The Association of Ghana Industries (AGI) has cautioned that local manufacturers are grappling with falling sales and subdued consumer demand, even as Ghana’s broader economy shows signs of recovery.
AGI President, Dr. Humphrey Ayim-Darke, revealed that member firms have reported a marked decline in the consumption of locally produced goods since the start of 2025.
He attributed the slump to tight liquidity in the economy, which continues to erode the purchasing power of both businesses and households.
“We are asking for the stimulation of the economy. There are some cheap products coming in due to the cheap cost of imports affecting productivity. There’s a clear disconnect between macroeconomic indicators and what’s happening on the ground. Inflation has slowed, yes, and there are signs of recovery, but liquidity is tight,” Dr. Ayim-Darke said.
The trend poses a setback for local industries that had hoped for a rebound following a difficult 2024, when high inflation, currency depreciation, and slow growth weighed heavily on business activity.
With inflation now easing and the Ghanaian cedi relatively stable, industry leaders had expected stronger domestic consumption and a renewed boost in industrial output.
Instead, many companies still struggle with limited access to credit and weak cash flow in the private sector. Dr. Ayim-Darke emphasized that this is undermining investor confidence and affecting job creation, particularly in sectors that are critical for sustaining Ghana’s industrial base.
The AGI is urging government and financial institutions to adopt targeted measures to ease liquidity pressures. These include improving access to credit for manufacturers, ensuring prompt payments for public sector contracts, and providing support packages for distressed industries that continue to operate below capacity.
While recent reforms have brought stability to inflation and exchange rates, the AGI warns that these improvements are yet to translate into real benefits for businesses and households.
The group is calling for a more inclusive recovery strategy that addresses the operational challenges of local industries, particularly small and medium-sized enterprises (SMEs), which form the backbone of Ghana’s manufacturing base and play a vital role in job creation and economic resilience.
