquaye, noted that, "the truth is that textiles from neighbouring countries and beyond are far cheaper than our local ones."

She said a full piece of Super Wax textiles costs between ?450,000 and ?530,000 while an Auden Super Wax from China sells at only ?135,000.

Similarly, full pieces of ATL and Printex textiles cost between ?230,000 and ?340,000 while a wax from Nigeria costs between ?180,000 and ?200,000, she added.

She said even in the days of state-controlled economy a ban was out of question and that the introduction of such a measure would push the country to swim against the tide of globalization.

Madam Tsiquaye insisted that it would be unfair to ban imported textiles while drinks, shirts, shoes and even mineral water are still imported Madam Tsiquaye argued that some of the local manufacturing companies that are kicking against importation are themselves actively engaged in the practice.

She stressed that some local companies frustrate local dealers from doing business with them by demanding huge deposits of about ?350,000,000 which is not easy to come by, considering an average cloth seller.

She maintained that the association fully supports efforts to cast the tax net wider to maximize revenue for the state and to improve the economy.

She advised that there is the need to beef up security at the various points of entry and to take to task officials whose negligence lead to loss of revenue to the state rather than harassing them in the market.

She appealed to the government, saying that in this Golden Age of Business where the government is expected to play a hands-off role in the economy, the best support the private sector deserves, is a free, fair, and competitive environment, which would promote wealth and employment.

Madam Tsiquaye noted that since the association is ready to build a vibrant economy any attempt therefore by some people to derail that ambition would be firmly resisted.