EU investors urged to foster lasting ties with local suppliers

Mr Kobina Tahiru Hammond, the Minister for Trade and Industry, has urged European Union investors in Ghana to foster lasting ties with local suppliers to develop a reliable and sustainable supply chain. The Minister urged the investors to emulate their counterparts in Ghana, who have created and sustained lasting ties with local suppliers, which had engendered a consistent supply of raw materials. 'There are already several companies that are doing a yeoman's job of connecting with local suppliers. Three industrial giants in the food and beverage industry that come to mind are Guinness Ghana Limited, Kasapreko Company Limited, and Nestle Ghana Limited, who have shown the way by building quite effective supplier development programmes involving farmers and aggregators of millet, sorghum, and maize.This has been beneficial for local companies such as Premium Foods and Yedent Agro Limited, which have developed robust sub-contracting supply linkages with some of these large manufacturing industries,' he sai d. The Minister said this when he opened the second Ghana-European Union Business Forum, which was held in Accra. The forum was under the theme: 'Fostering an Investment in Non-Traditional Chains Under the EU Global Gateway Strategy.'He said the EU was  one of the largest investors in Ghana, with investments spanning various sectors, notably agriculture, energy, manufacturing, infrastructure, telecommunications, financial services, and pharmaceuticals.These investments not only support Ghana's industrial transformation agenda but also contribute in many ways to economic growth and sustainable development, he said. The Minister said the EU was one of the most successful regional blocks, which holds many lessons for African Continental Free Trade ambitions.Mr Irchad Razaaly, EU Ambassador to Ghana, said the EU Global Gateway Strategy, in force since December 2021, offered a unique opportunity for Ghana and the EU to strengthen their economic ties, foster innovation, and create sustainable value chai ns. He said that by exploring non-traditional sectors, the EU and Ghana could unlock new opportunities, address challenges, and promote economic transformation. The Ambassador said the EU aimed to pursue economic cooperation with Ghana to support more value-added products exported from Ghana to transcend the traditional raw materials to the EU and the world. He noted that when both countries join forces, they would expand their reach, enhance results, and promote shared learning to  create unique and innovative products. According to the Trade Ministry, in 2023, exports from Ghana saw a promising eight per cent increase, rising from pound 2.4 billion to pound 2.6 billion Euros, while imports from the EU to Ghana experienced an 11 per cent decline, dropping from 3.7 billion Euros to 3.3 billion Euros. The total trade between Ghana and the EU in 2023 amounted to six billion euros, marking a slight decrease of three per cent compared to 2022. The trade flows between Ghana and the EU are characterised by Ghana exporting primarily raw and semi-processed goods while importing machinery, vehicles, and chemicals.Source: Ghana News Agency