The trade minister designate, K. T Hammond, is pushing for a thorough review of Ghana’s import substitution policy to ensure a boost in the country’s export earnings.
The policy, which aims to reduce imports and increase local production to enhance the economy, has been in place for several years but has yet to make a major impact on reducing the country’s reliance on imports.
Speaking before the parliamentary appointments committee, Mr. Hammond highlighted the need to re-evaluate the policy and make necessary adjustments to enhance its implementation and save the economy.
Citing the importation of rice and beverages, he explained, this creates a gap of close to 500-600 metric tons of rice that has been consumed but not accounted for through the system, putting pressure on the local currency and contributing to the country’s import dependency.
The trade minister designate also highlighted the issue of second-hand vehicles and clothing, among other things, that he believes should be reviewed to ensure that the country’s import substitution policy is implemented effectively.
He emphasized that the Ministry will work with relevant stakeholders to address these anomalies and make necessary adjustments.
The textile industry was another area of concern for Mr. Hammond, who noted that there is a need to streamline the importation of certain goods to protect local industry. He expressed dismay over the country’s reliance on imports from China, including high-quality items that could be produced locally.
He pledged that the Ministry would work closely with all stakeholders, particularly the inter-ministerial committee working on revamping the textile industry, to make the sector productive.
The call for a review of Ghana’s import substitution policy by the trade minister designate, K. T Hammond, comes at a critical time when the country is facing significant economic challenges. It highlights the need for a comprehensive assessment of the policy to identify areas that need improvement and to ensure that the country maximizes the benefits of its export earnings.
The Ministry’s commitment to working closely with stakeholders is a positive step towards achieving this goal, and we hope that the review will lead to concrete measures that will strengthen the policy and support the growth of Ghana’s economy.
