New Business Dev’t Ministry to create 20 big companies in 4 years
The Minister Nominee for Business Development, Ibrahim Mohammed Awal, has announced an ambitious plan to create twenty big companies within the next four years
The companies are among other things expected to increase Ghana’s competitiveness in the global manufacturing space and create jobs for the teeming unemployed youth.
According to Mr. Awal, Ghana’s underdeveloped value chain system has made it difficult for indigenous businesses to expand and break into other markets.
Mohammed Awal made the disclosure at his vetting by the Appointments Committee of Parliament on Tuesday.
“What we lack is the value chain; source of raw material, innovation and market. If we are able to solve this, then we will be able to take the local businesses very far,” he stated.
The Minister Nominee added, “The capital is not just coming from the government but there have to be appropriate, responsible foreign business partners who can match the local businesses and our businesses need to be competitive and ambitious. We need to have global businesses who can compete.”
Though the business development minister nominee could not readily give the specific areas the businesses will focus on, he explained that the plan will involve a mix of new and already existing companies.
On how much it will cost the state in executing the big twenty companies’ project, Mr. Awal stated that the funding will largely be driven by the private sector.
In his view, the financial support will be largely achieved by developing the capacity of the private sector to grow.
The newly created business development ministry is mandated to address critical challenges confronting local businesses hampering their ability to grow.
Key among the issues involve the high cost of credit, multiplicity of taxes, cumbersome business registration processes, unfair competition from imported products among others.
Mr. Ibrahim Awal however pledged that his initial responsibility upon confirmation will include streamlining the registration processes for businesses in Ghana.