The Non-Traditional Exports (NTEs) sector has seen increases in revenue in recent times. From a mere US$400 million in 1999, it rose to about US$1.4 billion at the end of 2009.
The sector’s growing significance has boosted the economy, especially in terms of foreign exchange earnings.
Pineapple was a key feature of the NTEs until 2005, when the MD2 variety from Costa Rica, which is yellowish in colour and also has a longer shelf life, nearly wiped away Ghana’s smooth Cayenne, especially from the European market.
The DAILY GRAPHIC recollects efforts in the past that led to a support of US$ 2 million to the Ghana Export Promotion Council (GEPC) and the Sea Freight Pineapple Exporters of Ghana (SPEG).
This support was to buy the suckers, which were then sent to South Africa to test the authenticity of the products. The efforts by the government yielded some positive results, which the exporters praised highly.
At a point, our research institutions developed the suckers for the country to support the sector to enable it to compete favourably on the world market.
The question then is: What has happened thereafter? The news that pineapple export has witnessed a decline of about 60 per cent in export volumes at the end of last year (as reported elsewhere) is very worrying indeed.
But the problems of the horticultural sector of the NTEs go far beyond the change in taste and preferences of our main markets. The problem, the DAILY GRAPHIC believes, has got to do with structures, procedures and regulatory requirements covering this very important sector of the economy.
Today, any Tom, Dick and Harry with a small briefcase of Ghana cedis can just plant, harvest and export most NTE products without being controlled by any regulatory framework.
The nature of smallholding farming in the country and the unwillingness of such smallholders to co-ordinate their activities in this crucial sector to give value for money have contributed, rather immensely, to the mess in which the country currently finds itself.
Today, yam exports have overtaken pineapple as the leader in the horticultural exports, but the DAILY GRAPHIC can predict that the yam exports will suffer the same fate as the pineapple sector, if the same lackadaisical attitude to business is pursued.
Indeed, the DAILY GRAPHIC is worried that the government’s projection of US$5 billion worth of exports in the next five years will be a mirage if steps are not taken to address the challenges facing the NTEs sector.
We, therefore, suggest and very strongly too that the government, through the Ministry of Trade and Industry and sector agencies, must quickly draw up the legal requirements that must govern all exports under the NTEs.
Again, every exporter must be made to register with the GEPC and their licence renewed every year to ensure that the wheat is separated from the chaff.
In this global village, where businesses strive on information and timely delivery of services, individuals must not be allowed to do things anyhow, especially when it comes to exports.
The government has an active role to play in this sector. The potential of the NTEs to bring about the hard-earned foreign exchange to shore up the government’s external reserves, as well as improve the economic well-being of the rural folks, in particular, is tremendous.
Let the GEPC take the bull by the horns and crack the whip to make all exporters fall in line. However, in doing that we must not create the impression that Small and Medium-Scale Enterprises are not welcomed. Rather, they should be supported to grow and contribute their quota to the Better Ghana agenda.
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