Media Briefed On AGI Business Barometer

There is a natural optimism in the Ghanaian business community that the precarious business situation will get better, Mr. Tony Gyasi, President of Association of Ghana (AGI), has said. That optimism, he said stemmed from the country�s recent oil find, good business climate, and the stabilization of the cedi at 17 per cent, which he described as �still very high and nowhere near an ideal situation of a single digit inflation� Addressing the media on Wednesday on AGI Business Barometer for the third quarter of the year, 2009, Mr. Oteng-Gyasi, therefore called on the government to do something �dramatic and timely now� to enable the businessmen and women realize their expectations. The Business Barometer, which captures the current business climate in Ghana, allows short-term forecasting and provides valuable information to business investors and government. Mr. Oteng-Gyasi, in an answer to a question, said he believed something good could come out of the 2010 budget to be presented to Parliament by the Finance Minister, Dr Kwabena Duffour, next month. He said his belief stemmed from the comprehensive closed door discussions and proposals the AGI had on Tuesday with the Minister on the budget. Mr. Oteng-Gyasi said in that discussions, the Minister recognized that good things could come out of the 2010 budget, but sustaining them would depend on the level of assistance given to the manufacturing sector to compete favorably with other foreign businesses. The AGI President however, hinted that the Association, with effect from next January, advocates the implementation of �some proposals� it made in a Memorandum of Understanding (MOU) it signed with all Presidential Candidates before the 2008 general elections. He commended President Mills for expressing his willingness to implement those �proposals� when the AGI met him shortly after he had taken office as President. Mr. Oteng-Gyasi said even though the prime rate had been kept stable by the Central Bank in a bid to control cost of credit, inflation, and access to credit, companies still perceived lending rates as a major barrier to accessing credit. �Evidently, there is the need for the Central Bank�s intervention to cushion all businesses including those that have a long term investment horizon yet require credit,� he said. Mr Oteng-Gyasi said a total of 279 micro to big companies from various industries across Ghana were interviewed for the third quarter business barometer, with questionnaires administered either face-to-face, or by telephone, interviews and drop-offs. He said the business barometer revealed that Ghana business executives relied too much on face-to-face contacts instead of using facilities like telephones, e-mail and internet to do business. �it shows the dislike of the use of technology by Ghanaian businesses,� he said.