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Unido/Lo Industrial Sector Review and Programming Mission to Ghana

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Unido/Lo Industrial Sector Review and Programming Mission to Ghana OCCASION This publication has been made available to the public on the occasion of the 50th anniversary of the United Nations Industrial Development Organisation. DISCLAIMER This document has been produced without formal United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO. FAIR USE POLICY Any part of this publication may be quoted and referenced for educational and research purposes without additional permission from UNIDO. However, those who make use of quoting and referencing this publication are requested to follow the Fair Use Policy of giving due credit to UNIDO. CONTACT Please contact [email protected] for further information concerning UNIDO publications. For more information about UNIDO, please visit us at www.unido.org UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna International Centre, P.O. Box 300, 1400 Vienna, Austria Tel: (+43-1) 26026-0 · www.unido.org · [email protected] Distr. RESTRICTED PPD/R.54• 12 August 1992 UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ORIGIN'"' L: ENGUSH UNIDO/LO INDUSTRIAL SECTOR REVIEW AND PROGRAMMING MISSION TO GHANA .. • • Rei.f.med for teclinict.I re.a sons. V.92-56240 . ' • , This report has been prepared by the Regional and Country Studies Branch, Industrial Policies and Perspectives Division and Africa Programme, Area Programmes Division of UN/DO on the basis of inputs provided by UN/DO consultants: Ms. Elizabeth Allotey, Dr. Robert Arunga, Dr. Helen O'Neill, Mr. Eric Wightman, Mr. Kwasi Poku, and Dr. Ferdinat1d Tay; and /LO consultant, Mr. Raymond Milne. The designations employed and the presentation of material in this report dots not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UN/DO) concerning the legal status of any country, territory, city or • area or of its authorities, or concerning the tit/imitation of its frontiers or boundaries. Mention of company namn ant: commercial products dots not imply t!ie endorsement of UN/DO. Thfr document has not been edited. PREFACE The Government of Ghana arJ the UNDP Office in Accra, have requested UN/DO and /LO • to analyze the current economic, institutional and industrial policy trends at the industry and subsector levels, to reveal problem= and constraints to inJustrial development and on this basis to identify priority areas for technical assistance in industry within UNDP's Fifth Country Programme • 1992-1996. The present report was prepared on the busis of an UN/DO I /LO mission. Tile findings and recommendations of the mission explicitly reflect the priorities expressed by the Government of Ghana in its draft Industrial Policy Statement and in other policy documents as well as the priorities cf Ghana's international technical co-operation partners. The mission's report is structured as follows: Chapter I presents an assessment of the impact of macroeconomic policies on industry and underlines the major medium-term challenges faced by the country. Chapters 2 and 3 prm•ide an analysis of the key industrial policy issues and assess national capabilities to implement policies. Chapa er 4 and 5 analyse in detail the manufacturing sector and its key subsectors. Chapters 6 and 7 assess the possibilities for enhancing human resources for industrial development, particularly emphasizing the importance of the integration of women in the industrialization process. Chapters 2 to 6 are concluded by identifying major problems and constraints as well as actions to address them. The final chapter, Chapter 8, presents identified priority areas for technical assistance to industry. These broad areas address key policy issues and refiect technical assistance needs of manufacturing industry and important subsectors. The formulation of projects and activities within each broad area as well as identification of resource requirements will need to be undertaken as an essential follow-up to this report. This will enable the Government of Ghana and UNDP to design and initiate the implementation of the ne:rt Country Programme without any delay. The mission team visited the Republic of Ghana during the period 31 July to 30 August 1991. The mission was supported by the UNlDO Country Director for Ghana, Mr. Mohammed Kamali, who visited Ghana in the period 7-24 August and the lLO Regional Adviser, Mr. Cornelius Dzakpasu in the