Promoting Exports: Govt to roll out 3 additional international trade centres for NTEs | Market Place
The Market Place with Pious Kojo Backah (19-9-23)
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Transcript
00:00 Hello, good afternoon, welcome to the Marketplace.
00:02 Coming up in this edition, government
00:04 is set to roll out three additional trade
00:06 centers around the world to support Ghana's
00:09 non-traditional exports.
00:11 It is left to us, the trade promotion organizations
00:14 in the various countries, to personalize
00:16 whatever the concept of the EFTA is.
00:20 And we're doing that in Ghana.
00:21 I mean, it can be-- the headquarters can be in Ghana,
00:24 but that doesn't necessarily mean that, I mean,
00:27 they rule everything at the feet of Ghana.
00:29 I mean, it's for the whole Africa.
00:31 So we should rather put in more effort.
00:38 Ghana's city is expected to remain relatively stable
00:41 against the US dollar this week, as risk of investor sentiment
00:44 cools off.
00:45 Plus, panelists of this year's breakfast meeting
00:53 make a strong case for further expenditure cuts
00:55 to match current economic conditions.
00:58 We have details of these and many others coming your way.
01:01 All in a moment, please stay.
01:02 Thanks so much for your company.
01:27 I'm Pius Kujo-Baka.
01:29 Now, the Ghana city is expected to remain relatively stable
01:32 against the US dollar this week, as risk of investor sentiment
01:35 cools off.
01:36 This is coming after the local currency lost 0.43%
01:39 to the American greenback last week.
01:41 More in this report.
01:43 Demand for US dollar continued to outstrip supply,
01:46 despite a slowing inflation.
01:48 This caused the city to fall to levels seen
01:51 in the second quarter of 2023.
01:53 The central bank provided $20 million
01:56 in the 36th biweekly foreign exchange auction
01:59 to the bulk oil distribution companies.
02:02 But this was insufficient to slow down
02:05 the rising corporate demand.
02:07 The local currency lost marginally to the US dollar
02:11 last week.
02:12 Conversely, it gained 0.17% to the pound,
02:17 but remained stable against the euro.
02:19 So far this year, the city has lost about 11.6%
02:24 to the dollar in the retail market, and about 22%
02:27 to the American greenback on the retail market.
02:30 Government is set to roll out three additional trade
02:46 centers in targeted markets around the world
02:49 before the end of this year.
02:51 The move is part of several measures being
02:53 taken by managers of the economy to support
02:55 growth of the country's non-traditional exports.
02:58 Ifwa Sabiasare is the chief executive of the Ghana Export
03:02 Promotion Authority.
03:04 So welcome to our conversation of the World Trade Organization
03:06 where we are engaging participants
03:08 on the ongoing public forum.
03:10 We are grateful to have the chief executive of the Ghana
03:12 Export Promotion Authority.
03:14 And Doug, I appreciate your time so much.
03:16 And it's interesting that the topic that you discussed
03:19 was something that came up highly
03:20 in the trade report of the World Trade Organization
03:23 about trade expansion in Ghana being affected
03:26 by costs and access to credit.
03:30 Are you worried about this development or something
03:32 that, listen, we are aware and we are working on it?
03:35 Everybody should be worried about it,
03:37 especially from where we're coming from.
03:41 We have been encouraging a lot of small businesses
03:45 to upscale to export.
03:48 And in upscaling, they need the funding.
03:50 And if we are having all kinds of conditions
03:53 and very expensive trade financing outlets,
03:58 it's not going to--
04:00 it's like we build them up to a certain crescendo,
04:03 and then we leave them hanging.
04:04 They don't know what to do.
04:05 So it is quite difficult.
04:07 And I'm asking that for you at the authorities,
04:09 is there anything that you're doing?
04:11 Because we've had e-dive.
04:12 We've had a lot of institutions in the past specialize credit.
04:16 But it appears that we still have a long way to go.
04:19 What is the authority doing together
04:21 with the other government agencies
04:23 to deal with this challenge?
04:25 I think we can only facilitate.
04:28 We talk to the banks.
04:29 We negotiate with them to come up with products
04:33 that can help the exporters.
04:35 You have the Ghana Enterprises Agency,
04:39 which has been resourced by government
04:41 to also support them in one way or the other.
04:43 The Ex-Im Bank is also supporting.
04:45 So there are various avenues to look at.
