A factory producing tomato paste in Tema may proudly display a “Made in Ghana” label, but the packaging, processing equipment, industrial chemicals and even some of the tomato concentrate may have travelled thousands of kilometres before reaching the production line.
The same is true for many manufacturers across Ghana.
From food processing and pharmaceuticals to plastics, textiles and metal fabrication, many industries remain heavily dependent on imported raw materials, machinery and intermediate goods, leaving businesses vulnerable to exchange rate movements, high production costs and global supply chain disruptions.
While Ghana’s manufacturing sector has shown resilience in recent years, industry players say reducing import dependence remains one of the country’s biggest industrialisation challenges.
Many manufacturers estimate that between 60 and 90 percent of their production inputs are imported, depending on the industry.
Pharmaceutical companies import active ingredients and specialised chemicals. Plastic manufacturers rely almost entirely on imported polymers. Food processors import additives, preservatives, packaging materials and processing equipment.
Even companies using local agricultural products often depend on imported packaging, labels, spare parts and industrial machinery.
This means that although the final product is manufactured locally, much of its value chain originates outside Ghana.
The dependence on imported inputs makes manufacturers highly exposed to fluctuations in the value of the cedi.
Whenever the local currency weakens against the US dollar, the cost of importing raw materials rises almost immediately.
Manufacturers either absorb the additional costs, reducing profit margins, or pass them on to consumers through higher prices.
Businesses also face difficulties accessing foreign exchange when global demand for dollars increases, affecting production schedules and inventory planning.
Although the cedi has recorded periods of stability in 2026, manufacturers say long-term planning remains difficult because imported inputs dominate production costs.
Electricity remains another major cost for manufacturers.
Many factories identify power as one of their largest operating expenses after raw materials and labour.
Although electricity supply has improved in recent years, energy-intensive industries such as steel, aluminium, cement, ceramics and plastics continue to face relatively high electricity costs compared to competitors in some neighbouring countries.
Some manufacturers have invested in solar systems and energy-efficient equipment to reduce costs, but such investments require significant capital.
Industry experts say Ghana possesses abundant agricultural and mineral resources, yet many cannot be processed into industrial-grade inputs at the scale manufacturers require.
Local suppliers often struggle to provide consistent quality, sufficient quantities and reliable year-round supply.
Agricultural production remains seasonal, while limited storage and processing facilities result in shortages during parts of the year.
For manufacturers operating continuous production lines, inconsistent supply can be more costly than importing materials.
Weak linkages between farmers, processors and manufacturers also limit opportunities for developing domestic supply chains.
Government programmes aimed at industrialisation, including initiatives under the 24-Hour Economy policy, seek to strengthen domestic production and increase value addition.
Business associations argue that developing local supply chains would require investments in agro-processing, petrochemicals, steel production, industrial chemicals, packaging manufacturing and research.
Improved access to finance for local suppliers, better transport infrastructure and stronger quality certification systems are also seen as essential to reducing dependence on imports.
Economists say reducing import dependence would have far-reaching benefits beyond manufacturing.
Producing more industrial inputs locally could reduce demand for foreign exchange, strengthen the cedi, create skilled jobs, deepen industrialisation and improve Ghana’s trade balance.
It would also make factories more resilient to global shocks, such as shipping disruptions, geopolitical tensions and commodity price volatility.
Until then, many products bearing the “Made in Ghana” label will continue to rely heavily on imported materials, highlighting the gap between local assembly and truly local manufacturing.
