Michael Harry Yamson, the Managing Partner of Ishmael Yamson & Associates, has voiced his concerns about the government’s intentions to reintroduce the Import Restriction Bill. According to him, the government’s approach lacks “trade diplomacy” when pursuing the policy.
Yamson emphasized the need to engage with key trade partners like China, which supplies 42% of Ghana’s imports, and the World Trade Organization (WTO) to minimize potential trade conflicts.
Trade Minister, K.T. Hammond, is convinced that measures need to be taken to control the influx of certain commodities. However, Mr. Yamson cautioned that if the minister successfully imposes an Import license regime, Ghana’s industry will struggle to raise domestic production in the short to medium term.
Yamson estimates that rice output would need to increase by 70%, sugar production by 900%, poultry output by over 200%, juice production by 100%, and animal intestines by 300%. He cautioned that the inevitable shortages that would arise from these measures could negatively impact inflation.
Further concerns were raised about any retaliatory actions from trade partners, which could adversely affect Ghana’s trade balances, currency stability, and access to budgetary support from key trade partners.
When asked if Ghana needs this policy, Mr. Yamson responded, “Not as designed because we do not have the infrastructure to absorb this level of market expansion.” He suggests implementing the policy alongside significant improvements in infrastructure and providing incentives and subsidies to support supply growth.
Mr. Yamson also expressed concern about potential unforeseen consequences, warning that unpreparedness for potential shifts in consumer preferences could create an “illicit economy.” He also raised concerns about the potential for increased corruption and political patronage under the license regime.
In his final remarks, Mr. Yamson stressed the importance of a well-managed, gradual transition, and suggested several measures to support industries and manufacturing firms in Ghana. These include reducing high taxes and tariffs on raw material imports and utilities, rewarding investors, and supporting them to shift to off-grid cleaner energy solutions and technologies to boost productivity.
While the intention behind the Import Restriction Bill is to protect local industries, Mr. Yamson advised that a balanced and gradual approach, coupled with infrastructural development and industry support, would be the key to achieving sustainable growth in Ghana’s economy.
