Govt to compel firms to use local raw materials

Cabinet will soon place before Parliament the "Domestic Content Bill" that seeks to mandate local and foreign firms to use a certain percentage of local raw materials in the production of their goods and services.

Dr. Kofi Konadu Apraku, Minister of Trade and Industry, who announced this on Wednesday, said Cabinet would soon decide on the requisite percentage levels and publish it.

He said, in line with promoting Made-in-Ghana goods, cabinet was also considering making it as matter of policy, the wearing of made in Ghanaian clothing every Friday to offices.

The Minister said this when he inaugurated the Brick and Tile Manufactures Association (BATMA) made of eight clay-manufacturing companies drawn from various parts of the country.

The Association has the collective aim of providing affordable and good quality local clay products for the building industry to activate other allied industries, which would in turn create growth in employment.

Dr. Apraku said the two policies would also compel government to also use locally resources in the production of goods and services, adding that "this makes economic sense and culturally good for the country."

"Government is very much committed to ensure that these come into fruition as we are determined to see every firm, both local and foreign develop and grow to their fullest potential for the good of this country," the Minister reiterated.

On utility tariffs, Dr. Apraku said government was very much aware of the strain industries were going through saying, "the situation as it is now, is very unsustainable to businesses.

"But government was faced with very difficult circumstances which resulted in her making difficult decisions on the utility tariffs and petroleum products because she (government) has the moral and political responsibility to do what would sustain us in the near future," he said.

The Minister assured the Association that government was prepared to lend all support they needed and that some of the resources of the Ghana Investment Fund would be channelled to the brick industry.

Mr John Asare, President of BATMA appealed to the government to source funding for the direct development of the industry.

He asked for a levy of 0.5 per cent of tax on all imports of ceramics, glass and cement to create a fund, which would attract only 2.5 to five per cent interest rate to enterprises in the local clay industry.

Mr Asare said within 10 years, the association would have in all districts viable Brick and Tile factories to help change the deplorable face of villages and urban slums.