Tag Archives: Ghana Imports

Busines, News

IMF warns Ghana Government over restrictions on import

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The International Monetary Fund (IMF) has made it clear to the Government of Ghana that it cannot impose or intensify import restrictions for balance of payments purposes.

This is an agreement contained in the IMF bailout package which has pledged to support Ghana’s balance of payment with some $3 billion between 2023 and 2026.

“No imposition or intensification of import restrictions for balance of payments reasons”, the Fund stressed on page 76 of the programme document. Amongst other things, there are four decisions the Government of Ghana cannot take while it is still under the IMF programme. These decisions align with performance criteria common to all Fund arrangements, which include:

  • No imposition or intensification of restrictions on making payments and transfers for current international transactions.
  • No introduction or modification of multiple currency practices.
  • No conclusion of bilateral payments agreements inconsistent with Article VIII of the IMF Articles of Arrangement.
  • No imposition or intensification of import restrictions for balance of payments reasons.

The Fund emphasised that these four performance criteria will be monitored continuously.

The Government of Ghana on Thursday made a surprising suspension of the decision to put the L.I. before parliament, which sought to place the importation of 22-listed products under restrictions. It had tried on three occasions, without success, to lay the bill before the house.

The Minority in Parliament urged President Akufo-Addo to immediately withdraw the regulation seeking to restrict the importation of rice, cement, fish, sugar, guts, bladders, and animal stomachs, known as ‘yemuadie’.

The Trade Minister, K.T Hammond, who was pushing this regulation hoped it will help the cedi appreciate as well as help grow local industries.

Per the proposed regulation, any person seeking to import the selected products would have been required to obtain permission from the Trade Minister.

Ghana’s import bill according to Finance Minister Ken Ofori-Atta, exceeds $10 billion annually and is accounted for by a diverse range of items including palm oil, toilet roll, and even toothpick. While Ghana needs over $500 million to import rice, the trade minister says the importation of ‘yemuadie’ cost the state some $164 million in imports.

 

Source: Myjoyonline.com

Busines, News, Topstory

GUTA kicks against Import Restrictions Bill

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The Ghana Union of Traders Association (GUTA) has opposed the government’s move to restrict the importation of some 22 selected goods into the country, stating that it is uncalled-for.

 

The Minister for Trade and Industry, K.T. Hammond, is seeking to lay before Parliament a proposed Legislative Instrument  that seeks to impose restrictions on the importation of 22 products in the country, including rice, poultry, sugar, tripe, among others.

Despite the Bill being opposed by the Minority side of Parliament, the minister argues that the decision is to enhance local production, adding that permit will be required for the importation of the items if need be.

Appearing before the Subsidiary Legislation Committee of Parliament on Tuesday, the President of GUTA, Dr. Joseph Obeng, said the country has to attain self-sufficiency in food production before the policy is rolled out.

“We have to move slowly while we are trying to achieve self-sufficiency and do the right things,” he emphasised and quizzed “What is the threshold that qualifies a product to be restricted? Are we talking about 60 percent or 40 percent of production?”
Dr Obeng added, “We have not been given all this information and that is why we have called that instead of putting any impediment on trading, they should ban whatever they want to ban, and we will know that the product is banned but putting restrictions on us because we just want to import to meet demand is uncalled-for.”

GUTA’s call comes after  the Food and Beverages Association of Ghana (FABAG), Importers and Exporters Association of Ghana, Ghana Institute of Freight Forwarders (GIFF), Chamber of Automobile Dealership Ghana (CADEG), and Ghana National Chamber of Commerce and Industry (GNCCI)  united under the Joint Business Consultative Forum submitted a petition to Parliament over the pending Bill.

In a petition dated November 26, the group said: “We vehemently oppose this LI and would appreciate its immediate rejection by Parliament to allow for proper consultations and dialogue to take place.”

“We strongly oppose this LI on the following grounds: The price of most products mentioned in the Ministry of Trade and Industry policy proposal will result in serious price hikes, as competition will be severely restricted,” the group noted.

 

Source: Myxyzonline.com