Professor Peter Quartey, Director of the Institute of Statistical, Social, and Economics Research (ISSER), says the proposed Legislative Instrument (LI) to restrict the importation of some specified commodities was unnecessary.
Instead, restrictions on importers’ ability to purchase foreign exchange should be enforced by the Bank of Ghana (BoG).
Prof Quartey was speaking at the Ghana National Chamber of Commerce and Industry’s (GNCCI) National Budget Review Seminar in Accra.
The seminar was on the theme: “The Impact of the 2024 National Budget on Private Sector Businesses and Opportunities.”
The Minister of Trade and Industry laid before Parliament a LI on the export and import restriction on selected strategic products.
The LI will force importers of 22 restricted items, particularly poultry, rice, and offal, to seek licences from a committee established by the Minister of Trade.
Prof Quartey urged the BoG to prioritise the allocation of forex to importers who import essential commodities into the country.
“We cannot use that tough approach, but we must use the market to restrict imports into the country,” he said.
Prof. Quartey said the Central Bank should issue forex for some selected products that could not be found in the country.
“So, we do not need an LI or anything to restrict imports in the country; the market factor must determine forex exchange in the country,’ he added.
Ghana remains a large importer of food items, with agricultural and related product imports expected to reach $2.6 billion in 2024.
According to the International Trade Administration, imports of food and agricultural products will continue to rise as Ghana’s underdeveloped food processing sector struggles to meet rising demand.
Bulk, intermediate, and consumer-oriented commodities such as rice, wheat, soybean meal, and poultry are examples of food imports.
Prof. Quartey advised the government to harness intra-continental imports through the African Continental Free Trade Area to reduce Ghana’s reliance on imports from Europe, America, and Asia, which has an impact of cedi’s stability.
He urged the government to take cautious steps with the LI and deal with the domestic production limitation first.
Dr. Clement Osei-Amoako, the President of GNCCI appealed for the withdrawal of the LI, arguing that its passage would create an artificial shortage of goods in the country.
He said the government must engage industry and offer incentives to enhance local manufacturing, adding that imposing import restrictions should happen gradually through the implementation of deliberate policies.
GNA