Ms Clare Short, the visiting British Minister of State for International Development, on Thursday called on African governments to work towards removing all factors which frustrate private sector growth and regional co-operation.

She expressed concern about the high interest rates charged by local banks and high tariffs imposed on imports from neighbouring countries saying these charges strangle the potentials for growth.

Ms Short was speaking during a visit to Tropical Cable and Conductor Limited (TCCL), a solely Ghanaian-owned private company which has been successful with the assistance given by the British Department for International Development (DFID) through EMPRETEC.

She said DFID is prepared to support EMPRETEC, established 10 years ago under a second Mutual Guarantee Fund, to enable it assist more businesses.Ms Short said her outfit is interested in private sector development stressing: "we want to strengthen people and improve the business climate for the private sector to flourish".

She said her government also wants to see the situation where African countries would be able to process their raw materials and export at competitive prices instead of exporting only raw materials at cheap prices.

This, she said, would help reduce the level of poverty in developing countries but the high tariffs and other barriers imposed by governments of developing countries are preventing inter regional co-operation.

Ms Short said it should be possible for donor agencies to untie the strings attached to loans so that some of the money could be used to purchase materials locally for donor funded projects to encourage local industries.

Mr Tony Oteng-Gyasi, Managing Director of TCCL who was one of EMPRETEC's first clients to receive entrepreneurial training, said his company has benefited immensely from the advice of British Executive Service Overseas (BESO) in the establishment of the company and training of manpower. There are 120 of such BESO advisers helping in various sectors of the economy.

Mr Oteng-Gyasi said last year, the company produced 314 metric tonnes of aluminium and copper cables, an increase of 11 percent over 1999 level and this year the company intends to process 400 metric tonnes. About 80 percent of its products is sold to Electricity Company of Ghana (ECG).

Mr Oteng-Gyasi said the company's future plan is to process aluminium ingot into aluminium rod, a project that is estimated to cost five million dollars, but TCCL is frustrated by the lack of finance. Ms Short who said she was impressed with the efficiency and quality of work of TCCL advised the Managing Director to contact the British Commonwealth Development Corporation (CDC) for assistance.

Dr Rod Pullen, British High Commissioner in Ghana and officials of DFID, accompanied her