Accra, Oct 29, GNA - An initiative that seeks to develop the craft industry and increase annual export earnings from the current level of 11.3 million dollars to 76 million dollars in the next five years was launched in Accra on Wednesday.

The programme aims to turn the craft industry into a viable competitive one capable of generating employment, increasing incomes and productivity to support efforts at wealth creation and poverty reduction.

A three-prong production approach that offers technical support for existing craft production entities; assistance to five export companies and identification of 50 design oriented small producers to target and niche market for them is at the heart of plans to achieve the goals of the initiative.

Mr Alan Kyeremanten, Minister of Trade, Industry and President's Special Initiative, who performed the launch, said fluctuation in commodity prices for the country's primary exports was undermining efforts to cater adequately for the socio-economic needs of the people. He said the huge trade deficit, which had averaged about 400 million dollars in the last four years, called for pragmatic steps to diversify export trade and rein in the resources to accomplish the task of national reconstruction.

It is in this connection that Government in the past two years had adopted various strategies to harness available resources to improve and sustain the viable non-traditional sector.

Mr Kkyeremanten said the result of those efforts had been significant with non-traditional export earnings rising from 400 million dollars in 2000 to 504 million in 2002.

Similarly, the handicraft export earnings rose from 4.9 million dollars to 11.3 million dollars in 2002.

Notwithstanding, these gains, Mr Kyerematen said the handicraft industry was still beset with problems of poor quality, limited professional trade and management practices, lack of access to capital and the absence of a strategic national direction for craft development. He said the lack of direction had led to uncoordinated support interventions from both public and private agencies, leading to unproductive overlaps and loss of focus.

"The time has come for us to make a strong, positive move to harness available resources to raise the stakes of craft development. The production of crafts must no longer be seen simply as a cultural pastime but as a serious business."

He said the special initiative would provide assistance to introduce new technologies for sustainable mass production of high quality and design oriented crafts for exports.

He expressed the hope that the exporters would take advantage of the intervention for the benefit of their respective businesses and the country.

Mr Kwamena Bartels, Minister for Private Sector Development, said the handicraft sector had the potential for expanding the export of local artefacts to boost export earnings.

Some of the craft items are baskets, toys, jewellery, furniture, carvings and giftwares.