'We have full local capacity, yet ECG imports' – AGI

The Association of Ghana Industries (AGI) has criticized the Electricity Company of Ghana (ECG). They accuse ECG of harming local manufacturers by importing large amounts of electrical cables.

On April 5, AGI CEO Seth Twum-Akwaboah expressed anger over reports. Over a thousand containers of electrical materials, mainly aluminium conductors, have been imported. Many of these imports are allegedly unaccounted for.

AGI argues this violates Ghana’s local content law, L.I. 2354. They believe it severely impacts local industry.

AGI stated, “For a state institution already in debt, this is unfortunate.” They acknowledged the Energy Minister's efforts to promote local content.

AGI is frustrated and questions why ECG chooses imports. Local factories have responded to ECG’s call for domestic capacity development.

“ECG has promoted local content over the years,” AGI noted. The government passed the Local Content Law in 2017 to support this effort. Thousands of jobs were created as a result.

Local manufacturers began using aluminium from VALCO as raw material. AGI emphasized that Ghana can fully produce aluminium conductors locally with VALCO's materials.

“Importing such huge volumes breaches L.I. 2354,” they stressed.

They pointed out that local manufacturers are owed significant sums of money. Meanwhile, importers receive prompt payments.

This situation raises concerns about ECG’s procurement practices. It highlights a contradiction: local industries struggle for payments while foreign importers are favored.

AGI demands urgent action from the Minister of Energy and Green Transition. They want an investigation into these illegal imports and their nullification.

“All imports contrary to L.I. 2354 must be investigated,” they stated. The government should refuse responsibility for such imports.

Additionally, AGI urged the government to improve public financial management systems. They called for better internal controls and frequent audits.

They also want prioritization of payments owed to local manufacturers, similar to those for power generators.

Without strict enforcement of the local content law, AGI warns that Ghana's industrialization dream will remain unfulfilled.

“Local suppliers who only import finished items do not qualify as local content suppliers,” they clarified.

“We await government action on this critical matter,” they concluded, emphasizing their readiness to engage and support further efforts.