Ghana’s efforts to build a stronger domestic economy will remain limited unless deliberate policy measures are introduced to stimulate demand for locally produced goods and give domestic industries the opportunity to compete, Professor Frederick Doe of the Faculty of Management at the University of Professional Studies, Accra (UPSA), has argued.
According to Prof. Doe, the challenge facing many Ghanaian businesses is not only their ability to produce, but their struggle to compete in a market where imported products often enjoy cost advantages over locally manufactured alternatives.
He believes government must move beyond appeals for citizens to buy Ghanaian products and instead deploy economic policies that create a more favourable environment for local producers.
“The only way we can support that is through policy,” Prof. Doe told The High Street Journal in an interview.
He explained that while consumers have the right to choose what they purchase, government policies can influence market conditions by determining the level of competition local businesses face.
“If you tell the average Ghanaian, don’t consume imported rice, they will say it is my choice. My money, I decide what I do with it,” he said.
However, he argued that policy interventions such as import controls, tariffs and government procurement decisions can help create stronger markets for Ghanaian producers.
“If he goes to the market and doesn’t find the foreign product that he is looking for, then he is obliged to fall on the local product,” he added.
The challenge of competing with imports
Prof. Doe said many Ghanaian businesses operate at a disadvantage because they compete with foreign companies that often benefit from stronger production ecosystems, government support and subsidies in their home countries.
“Ghanaian businesses compete a lot with foreign-based businesses,” he said.
“These foreign-based businesses usually are heavily subsidised in their own countries. They are able to produce at a cheaper cost and export to Ghana.”
According to him, local producers often face higher production costs due to expensive raw materials, import charges and limited support systems, making their products more expensive compared to imported alternatives.
“The local producer has to import the raw materials. The cost of importing raw materials is so exorbitant that if they pass that cost on to the consumer, we then see it as a higher cost compared to the foreign-produced items,” he explained.
Beyond consumer choice: Building a domestic market
For Prof. Doe, strengthening Ghanaian industries requires more than encouraging patriotism among consumers. It requires building a domestic market where local businesses can grow, expand production and create employment.
He pointed to agriculture as an example, noting that Ghana continues to import significant quantities of food products despite having the capacity to produce many of these items locally.
He argued that reducing dependence on imported food products through policy measures could increase opportunities for local farmers and agro-processors.
“If the government decides to limit the import of foreign-produced foodstuff… the local person producing rice in Afram Plains or the northern part of the country gets an opportunity to sell to local consumers,” he said.
Such measures, he believes, would strengthen demand for local production and encourage more investment into agriculture.
Government spending as a tool for industrial growth
Prof. Doe also highlighted government procurement as another way of supporting domestic industries.
He argued that state institutions can play a role in creating markets for Ghanaian companies by prioritising locally produced goods and services.
Using the example of local vehicle manufacturing, he said government support could help domestic companies scale.
“If government establishments decide that if you are going to buy a car for business use, buy it from Kantanka, can you imagine what that means? It will shore up the demand for Kantanka cars and give them money to produce more,” he said.
According to him, stronger demand would enable local firms to expand, hire more workers and develop more competitive production systems.
Building industries through policy choices
Prof. Doe’s argument reflects a broader economic question facing many developing economies: how to build competitive domestic industries in a global marketplace.
While open trade provides consumers with access to a wider range of products, he believes Ghana must carefully balance imports with policies that allow local businesses to develop.
For him, creating a stronger domestic market is essential if Ghana wants its industries to grow and contribute meaningfully to employment creation.
“Government must create the environment where people can thrive, where people can establish themselves,” he said.
As Ghana continues to search for solutions to unemployment and slow industrial growth, Prof. Doe believes policy choices around production, imports and consumption will determine whether local businesses remain small players or become engines of economic transformation.
