Mr. Peter Bismark Kwofie, Executive Director of the Institute of Liberty and Policy Innovation (ILAPI), has called on the Government of Ghana to adopt strategic economic policies to protect the country from possible shocks if tensions between the United States and Iran escalate into a wider conflict.
Speaking in an interview, Mr. Kwofie warned that Ghana’s heavy dependence on imports leaves the country highly vulnerable to disruptions in global trade routes, particularly those passing through the Gulf region.
He explained that Ghana’s economic structure still relies heavily on imported goods, including food items, cosmetics, detergents and various industrial products.
According to him, the country’s relatively weak industrial base makes it more susceptible to external economic shocks whenever geopolitical tensions disrupt global supply chains.
“We are largely an import-driven economy,” he said.
He added that Ghana imports a significant portion of the goods consumed locally, making the economy sensitive to any disruptions in international trade.
“When you carefully examine the structure of our trade system, any disruption in global supply chains immediately affects our revenue and overall economic stability,” he noted.
Mr. Kwofie further explained that a decline in imports could have serious implications for government revenue since a large portion of national income comes from port duties, levies and taxes on imported goods.
He therefore stressed the urgent need for Ghana to translate its long-standing calls for industrialisation into concrete policy actions.
“This is the moment for Ghana to take advantage of the situation and industrialise the economy,” he said.
He noted that the country had missed several opportunities to strengthen domestic production during previous global disruptions such as the COVID-19 pandemic and the Russia–Ukraine war.
“We missed several opportunities during the COVID-19 pandemic and the Russia–Ukraine war. We cannot afford to repeat that mistake,” he stated.
Mr. Kwofie urged policymakers to introduce innovative, home-grown strategies aimed at strengthening local manufacturing capacity and reducing dependence on imports.
According to him, failure to act decisively could make it increasingly difficult for the country to achieve meaningful industrial transformation in the future.
“If we fail to take decisive steps to industrialise our economy now, it will become extremely difficult for us as a nation in the near future,” he warned.
Mr. Kwofie also explained that many goods imported from China into Ghana often pass through major trading hubs in the Gulf region, including Dubai, before arriving in the country.
He cautioned that any escalation of tensions in the Gulf region could disrupt these trade routes, affecting the availability of commonly imported consumer goods such as cosmetics, detergents and other household products.
“If these supply chains are disrupted, imports will decline, port activities will slow down, and government revenue from taxes and levies could reduce significantly,” he said.
