Ghana still not out of woods despite second quarter expansion - Prof. Mensah | Market Place
The Market Place with Pious Kojo Backah (22-9-23)
#TheMarketPlace
#MyJoyOnline
https://www.myjoyonline.com/ghana-news/
Subscribe for more videos just like this:
https://www.youtube.com/channel/
Facebook: https://www.facebook.com/joy997fm
Twitter: https://twitter.com/Joy997FMInstagram:
https://bit.ly/3J2l57
Click this for more news:
https://www.myjoyonline.com/
#TheMarketPlace
#MyJoyOnline
https://www.myjoyonline.com/ghana-news/
Subscribe for more videos just like this:
https://www.youtube.com/channel/
Facebook: https://www.facebook.com/joy997fm
Twitter: https://twitter.com/Joy997FMInstagram:
https://bit.ly/3J2l57
Click this for more news:
https://www.myjoyonline.com/
Category
🗞
NewsTranscript
00:00 Hello, welcome back.
00:00 This is the Marketplace with me, Pius Kujo Baka.
00:03 Let's now settle for the details.
00:05 An economist, Professor Lloyd Mensah,
00:06 has indicated that a lot still needs to be done
00:09 to firmly stabilize the economy.
00:11 It follows the 3.2% growth rate recorded
00:14 for the second quarter of this year.
00:16 But speaking on PM Express Business Edition,
00:18 Professor Mensah maintained that a lot more needs to be done
00:22 to help fast-track the economy.
00:24 - It's the government who is in business,
00:26 and you can deduce that from, you know, treasury rates
00:30 that is going up, the way it shows, you know,
00:33 how desperate government is in need of money
00:36 and activities centered around, you know,
00:38 government operations.
00:40 Then obviously you should know that we are growing all right,
00:44 but it's not, you know, a well-distributed growth,
00:49 let me put it that way, because we are expecting that
00:52 we are growing, government is spending,
00:54 feeding into the growth.
00:56 Individuals are spending, feeding into the growth,
00:59 and then also we have businesses spending,
01:03 feeding into the growth.
01:04 But that is not what we see.
01:06 It's only government that is in business.
01:08 - Is that a good thing?
01:09 Because again, for an economy,
01:11 you want to see an all-around economy.
01:13 I mean, for instance, you see government spending
01:15 on military, and that is expanding the economy.
01:20 - Fantastic.
01:20 - And that does not give us the real picture.
01:23 So that is not actually a good thing.
01:25 It's not a good thing in a sense that, you know,
01:29 government spend to place certain, you know, amenities
01:32 for businesses to thrive on.
01:34 So we are expecting government to spend on roads, right?
01:37 We are expecting government to, you know,
01:40 spend on, you know, things that will create a leverage,
01:44 you know, kind of for business to, you know, thrive on.
01:47 So if government is spending, it turns out that
01:50 probably government is the one employing, right?
01:54 Because we are expecting that government
01:55 will lay the foundation.
01:57 Business picks it up from there,
01:59 and then the businesses will expand,
02:01 and from there going, they will what?
02:03 They'll start employing people.
02:05 But that's not what we see.
02:06 We see government directly, you know,
02:08 doing the employment, and all those businesses
02:11 are not, you know, on the market to employ.
02:13 So effectively, I mean, it tells you that, yes, indeed,
02:17 it's only government that is in business.
02:19 But at the end of the day, if government is in business,
02:21 then whom are you going to tax?
02:24 That is, you know, what will affect your revenue as well.
02:27 Because effectively, businesses are expanding,
02:30 they're employing, then you should have what?
02:33 More-- - And some would say
02:34 that is why revenue numbers are still not doing well,
02:37 because therefore, hiking the rates is not the answer.
02:42 - Exactly, so it's not the same people
02:44 that you're supposed to, you've employed,
02:46 that you keep on, you know, taxing.
