The Deputy Minister of Agriculture, Alhaji Yakubu Alhassan has called on industries to reduce their dependence on imported raw materials for manufacturing but rather invest in the local raw materials supply chain, by sourcing locally for their manufacturing.
Reduce dependence on imported raw materials
The minister wants an increase in investment for local raw materials
He said this at the second Guinness Ghana Breweries Limited (GGBL) Domestic Value Creation workshop held in Accra. The workshop, aimed at continuously engaging key stakeholders to understand the effect of local sourcing in Ghana and explore opportunities throughout the value chain.
According to the Minister, GGBL has shown tremendous capability, transforming the agriculture sector through the use of raw material sourced locally from 12% usage in 2012 to 48% in 2015. By such initiatives, we move from our traditional subsistence farming to commercial farming, creating life changing opportunities for our local farmers and the entire value chain’.
A research report shared by Deloitte UK, an independent research and audit firm, highlighted in detail the economic impact of the local raw materials tax concession in the Ghanaian beverage market.
The report also emphasized the need for any amendments to policies affecting domestic value creation to consider the potential short term economic costs and benefits as well as the long term impact caused by disruptions to the investment environment.
Deputy Minister of Trade and Industry – Hon. Kweku Ricketts-Hagan added the need to look at the bigger picture in terms of creating an attractive environment for industries that will improve livelihoods of Ghanaians, especially local farmers and SMEs.
He commended GGBL’s effort in promoting the Made in Ghana agenda which is being championed by the Ministry of Trade and Industry.
Ag. Corporate Relations Director, Rita Agyeiwaa Rockson said, “we have seen the impact that the excise concessions are bringing to Ghana and industry. Since 2012, GGBL has focused on local sourcing with the aim of generating long-term business value with locally and sustainably sourced raw materials which meet quality standards and have a positive impact on the communities and environment in which we operate.
The long term benefit of the Local Raw Material concession for industry is enormous as we have learnt from our Diageo businesses in East Africa.
Guinness Ghana Breweries Limited is committed to investing throughout the supply chain to increase LRM usage to 80% by 2020 provided the policies and opportunities support such thriving initiatives.
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