04:48 It may not be enough, but for now, that is what we can do.
04:52 And we are always looking for how
04:54 to help alleviate some of the hardships they face
04:58 in sourcing for financing.
05:00 And you believe that some of these things will go a long way
05:02 to address this challenge?
05:05 It will help.
05:06 Let's come to your non-traditional export.
05:08 Doing quite well, I would say that what
05:11 is the next phase in terms of meeting your target
05:13 and ensuring that Ghanaian products is
05:16 everywhere around the world?
05:17 Yes, we are looking at pitching our tent in every country
05:21 that in markets, very strategic markets,
05:24 that we think will support the growth of the NTEs.
05:28 We've started with Kenya, where we have the first Ghana
05:31 trade house.
05:32 So this is where we consolidate the products of the exporters,
05:39 especially those who want to export,
05:41 but in smaller quantities.
05:42 We just consolidate everything and put it
05:44 in the export trade house for all distribution
05:47 to the East African bloc.
05:49 And it's doing quite well.
05:50 Hopefully, we will be able to expand to other countries.
05:55 And what country are we looking at the next few years?
05:58 By the end of the year.
06:00 Two or three countries?
06:01 About two or three.
06:03 After, they are somewhat worried that Ghana has a headquarters.
06:07 Maybe if I'm wrong with the comparison,
06:10 we might end up having the headquarters.
06:12 And the real benefits that comes along with it
06:16 might not be realized.
06:17 In the area of non-traditional exports,
06:20 what are we doing differently to ensure
06:21 that we get the benefits that comes
06:24 with the headquarters of this trade secretariat?
06:29 I think the whole of Africa will benefit from the EFCFTA.
06:34 It's not been an easy road, but it
06:39 is left to us, the trade promotion organizations
06:41 in the various countries, to personalize
06:44 whatever the concept of the EFCFTA is.
06:47 And we are doing that in Ghana.
06:48 I mean, the headquarters can be in Ghana,
06:51 but that doesn't necessarily mean
06:53 that they rule everything at the feet of Ghana.
06:56 I mean, it's for the whole Africa.
06:58 So we should rather put in more effort
07:03 so that we can hit our chest to see that it's
07:06 been hosted in Ghana, and we are closer to it,
07:10 and we are taking advantage of it somehow.
07:13 What kind of advantage are we talking about?
07:15 I don't know.
07:16 It's been hosted in Ghana, but we
07:18 know what the essence of it is, and we should work hard.
07:22 What are we doing in the area of branding and packaging?
07:26 It used to be a big challenge when
07:27 it comes to these non-traditional exports.
07:30 I think that you can now see that there's
07:31 a big improvement in branding and packaging,
07:35 and it's because that we put in a concerted effort.
07:40 There was a conscious effort to make sure
07:43 that branding and packaging, which
07:45 forms a very integral part of the whole export trade system,
07:52 that we should make sure that it works.
07:54 And that's what we're doing at our export school,
07:57 bringing in experts from around the world who
08:00 are knowledgeable in packaging and branding
08:05 to help our exporters in branding and packaging
08:09 their products with the right material
08:11 for the right products.
08:12 And now you can see that we have also
08:15 organizations that are springing up in Ghana
08:18 in the business of packaging as well,
08:22 producing very good packaging.
08:23 So this is a snowballing into a big industry,
08:30 and this is helping the SME market.
08:33 Now joining me is the director of Africa Coconut Group,
08:40 Kwiku Bwatein, on this.
08:41 And of course, tell us more about the upcoming
08:44 International Coconut Festival.
08:47 Kwiku Bwatein, thank you so much for joining us in studio
08:50 here on the Marketplace.
08:51 First off, let me understand why it
08:53 is important for us to appreciate or celebrate
08:58 International Coconut Day.
08:59 Well, thank you very much for having me.
09:02 And then first of all, good afternoon to your viewers.
09:06 You know, coconut has been a sleeping giant for long.
09:11 Many a time, people talk about the enormous benefits
09:15 of coconut, but it only exists in the books.
09:19 So the point was, how do we tell the coconut story to the people
09:26 to know the enormous benefits of coconut?
09:28 And then for them to understand that it is not just drinking
09:31 the water and eating the meat.
09:33 Everything about coconut is money, is job creation,
09:38 and it is what?
09:39 Making foreign earnings.
