The Ministry of Trade and Industry (MoTI) has selected 50 companies that will be provided with a stimulus package to revive them. They were among more than a 100 businesses which applied for assistance under the package.
The stimulus package is meant to revive local businesses which have been struggling over the past four years due to the power outages, popularly referred to as ‘dumsor’.
The Minister of Trade and Industry, Mr Alan Kyeremateg, announced this at the American Chamber of Commerce (AMCHAM) Ghana business executive meeting in Accra yesterday.
The event brought together members of the association and business experts, who shared their views on various business and economic issues in the country.
Mr Kyerematen explained that all the selected businesses were taken through a diagnostic exercise and screening, before they were finally accepted.
“We have managed to screen over 100 businesses using a diagnostic exercise and have selected about 50 of them, which will be receiving the assistance very soon,” he said.
The 2017 budget states that “a National Industrial Revitalisation Programme with a stimulus package for industry will be established.”
The package, according to the budget, will provide technical and financial support for companies that are distressed or facing operational challenges but are deemed to be viable.
Speaking at the meeting, Mr Kyerematen stated that $50 million had been allocated as seed fund, with an additional $150 million, to help the companies manage their debts.
Agenda for transformation
He said the government had also outlined a 10-point agenda for business transformation in the country.
Key among them is the ‘One district, one factory’ (ODOF) policy. Others are the creation of strategic anchor industries by developing the petrochemical and iron and steel industries.
“We have manganese and iron in abundance and want to establish an integrated aluminium industry, with strong collaboration from the private sector,” he added.
Mr Kyerematen further stated that the government also had in its plans to establish an industrial park, diversify the country’s export and import base, as well as develop the small and medium-scale enterprises (SMEs) sector.
Call to govt
The Vice President of AMCHAM Ghana, Mr Felix Addo, called on the government to create an enabling environment to help businesses to thrive.
He expressed the belief that all the programmes outlined by the government would not remain paperwork but rather become a reality to turn the economy around.