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Business News of Wednesday, 29 July 2020


Ghana less industrialised today than it was in 1970 - IEA

Dr John Kwakye, Research Director, Institute of Economic Affairs (IEA) play videoDr John Kwakye, Research Director, Institute of Economic Affairs (IEA)

Director of Research at the Institute of Economic Affairs has said, that Ghana is less industrialised now than it was in 1970 under the first President Dr Kwame Nkrumah.

According to Dr John Kwakye, many of the industries established under Dr Nkrumah have all been run down, privatised and some left to go waste.

Speaking at a press briefing in Accra on Tuesday, July 28, 2020, Dr Kwakye said; “Manufacturing output in particular, as a percentage of Gross Domestic Product (GDP) has dropped from 15 percent to 10 percent today and the deindustrialisation of the country in the past 50 years has retarded Ghana’s socio-economic growth and we need to reverse this trend”

Dr Kwakye however recommended for investment towards natural and agriculture resources, to propel a comparative advantage for Ghana’s growth.

“We have a comparative advantage in our natural and agricultural resources and this what we [Ghana] should leverage on to spur our industrilisation and economic transformation,” he added.

The ‘One District, One Factory’ (1D1F) initiative is an Akufo-Addo led administration policy aimed at creating jobs for Ghanaians through the establishment of factories and industries. The initiative is intended to move the country towards a greater industrialization agenda.

Introduced in 2016 as a manifesto promise by the ruling New Patriotic Party (NPP), the Finance Minister, Ken Ofori presenting the mid-year budget review last week in Parliament disclosed some 76 factories under the initiative were fully operational.

“Our push on this front has resulted in 76 operational factories, with 232 projects at various stages of implementation. Not only have we leveraged private sector support through tax exemptions valued at GH¢34 million. Government has directly spent GH¢210.03 million as support to existing factories and for the construction of new factories. Our industrial agenda has certainly enhanced the prospects for more jobs for Ghanaians,” the Finance Minister said.