02:47 The same people who are going around
02:49 with the economic activities that you get the excise tax
02:52 from and all those.
02:53 Effectively, the hope is that government will be spending,
02:58 but, you know, it shouldn't go to some extent.
03:02 Economy may be growing, but it is growing
03:04 on government expenditure, not on business.
03:08 - So if we look at the GDP numbers, for you,
03:11 we shouldn't be so much excited about this number,
03:14 because in terms of the recovery,
03:15 we are still nowhere near recovery.
03:17 You know, we've had GDP growth about 6.1 before.
03:22 That was latter part of, you know, 2021.
03:26 And what did we see?
03:28 And I always term it as an economy that is hanging.
03:31 - While manufacturing firms are highlighting
03:35 the challenging state of industries,
03:37 despite claims that the economy
03:38 is showing signs of recovery,
03:40 they argue that sales are declining
03:42 while some are looking at moving into import and packaging.
03:45 Chief Executive of the Association of Ghana Industries,
03:48 Seth Chumakwabwa, who disclosed this to Joy Business,
03:51 noted that the situation calls for some intervention
03:54 to save the situation.
03:56 - And I've been visiting a lot of companies lately as well
03:58 to assess the situation.
04:00 And generally speaking, the general mood is that
04:04 industries are struggling, sales are down,
04:07 they are not meeting targets.
04:09 And I'm not surprised that the data that was released
04:12 clearly showed a bit of contraction
04:15 in the industrial sector,
04:16 especially manufacturing and construction and other areas.
04:19 So clearly, industry is struggling.
04:22 And surprisingly, it's not just the items
04:25 that one could consider a luxury goods.
04:28 Even the essential commodities,
04:30 basic items that are consumable product
04:33 that we consume on a daily basis,
04:35 you know, when you talk to companies producing these items,
04:38 their sales have dropped compared to the year before
04:41 and perhaps a couple of years back.
04:43 So clearly, there's a struggle in the system
04:45 and it's clearly determined by the fact that
04:48 consumer spending has gone down.
04:51 Consumer spending has gone down
04:52 because people's purchasing power has gone down.
04:56 I think that all the data has changed
04:58 and so many things that have happened in recent times
05:00 has affected consumers' ability to buy goods and services.
05:03 And it's really reflecting on industry's output
05:06 and industry's expansion.
05:07 And that's why we are having all these challenges.
05:09 So generally speaking,
05:10 industries are not doing as well as expected.
05:13 - Now, as the Monetary Policy Committee prepares
05:16 to wrap up its 114th meeting,
05:19 Joy Business is learning that stabilizing the city
05:21 and bringing inflation under control
05:24 have dominated discussions at the meeting so far.
05:26 Now, the committee is expected to make an announcement
05:29 on Monday, September 25.
05:31 The meeting is happening at a time
05:32 inflation for the month of August
05:34 recorded a marginal reduction to 40.1%.
05:38 Now, the policy rate is currently pegged
05:40 at 30%.
05:41 Let's get on to Zoom and speak to Economist
05:43 who is also a research lead of GCB Capital,
05:46 Courage Botee for more.
05:47 Courage, thanks so much for joining us on the Marketplace.
05:50 Looking at the second quarter growth rate of 3.2%
05:54 plus the drop in inflation of 40.1% just recorded,
05:58 and of course, the relatively stability of the city,
06:01 will you say it is enough justification
06:04 to hold the policy rate or better still reduce it?
06:09 - Well, yes, I expect the rate to be held,
06:12 but not for the reasons you cited
06:15 about growth and all of that.
06:17 Indeed, I think the growth trend is one that is slowing.
06:20 You look at even the revised figure,
06:22 or quarter one, it was 3.3%
06:25 and we've seen the quarter two numbers show 3.2.
06:29 And I dare say that the impact of the fiscal tightening,
06:34 I feel like the consolidation going up,
06:36 we felt a lot more in the second half of the year really.
