Qovt entities in Ghana don't have a good record and i would be hesitant to partner with them in a PPP.Our water,electric & railway entities are shambolic with spotty service and questionable financial management.
Qovt entities in Ghana don't have a good record and i would be hesitant to partner with them in a PPP.Our water,electric & railway entities are shambolic with spotty service and questionable financial management.
NPP Cocaine Pusher 12 years ago
Is any 'saint' listening? and do we have any in the country today?
Is any 'saint' listening? and do we have any in the country today?
BAWA 12 years ago
I am particularly skeptic about this PPP mantra being sung by our politicians. Let us be careful they do not use start resources to adequately sponsor private operations they have interest in.
I am particularly skeptic about this PPP mantra being sung by our politicians. Let us be careful they do not use start resources to adequately sponsor private operations they have interest in.
C.Y. ANDY-K 12 years ago
I absolutely agree with you that we must be careful about the PPP hype.
Fact is, it is nothing new at all, as William's fine article seems to indicate. It was embodied in even Nkrumah's econ. plans and might be said to fo ... read full comment
I absolutely agree with you that we must be careful about the PPP hype.
Fact is, it is nothing new at all, as William's fine article seems to indicate. It was embodied in even Nkrumah's econ. plans and might be said to form the cornerstone of the Akosombo Dam too, except that VALCO got almost all the juice and Ghanaians pay for all the juice! The very bad lessons, starting from that period, must guide us against repeating the same mistakes of using public resources to support private ventures like VALCO which got all the juice from such ventures, leaving the empty purse or peanuts for the citizens whose tax money or loan burdens made such ventures profitable to the private investors.
There is nothing wrong in itself of a govt going into a business venture partnership with private investors to build factories, etc, either directly or by supplying the needed financing and other supports, e.g., protection. In fact, that's how the advanced countries, even more the NICs of Asia and Latin America, are developing unlike the hype on private enterprise being the engine of growth we hear from our politicians in Ghana. We need to encourage more of that, with support to local Ghanaian entrepreneurs, instead of foreign ones, btw. It is the mix and control that is essential and must be regulated so that the citizenry is not ripped off, as happened under the VALCO Agreement! The public should be invited to buy shares in such ventures, thereby fulfilling the inclusiveness yardstick, and avoiding the powerful and well connected becoming the Winners That Take All the benefits.
When a PPP becomes just another means whereby the elite extract rent by contracting foreign associates to front for them to take over provision of services expected of the public sector to provide or is providing, such as building and management of roads, harbours, airports, sewerage, hospitals, and prisons, and intangible such as revenue collection, managing a state venture, etc., etc., then it must be viewed with much apprehension, and even resisted in some cases. The examples of other countries such as the UK which denationalised sectors like the railways to the private sector only to re-nationalise some of the concessions cos the so-called more efficient private investors weren't delivering, in spite of huge subsidies from the public coffers must alert us to the falsehood of the excuses of the supporters private enterprise agenda.
Can someone sincerely vouch that private collection of tolls on the Motorway has resulted into higher amts being paid into govt coffers?
Andy-K
Albert 12 years ago
Indeed the relevance of PPP is not in dispute. It is the accountabilities that go with it that will make all the difference for Ghana. Folks, let us all become the watchmen from henceforth. Put party aside and call for accoun ... read full comment
Indeed the relevance of PPP is not in dispute. It is the accountabilities that go with it that will make all the difference for Ghana. Folks, let us all become the watchmen from henceforth. Put party aside and call for accountability even if it is your party that is in power.
SUMBRUNGU 12 years ago
Insightful piece;thanks for the effort.
Insightful piece;thanks for the effort.
Danny Blue 12 years ago
DEVELOPING THE BILLION DOLLAR FRUIT PROCESSING INDUSTRY IN GHANA FROM 2013-2016 THROUGH PRIVATE PUPLIC PARTNERSHIP
Many of Ghana's agricultural practices, processing factories and rural development problems have been relat ... read full comment
DEVELOPING THE BILLION DOLLAR FRUIT PROCESSING INDUSTRY IN GHANA FROM 2013-2016 THROUGH PRIVATE PUPLIC PARTNERSHIP
Many of Ghana's agricultural practices, processing factories and rural development problems have been related to misguided policies, weak institutions and a lack of well-trained human resources.
Ghana has the potential to expand its current operations in agro processing to the billion dollar mark, by supporting existing local medium and large scale firms using 70% local raw material to operate at full capacity.
The objective of these firms would be to eliminate importation of fruit juices, concentrates, and jam and tomato products and export these products within the ECOWAS –AU countries which are currently importing 70% of such products.