09:41 The only platform was to bring all industry players together
09:46 to showcase what the industry, Ghanaian coconut industry,
09:49 is about to the world.
09:51 To put Ghana on that level and to cause
09:54 it to make deliberate investments
09:56 into the sector, which would drive exports and make
09:59 more foreign dollars.
10:01 Create jobs, especially for the Taming Youth.
10:03 And women.
10:04 All right.
10:04 So tell me about the economic impact of coconut here in Ghana.
10:08 Great.
10:10 The coconut sector is made of five value chains.
10:14 We have the production stage, which talks about the producers.
10:18 The producers talks about the nursery operators
10:21 and the farmers.
10:23 That is job creation.
10:24 We come to processors.
10:26 We come to exporters.
10:28 We come to aggregators and even vendors.
10:33 Currently, 5.4% of the Ghanaian population
10:38 are engaged in coconut production.
10:42 That translates to about 1.8 million people.
10:46 And this is job creation.
10:48 When you come to coconuts, every aspect of the crop is money.
10:54 It's a zero waste crop.
10:56 But many a time, people just think you just drink the water
10:59 and eat the meat.
11:01 The husk, for example, is a component in agriculture.
11:07 You can produce the husk, add value to it
11:10 to produce the peat, which is a good medium for greenhouse
11:13 agriculture.
11:14 This contains antibacterial properties.
11:17 And also, acts like a hydrogel.
11:19 Anything which is a hydrogel has the ability
11:21 to retain water and release to the plants
11:25 during the drought.
11:26 And this is job creation.
11:28 It goes on and on and on.
11:31 Coconut can be found in every aspect of our industry.
11:35 The pharmaceutical industry, the automobile industry,
11:40 the fashion industry, food and beverage industry.
11:43 We're talking about climate change and all.
11:46 One climate resilient crop and one crop
11:48 which has a long lifespan for carbon sequestration
11:51 is coconut.
11:52 Economic benefit is enormous.
11:56 Currently, when we are talking about economic benefits,
11:59 let's look at exports.
12:01 Because we're talking about exports.
12:03 Ghana currently is now the ninth exporter
12:06 of desiccated coconut.
12:09 With an annual export of about $22 million.
12:13 And this is where we want to go as a nation.
12:16 The question is, how do we drive this force
12:19 if we are not able to tell people the coconut story,
12:23 bring in more investors to the sector
12:25 and create the avenue for processing and eventually exports?
12:30 Quite recently, the World Trade Organization released a report
12:33 where they mentioned that access to finance
12:36 is a major challenge hindering our export potentials.
12:40 Your take on that?
12:43 Very true, my brother.
12:45 One major challenge in the sector is finance.
12:51 After land acquisition and all that.
12:54 And I think it is high time there is that deliberate effort
12:59 to create some medium of financing to support
13:03 not just the coconut sector, but the agriculture sector.
13:07 Because the backbone always, they say, of the nation
13:10 is agriculture.
13:11 How then do we become globally competitive
13:14 if there is no financing?
13:16 So our neighbouring countries are always overtaking us.
13:18 Ghana's coconut is premium everywhere.
13:21 But farmers are denied access to finance,
13:26 which makes them handicapped when it comes to competing globally.
13:31 This is just one aspect.
13:32 It is true that the government and other state institutions
13:36 have made some efforts,
13:38 but I think the industry is bigger than that
13:41 and there is the need to showcase more,
13:44 create more awareness, to drive that interest
13:47 from our financial institutions
13:49 so that the country will benefit wholly from coconut as a cash crop.
13:54 Great. So what inspired the choice of Secundi Itakradi
13:57 as the host city for this year's festival?
13:59 Great.
14:01 Secundi Itakradi, Western Region, is the hub of coconuts.
14:07 When we talk about coconut in Ghana,
14:09 it migrated actually from the ocean currents to Qatar in 1912,
14:17 where it was planted as an estate crop.
14:20 Between 1920 to 1914, it had moved to Central and Western,
14:24 and it became the major source of livelihood
14:27 for our people in the Western Region.
14:30 So you cannot talk about coconut without talking about Western Region.
14:34 And indeed, the Honourable Minister, who has so much passion for coconut,
14:38 has stated emphatically that the festival
14:42 be held in the Western Region with this third event,
14:46 especially because he had been an ardent lover of coconut
14:49 while he was a child.
14:50 So we thought of no other better region than the Western Region.
