Trade Min. makes a case for procurement of locally assembled vehicles by MDAs
The Minister of Trade and Industry, Kobina Tahir Hammond has encouraged government to “concentrate” on handholding local vehicle manufacturers/assemblers by purchasing from them in order to boost production, create market access and shore up the automobile sector.
According to Mr. Hammond, Municipal, Departments and Agencies (MDAs) to consider buying locally produced or assembled vehicles in a bid to provide market access for these companies.
The Automotive Industry is globally recognized as a key strategic sector for stimulating multiplier effects in terms of industrial transformation, and as a powerful driver of employment, foreign investment, innovation, and economic growth, contributing directly and indirectly to a country’s GDP and positive balance of payments.
These assembly investments supported by global vehicle brands are key considering the current automotive technology revolution and globally competitive landscape and is expected to provide partnering opportunities for domestic investors through the automotive value chain.
Speaking with journalists after a tour of the Toyota Tsusho Manufacturing Group (TTMG), Japan Motors Assembly Plant and other agencies under the Tema Export Processing Zone at Tema on Friday, he said “Essentially to familiarize myself with the activities going on and the extent of it, as it is, it doesn’t appear to be any problems, they seem to be doing fairly well, government is looking to bring industrialization and investment into the country, bring employment into the country.
Maybe the MDAs, government should be thinking of ensuring that we effectively procure, decide to purchase these vehicles to galvanise what they do here to make sure we give them the market, it is a matter that I think government would have to explore seriously -schools, other facilities and agencies buying these vehicles, it is about time we concentrated on buying locally produced or assembled vehicles to ensure that production is enhanced, it is a good idea, we will take it”
“It is my ministry, government is asking companies like Toyota to bring their production line to the country, they are here in the free zone enclave, even though I don’t think they produce exactly under the free zone procedures and regulations, they produce for internal consumption, it is part of my tour around the place, it is my first time here and take the opportunity to go round and see some of the production that is going on, so we are here today.”
The Trade Minister who is in his second week office has already hit the ground running by visiting these agencies under his ministry to gain first-hand knowledge and provide leadership on how these institutions can enhance its activities.
Herdsmen invade enclave
His tour took him to the Tema Export Processing Zone where he met officials of the Free Zones Authority, Tema branch who highlighted challenges including inconsistent water supply to the enclave, lack of streetlights,Fulani herdsmen invading the enclave with their cattle and security.
Explaining the enclave’s challenges to the minister, the director of the Tema Administrative Office of GFZA, Patience Agbleze Acolor said “because of those gaps we have in the fence wall we have cattle coming in. Unfortunately, you fix it, they break it.
The fence walls have observation posts and so security would have to be stationed there, but somehow the security persons are saying the posts are too isolated.”
The enclave, which provides employment for 7,000 persons consists of 37 Free Zone enterprises and 48 Non-Free Zone enterprises.
The minister in responding to the cattle invading the enclave said “I don’t think that is acceptable and I don’t know to which extent the security forces of the country are aware of it.”
The issue, he adds would be laid before the appropriate security agencies to have the matter resolved.
“It (enclave) is supposed to be a secured place for economic productivity and to have a free range of herdsmen and their cattle is dangerous to start with.”
He later visited the 10-acre construction site of the Reroy Power Company, Nissan Assembly Plant, all located in Tema to interact with stakeholders towards addressing the challenges.