06:39 So we could even see even a slower rate of growth
06:44 the second half of the year, even if it's still growth,
06:46 it will be at a much lower pace than we've seen before.
06:50 I think to hold the policy rate for two reasons.
06:54 Yes, I acknowledge that where the policy rate is now,
06:59 if we are going by the dictates of the textbooks
07:03 and what the theory suggests,
07:06 there is still a space for further monetary tightening
07:09 because inflation at 40.1 and policy rate at 30%
07:14 still leaves a policy gap
07:16 and there could be space for tightening.
07:19 But I guess the inflation rate is where it is,
07:23 not entirely due to demand driven factors,
07:26 but it's also a cost push factors really,
07:30 but it's also as a result of some of the
07:32 actions or inactions from the Bank of Ghana
07:35 and the government in 2022,
07:40 however justifiable they are,
07:42 that is fueling the level of inflation.
07:46 We are entering a phase now where largely
07:49 the impact of the new harvest season
07:52 has brought down inflation by some 30% to 40.1.
07:55 And the expectation, if the natural trend continues,
07:58 is that you see such a decline again,
08:01 potentially in September.
08:03 And then when you enter quarter four,
08:05 you expect the impact of favorable base pull
08:08 to drag inflation lower a lot more, a lot faster.
08:12 Now, if inflation, which is the concern,
08:14 is on the downturn and that trend is expected
08:17 to continue through quarter four,
08:19 I do not see reason or justification
08:21 for further hikes in the policy rate.
08:23 Two, growth is slowing as far as I've not acknowledged
08:28 and it will get, the pace will get slower
08:31 in the second half of the year.
08:32 And we are talking about GDP numbers
08:35 that show continuous quarters of contraction.
08:39 In fact, in the industrial sector,
08:42 it is in recession in the industrial sector.
08:44 We've seen that it is a government-driven growth
08:47 or public sector-driven growth at this point.
08:50 There is a need to stimulate the economy really.
08:52 And so I think so for as long as inflation continues
08:56 on that downtrend and the risk to the upside
08:59 are fairly contained and we could see risk
09:02 from fuel prices as they are going up at the pumps now
09:06 due to the changes in the global prices for crude oil.
09:10 There is also the risk from the upward utility tariff
09:13 adjustments that we see coming every quarter really.
09:17 Then for as long as those risks are broadly contained
09:20 and inflation is on the downturn,
09:22 there is that incentive to stimulate growth
09:25 and through the credit channel.
09:26 Interest rates are punitive at this point.
09:28 The private sector is bleeding
09:30 and it will do us a lot of good
09:33 if we could stimulate growth from the credit channels
09:36 now that government is unable to simulate growth
09:39 or bank of Ghana is unable to support growth in any form
09:42 using their policy tools really.
09:44 And so those are the reasons I feel that
09:46 for as long as the inflation outlook remains
09:49 what we expect that it will continue declining
09:52 through the fourth quarter,
09:53 policy rates will remain at 30%.
09:56 And if we go into quarter one, most likely in March
10:00 and the trend continues,
10:01 we may see a monetary policy rate pivoting.
10:04 - And what will this maintenance mean to businesses
10:07 and of course the economy as a whole?
10:09 - Well, probably little room for respite.
10:14 It could be tougher if rates were raised again.
10:17 And so not increasing it as good for planning,
10:21 as good for adjusting,
10:22 and then people can begin to position themselves.
10:25 I mean, no doubt 30, 31, 32%,
10:28 which is what lending rates are now,
10:30 it's not affordable for anyone.
10:34 But then I think if you are resting assured
10:37 that you will not see further increments
10:39 due to policy rate adjustments really,
10:41 it works for your planning,
10:43 then you can plan towards the future really.
10:46 And that is the kind of support we need to begin to get.
