AGI Suggests Measures To Boost Business Confidence

AGI PixThe Association of Ghana Industries (AGI) has called on the government to take immediate steps to confront the country’s economic crisis to avert further deterioration of the situation.

The AGI said clear indications are that the economy outlook and business confidence would worsen, if immediately action was not taken to stabilise micro-economic conditions.

Mr James Asare-Adjei, president of the AGI, said this when the association presented a communiqué on the current economic situation.

The AGI is a non-profit organisation and recognised as the leading voice of the private sector in Ghana. It is committed to the development of the private sector and to the improvement of the business climate in Ghana through advocacy and business services to make Ghanaian companies internationally competitive.

According to Mr. Asare-Adjei, the AGI Barometer for the second quarter, 2014 recorded the worst ever business confidence index of 22.42 down from 90.13 in the first quarter.

The AGI Barometer captures business sentiments across various sectors of the Ghanaian economy on a quarterly basis.

He said businesses continue to incur huge foreign exchange losses, while industry is shrinking with the rising cost of doing, stressing that businesses risk shutting down, if the trend persists.

Mr. Asare-Adjei said the present economic conditions were not conducive enough to attract local and foreign investments, which could generate the much needed employment.

“AGI believes the restoration of macro-economic stability is central to Ghana’s economic recovery,” he said.

Mr Asare-Adjei said in view of the government’s apparent inability to ensure fiscal discipline, AGI believed that the decision to engage with the IMF was the only option left.

He called for active involvement of industry in the IMF engagement processes to ensure maximum benefit for the entire country, adding that “the AGI is ready to support.”

The AGI hoped that the engagement with the IMF would be managed to ensure that the country obtains value for money in all economic transactions.

“Further increases in the tax burden on the formal private sector risks killing the hen that lays the golden eggs,” he said.

The AGI president said stakeholder dialogue sessions and policy measures intended to restore macro-economic stability do not seem to have made any significant impact.

The Association therefore requested the Bank of Ghana to scrap the foreign exchange measures which were announced in February, because they had not succeeded in stopping the currency depreciation.

“This is the time to reassure the whole country that foreign exchange paid into our banks are welcome and would be secured,” he said.

On the Senchi consensus, Mr Asare-Adjei said AGI was aware of the commencement of the work of the implementation advisory group of the National Economic Forum report and would like to see an action plan with specific timelines defined to make monitoring possible.

“AGI reiterates its intention to monitor the implementation,” he said.

Print Friendly

Leave a Comment