period 8-30 August 1991. The mission was also assisted by Mr. Cornelius Adablah, National Programme ~Jficer, !INDP Of/ice in Accra, who provided inputs to the report and Mr. Thomas Bernklau, U'l/IDO Junior Professional Officer. The mission would like to ,•xpress its gratitude to Captain Butah, PNDC Secretary for Industries, Science and Technology, Deputy PNDC Secretary, Dr. Kwabena Adjei, and their staff as well as to officials in key min. stries and Government agencies for their support. The mission is also grateful to representatives ..,f Ghana's development assistance partners for their advice and support. Finally, the m1ss1on would like tc ex press its sincere gratitude to the UNDP Resident Representative, Ms. Lynn Wallis, for her unwavering support and encouragemrnt. ii TABLE OF CONTENTS Cit apter PRlFACE . i TABLE OF CONTENTS . ...................................... ii LIST OF TABLES AND FIGURES . iv LIST OF ABBREVIATIONS ................................................ v • I ECONOMIC POLICY FRAMEWORK .................................... 1 I.I MAJOR ISSUES OF INDUSTRIAL POLICY . ............................. I 1.2 IMPACT OF RECENT MACROECONOMIC POLICIES ON INDUSTRY . ........ 1 1.3 PROBLEMS OF THE TRANSITION .................................... 2 2 KEY POLICY AREAS IN THE INDUSTRIAL SECTOR ...................... 4 2.1 THE PRIVATE SECTOR AND INVESTMENT PROMOTION ................. 4 2.2 SMALL-SCALE INDUSTRY .......................................... 7 2.3 EXPORT PROMOTION ............................................. 10 2.4 SPATIAL DISTRIBUTION AND DECENTRALIZATION ................... 12 2.5 RESEARCH, SCIENCE AND TECHNOLOGY . .............. 14 3 NATIONAL CAPABILITIES TO IMPLEMENT INDUSTRIAL POLICIES ...... 19 3.1 PUBLIC SECTOR INSTITUTIONS .................................... 19 3.1.1 MIST and its agencies ....................................... 19 3.1.2 National Development Planning Commission (NDPC) ................ 23 3.1.3 Other public agencies ........................................ 23 3.1.4 Inter-agency consultation and co-ordination activities ................ 26 3.2 PRIVATE SECTOR AGENCIES ....................................... 26 3.3 PROPOSED ACTIONS ............................................. 28 3.3.I Institutional strengthening .................................... 28 3.3.2 Capacity building ........................................... 28 3.3.3 Specific actions ............................................ 29 4 THE MANUFACTURING SECTOR .................................... 30 4.1 DATA AND DEFINITIONS .......................................... 30 4.2 STRUCTURE OF THE SECTOR . ................ 30 4.3 CAPACITY UTILIZATION .......................................... 32 4.4 LINKAGES AND INFRASTRUCTURE ................................. 33 4.4.I Linkages ................................................. 33 4.4.2 Rehabilitation of transport, telecommunications and water infrastructure .. 34 4.5 ENERGY ........................................................ 34 4.6 ENVIRONMENTAL PROTECTION .................................... 36 5 THE MANUFACTURING SUBSECTORS ............................... 39 5.1 AGRO-BASED INDUSTRIES ........................................ 39 5.1.I Wood processing industry ..................................... 39 5.1.2 Food processing indu:rtritr .................................... 43 5.1.3 Fish processing . .................................. 48 5.1.4 Textiles, garments. and lt'1thtr ................................. 49 5.2 CHEMICAL INDUSTRIES .......................................... 51 5.3 ENGINEERING INDUSTRIES ........................................ 56 5.4 NON-METALLIC MINERAL-BASED INDUSTRIES ...................... 58 1S ENHANCING HUMAN RESOURCES FOR INDUSTRIAL DEVELOPMENT ..... 60 6.1 SOCIO-ECONOMIC C.,OALS AND OBJECTIVES ......................... 60 6.2 PROBLE.'.IS CONSTRAIN/NG ACHIEVEMENT OF OBJECTIVES ............ 61 6.3 TRAINING: NEEDS, PROGRAMMES, AND GAPS ........................ 62 6.4 PROPOSED ACTIONS ............................................. 64 iii TABLE OF CONTENTS (continued) Cbaptfr 7 INTEGRATION OF WOMEN IN INDUSTRIAL DEVELOPMENT . 65 7.1 PARTICIPATION OF WOMEN IN INDUSTRY . 65 7.2 PROBLEMS AND CONSTRAINTS . 68 7.3 PROSPECTS FOR WOMEN'S INTEGRATION INTO MANUFACTURING . 71 7.4 POLICIES AND INSTITUTIONAL FRAMEWORK . 72 7.5 PROPOSED ACTIONS . 73 8 FINDINGS AN:J RECOMMENDATIONS: PROPOSED FRAMEWORK FOR TECHNICAL ASSISTANCE FOR INDUSTRIAL DEVELOPMENT.......................
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