KSB BUSINESS AND POLICY REVIEW SERIES

KNUST SCHOOL OF BUSINESS

COLLEGE OF HUMANITIES AND SOCIAL SCIENCES

KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI

KSB BUSINESS AND POLICY REVIEW SERIES

Programme Brief

Programme overview:

The KNUST School of Business (KSB) was established in 2005. Since its inception, the school has contributed to high-quality business research and education and national and international conversations that impact global human development. The KSB believe that nation-building is a collective responsibility of all. A continuous dialogue among major stakeholders such as the political leadership, academia and the corporate sector is essential for effective policy-making and implementation, business development and growth, and quality business education and research outcomes. In line with this thought, the KSB has instituted the ‘KSB BUSINESS AND POLICY REVIEW SERIES’, a platform to facilitate dialogue among academia, politicians, policymakers, and the corporate sector on relevant national and international issues. The outcomes from the dialogue will contribute to quality policy-making and business development, particularly in Ghana and globally. The KSB intends to use the platform to promote non-partisanship discussion of national and international issues for the collective good of humanity. The dialogue will contribute significantly to conversations geared towards promoting national good.

Frequency:

The ‘KSB BUSINESS AND POLICY REVIEW SERIES’ will consist of a face-to-face panel discussion and a series of webinars on identified issues of national and international relevance. The face-to-face conversation will be held in the second semester of every academic year.

First Series

THEME: THE INDUSTRIAL TRANSFORMATION OF GHANA: STRATEGIC PRIORITIES

DATE: 13TH JUNE 2024

Discussants:

Prof. (Sr) Eugenia Amporfu (Department of Economics, KNUST)
Dr. Samuel Yaw Akomea (Department of Marketing and Corporate Strategy, KNUST)
Mr. Seth Twum-Akwaboah (CEO, Association of Ghana Industries)
Hon. Moses Asaga (Former Deputy Minister of Finance)
Mr. Austin Akufo Gamey (CEO, Gamey and Gamey Group)

POLICY BRIEF

Introduction

The KNUST School of Business held its maiden edition of the KSB Business and Policy Review Series on 13th June 2024 under the theme “The Industrial Transformation of Ghana; Strategic Priorities”. The discussants emphasized the need for Ghana's industrial policy to facilitate the adoption of advanced technology, global competitiveness strategies, improvement in product quality, green technology and market sustainability, human resource development, and continuous innovation. The discussants argued that patriotism and the enforcement of regulations are essential for the success of Ghana's industrial transformation agenda. The discussants noted that high interest rates, relatively high cost of energy, less advanced agricultural practices, inadequate corporate governance structures, succession planning challenges, weak raw material base, lack of infrastructure, import dependency, lack of cooperation and coordination among the various sectors of the economy, insufficient resources to train human resource and deploy relevant technologies, and ineffective leadership to inspire and ensure inclusivity are significant constraints to Ghana’s industrial transformation efforts.

Strategic Priorities towards Industrial Transformation in Ghana

The discussants argued that Ghana's industrial policy must be deliberate in identifying, developing, and targeting state support and investments in priority sectors of the economy to help minimize the country's import dependency. The discussants outlined the following strategic priorities for Ghana's industrial transformation.

Robust institutions for leadership accountability are needed to ensure effective, selfless leadership operations and best practices.
The discussants underscored the need for a national industrial development policy crafted through consultations with all stakeholders, including policymakers, business practitioners, researchers and the general public. Such a policy, once enacted, should be binding on all governments to ensure sustainable industrial development and continuity and stability in the country's industrial development framework. The discussants argued that ad-hoc industrial policies driven by party manifestos could not drive the industrial transformation of Ghana and ensure the sustainable growth of Ghana's industrial sector.
Improve negotiation skills to increase the country’s revenue from mineral extraction and international business operations. The panel observes the need for Ghana to embrace public-private partnerships (PPP) to develop the critical infrastructure required for developing and growing the country's industrial sector. However, they also observe the need for Ghana to strengthen its negotiation capabilities to ensure value-for-money transactions in PPP arrangements.
Develop the informal sector through training, development programmes, and the registration of informal firms to gradually integrate them into the formal economy.
Prioritize sectors and business operations with low production costs and robust value chains for state-sponsored business development support. The nation needs to explore and promote the sectors of the economy with comparative advantage and significant supply chains for business development and employment creation activities. Industrial policy should focus on the entire value chain of industrial activities, from agricultural production of raw materials to industrial production.
Facilitate easy access to both domestic and international markets for Ghanaian businesses through product standardization, quality improvements, enhanced packaging and adoption of innovative strategies by businesses and policymakers.
Enhance the efficiency and consistency of private sector operations. The discussants also highlighted the need to ensure that Ghanaian businesses are globally competitive. It is, therefore, essential to ensure a competitive business environment and macroeconomic stability in the country. Policy should be deliberate in creating an environment that will permit manufacturers to produce at a reasonable cost and be globally competitive.
Industrial policy must aim to stimulate commercial production in the agricultural sector. The State must target specific products that the industry needs most and use policy to stimulate the agricultural sector to produce them cost-effectively. This will ensure a sustainable supply of raw materials for industrial development. The nation must progress from food security to industrial production.
Identify and support priority industries such as glass, sugar, rice and tourism to ensure sustainable growth and job creation. This will significantly reduce Ghana's economic vulnerabilities and enhance its resilience to domestic and external shocks.
Tax exemption should be solely targeted at critical sectors of the economy with robust value chains, such as the textile sector.
Revision of labour compensation and rewards packages
Rigorous research to underpin industrial transformation. The State, private sector and research institutions must collaborate to ensure that high-quality research drives the industrial transformation of Ghana. Industrial growth can only be sustainable with a strong research base to drive the process.