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Business News of Tuesday, 10 April 2018

Source: citibusinessnews.com

AGI demands swift passage of local content law

The Association of Ghana Industries (AGI), is pushing for the speedy passage of a local content policy to address what they describe as the imbalances in the construction industry.

A local content policy, the association says, is urgently required to increase the opportunities and incentives for local construction firms.

The AGI believes this should help develop the capacity of its members and increase the contribution of the construction sector to the country’s Gross Domestic Product (GDP).

The Chairman for the Construction Sector of the AGI, Rockson Dogbegah tells Citi Business News cautioned that the capacity of Ghanaian construction firms will continue to dwindle if majority of government’s contracts continue to be awarded to foreigners.

“The enforcement of a local content policy will lead to the development of a production base for construction materials and it will enhance the capacity of Ghanaian companies to enable them to do what foreign companies will normally come and do. It will give some preference for Ghanaians in terms of public procurement and all related developments”.

He added that the AGI and BUSAC will continue to push for the enforcement of the law to empower local contractors.

“We believe strongly that Ghanaians must be empowered to be able to offer their services properly. So the AGI’s construction sector with support from BUSAC has been advocating for this empowerment through the development of a local content policy and will continue to do so. We understand the law is currently being developed and consultations are ongoing.”

Mr Dogbegah also addressed the issue of local construction companies lacking the capacity to deliver on big projects.

According to him, the situation is a longstanding issue which industry players believe could easily be addressed with the formulation and passage of the local content policy for the sector.

Advocates of the local content policy for the construction sector believe the passage of the policy will be timely for the current government’s job-creation agenda.