The Deputy Minister for Trade and Industry, Hon. Herbert Krapah has revealed that his Ministry is implementing a 10-Point Industrial Transformation Agenda that would build productive capacity for both domestic and export markets; taking advantage of the Africa Continental Free Trade Area (AfCFTA).
According to him, government has set out to implement one of the most ambitious Industrial Plans since independence, hence the implementation of a strategic response to the challenges facing Ghanaian industries, and a critical step towards government’s vision of “A Ghana beyond Aid”.
Herbert Krapah was addressing an opening ceremony of the Ministry of Information Media Training Programme on AfCFTA which currently, has become Africa’s most ambitious integration initiative being the largest free trade area.
He noted that the Ministry is implementing “the National Industrial Revitalisation Programme, the now very popular One District One Factory Initiative; Strategic Anchor Industries; the One Region, One Park Policy to establish Industrial Parks and Special Economic Zones across the country; SME and Entrepreneurship Development; the National Export Development Programme; Enhancing Domestic Retail Infrastructure, Business Regulatory Reforms, Industrial Sub-contracting Exchange and improving Public-Private Sector Dialogue.”
The objective of the Strategic Anchor Industries initiative, he said is to diversify the economy by creating new pillars of growth in the industrial sector.
“The gains that we are currently seeing in the automotive and vehicle assembly industry for instance, is the result of this vision. It is not for nothing that Trade Information is regarded as one of the seven most important clusters for boosting intra-African trade.”
He called for Government and the media to collaborate strongly for an effective actualization of this most important objective.
He also averred that there is going to be the African Trade Observatory, which aims to create a continent-wide trade information portal to facilitate intra-African trade and to support the roll-out of the AfCFTA.
The Deputy Minister said, as a host nation, Ghana has developed a National Policy Framework and Implementation Plan for the coordination of the Programme of Action for Boosting intra-Africa Trade.
“It summarises our National Policy Framework, Institutional Arrangements, Communication Strategy, Monitoring and Evaluation and Plan for Boosting Trade with Africa. The National AfCFTA Policy Framework and Action Plan pursues a comprehensive and harmonised trade policy to enhance diversification and competitiveness; addressing the supply-side constraints and weak productive capacities; trade-related infrastructural gaps; removing trade facilitation bottlenecks; enhancing opportunities for the private sector through trade information networks; addressing financial needs of trade and economic operators; and addressing other cross-cutting issues that have direct bearing on increasing production efficiency.”
He added that the Ministry of Trade and Industry, has also launched a Facilitation Programme of Support to Ghanaian Companies Exporting under AfCFTA. This Market Expansion Programme, is an integral part of our Action Plan towards boosting Ghana’s intra-African trade.
This, he indicated, will seek to collect trade-related data, including services trade, exchange rate and competitiveness indicators, internal tax and foreign direct investment data, and provide trade intelligence to both market players and governmental and non-governmental agencies, including the media.
Herbert Krapah also mentioned that the implementation of the AfCFTA Agreement will lead to removal of tariff restrictions on intra- African trade, address some of the non-tariff barriers that have restricted trade between AU Member States, and make it easy to situate industrial production in different countries within Africa.
“The target market for the AfCFTA is estimated to constitute some 1.3billion people, projected to rise to 1.7 billion by 2030, out of which about 600 million will be middle class.
Aggregate GDP will range from 2.1 to 3.4 trillion United States Dollars, or 6.7 trillion United States Dollars at Purchasing Power Parity terms. Aggregate private and business-to-business consumption is expected to constitute 4 trillion United States Dollars, and growth in intra-African trade by some 52.3%,” he said.
Touching on the importance of AfCTA, Hon. Herbert Krapah mentioned that AfCTA will promote industrial development through diversification and regional value chain development, agricultural development and food security; and, ultimately lay the foundations for the establishment of a Continental Customs Union.
“Intra-African trade is estimated at 16%, compared to 68% for Europe and 59% for Asia.
And our mighty share of global trade is a not so handsome 3%. We must change this!
Touted as the new dawn of Africa’s integration, Africa’s free trade area holds the potential to advance equitable development for all of Africa’s people. It addresses the challenges of small fragmented markets, adds value to Africa’s abundant natural resources, provides a boost in intra – Africa trade and ultimately, promotes economic diversification and industrialisation.”
“…That means, more jobs for Africa’s very young population, knowledge and skills transfer to the continent, and all put together, an improvement in a sustaining way, of the standard of living of our people.”
“It creates a single market for goods and services, facilitated by movement of persons; and deepens the economic integration of the African continent, in accordance with the Pan African vision of ‘an integrated, prosperous and peaceful Africa.”
He also said the implementation of AfCTA Agreement will enhance movement of capital and natural persons, and facilitate investments and expedite the competitiveness of the economies of State Parties within the continent, and the global market at large; whilst promoting sustainable and inclusive socioeconomic development, gender equality and structural transformation of State Parties.
He called on the media to play an important role if the implementation of the AfCFTA is to succeed, urging the media to be in active collaboration with government in that endeavor.
“You must create opportunities for businesses to provide input into the implementation of the Agreement as they share lessons from their own experiences. You must regularly review the extent to which the country is engaging to implement the AfCFTA. Such reviews would stimulate discussions on the utility of the Agreement,” he added.
