Annual Report and Financial Statements 2015 ASSOCIATION OF GHANA INDUSTRIES Annual Report and 2015 Financial Statements Annual Report and Financial Statements 2015 THEME: “GROWING LOCAL INDUSTRY FOR EXPORT DEVELOPMENT AND JOB CREATION” Annual Report and Financial Statements 2015 www.agighana.org 1 Annual Report and Financial Statements 2015 HE John Dramani Mahama President of the Republic of Ghana 2 www.agighana.org Annual Report and Financial Statements 2015 Content Page 1. Statement by Minister of Trade & Industry 5 2. Statement by the AGI President 8 3. Statement by Chief Executive Officer 12 4. Programme for 56th AGM 14 5. Mission Statement, Objectives, Services & Structure 17 6. National Council Members 19 7. Solidarity Messages from Partners 7.1 Ghana Chamber of Commerce and Industry (GCCI) 28 7.2 Chartered Institute of Marketing Ghana (CIMG) 29 7.3 Ghana Employers Association (GEA) 30 7.4 Federation of Association of Ghanaian Exporters (FAGE) 31 7.5 Ghana Chamber of Mines (GCM) 32 7.6 Ghana Standards Authority (GSA) 36 8. Report of Activities 8.1 Highlights 37 8.2 Budget Inputs for 2016 48 8.3 Business Barometer (BB) 50 8.4 AGI Support Flood / Fire Victims 53 9. Financial Statements 9.1 Report of the National Council 55 9.2 Independent Auditor’s Report 56 9.3 Income and Expenditure Account 58 9.4 Balance Sheet 59 10. New Members 2015 61 11. Acknowledgement 68 www.agighana.org 3 Annual Report and Financial Statements 2015 Dr. Ekwow Spio-Garbrah Minister of Trade And Industry www.agighana.org 5 Annual Report and Financial Statements 2015 Statement by Minister for Trade & Industry commend the Association of Ghana availability and adequacy of operational materials, Industries for holding its 56th Annual including packaging and technology. General Meeting (AGM) this year. During this AGM, I believe a lot of discussions The Ministry of Trade has indicated that if after Iwill take place aimed at strengthening a reasonable period of persuation, MDAs do not the competitiveness of local industries comply with the Policy, then consideration will and generating trade and investment be given to enacting legislation that will make opportunities for the private sector. I hope it mandatory for public institutions, whenever these interactions will also create the basis possible, to procure Made-In-Ghana goods and for constructive debate and discussions on services. issues affecting Ghanaian companies. The Government is willing to work closely with The AGM will serve as an opportunity to assess private sector organizations such as AGI to the performance of the Association over the past promote the patronage of Ghanaian products and year, identify challenges encountered and explore services across the country. means of addressing them to determine the way forward in the coming years. The importance of Due to the importance of this initiative to this year’s AGM is further underlined by the fact Government, I personally chair the meetings of the that new Sector Executives will be elected to steer MIG Committee as part of the mandate given to the affairs of the Association’s sub-sectoral groups. me by H.E. The President. Promotion of Made-In- Ghana goods and services is very critical to the Over the years, the deliberations of AGI have been challenge of strengthening the cedi, increasing geared towards raising public awareness of the exports and narrowing the trade and budget challenges confronting industry and harnessing deficits. In view of this, the exercise is dear to the the needed support for growth and development. agenda of the government and I pledge to work for Such events as the AGM, the Africa Industrialization the success of this initiative. However promoting Day and the Ghana Industry Awards have been MIG should not be confused with a banning of worthwhile as they continue to offer stakeholders certain imports. the needed opportunity to dialogue on pertinent issues that contribute to industrial development. The Government is taking into consideration issues of concern to industry and will adopt clear It is worthy of note that AGI is collaborating and strategies that will address key issues the AGI has partnering with government to address these been advocating for, such as the depreciation of issues at various levels, one practical example the cedi, influx of imported goods, access and high is the launch of a Campaign on Made-In-Ghana cost of credit, availability of power supply, industrial (MiG) products and services which was held last manpower development and training, etc. year. We believe that the effective implementation of This year, the Government, with the support of these strategies would turn around the fortunes of industry, has launched a Made-In-Ghana Policy industry in Ghana. Let us work together to create document which is aimed at creating the awareness jobs and wealth and therefore reduce poverty. among especially Ministries, Departments & Agencies as well as the general populace of the