Report on the Association of Ghana Industries’ Call for Reforms to Enhance Industrial Competitiveness and Achieve Sustainable Development Goals

Introduction

The Association of Ghana Industries (AGI) has issued a formal call for urgent and deliberate policy reforms aimed at creating a conducive business environment. Speaking at the Annual General Meeting for the Ashanti, Bono, Bono East, and Ahafo Regions, AGI Regional Chair Kwasi Nyamekye outlined the critical need for a stable and supportive framework to make Ghanaian industries globally competitive. This report details the challenges, proposed strategies, and recommendations, framing them within the context of the United Nations Sustainable Development Goals (SDGs).

Current Challenges Impeding Progress on SDGs

Mr. Nyamekye identified several major hurdles that continue to hinder the industrial sector’s growth and its contribution to national development goals. These challenges directly impact the achievement of multiple SDGs:

• High Interest Rates: Crippling lending rates for local manufacturers, especially Small and Medium Enterprises (SMEs), restrict economic expansion and job creation, undermining SDG 8 (Decent Work and Economic Growth).
• Unreliable Power Supply: Inconsistent energy access disrupts production and increases operational costs, acting as a significant barrier to SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation, and Infrastructure).
• Shortage of Skilled Labour: A deficit in skilled workers limits industrial capacity and innovation, highlighting a gap in achieving SDG 4 (Quality Education) and SDG 8.
• Lack of Value Addition: The continued export of raw materials without local processing prevents the country from maximizing economic benefits and moving toward sustainable production patterns, as envisioned in SDG 9 and SDG 12 (Responsible Consumption and Production).
• Multiple Taxes: A complex and burdensome tax regime creates an unstable environment for investment, affecting the institutional strength required for SDG 16 (Peace, Justice and Strong Institutions).

Proposed Strategic Framework for Sustainable Industrial Growth

To address these challenges, the AGI proposed a comprehensive strategy anchored on three fundamental pillars. This framework is designed to unlock industrial potential and align Ghana’s economic trajectory with the 2030 Agenda for Sustainable Development.

1. Policy Stability: This foundational pillar calls for a predictable and stable regulatory environment. Deepened engagement between the government and industry stakeholders like AGI is crucial to ensure policies are practical and effective, thereby strengthening institutions and fostering partnerships as outlined in SDG 16 and SDG 17 (Partnerships for the Goals).
2. Infrastructure and Innovation: The AGI advocates for massive investment in reliable infrastructure, including power, water, roads, ports, and digital systems. Such development is central to achieving SDG 9. Furthermore, promoting innovation ecosystems is essential to transform Ghana from a low-cost production base into a hub for industrial creativity and sustainable industrialization.
3. Access to Finance: To foster inclusive economic growth, financial institutions are urged to design tailored financial products for industry players. Providing SMEs with affordable credit and longer repayment periods is critical for stimulating local manufacturing, creating jobs, and advancing SDG 8.

Recommendations and Commitment to the 2030 Agenda

Mr. Nyamekye reaffirmed AGI’s commitment to driving industrial growth and challenged its members to actively contribute to a sustainable future. The following actions were recommended for AGI members:

• Adopt Sustainable Practices: Aligning business operations with principles of environmental stewardship and resource efficiency is key to supporting SDG 12.
• Embrace Technology: Integrating modern technology is vital for enhancing productivity, competitiveness, and innovation, directly contributing to the targets of SDG 9.
• Invest in Skills Development: Proactive investment in training and upskilling the workforce will address the skills gap, fostering decent work and quality education in line with SDG 8 and SDG 4.