10:49 And once things improve,
10:51 you may get some stimulus coming in
10:54 from a cut in the policy rate,
10:56 which might reduce the lending rates
11:00 and by extension encourage investment in the private sector.
11:03 - All right, Mr. Bote,
11:04 do you get a sense of a further monetary tightening
11:07 going forward,
11:08 especially as the Bank of Ghana
11:10 believes it measures our yielding results
11:13 in relation to the rate of inflation
11:15 by dropping, basically dropping?
11:16 - It depends on the dynamics going forward.
11:20 I mean, as we speak,
11:22 my expectation is not further hikes.
11:25 It is to hold for remainder of the year.
11:27 And if things go the way they are,
11:29 we may see a cut,
11:32 probably from March next year
11:34 or sometime in quarter one going forward.
11:36 But it's a fluid situation.
11:38 Depending on the global dynamics,
11:41 depending on the impact of fuel prices,
11:45 depending on exchange rate dynamics,
11:46 even in the final quarter of the year,
11:50 and things related,
11:52 you may see a different dynamic
11:55 than my warrant further hike.
11:56 But at this point,
11:57 giving all factors considered,
12:00 I think that the quarterly adjustment
12:02 for utility tariffs,
12:04 at least judging from the quarter one,
12:06 quarter three numbers,
12:08 shows that we are near full cost recovery
12:11 and the exchange and the recoveries are almost,
12:15 I mean, eroded, or if you like, wiped out really.
12:18 And so you do not expect very significant adjustment
12:21 to utility tariffs in quarter four
12:25 and going forward as we've seen
12:26 in quarter one and two really.
12:28 These should all bode well for inflation.
12:30 In addition to the main challenge
12:32 has been food inflation.
12:34 I don't know what specific interventions
12:36 are going on in that sector
12:37 to try to bring it down.
12:39 But for August and September,
12:41 my expectation will be that
12:43 the favorable base drift will bring it down a bit,
12:46 or if you like, the impact of the harvest season
12:49 will bring it down a bit
12:50 and into quarter four,
12:51 favorable base drift will sustain
12:53 the disinflation process.
12:54 So these are the dynamics as we speak.
12:57 Things could change,
12:58 it's a fluid situation,
13:00 and that's when things change,
13:01 maybe the expectation changes.
13:03 But as we speak now,
13:04 I don't see further hike,
13:05 at least through the remainder of 2023.
13:08 - All right, finally,
13:09 let me get your perspective on this.
13:10 Projection by the Economist Intelligence Unit on the CDI,
13:13 as the UK-based firm revised
13:16 its earlier projected depreciation of the CDI
13:18 of 30% to $1 in 2023,
13:21 and now to about 23% by the end of this year.
13:25 What do you think?
13:26 - I think they are aligning to what the trend has been
13:30 and what the market expectation has been all this while.
13:34 We've seen back January 2023,
13:37 where we saw sharp depreciation,
13:39 about 21% depreciation,
13:42 things have been quite stable from second month,
13:46 that's in February,
13:46 all the way till now.
13:48 Depreciation is just about 22% year to date, really.
13:52 And that trend is expected to continue.
13:55 I think issues related to sentiment on the market,
14:00 issues related to portfolio reversals,
14:04 and stuff like that,
14:05 which were the main drivers of depreciation in 2022,
14:09 have largely subsided.
14:12 And even if the risk are not completely gone,
14:15 you are not seeing a lot of those activities on the market.
14:17 And even if reserves are very weak
14:19 and government themselves are projecting 0.8 months
14:23 of import cover by end of year,
14:25 which is very fragile,
14:27 I still think that people are waking up to the fact
14:32 that we need to stop the speculation.
14:36 We need to own our own economy
14:39 and people are getting to the realization
14:41 that the DDE has happened
14:43 and we need to adjust with that.
14:44 So the traditional things with buying dollars,
14:47 the speculative tendencies,
14:49 and the wild levels of repatriation
14:52 that we saw previously,
14:53 it's not happening again.
