The Association of Ghana Industries (AGI) is advocating for a strategic reset of the country’s manufacturing sector to align with the government’s economic agenda, stressing the importance of industry in driving national development.
The push forms part of the Association’s broader objective of working closely with policymakers to ensure economic stability and industrial growth.
The ‘Resetting Ghana’ agenda, introduced by President John Dramani Mahama, is aimed at addressing the nation’s pressing challenges and steering it towards sustainable development. The agenda encompasses various policy initiatives designed to revitalize key sectors and improve the overall well-being of Ghanaians.
Ghana’s manufacturing sector is a key driver of industrialization, economic growth, and job creation. It contributes significantly to the country’s GDP, although it faces challenges such as high production costs, limited access to finance, and import dependency.
Key industries in the sector include agro-processing (cocoa processing, palm oil, food & beverage production), cement & construction materials, textiles & garments, pharmaceuticals and the automobile assembly.
In the light of government’s own agenda to “reset Ghana,” the AGI has called for deliberate policies that will stimulate industrial expansion, particularly in the face of forex volatility, high taxation, and other structural challenges that have hindered local production.
The AGI believes that a collaborative approach between the public and private sectors will be crucial in addressing operational issues and fostering a more resilient manufacturing industry.
Policy Prioritization and Industrial Growth
A key demand from AGI is the prioritization of indigenous businesses, particularly those in manufacturing, within the government’s 24-hour economy policy.
By placing local industries at the center of this initiative, AGI argues that businesses will gain the necessary support to scale operations, increase production capacity, and become more competitive both locally and internationally.
A strengthened manufacturing base is also seen as a prerequisite for Ghana’s effective participation in the African Continental Free Trade Area (AfCFTA). AGI asserts that for local manufacturers to take advantage of AfCFTA’s opportunities, they must be equipped with policies that promote growth, innovation, and export competitiveness.
Implications of Resetting Manufacturing Industries
The lead business association is confident that resetting Ghana’s manufacturing sector would have far-reaching economic implications. Firstly, addressing forex challenges and revising tax policies could ease the cost burden on manufacturers, making locally produced goods more affordable and competitive.
Additionally, a thriving manufacturing industry has the potential to create thousands of jobs across various skill levels, reducing unemployment and boosting household incomes. By strengthening the industrial sector, Ghana can reduce its reliance on imports, thus saving foreign exchange reserves and improving the country’s balance of trade.
Another critical aspect of the manufacturing reset is the need to enhance the country’s import substitution policy through agribusiness value chain development. By integrating agriculture with manufacturing, Ghana can add value to raw materials, create exportable finished goods, and enhance food security.
Collaborative Efforts for Sustainable Growth
AGI pledged its commitment to engaging with government bodies, including the office of the presidential adviser on the economy, to bring clarity and focus to key developmental areas, which collaboration, it believes will yield structured policy interventions that will ensure Ghana’s manufacturing sector is well-positioned to drive economic transformation.
