Ghana’s manufacturing sector expanded by 6.6% in the first quarter of 2025, according to new data from the Ghana Statistical Service, defying a broader industry slowdown led by a steep decline in oil and gas output.
Overall, the industrial sector grew by just 3.4% year-on-year, down from 6.7% in the same period of 2024. The decline was driven by a 22.1% contraction in the oil and gas sector, which weighed heavily on overall industrial performance. Despite this, manufacturing remained stable, reflecting the growing strength of domestic production.
The strong performance comes amid rising demand for locally produced goods, improved infrastructure, and efforts to integrate small and medium-sized enterprises into value chains. Policy initiatives aimed at expanding access to electricity, transport, and storage infrastructure under national industrialisation programmes also contributed to the sector’s resilience.
The data signals a shift in the structure of Ghana’s industrial output, with non-extractive activities such as manufacturing playing a more prominent role. The growth also aligns with broader trends in the economy, where non-oil real GDP grew by 6.8% in the quarter, outpacing overall GDP growth of 5.3%.
With oil revenue volatility continuing to affect the extractive sector, the manufacturing industry is positioned as a key pillar in efforts to diversify Ghana’s economy and strengthen its long-term economic stability.
