The National Treasurer of the Association of Ghana Industries (AGI), Mr. Ralph Ayitey, has urged businesses to take advantage of the Ghana cedi’s recent stability to import capital goods, particularly agricultural and manufacturing machinery, to boost local production and reduce reliance on imports.
Mr. Ayitey expressed concern about Ghana’s heavy dependence on food imports, which currently exceed US$2 billion annually.
He stressed that the time was ripe for businesses to invest in agro-processing and manufacturing capacity rather than consumer goods.
“This is a fine time to import capital goods that can help us to produce more, such as machinery for agriculture and manufacturing. Production must be ramped up, and import substitution should be taken seriously,” he said.
Mr. Ayitey called for a strategic focus on agribusiness as a critical sector for ensuring food security, tackling inflationary pressures, and fostering economic resilience.
He further urged businesses to adopt collaborative models, such as pooling resources or forming consortia, to meet the high investment demands of large-scale manufacturing ventures.
Highlighting the financing challenges facing entrepreneurs, the AGI Treasurer advocated for patient capital and lower interest rates to support long-term business sustainability.
“Ghana should aim to reduce interest rates to between six and nine percent by the end of 2026. This will create room for private sector expansion and ease inflationary pressures,” he explained.
While commending the Bank of Ghana for progress in stabilising inflation, Mr. Ayitey maintained that access to affordable credit remains a critical hurdle for many enterprises.
He argued that high borrowing costs have contributed to business failures, especially among startups, and called for financing models that allow entrepreneurs to focus on building sustainable businesses rather than struggling under short-term repayment pressures.
He also cautioned against unfair competition from imports, particularly in industries such as pharmaceuticals and cable manufacturing, which he said undermine local producers. “We need to understand our situation and be deliberate about solving our problems,” he noted.
The Treasurer’s comments come in the wake of government’s decision to waive import duties on agro-processing machinery to promote local production, enhance value addition, and cut down on food imports.
