A former Chairman of Parliament’s Finance Committee says Ghana needs to wake up to the realities of over-reliance on the Africa Growth and Opportunity Act (AGOA).
Patrick Yaw Boamah warned that while beneficial, it cannot be a permanent crutch.
The Okaikwei Central MP, speaking on Joy News’ PM Express Business Edition on Thursday, May 1, said AGOA has supported key sectors like garments and textiles, but the country must now turn its focus inward.
“There are companies that purposely set up to benefit from AGOA. Madam Salma’s company at the UTC, some at the free zones enclave—if we don’t push for an extension, it will lead to a lot of job losses and revenue shortfalls for government,” he said.
But the bigger concern, Mr Yaw Boamah warned, is long-term dependence.
“We cannot sit and be spoon-fed for a long time. We need to wean ourselves from some of these policies,” he stressed.
“AGOA has been in place for close to 20 years. You need to ask yourself, what have you been able to do in the area of AGOA to expand your export potential, to rake in the Forex that is supposed to support the growth of your economy?”
He added that while Ghana should lobby for an extension of AGOA, it must not expect indefinite generosity.
“An extension of AGOA is good, but it shouldn’t be in perpetuity. We have to build the kind of local industry that we require.”
Mr Yaw Boamah threw his weight behind industrial policies that aim to create a stronger local production base.
“That is why I was a firm believer in the One District, One Factory program, regardless of the challenges and the abuse of some of the entities,” he said.
“If we don’t take steps as a country to build local capacity in industry, the expected job creation that we’ve been talking about will be an illusion.”
He cited pharmaceutical companies like Tobinco, Ernest Chemist, and Kinapharma as strategic players that need more government support.
“They must be encouraged to produce within the local market to avoid the importation of drugs. We must look at strategic areas in textile export, pharmaceuticals, import substitution, agro-based industries,” he emphasised.
Boamah expressed concern over budgetary support for these sectors.
“I’m happy government is talking about agribusiness, but if you look at the budget lines for the Ministry of Trade and Ministry of Agriculture, very insufficient,” he said.
“If you want to hit the big market with some of the targeted crops, you have to put in a lot of money to support their growth.”
The legislator’s message was clear: AGOA helped open the door, but it won’t stay open forever. Ghana must now build the house.
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