14:54 And especially so when the bond market
14:56 is not very active for those holding bonds,
14:58 the foreigners to want to even sell an exit, really.
15:01 And so those are the things holding the CD.
15:03 We are in a critical period
15:05 where the first review of the program is happening.
15:08 We are expecting some flows from the IMF.
15:10 If the review is successful,
15:12 by November we should get another 600 million flow
15:15 and the AFDB could also support all these things
15:18 so can boost reserve and liquidity levels on the market.
15:21 And I expect that things remain stable
15:23 towards the end of year, really.
15:25 So what they are doing is really to reverse
15:27 to what the market is looking like at this point.
15:30 - All right, thank you very much,
15:32 Khorij Buti for your time.
15:34 It's a lead research at GCB Capital.
15:37 Helping us understand all the issues
15:39 in relation to the MPC meeting,
15:41 which is currently underway,
15:43 which of course we'll wrap up today.
15:45 And of course, update us on Monday on the latest MPC rate.
15:49 We shall keep an eye on that and keep you posted.
15:51 Now, the Ghana Revenue Authority
15:53 is fighting back claims of harassment
15:55 alleged by members of the Ghana Union of Traders Association.
15:58 GUTA in a press conference accused the GRE
16:01 of harassing its members at various ports
16:03 and market centers over tax inspection.
16:06 Now, let's bring in the perspective of a tax consultant
16:09 to help us understand how the dynamics of all of these works.
16:13 But let's first watch Assistant Commissioner
16:16 of the GRE in charge of enforcement
16:18 at Accra Central, Joseph Annan,
16:20 charging members of the businesses
16:22 to ensure all tax obligations are met
16:25 to avoid any form of embarrassment.
16:28 - We are doing total tax compliance
16:31 because the tax is not limited to VAT.
16:35 It's CIT, PAYE, PIT, SIS, tax stamp.
16:40 We are looking at all taxes that are applicable
16:45 to a particular taxpayer that we visit.
16:48 So we are not limiting our search to only VAT.
16:53 That is why when we come to an area,
16:55 we look around and see taxpayers who qualify
16:59 to register for one tax type or the other.
17:02 And I'm telling the public that that is how
17:05 we are going to approach our quest
17:08 to increase our collection.
17:10 That is a tax collection in this country.
17:12 So it is not only VAT that you must comply with,
17:17 but you must comply with all tax types.
17:19 And we are going to go into our system
17:21 when we come to you to look at all other tax types
17:25 that are applicable to your business
17:26 to know whether you are compliant.
17:29 And those that we have already visited,
17:30 we are coming back to you to know whether
17:32 at our visit you are doing the right thing.
17:34 And please, if we come and you are not doing the right thing,
17:38 then you should know that when you come to our office,
17:39 we are not going to smile with you.
17:41 Yes.
17:42 - Okay, Mr. Yonan, GUTA is raising concerns.
17:43 They said some of their members, you're harassing them.
17:45 Like today you entered the shop,
17:47 you said they are not paying tax and all that.
17:48 How do you respond to this?
17:49 - Yes, when we come to your shop,
17:51 it's not that we say you are not paying tax.
17:53 The reality is that you are not paying.
17:55 And if you call that harassment,
17:58 then I don't know what to say.
18:00 Because ours is tax laws.
18:03 And that's what we are paid to do.
18:06 We are paid from the taxes that you pay.
18:08 We retain part of it to pay ourselves.
18:11 So will you be happy to pay us
18:13 and just sit in our offices?
18:15 I don't think that is the way to go.
18:17 You pay us to work and that we shall do.
18:20 So it's not about harassment.
18:21 It's about whether you are paying your taxes.
18:24 If you are paying your taxes,
18:25 definitely then there'll be nothing like harassment.
18:28 We are doing our job.
18:30 And if you call that harassment,
18:31 then I don't know what to say.