14:54 All right. Thank you very much, Kwaku Bwate.
14:56 And here's the director of Africa Coconuts speaking to us
14:59 on the back of the upcoming event, Dainty and Holden.
15:02 We shall follow up on that and, of course,
15:04 give you updates as and when it unfolds.
15:07 Let's shift...
15:08 To... Let me add a bit.
15:10 For people who want to patronise the festival,
15:13 it's from the 26th to the 28th of September 2023
15:18 at Akroma Plaza.
15:20 You can get a boot if you want,
15:24 if you contact the numbers I've given you.
15:27 And then you can come to also showcase
15:29 what you have to sell to Ghanaians.
15:32 All right. Thank you very much, Kwaku Bwate, for your time.
15:35 Now, let's move on to some other stories.
15:37 And panellists at the Stambic breakfast meeting
15:40 are making a strong case for further expenditure cuts
15:43 to match the country's current economic situation.
15:46 They maintain that the current development in the economy
15:49 does not support the country in this crisis.
15:52 Professor of Economics at the University of Ghana,
15:54 Professor Yapoma Jakiradaku says
15:57 government must show more commitment.
16:00 Put so much emphasis on revenue.
16:04 But I don't think we are doing enough on the expenditure side
16:09 to be able to get us back to where we expect to be.
16:13 As Prof Gachi just said,
16:16 if you put too much pressure on those who are giving the revenue,
16:21 then in the end, you are not going to be realising
16:24 the kind of revenue that you want to realise.
16:27 And you've seen AGI complain several times
16:30 about the number of taxes that have been imposed on them,
16:35 us as individuals as well,
16:37 not just businesses, we've seen the taxes.
16:40 And it's unfortunate that our economy is predominantly informal.
16:47 And so when taxes are imposed,
16:49 we see the same people paying the taxes over and over again.
16:55 And that puts a huge burden on those people who are paying the taxes.
17:01 Now, in terms of expenditure,
17:03 I think that government has announced some,
17:07 do I say some cuts in its expenditure,
17:10 but I still don't think that those cuts are enough.
17:15 And there are things that we could still look at and cut down.
17:20 There's nothing like saying that, you know,
17:24 this doesn't cost so much,
17:25 even in our personal lives,
17:27 if we see ourselves struggling,
17:30 the little things that you cut down,
17:33 would come together and be huge for you.
17:36 So I think that we need to look again at the items
17:41 that government is spending on
17:43 and see whether there are more things that we could do
17:47 to bring the deficit down.
17:50 And Chief Executive of PetroSoil, Michael Bunzambil, says,
17:53 businesses are worried about the current developments in the economy.
17:59 In moments of crisis,
18:02 especially take a family setting,
18:05 the focus is on food for the children.
18:10 It's on basic needs.
18:13 If you are flying, you're on air,
18:18 and there's some emergency,
18:21 whether you're in business class,
18:24 you are in economy,
18:26 that is not when you are requesting for some special
18:31 you know, food to be served you,
18:35 because you're in business class,
18:37 or because you're in first class.
18:39 At that moment, it's about safety.
18:44 And so the focus is on,
18:47 please follow the emergency rules.
18:52 So when we find ourselves in critical moments like this,
18:58 our desire as private sector operators,
19:01 is that collectively working with the finance ministry
19:05 and economic management team,
19:07 we'll focus on the basics.
19:10 Because in crisis, you come out of crisis
19:15 when you focus on the basics.
19:18 We have done this before.
19:22 As was alluded to,
19:26 in the early 80s,
19:29 when we were in crisis,
19:32 whilst we were going through this,
19:34 we came up with the PAMS card.
19:38 And it was intended to address basic needs
19:41 as we deal with the macroeconomic indicator.
19:45 Moving on to some other stories,
19:46 economist Professor Peter Kote has criticised Parliament
19:50 for relaxing the Fiscal Responsibility Act
19:52 to allow government spend beyond the 5%
19:55 of previous year's revenue without any timelines.
19:57 Speaking on Ghana's Public Debt Management
19:59 and Development Dialogue
20:00 by the Institute of Statistical, Social and Economic Research,
20:04 Professor Peter Kote said Parliament has failed
20:07 in checking government spending.
20:10 The development dialogue focused on the country's debt situation
20:14 and how the country can overcome the burden
20:17 leading into an election year.
