Intra-Africa trade and investment to help Ghana reduce its import bill

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By Zimbabwe Investor on May 28, 2014. No Comments

Mauritius sugarcane firm Omnicane (MTMD:MP) is set to invest USD250 million into sugarcane plantations in northern Ghana, creating 2,000 jobs and boosting income in the impoverished region. A factory with an annual production capacity of 100,000 tonnes of refined sugar is expected to be established in the country.

Ghana consumes about 270,000 tonnes, and with no local production capacity, its entire sugar requirement is imported, adding to its huge, and recurring import bill which reached USD17.0 billion in 2013, up from USD11.0 billion in 2010.

A memorandum of understanding (MOU) was handed over to Ghana’s Ministry of Food and Agriculture officials to study. The agreement forms the basis for strengthening investment partnership in the agricultural sectors in both nations and correct imbalances in the Ghana’s import bill. This MOU followed one between the Ghana Stock Exchange and the Stock Exchange of Mauritius which set the stage for future bilateral treaties between the two nations.

The vice Prime Minister of Mauritius, Charles Xavier-Luc Duval, who is leading over 30 business delegation for a three-day visit to Ghana, pledged to share Mauritius’s longstanding expertise in fisheries, rice, poultry and sugarcane plantations with Ghana to help reduce its import bill. He also called on African leaders to explore varied dimensions of intra-Africa trade and take the opportunity in the existing trade gap as a move to diversify and stabilise the continent’s economies.