18:33 - Yes.
18:34 All right, so let's make sense of this
18:37 and go on Zoom and speak to a tax consultant,
18:40 Francis Timoboi for more.
18:41 Pleasure you could join us there on the Marketplace.
18:43 How can we ensure that the GRE do their work lawfully
18:47 so that it does not appear like harassment
18:49 has been alleged by GUTA?
18:51 What is the best international practice?
18:56 - So I think that having proper documentation
19:00 and doing the right thing is the solution.
19:02 If you look at the accusation that GUTA is raising,
19:05 especially on the import side,
19:07 where they are accusing the Kumasi-based traders
19:11 of extortion and all those things.
19:13 GRE is saying that the traders
19:17 are not declaring the proper goods
19:19 and they are not paying the right taxes.
19:20 If you look at the composition
19:22 or the setup of the customs units,
19:24 they are more like paramilitary wing of the GRE.
19:29 And so even article 83 puts them
19:33 as part of the national security.
19:34 So their function clearly is to facilitate trade
19:39 and then to protect the revenue
19:41 that we get from import and export.
19:44 And then also to protect
19:46 the territorial security of this state.
19:48 So GRE will at all points,
19:51 giving the powers given to them,
19:53 will try to enforce it if they notice
19:55 that traders are not complying with the law.
19:59 - Mr. Simugu, I want to understand
20:00 what can GUTA do on their part to resolve this on pass?
20:03 - So I think if the allegations
20:07 that they are raising is true,
20:09 then I think some form of engagement is needed.
20:12 GRE needs the business community to collect the taxes.
20:17 And the business community,
20:19 I mean, GUTA people also need GRE to also operate
20:22 when it comes to, for example, imports.
20:25 So the best middle line is to do more of an engagement.
20:30 I know they are petitioning the GRE,
20:32 but I believe that there are more authorities
20:35 within the chain that can be petitioned
20:37 so that a middle ground can be found.
20:39 And I also urge the GRE to educate
20:43 the business community the more,
20:44 because sometimes we believe that some of them,
20:46 everybody knows, look at the current station
20:49 of the VAT by the GRE officers.
20:52 Some people don't know.
20:53 Somebody gets his money and believe
20:55 that he can just set up a business.
20:57 And so more education is needed
20:59 so that we need them to get the money.
21:02 Otherwise, if businesses are not in Ghana,
21:04 where are we going to get the tax revenue?
21:06 - GRE is accusing the traders
21:10 of misclassifying their goods at the ports.
21:13 Again, how can such issues like this nature be resolved?
21:17 - So I think that there's a solution at the port.
21:22 You remember when we went for the paperless clearing system?
21:26 GRE has made a procedure such that
21:31 the classification of goods is categorized into three.
21:35 Every container is either red.
21:37 If it is red, per the GRE's own risk assessment,
21:40 if it is red, then it means that
21:42 they have to do physical examination.
21:44 They will open the container and check every single item.
21:47 So there can be misclassification.
21:49 GRE will find it at the port.
21:51 Two, if your container is green,
21:53 then it means that there's no risk.
21:55 And they consider factors such as
21:57 the credibility of the importer,
22:00 the consistency of the goods,
22:01 and then how homogeneous the goods are.
22:03 So that at that point, it is only paper verification.
22:07 So if it is paper verification
22:08 and the scanner says I am green,
22:10 then it means that there's no risk.
22:12 If it is yellow, then there is a mixture of both.
22:16 So I think that unless the rules are relaxed at the port,
22:21 it will be hard for importers to say they are misclassified.
22:26 If it is red, then you have to do physical examination.
22:29 However, there's the possibility that
22:31 if there's any misclassification
22:33 or if something is going on
22:33 and the GRE is not detecting it at the port,
22:36 then maybe there's some conniver at the port
22:38 which needs investigation.