20:19 Commenting on the losses recorded by the Bank of Ghana
20:23 and the role played by stakeholders,
20:25 Professor Peter Kote expressed disappointment
20:28 over the suspension of the Fiscal Responsibility Act
20:33 without any time limit.
20:34 He thinks Parliament can go back to make some amends
20:37 in their next session.
20:39 You give a timeline,
20:40 that yes, okay, I'm giving you one year.
20:43 Come back again, let's review the situation.
20:46 Covid is not going to be with us forever.
20:49 As we speak now, none of us are wearing masks.
20:51 So why should you give somebody a blanket,
20:55 relaxation or blanket to check?
20:58 So that's where for me I find it's wrong.
21:01 Parliament should have given them less than a year.
21:04 Then the following year,
21:06 they ask whether we need to put it back
21:09 or perhaps a lower rate is put in place.
21:12 And then they have oversight responsibility of our finances.
21:16 They have the right to haul the finance minister to Parliament.
21:20 They have the right to haul the Bank of Ghana,
21:23 the Governor to Parliament.
21:25 Professor Agustin Fosu from the Economics Division of EASA
21:29 stressed the need for governments to raise more revenue
21:32 before spending in an election year.
21:35 All over the place, spend, spend, spend.
21:39 And so in the final analysis, what are you going to have?
21:42 You're going to have a disequilibrium situation
21:45 where you end up spending much more than you tax.
21:49 Not just cyclically, but also over time.
21:52 And that is what is responsible for our debt situation.
21:58 The theme for the dialogue is Ghana's public debt management,
22:02 facts, impacts and the way forward.
22:05 Head of Civil Society of Ghana, Dr Evans Agri-Dako
22:11 has reiterated the need for lapses within Ghana's digitization agenda
22:16 be addressed to support data-driven decisions within the public sector.
22:19 According to him, Ghana needs a holistic approach
22:22 in its digitalization and drive to ensure effective
22:25 and efficient public service space.
22:27 He was speaking at the graduation ceremony
22:29 of the first big smart training program
22:32 held for directors, managers and officers of various ministries.
22:36 Public and private sector players over the years have been urged
22:39 to cultivate a digital-first culture and develop visionary leaders
22:44 who are adept at navigating tech policy.
22:47 The $1.2 million program is to build the digital skills
22:51 of public sector workers to accelerate digital transformation
22:55 for service delivery.
22:56 Dr Evans Agri-Dako expressed optimism
22:59 of how such initiative can aid in bringing efficiency.
23:03 So the connection is there.
23:04 So an appreciation of the value, the utility of technology for me
23:10 is critical for the leaders that we have.
23:12 Because as I said yesterday, if you have a leader who himself
23:17 is congenital agnoramus, he doesn't see anything good
23:20 about technology you are introducing.
23:22 But he sees the technology as a threat to his or her survival
23:25 at the workplace.
23:26 It's dangerous.
23:27 And I'm happy you people are taking this seriously.
23:32 So colleagues, a digital mindset is a holistic approach
23:37 that covers the following key aspects-- adaptability.
23:41 And I saw some of them here.
23:43 Continuous learning, very important.
23:46 Data-driven decisions.
23:48 And I have argued that if you are going to formulate public policies based
23:53 on guesswork, one conclusion is certain-- implementation nightmares.
24:00 You can guarantee that.
24:01 We want decisions that are data-driven, evidence-based.
24:05 And that, for me, will actually be properly positioned
24:09 to address the problems of society.
24:11 Communications Minister Esla Owusu also stressed
24:14 the need for a collaboration and a deepening of relationship
24:17 for the private and public sector to drive such a digitization agenda.
24:22 The uptake of a lot of digital tools, applications, and services,
24:27 particularly in the private sector.
24:28 But we seem to have forgotten that we need a responsive, agile civil service
24:36 to also assist us in the delivery of our mandates
24:40 so that if you can retrieve documents quicker, get information quicker,
24:45 and analyze the data better, it helps in your own decision making.
24:51 But if information is scattered in silos, even seeing trends is difficult.
25:01 James Hsien found that report.
25:03 And that's our wrap-up marketplace for today.
25:05 I am Pius Kujubaka.
25:06 For more stories, do log on to myjoyonline.com/business.
25:11 Always a joy serving you.
25:12 Do enjoy the rest of our programs.
25:14 Bye.
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