Govt assesses financial health of GIHOC - Move to revamp company under 24-hour economy

The government is assessing the financial health of GIHOC Distilleries Company Limited as part of plans to revive its operations and make it more productive.

The assessment is to ascertain the kind of interventions needed to revamp the operation of the company under the 24-hour economy initiative, a campaign promise made by the National Democratic Congress (NDC) in the run-up to the 2024 general election.

The once-vibrant manufacturer of alcoholic beverages, established in 1958, is now faced with many challenges, including huge sums of debt, outdated machinery and equipment, underutilised production capacity and overstaffing, making it difficult to be profitable.

GIHOC restoration

The Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, in an interview with the media during a familiarisation tour of the company in Accra last  Friday, stated that the government was committed to restoring GIHOC to its past glory under the 24-hour economy initiative.

“And so, we need to do a proper valuation of the financial health of GIHOC and where the facility is at the moment. But what I can tell you for sure is that the President is committed to making sure that all our industries are up and doing and providing whatever assistance is needed to make them thrive.

“When we visited the factory, we saw that they are producing below their installed capacity; and so after the valuation has been done, we will know the total health of GIHOC and the kind of help to be injected,” she said.

Below capacity  

The minister explained that from the visit, it was clear that the majority of the production line was obsolete and producing below its intended capacity.

That, she said, had affected the cost of production of the company as machines that were supposed to process 12,000 bottles in a certain period now produced only 2,000 bottles.

Running 3 shifts

With quality products respected within and outside the country, Mrs Ofosu-Adjare stated that GIHOC under the 24-hour economy initiative would run three shifts to create more jobs for Ghanaians.

She said the company would also be supported to take advantage of international programmes such as the African Continental Free Trade Area (AfCFTA).

“The good thing about GIHOC is that they have quality products that are respected within and outside the country. So, once we know the health, whether it takes financing, machinery and labour, we will be able to do all of that because we hope to use the company to employ a lot of people.

“It is for them to take advantage of the 24-hour economy initiative and run three shifts and more importantly also take advantage of international trade agreements we have such as AfCFTA, among others,” the minister added.

Economic transformation

The acting Chief Executive Officer (CEO) of GIHOC, Jones Borteye Applerh, identified outdated machinery from 1964, debt servicing challenges and inadequate marketing as major obstacles hindering the company's full potential.

With its talented workforce, he said a revamped GIHOC could contribute significantly to the country's economic transformation by creating jobs and boosting exports to earn foreign exchange.

He added that the new GIHOC management was ready to work collaboratively with the Ministry of Trade, Agribusiness and Industry (MoTAI) to modernise operations and attract investors.