Paragraph 1: The Urgent Need for Industrial Revival
Ghana’s industrial sector stands at a critical juncture, grappling with the closure of numerous factories and the resulting economic downturn. Abraham Koomson, Secretary General of the Ghana Federation of Labour (GFL), highlights the urgency of reviving these collapsed industries as a cornerstone of economic recovery and job creation. Recognizing the complexity of the situation, he emphasizes the need for a strategic, phased approach driven by effective government policies and collaboration with labor organizations. While acknowledging that the revitalization process will require time, Koomson stresses that swift action, guided by the GFL’s recommendations, can expedite progress and generate positive outcomes for both workers and the national economy.
Paragraph 2: Manufacturing: A Global Priority and Ghana’s Path to Development
Globally, governments recognize the manufacturing sector as a key driver of economic development, and Ghana should follow suit. According to Koomson, the health and productivity of this sector hinge on investor confidence, which requires assurances of protection, growth opportunities, and uninterrupted operations. Long-term investments in land, equipment, and machinery necessitate a stable operational environment, typically spanning 15 to 20 years, to enable investors to recoup their initial outlay and generate returns. This underscores the importance of consistent and predictable government policies that foster a conducive business climate.
Paragraph 3: The Role of Labor and the Shortcomings of Previous Policies
Workers played a significant role in the recent change of government, driven by dissatisfaction with the previous administration’s policies. Koomson argues that these policies failed to address the concerns of the working class, contributing to the economic downturn. He criticizes the previous government’s heavy reliance on indirect taxes, such as excise duties and levies, which inflated the cost of goods and services, placing a burden on families, particularly those with school-age children. These taxes, he argues, did not contribute meaningfully to GDP growth but instead stifled economic activity.
Paragraph 4: The Detrimental Impact of Excessive Taxation
The previous government’s expanded excise duty regime, according to Koomson, contributed to reduced productivity, ultimately leading to layoffs and factory closures. As production costs rose due to these taxes, sales declined, making it unsustainable for many businesses to continue operations. This resulted in a vicious cycle of job losses and further economic contraction. The remaining operational factories, he adds, are also struggling under the weight of excessive taxation, hindering their ability to function effectively and contribute to economic growth.
Paragraph 5: The GFL’s Expectations and Call for Practical Solutions
Despite the challenges, Koomson expresses optimism about the new NDC government’s commitment to implementing effective industrial policies. The GFL is closely monitoring the government’s actions, advocating for the revival of collapsed factories as a central strategy for job creation. They have submitted petitions to relevant ministries, including Trade, Agribusiness, Industry, Food and Agriculture, and Finance, outlining their recommendations and seeking active participation in policy discussions. The GFL emphasizes the importance of concrete policy implementation over political rhetoric, urging the government to prioritize practical solutions that translate into tangible results.
Paragraph 6: A Vision for a 24-Hour Economy and its Potential Benefits
Koomson envisions a vibrant 24-hour economy fueled by a revitalized manufacturing sector. This vision, he believes, goes beyond mere slogans and requires a concerted effort to create a supportive environment for businesses. A thriving manufacturing industry, he argues, will stimulate export growth, reduce reliance on foreign currency, strengthen the cedi, and attract foreign direct investment. He assures the NDC government of the GFL’s and the manufacturing industry’s unwavering support in this endeavor, emphasizing the shared goal of creating a robust and sustainable economy that benefits all Ghanaians.
