Ghana has long positioned itself as one of West Africa’s most attractive destinations for foreign direct investment, buoyed by political stability, market access under AfCFTA and a reputation as a regional trade hub.
Yet while foreign capital continues to flow into trading, distribution and services, large-scale manufacturing investments remain limited.
In an interview, Dr. Andy Ayiku, Senior Lecturer and SME Industry Coach at the University of Professional Studies, Accra (UPSA), says the hesitation by foreign investors to establish factories in Ghana is rooted less in interest and more in unresolved structural constraints.
“Many foreign investors are not opposed to manufacturing in Ghana,” Dr. Ayiku explained. “What they struggle with is the gap between policy intent and operational reality.
Trading is flexible and reversible. Manufacturing is capital-intensive and long-term, so investors are far more cautious.”
According to him, regulatory complexity is often the first red flag. While Ghana has improved its business registration processes over the years, manufacturing firms still face multiple layers of approvals once they move beyond incorporation.
Environmental permits, sector-specific licences and local authority clearances are often handled by different agencies with limited coordination.
“An investor may receive approval from one institution, only to be delayed by another with overlapping authority,” Dr. Ayiku said. “When timelines are unclear and processes are unpredictable, investors factor in delays and rising costs, which weakens Ghana’s competitiveness.”
Land access poses another significant challenge. Dr. Ayiku noted that manufacturing requires secure, large-scale land holdings with long-term certainty, something Ghana’s land tenure system struggles to guarantee.
Fragmented ownership, disputes and delays in title registration frequently disrupt project timelines.
“Foreign manufacturers want to know that once they acquire land, they can build, expand and operate without future disputes,” he said. “When land security is uncertain, investors either scale down their plans or relocate to jurisdictions with clearer land administration systems.”
Although industrial parks and special economic zones were designed to address this challenge, Dr. Ayiku observed that limited availability of fully serviced land and high costs have reduced their impact.
He added that inconsistent access to utilities such as power and water further compounds the problem for energy-dependent industries.
Skills availability is another area where Ghana faces a credibility gap. While the country produces a large number of graduates annually, Dr. Ayiku argued that many lack the practical competencies required in modern manufacturing environments.
“Manufacturing today is technology-driven,” he said. “Investors want technicians who can operate machinery, maintain systems and meet international quality standards. When firms must spend heavily on basic training, it raises production costs and discourages factory establishment.”
He stressed that the issue is not a lack of talent but a mismatch between training and industry needs, calling for deeper collaboration between manufacturers, technical institutions and universities.
Beyond infrastructure and skills, Dr. Ayiku identified policy uncertainty as a critical deterrent. Manufacturing investments, he explained, depend on stable trade, tax and industrial policies that allow investors to plan over long horizons.
“Frequent changes in tariffs, import restrictions or local content rules, sometimes without adequate transition periods introduce risk,” he said. “Investors are willing to comply with tough rules, but they need consistency and clarity.”
Dr. Ayiku believes Ghana’s strong appeal as a trading hub ironically works against its industrial ambitions. “Importing and distributing goods is faster and less risky. Until manufacturing offers comparable predictability, investors will continue to prioritise trade over factories.”
Despite these challenges, he remains cautiously optimistic. With targeted regulatory reforms, expanded industrial land development, stronger skills alignment and stable policy signals, Ghana could reposition itself as a manufacturing destination rather than merely a trading gateway.
“Manufacturing is not attracted by incentives alone, it thrives where systems work, costs are predictable and long-term commitments are respected. If Ghana gets these fundamentals right, foreign investors will not just trade here, they will build here,” Dr. Ayiku added.