Conclusion

The AGI posits that the future of Ghana’s industrialization is contingent upon a decisive commitment to creating the right environment, supported by concrete action and accountability. By implementing the proposed reforms, Ghana can build a robust industrial sector that not only powers its economy but also uplifts communities and secures a sustainable and prosperous future for subsequent generations, fully aligned with the global Sustainable Development Goals.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 8: Decent Work and Economic Growth
   • The article discusses creating a “conducive business environment” to power the economy, the challenge of a “shortage of skilled labour,” and the organization of a “Job Fair.” These elements are central to promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
2. SDG 9: Industry, Innovation and Infrastructure
   • This is the most prominent SDG in the article. The Association of Ghana Industries (AGI) explicitly calls for industrial growth, “massive investment in reliable infrastructure – power, water, roads, ports, and digital systems,” the promotion of “innovation ecosystems,” and better “access to finance” for industries, particularly SMEs. The article’s core theme is making the country’s industries globally competitive.
3. SDG 12: Responsible Consumption and Production
   • The article highlights the unsustainable practice of “exporting raw materials without value addition and importing the same products at higher costs in finished form.” It also mentions the AGI’s challenge to its members to “adopt sustainable practices,” which directly relates to ensuring sustainable consumption and production patterns.
4. SDG 17: Partnerships for the Goals
   • The article emphasizes the need for collaboration. It mentions the AGI’s call for the government to “deepen engagement with AGI and other stakeholders” and notes that the event was held in “partnership with Mastercard Foundation and Ghana Export Promotion Authority (GEPA).” This reflects the importance of multi-stakeholder partnerships to achieve sustainable development.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 8: Decent Work and Economic Growth
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The article’s focus on moving away from exporting raw materials to value-added production and embracing technology to become a “hub for industrial creativity” aligns with this target.
   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises (MSMEs). The call for a “conducive business environment,” support for SMEs through tailored financial products, and government initiatives like “YouStart” and “One District, One Factory (1D1F)” directly support this target.
2. Under SDG 9: Industry, Innovation and Infrastructure
   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being. The explicit call for “massive investment in reliable infrastructure – power, water, roads, ports, and digital systems” is a direct reference to this target.
   • Target 9.2: Promote inclusive and sustainable industrialization. The article’s central theme of making Ghana’s industries competitive, boosting “local production,” and adding value to raw materials instead of exporting them is the essence of this target.
   • Target 9.3: Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit. The concern over “high lending rates that continue to cripple local manufacturers” and the plea for financial institutions to design “tailored products for industry players, especially Small Medium Enterprises (SMEs)” with “affordable rates” directly addresses this target.
   • Target 9.b: Support domestic technology development, research and innovation in developing countries. The call to “embrace technology” and “promote innovation ecosystems” to avoid being just a “low-cost production base” aligns with this target.
3. Under SDG 12: Responsible Consumption and Production
   • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. The lament about “exporting raw materials without value addition” points to an inefficient use of natural resources, which this target aims to correct through value addition and sustainable management.
4. Under SDG 17: Partnerships for the Goals
   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships. The article highlights the need for the government to engage with stakeholders like the AGI and mentions existing partnerships with the “Mastercard Foundation and Ghana Export Promotion Authority (GEPA),” which exemplifies this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Implied Indicators for SDG 8 & 9
   • Manufacturing value added as a proportion of GDP (Indicator 9.2.1): Progress can be measured by tracking the increase in value addition to raw materials before export, a key concern raised in the article.
   • Proportion of small-scale industries with a loan or line of credit (Indicator 9.3.2): The article’s focus on “high interest rates” and the need for “access to finance” for SMEs implies that the availability and affordability of credit for these enterprises is a key metric for success.
   • Unemployment rate, especially among youth (related to Indicator 8.5.2): The mention of a “shortage of skilled labour” and the hosting of a “Job Fair” implies that metrics related to employment, skills gaps, and job creation are relevant for measuring progress.
2. Implied Indicators for SDG 9
   • Infrastructure reliability metrics: While not a formal UN indicator, the article’s mention of “unreliable power supply” suggests that practical indicators like the frequency and duration of power outages affecting industries would be used to measure progress towards Target 9.1.
3. Implied Indicators for SDG 12
   • Material Footprint (Indicator 12.2.1) and Domestic Material Consumption (Indicator 12.2.2): The issue of exporting raw materials without value addition is directly related to how a country manages its natural resources. A shift towards more domestic processing would change these national material flow accounts.
4. Implied Indicators for SDG 17
   • Number and quality of multi-stakeholder partnerships: The article explicitly names partnerships between AGI, government, Mastercard Foundation, and GEPA. The number and effectiveness of such collaborations can serve as a direct indicator of progress towards Target 17.17.

4. Table of SDGs, Targets, and Indicators

Source: thebftonline.com