By Christian Kpesese
The Ghana Investment Promotion Centre (GIPC) is calling on logistics service providers in the country to collaborate with the government in addressing logistics supply chain bottlenecks to aid Ghana attract the necessary investment in realizing opportunities offered by the Africa Continental Free Trade Area (AfCFTA) and Foreign Direct Investment (FDI).
Deputy Chief Executive Officer of GIPC, Yaw Amoateng Afriyie, who made the call at a CEO’s Breakfast Meeting as part of the centre’s dialogue series observed that logistics efficiency has the potential of transforming the Ghanaian economy which is well-positioned to major markets across the globe and Africa as a whole in the wake of AfCFTA.
“Ladies and gentlemen, Ghana is well-positioned with excellent proximity and connectivity to key markets in Africa, Europe, the Middle East, the Indian subcontinent and Asia, North and Latin America, and the Caribbean. The world-class Kotoka International Airport (recently ranked for the third successive year as the best airport in Africa’s 2-5 million passenger category) presents many efficient freight forwarding and logistics opportunities,” Mr Amoateng Afriyie stated.
According to the World Investment Report of 2022, global FDI stood at US$1.6 trillion in 2021, and analysts’ forecasts expect this figure to grow in the medium term.
Despite the fact that Africa’s supply chain, is confronted with high cost of moving goods due to inadequate transportation infrastructure and lack of regulatory frameworks, the continent’s share of the total global inward investment according to the report stood at US$83 billion – a record – up from US$39 billion in 2020, accounting for 5.2% of global FDI.
Flows to Ghana in the same year rose by 39 per cent to US$2.6 billion, owing to projects in extractive industries, supported by efficient supply chains.
Mr Amoateng Afriyie believes the narrative can change for the better if supply chain challenges are dealt with in partnership and forging linkages with all stakeholders to help Ghana especially leverage on the opportunities to derive much gains in offering value to the world from AfCFTA irrespective of the negative impacts such the COVID-19 pandemic and the Russian-Ukraine war.
He noted that the Tema and Takoradi ports are very important central assets for the transit of goods and ship brokerages and to serve a market of over 370 million even as government recognizes the significance of rail, road, transport infrastructure in addressing the supply chains drawbacks and is therefore aggressively pursuing some projects to address the shortfall.
“Tema and Takoradi ports on the eastern and western coasts respectively are vital import and export arteries for the oil and gas and allied industries, mining logistics, agriculture and forestry, e-commerce, manufacturing, processing, infrastructure, ship brokerage and FMCG in Ghana and ECOWAS, a market of approximately 370mn people as well as the potential to serve the AfCFTA markets with a population of 1.4bn people and a combined and growing GDP of US$3.4trn” he indicated.
Chief Executive Officer of Apex Shipping and Commercial Company, Mr Prince Arkutu who delivered the keynote address on theme: “Revitalising Ghana’s Supply Chain: Maximizing Logistics Efficiency for AFCFTA and FDI Growth.” urged government to master the courage to build an ecosystem that functions without stumbling blocks for Ghanaian businesses to function properly.
A strong and functional ecosystem he said will give investors the confidence to invest in Ghana and offer them protection while supporting local entrepreneurs and businesses to grow.
The Country Lead of Agility Logistics Parks, Dickson Odei acknowledged the fact that supply chain is the engine of trade hence the need to address inefficiencies to the value chain to enhance trade.
He assured of Agility’s commitment to provide the needed warehousing facility needs to logistics service providers to enhance trade.
Agility Logistics and Parks is a privately owned developer of Grade A warehousing and light industrial parks located at the Tema Free Zones enclave and have presence in the Middle East, Africa and South Asia.
Chief Revenue Officer at the Import and Export unit of the Ghana Revenue Authority, Edward Bagyiri said the authority is vigorously pursuing automation for enhance services to enable the country derive maximum benefits from its supply chain entry points.
The GIPC CEO’s Breakfast meeting was organized in partnership with Agility Logistics Parks on the theme: “Revitalising Ghana’s Supply Chain: Maximizing Logistics Efficiency for AFCFTA and FDI Growth.”