GOVERNMENT, MMDAs ASKED TO SUPPORT PSOs GROWTH

Mr. Richmond Tetteh, Natl Prez, ASSI

The National President of the Association of Small Scale Industries (ASSI) Richmond Tetteh, has blamed successive governments for failing to create a conducive environment for private sector operators (PSOs) in the country to ensure the growth and expansion of their businesses.

According to him, a large percentage of members operated substantially on electricity to ensure maximum productivity, yet very little efforts were being made by governments to stabilize or arrest the protracted frequent power outages which were immensely affecting their businesses.

In a speech read for him at the maiden forum of the Northern Regional branch of ASSI in Tamale, Mr. Tetteh, said most of their businesses had also collapsed as a result of the low power supply, payment of high utility bills and the astronomical fees being imposed on PSOs by the Metropolitan, Municipal and District Assemblies (MMDAs).

He further cited the importation and smuggling of substandard materials into the country, which was killing most of the local industries. “I therefore urge the government to as part of the implementation of the Better Ghana Agenda put in place some mechanisms that will prevent the aforementioned problems and also strengthen security at the various borders/checkpoints and more especially at the ports and harbours.”

On the other hand, Mr. Tetteh pleaded with government to consider engaging more of the local industries/entrepreneurs for the awards of contracts to enhance their capacities especially the micro, small and medium scale industries.

The National President of ASSI also appealed to financial institutions to be a little more flexible and friendly in granting of their loan facilities to PSOs, stressing that the banks should have confidence in the organized groups or members who were already organized and grant them the needed support to boost their businesses for the benefit of the idle youth and nation at large.

The private sector forms the bedrock of many developed economies all over the world. In Ghana, the sector employs about 85 percent of the population and for that matter; issues that threaten their growth and expansion ought to be addressed when brought to the attention of authorities.

Besides, one of the many objectives of every government is to provide jobs for the people in collaboration with the private sector. But, in recent times, there are some teething problems threatening players in the sector.

According to a research report on the involvement of PSOs in taking decisions which affected them at the MMDAs level – A Case study of the East Mamprusi and West Gonja Districts, and the Tamale Metropolis; there was lack of education for PSOs on the fee fixing process by MMDAs.

Also, the report said fees paid by PSOs affected their businesses with the most cited effect being a reduction of their business income. This was because, the fees paid by PSOs were too much whereas staff of MMDAs thought it was okay, Saeed Abdul-Moomen, Chairman of the Northern Regional chapter of ASSI disclosed.

He explained that the research gathered that PSOs were not involved in the fee fixing process at the MMDAs whilst Assembly officials involved in the fee fixing lacked the knowledge in that aspect.

The report he said highlighted the presence of ASSI in the districts which was known to their members but largely unknown to other persons in each district. Besides, ASSI members thought that the MMDA authorities did not respond positively to their request whenever they approached them, and described the level of satisfaction of services rendered by government establishments as low.

Thus, the report recommended that a dialogue process be started in each MMDA between ASSI and the MMDAs staff who had the power to take decisions. Adding, it said their dialogue should intend to project ASSI’s image in the MMDAs whilst ASSI members should also consider organizing some events such as voluntary work in the spirit of corporate social responsibility, town hall meetings and inviting other stakeholders to their functions, especially MMDA staff, media, among others.

It also recommended the involvement of PSOs by MMDAs in decision making regarding the thorny issue of fee fixing and organizing more training programs for PSOs on public-private partnerships and other business skills, among others.

The Yendi Municipal Chief Executive, Issah Zakaria as well as his counterparts from Tolon District and Tamale Metropolis pledged their support towards private sector growth in their respective Assemblies.

The promised to enter into dialogue with the various players in the private sector in order to find out their major challenges regarding the payment of fees being charged so as to enable them boost their businesses and profit margins.

Meanwhile, the Association of Small Scale Industries has been in existence since 1986 on the initiative of the National Board for Small Industries. ASSI is constituted by several small scale industries associations but not individual small scale entrepreneurs. The membership of ASSI is at the moment restricted to private entrepreneurial associations in the manufacturing and service sectors. 

The ASSI has general objectives of assisting and strengthening new and existing small scale industries to achieve economic development and viability to ensure growth. It is also to influence government to approve policies and programmes which will enhance the provision of infrastructures and other economic facilities for small scale industries.