Economist and University of Ghana lecturer, Professor Godfred Bopkin, has emphasised the need for targeted measures to reduce production costs and enhance the competitiveness of Ghana’s local industries.
Speaking as a panellist on TV3’s Key Issues programme on Saturday [Nov 23, 2024], Professor Bopkin explained that the high cost of locally made goods is largely due to structural challenges such as energy costs, transportation inefficiencies, and reliance on imported materials.
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“High production costs mean local goods are priced higher than imports, which discourages consumers and undermines the country’s industrialisation efforts,” he said.
Professor Bopkin also identified issues such as Ghana’s high energy tariffs and poor infrastructure as significant barriers to local manufacturing.
These factors raise operational expenses, driving up the prices of local goods and making them unaffordable for many consumers.
He further highlighted the difficulties faced by small and medium-sized enterprises (SMEs), which form the backbone of Ghana’s economy.
These challenges include limited access to affordable credit and issues with logistics, making it harder for local businesses to grow and thrive.
“These structural constraints are holding back growth in key sectors and making it difficult for local businesses to succeed,” he said.
His comment come at a time when data from the Ghana Statistical Service’s latest Consumer Price Index (CPI) report for October 2024 revealed significant increases in the prices of staple foods like maize, rice, and vegetables. This has contributed to an annual inflation rate of 40.1%.
Professor Bopkin warned that if the cost disparity between local and imported goods continues, it could have long-term consequences for both local industry and employment levels.
Source: Graphic online
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