It is my pleasure to congratulate the Association of need to patronize Made-In-Ghana (MIG) goods Ghana Industries on the occasion of its 56th AGM. and services. The Policy also aims to improve the production, processing and distribution value chain of targeted products in terms of raw material 6 www.agighana.org Annual Report and Financial Statements 2015 FOREWORD by AGI President Council, who embraced this idea and every member who have travelled from far and near to join us in this historic event today. I also wish to commend our Ashanti/ Brong Ahafo Regional Executives, led by the indefatigable Regional Chairperson, Mrs. Afua Gyamfua Owusu-Akyaw, for their enthusiasm in hosting us today. I also wish to pay special tribute to Nana Asante Frempong, a former Regional Chairman of AGI, and a former member of Parliament, who has singlehandedly advocated for rotation in the venue of Annual General Meetings of the Association; Nana today, your dream has become a reality, and we commend you for that. In this third year of my stewardship as the President of this great Association, I have a pleasant duty to report to you on activities of the Association, with particular reference to 2016. This year began with a long list of activities planned for the year. We may not have achieved all, but I am happy to report that Mr. James Asare-Adjei most of the activities planned were executed. Whilst we have had good successes with some of the key advocacy activities undertaken, there are some issues that were advocated istinguish Ladies and Gentlemen, on but are yet to be fully implemented by our permit me first of all, on behalf of the policy makers. National Council, to heartily welcome everyone to this august assembly; the The theme for this year’s AGM, ‘GROWING DAnnual General Meeting of AGI. Your presence LOCAL INDUSTRIES FOR EXPORT DEVELOMENT here in great numbers is eloquent testimony of AND JOB CREATION’ has been carefully chosen your continuous manifestation and unalloyed to underscore the importance of growing sacrifice and commitment to the Association of export-oriented businesses to reduce the Ghana Industries, and the industrial sector, for country’s balance of trade deficit and shore up that matter. the local currency. Every effort should therefore be geared towards developing our exports to Distinguished Members of AGI, today we have support Ghana’s development. made history, for the first time in the Fifty- Eight (58)-year history of the Association, we I wish to first of all acknowledge the relative are having our AGM outside the National capital stability the economy has experienced this year, to the Ashanti region, to be precise Kumasi. As and we commend government for the Macro- the adage goes, ‘better late than never’. The economic stability. AGI urges Government intention to have our AGM outside Accra did to ensure sustainability of measures not start today, but the logistical challenges instituted, which are resulting in the seeming have always discouraged us from embarking on macroeconomic stability and improve on the this journey. I am therefore happy that, finally, general economic outlook of the country. we have succeeded in doing so. Let me take this opportunity to thank the members of the We also acknowledge the significant National Executive Committee and the entire improvement in energy supply to Ghanaian 8 www.agighana.org Annual Report and Financial Statements 2015 businesses in general. The unreliable supply of opportunities that are being created and make electricity was the biggest challenge that confronted the best out of it. There is a lot more work to be businesses last year. Hence the improvement comes done, though, and I seek your support and active as a welcome development. I would however quickly participation. add that, the improvement in the energy supply has brought in its wake the high and unbearable electricity tariff costs to industries in particular and AGI again, commends government for the coming businesses in general. Indeed, the apparent silence on stream of the TEN project and the subsequent by businesses in the last few months on the subject introduction of the FPSO Prof. John Atta Mills. We matter should not be misconstrued as acceptance are also excited to hear of the ENI gas processing by the business community of the current energy facility coming on stream next year. In all these, tariffs levels. It is indeed a helpless situation for we commend government and the various players Industries in particular and everything should for their efforts, these are major industrial projects be done to improve efficiency and subsequently that can boost industrial and economic activities reduce the tariff levels as it is rendering our in the country if properly harnessed. We would businesses uncompetitive. I also wish to reiterate however like to see a clear plan for linking all these AGI’s position, which we have been articulating for facilities to industrial development.