TRADE WITH GHANA
Industrial Revitalization Programme
The World Bank in a publication titled “Industrial Performance in the African Context in September 2013 made a critical observation that there is a positive correlation between the industrial performance of a country and its economic outlook. The marginal performance of Ghana’s economy in recent years is partly attributed to the sluggish performance of its industrial sector. Ghana’s industrial sector has not been performing as expected over the past six years. Industry value added as a percentage of GDP has been declining from a high of 29% in 2012 to a low of 28.1% in 2016. This has partly contributed to an unprecedented level of unemployment in the country, which poses the biggest threat to the socio-economic development of the country. The abysmal performance of the industrial sector and particularly the manufacturing sub-sector is attributed to but not limited to:
- High cost of capital
- Limited access to medium and long-term financing
- High cost of electricity
- Unreliable power supply
- Limited access to land for industrial activity
- Weak logistics
- Weak infrastructure support for industrial development
In response to these challenges, a number of strategic interventions have been outlined by the government to address them. Among these is the National Industrial Revitalization Programme with the stimulus package for industries.
The strategic objectives of the programme include to:
- Create a quick disbursing Stimulus Fund of up to USD 200 million
- Revamp distressed but viable companies
- Provide technical assistance to distressed but viable companies
- Provide business development services
- Facilitate access to markets
Procedures for Accessing Funding
Accessing and disbursing funding under the Programme follows the under-listed eight steps:
- Submission of an expression of interest (EOI) to the programme.
- Completing and submitting a Business Diagnostic Toolkit.
- Submitting other documentations such as tax returns, audited accounts, etc.
- Assessment and shortlisting of applications received.
- Site inspection and auditing of shortlisted companies by a group of experts.
- Ceding shortlisted companies to participating financial institutions.
- Disbursement of funds to shortlisted companies.
- Monitoring and evaluating the performance and impact of financing.
Criteria for Selection of Beneficiary Enterprises
The criteria for the identification and selection of the beneficiary companies shall include but not be limited to the following:
- High potential for enhanced job creation For companies employing 100 or less people, the potential for 100% increase in employment. For companies employing between 100 and 300 people, the potential for a 50% increase in employment. For companies employing more than 300, a potential for a 20% increase in employment.
- Competent management team or evidence to engage qualified personnel for key functional areas.
- Sound financial and accounting reporting system.
- Good corporate governance including effective Board structure or evidence to restructure Board.
- Good track record of operational and commercial performance.
- Clear evidence of existing/available market for products or services.
- Interest and willingness of existing shareholders and Governing Board, including but not limited to providing a board resolution to take advantage of proposed Stimulus Package.
- Potential to export products to other markets outside Ghana will be an added advantage.
- Location in peri-urban and rural communities will be an added advantage.