Estimated consumption of juice products in the sub region is between 900, million-one billion liters per year. Nigeria has the highest consumption of 486 million liters (95% made from imported concentrates from Asia and South Africa) Ghana consumes about 120 million liters with 70% being imported from Europe and south Africa.30, 000 tons of tomato products are imported into the country annually.
However Ghana has sufficient installed capacity within the industry to eliminate importation of processed fruit juices Tomato products & jams as well as boost export in the sub region.
Ghana also has adequate plantations of citrus and mangoes to cater for local demand and exports as well. An estimated 600,000 metric tons of oranges is produced annually and 36,400 tons mangoes as at 2012.An estimated 27% went wasted .With increasing production volumes of mango under various programs such as ITFC, EADIF SADA, an estimated volumes of mango within the next four years is estimated to increase by 60-80 000 metric tons. Citrus is bought by neighboring countries at low prices and about 40% goes bad therefore market access is critical. Currently under 100,000 tons of citrus is processed for export .a significant amount is sold fresh to neighboring countries.
However current yield from especially small scale farm needs to be improved 4-5 fold to reduce cost and improve quality and revenue. There is a major shortfall in production of pineapple &passion fruit and tomatoes which should be addressed immediately. Pineapples would require additional 5000 acres of cultivation, 500 acres of passion fruit of cultivation and 3000 acres of tomato. Government has set up pack houses and fruit terminals and trained farmers within the horticultural industry though MIDA however these facilities are idle due to inadequate working capital. The project would support all these FBOs to get back into production for effective utilization of these facilities to enable them join the program.
PROPOSAL
The major challenges which have hindered the growth of the local industry are unfair trade advantages from foreign competitors who obtain lower interest rates, efficient utilities, and high level skilled work force as well as good quality high yields in fruit production from large commercial farms .
Other advantages include farm subsidies and export subsidies available to our competitors. Beverage companies in Nigeria benefitted from a 10 year ban on retail packed fruit juices. Senegal has as a special tax on retail packed juice imported.
The 10 year ban on fruit juice importation in Nigeria improved local fruit juice importation from 2 million liters per annum to the current 486 million liters and eliminated importation of fruits grown in Nigeria completely. Nigeria’s market is yet to mature.
STRATEGY
CITRUS PRODUCTS ARE INTERNATIONAL COMMODITIES QUOTED ON THE STOCK MARKET.GHANA HAS AN ESTIMATED 200-300,000 ACRES UNDER CULTIVATION.CITRUS PRODUCTION AND PROCESSING REQUIRES THE ATTENTION AS COCOA TO ACHIEVE SIGNIFICANT REVENUE FOR GOVERNMENT AND INDUSTRY PLAYERS.SO DO THE OTHER FRUITS SUCH AS PINEAPPLES , MANGOES AND PASSIONFRUIT.
We propose that government partners the private sector operators in the industry to overcome its challenges by supporting them with a (i.e. 3 year interest free loan with a 2 year moratorium.) The companies in turn will select commercial farmers and out growers within the group to produce fruits according to their specifications on contract. Training of farmers and fertilizer applications programs are critical factors of success which require government support.
The initial 2 years will enable the industry support farmers to improve yield and expand farms to met targeted production for export as well as bring in experts to build the capacity of local staff. (Farmers collaboration with industry is a critical factor for success, therefore it is critical for industry to charge and drive a market oriented production with large scale farmers and their out growers imported products).
It will also enable local firms drop prices of local products to compete with and urge them out gradually without any international controversies.
We propose a GHC 100,000MILLION be raised under grant facility from EDAIF for the first 10 companies in fruit processing association yet to registered.
Qovt entities in Ghana don't have a good record and i would be hesitant to partner with them in a PPP.Our water,electric & railway entities are shambolic with spotty service and questionable financial management.
Is any 'saint' listening? and do we have any in the country today?
I am particularly skeptic about this PPP mantra being sung by our politicians. Let us be careful they do not use start resources to adequately sponsor private operations they have interest in.
I absolutely agree with you that we must be careful about the PPP hype.
Fact is, it is nothing new at all, as William's fine article seems to indicate. It was embodied in even Nkrumah's econ. plans and might be said to fo ...
read full comment
Indeed the relevance of PPP is not in dispute. It is the accountabilities that go with it that will make all the difference for Ghana. Folks, let us all become the watchmen from henceforth. Put party aside and call for accoun ...
read full comment
Insightful piece;thanks for the effort.
DEVELOPING THE BILLION DOLLAR FRUIT PROCESSING INDUSTRY IN GHANA FROM 2013-2016 THROUGH PRIVATE PUPLIC PARTNERSHIP
Many of Ghana's agricultural practices, processing factories and rural development problems have been relat ...
read full comment