The Association of Ghana Industries (AGI) Energy Service Centre has commended the agenda by government to move Ghana’s economy from taxation to production saying it must diligently be pursued.

AGI urged the government to be steadfast and focused on the implementation of its industrialisation policy which is meant to transform the economy and to ensure sustainable development.

In a statement delivered by the Board Chairman of Microfinance and Small Loans Centre (MASLOC), Mr Seth Adjei Baah, industrialists are to be commended for supporting the Ghanaian economy and the Government in times of crisis.

He said this at the Accra Regional Annual General Meeting (AGM) elections and energy centre road show.

The AGI Energy Service Centre is to serve as a hub for information, project assistance and market linkages, relating to Renewable Energy (RE) and Energy Efficiency (EE).

Speaking on the sidelines of the African Continental Free Trade Agreement, Mr Adjei Baah, called on all companies to take advantage of the bigger market.

Noting that companies can only benefit from the Free Trade Agreement when they are competitive on the market.

He explained that companies must be able to produce the right quantities, the right qualities at the right price.

Cheaper funds

The Board Chairman also announced that MASLOC has partnered with AGI to provide credit facilities for Small and Medium Enterprises at a competitive rate of 12% per annum.

He further assured customers that the rate can still go down since the company is not in to make profit but to help build businesses.

Mr Adiei Baah announced that Government under the Ministry of Trade and Industry is offering stimulus packages at competitive interest rate to companies.

He said Government has arranged with some banks to provide funding at 20% per annum, noting that out of the 20% government absorb 50 % per of the interest. This implies that under the stimulus package, the interest of customers will be 10

Reliable and Affordable energy

Highlighting on the critical role energy play in the value chain of an organization, he noted that there have been a challenge of provision and affordable and reliable electricity to Ghanaian industries that possess serious threats to the competitiveness of industries.

Mr Adjei Baah stated that though there have been some significant reductions in the non-residential tariffs in the last two years, electricity tariffs continues to be high compared to tariffs in nearby West African countries.

He said the situation has a negative impact on the cost of production and makes Ghanaian products less competitive on the global market while still posing a threat to the competitiveness of industries in the country.

Change

According to him a Research conducted by experts reveals that solar energy can be produced at 30pesewas per kilowatts hour as compared to ghc 1.26pesewas for ECG.  He noted that as an entrepreneur renewable energy is the best.

He further urged members of the association to take advantage of the opportunities been offered them by the energy service centre to exploit the possibilities of incorporating renewable energy into their energy mix.

The Board Chairman of MASLOC urged the AGI to take advantage of the 1District 1Factory initiative of the government, a policy AGI is in support of, to foster a stronger relationship with various trade associations like the Ghana National Chamber of Commerce and Industry.

Collaboration

The CEO of the Micro-finance and Small Loans Centre (MASLOC), Mr Stephen Amoah, said the centre had entered into a partnership with the AGI to provide members of the association with cheaper financing to grow their businesses.

As part of the collaboration, he said, 100 SMEs would be supported with funds at a competitive rate of 12 per cent, adding that the centre would increase the number of beneficiaries to 300 by February 2020.

A Deputy Minister of Energy, Mr Joseph Cudjoe, said the government was committed to providing reliable power to support businesses.

He said efforts were also being made to partner other stakeholders to facilitate the use of renewable energy sources to boost access to cost-effective power in the country.