The Minister for Trade and Industry, Mr Ekwow Spio-Garbrah, has said the government will consider passing a legislation that will compel hotels and restaurants to display made-in-Ghana products if they fail to comply with the President’s directive to promote Ghanaian products.
“The time is coming when people will go round hotels and certain restaurants and if they don’t see these made-in-Ghana products, they will have a case to answer,” he said.
Mr Spio-Garbrah gave this warning when he paid a working visit to familiarise himself with the operations of GIHOC Distilleries.
He said it was true that the country was operating in a free enterprise environment “but the government and the people of Ghana have a stake in ensuring that the investments they make in factories like this will not go waste and not denied patronage,” he mentioned.
He added that state institutions that failed to offer similar products at state functions would also be sanctioned.
“We want to take this opportunity to invite state functionaries to make local products available at all state functions. The primary drinks that would be displayed at functions should be made-in-Ghana products,” he said.
“Foreign embassies and foreign establishments who are enjoying Ghanaian hospitality must also be required to display and use these products,” he added.
The minister also disclosed that made-in-Ghana campaign policies would come out soon and there would be room for incentives as well as censure for institutions that consciously disregard the President’s a directive of consuming locally made goods.
Industry disagrees
However, on a Graphic Business follow-up on the matter with the President of the Ghana Hotels Association, Mr Helbert Acquaye, on his views, he said there was no need to compel hotels to offer made-in-Ghana products on their premises.
He said the manufacturers of Ghanaian products should rather work on their marketing strategies to make their products available on the market.
“If the products are well-marketed and they are in demand, I don’t think any hotel will refuse to display or offer it on its premises. Coca Cola is sold everywhere not because the people were compelled to sell it but because the demand for it is high everywhere,” he explained.
He said the local manufacturers had not made any effort to work with the hotel industry and the hotels had little knowledge about their products.
Mr Acquaye said some of the Ghanaian products which were well-marketed were already being displayed in some hotels and restaurants in the country.
Contribution of GIHOC to economy
GIHOC Distilleries made a profit before tax of about GH¢4.8 million for the 2013 financial year and paid a dividend of GH¢300,000 on the 2012 operating profit.
The company paid an amount of GH¢1.125 million as corporate income tax and a total of GH¢3.482 million and GH¢7.050 for VAT and Excise Duty, respectively
GIHOC Distilleries is the only surviving unit under the erstwhile Ghana Industrial Holding Conglomerate, which was registered as a private limited liability company in 1993, and distils alcoholic beverages such as Castle Bridge, Dry Gin, Mandingo Bitters, Herb Afrik Bitters and Kaiser Schnapps.
The company is currently going through an expansion project which includes the establishment of a non-alcoholic section with laboratory, which is about 75 per cent complete and scheduled to be inaugurated by the end of the year to start production.
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