22:40 - All right, in a minute,
22:41 the practice where the GRE officers
22:43 are stationed to check VAT.
22:45 Can there be a more sustainable way of checking VAT
22:48 since the traders say it is very inconvenient for them?
22:52 - I think the practice is more temporary
22:56 because I don't know how long GRE can be in the premises
22:59 and then how many places they can be
23:01 looking at the staff strength of their units.
23:03 Are you going to be only in Accra, Kumasi,
23:05 what about the other regions?
23:07 For me, it's not sustainable.
23:08 I think that when they are trying as much as possible
23:12 to make sure people comply,
23:15 they should find a more sustainable way
23:17 of making people more compliant,
23:20 possibly making the laws punitive.
23:22 And then when you bring them into the net, they remain.
23:26 And nowadays, taxation is more of a client-based approach
23:31 than the old system of military approach.
23:36 You can do that for some time,
23:39 but how long are you going to be in the premises?
23:41 Are you going to have another office there?
23:43 That's not sustainable.
23:44 And I believe that the deployment of the technology,
23:47 the EVAT system is also going to assist them
23:49 - No, we'll do the AGI.
23:50 - to be able to raise it out,
23:51 if they're able to roll it out across all businesses.
23:55 - All right.
23:55 Thank you very much, Francis Timoboi,
23:57 for your time here on the Marketplace,
23:59 as a tax consultant,
24:00 helping us understand the issues in relation to GRE and GUTA.
24:04 Now, the Ghana Association of Industries
24:06 has called on the Public Utilities Regulatory Commission
24:09 to ensure that the industry sector pay fair tariffs.
24:12 According to the association's chief executive officer,
24:14 Seth Chumakwawa,
24:16 it has become imperative for industry to pay lower tariffs
24:19 as compared to households to stay competitive.
24:22 He has been speaking at the final day
24:24 of the 2023 Association of Ghana Industries Industrial Summit.
24:28 - The 2023 Association of Ghana Industries Industrial Summit
24:34 and Exhibition was held on the theme,
24:36 industrialization through sustainable,
24:39 efficient supply chains.
24:41 The three-day event brought together captains of industry,
24:45 as well as small and medium businesses,
24:47 to network and deliberate on the growth of the sector.
24:50 President of the association, Dr. Humphrey Eyim-Dake,
24:54 called on Ghana government to support local firms,
24:57 scale up to stay competitive in the African region,
25:00 to ensure Ghana benefits fully
25:03 from the African Continental Free Trade Agreement.
25:06 - Our manufacturing sub-sector,
25:09 today's contribution to the gross domestic product,
25:12 that is the GDP, has virtually stalled
25:17 at about 11% per annum.
25:19 While finding pathways to deepen our industrialization drive
25:26 in this three-day summit,
25:29 it is my wish that we explore ways of attracting investments
25:34 to quickly develop the raw material base we consume.
25:41 Secondly, our preparedness to take full advantage
25:46 of the Continental Free Trade Agreement is still debatable,
25:51 considering the state of our capacity
25:54 and our productive base.
25:56 - Minister for Trade and Industry, Katie Hammond,
25:58 assured players in the sector of government support
26:02 to protect local industries.
26:04 - Cost of financing, transport and logistics,
26:09 regulatory compliance, port and castle clearance,
26:14 taxation, as well as industry-specific imbalances
26:19 in the tariff regime for imports
26:26 and locally manufactured products.
26:29 Government is not oblivious to them.
26:35 - And that's it for the Marketplace for today.
26:38 I am Pius Kujoba.
26:39 Do get stories when you log on to myjoyonline.com/business
26:44 with great stories on that portal for you.
26:46 Do enjoy the rest of our programs.
26:48 See you, bye.
26:49 (upbeat music)
26:53 (upbeat music)
26:56 (upbeat music)
26:58 (upbeat music)
27:17 (upbeat music)
27:20 (upbeat music)
27:23 (upbeat music)