The Food and Beverages Association of Ghana has urged government to address the pressing issue of power costs and outages to ensure the sustainability of domestic industries.
The association believes that tackling these major challenges faced by industries would create a conducive business environment that can chart a course towards economic growth as well as create job opportunities across the country.
The Executive Secretary of the Association, Samuel Aggrey, explained that the high costs associated with power and frequent outages pose significant challenges to local industries, hindering their competitiveness in the global market. He said, without intervention, these obstacles could stifle growth and innovation, impacting not only businesses but also the livelihoods of countless individuals employed within the manufacturing sectors.
He said this in an interview with the media on the sidelines of the 8th Ghana Beverage Awards (GBA) organised by Global Media Alliance (GMA) in Accra last Friday. It was on the theme: “Inspiring Excellence in Ghana’s Beverage Industry”.
Concerns
The call comes at a time when there are mounting concerns within the business community regarding the sustainability of domestic industries amidst the recurrent power outages.
These outages do not only disrupt production schedules but also increase operational costs for businesses, leading to potential loss of revenue and competitiveness in the global market.
Last Tuesday, the Ghana National Chamber of Commerce and Industry (GNCCI) in a statement expressed deep frustration and disappointment at the ongoing power crisis in the country indicating that the frequent power outages have brought businesses to their knees, causing significant loss of productivity, revenue, escalating operational costs, and causing damage to electronic infrastructure.
“This crisis, which we initially believed to be temporary, has been persistant for far too long, wreaking havoc on businesses. The GNCCI demands immediate action from the government and all stakeholders involved, particularly the Electricity Company of Ghana (ECG),” it said.
“The depreciation of the cedi against major foreign trading currencies, high-interest rate, escalating cost of fuel, high inflation, high policy rate, rising public debt, high government expenditure and the heavy tax burden on businesses, compounded by this power crisis, is an unbearable strain.
We are not interested in the blame game. We demand solutions, not excuses. The silence from the government is deafening and unacceptable,” the statement said.
Ghana Beverage Awards
The Chief Executive Officer (CEO), Global Media Alliance, Ernest Boateng, earlier at the awards, said the beverage industry was a key driver in the development and sustenance of the country’s economy.
“It is a huge revenue-generating industry, which supports the country in employment creation, service delivery, and more.
He explained that over the years, the Ghanaian beverage industry just like any other has grown to accommodate changes in global and consumer trends with sustainability, which encompasses a broad spectrum of considerations, ranging from environmental conservation to social equity and economic resilience, occupying an integral part of industry practices and conversations.
This, he said has translated into concerted efforts to minimise their environmental footprint, support local communities, and foster a culture of responsible consumption.
“From the adoption of eco-friendly packaging material to the elimination of single-use plastics and the adoption of locally sourced calabash gourds for packaging and serving, our industry players have found a way to toe the line of sustainable production practices.