GOPDC calls on goverment to review benchmark valuation
The Ghana Oil Palm Development Company Limited (GOPDC) has stressed the need for the government to review the benchmark valuation which is negatively affecting the manufacturing sector.
The company expressed the belief that the prevailing benchmark valuation had placed manufacturing companies at a disadvantage, appearing to reduce the price of importation and thereby making imported products into the market cheaper against the locally manufactured products.
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The Chief Commercial Officer of GOPDC, Mr Gangadhar Shetty, expressed the concern in an interaction with the media during the Eastern Regional Coordinating Council (ERCC) and the Association of Ghana Industries (AGI) Eastern and Volta branch industrial tour of some small and large-scale manufacturers in the region.
The industrial tour took the team to some palm oil and palm kernel processing factories, including Tinalex Farms and Medemafo Tease, in the West Akim Municipality.
The team also visited the Ghana Consolidated Diamonds Company at Akwatia and the Ghana Sumatra Limited, both in the Denkyembour District.
The tour
The tour was rounded up at the GOPDC in the Kwaebibirem Municipality where the Eastern Regional Minister, Mr Eric Kwakye Darfour, and the AGI were briefed on the activities of the company.
They were also conducted round the facility to ascertain how production was done.
‘’We are appealing to the government to revisit and look into the benchmark valuation, otherwise it will have a negative impact on the manufacturing sector,” Mr Shetty stated.
He said such an impact would have a backlash on employment as the manufacturing sector was one of the major employers for the country.
Aside from the impact on employment, he said the country would also depend heavily on importation, since its ability to manufacture had been hampered.
Struggle
According to Mr Shetty, the company was currently producing 60 tonnes of refined oil per hour and an annual production of 31,000 tonnes.
Aside from its production, the company had developed 8,000 hectares of plantation, with over 7,000 outgrowers, employing over 4,000 workers during the peak season.
Despite its huge potential at creating employment, the GOPD is struggling with pricing due to illegal imports of same products into the country.
“If that can be stopped then it will stimulate local growth,‘’ Mr Shetty added.
He, however, commended the government for being supportive of industries in formulating policies such as the One District-One Factory initiative and other stimulus packages.
Assurance
The Regional Minister, Mr Kwakye Darfour, gave an assurance that the concern on benchmark valuation, the National Health Insurance Levy (NHIL) and the Ghana Education Trust (GET Fund) would be channelled to the appropriate authorities for solution to be found to them.
He said the coordinating council was concerned because such a facility that offered about 4,500 direct jobs and catered for about 7,000 outgrowers needed to be supported.
“The impression is good; this is an enclave that can actually house the oil palm industry in Ghana for us,” the minister said.
He advised the small-scale processing factories to channel their activities through the Business Advisory Committee (BAC) at the assemblies so that they could be supported by the NBSSI to get some machines to aid them in their activities.
Dr Samuel Kwadwo Frimpong, an Economic Advisor at the Office of the Vice-President, commended the small-scale producers for their immense contribution to the economy of the country.
He said nation building required the contribution of everyone to help drive the economy to its rightful destination as government put in place the necessary policies and programmes that would accelerate development.
Tinalex Farms
At Obotwene, the Chief Executive Officer of Tinalex Farms, Mr Alex Appietu, said his facility was able to produce about 3,750 litres of palm oil daily.
He indicated that his facility could expand to increase its production and employ more hands should the government support it with machinery.
The company now employs 52 workers.
It also has a two-tonne processing machine which digested and processed at the same time, and a separator which separated the chaff from the nut, palm oil kernel and palm oil.
He expressed worry about the growth of the facility, since the community was not connected to the national grid, and, therefore, did not have electricity.