The Association of Ghana Industries (AGI) has urged the government to take a fresh look at the country’s industrialisation strategy. Speaking at a recent engagement with the Ministry of Finance, AGI’s Chief Executive Officer, Seth Twum-Akwaboah, expressed deep concern over the current industrial framework, highlighting how local manufacturing capacities are being underutilised. He emphasized the need for more effective policies to protect local industries and create a fair playing field in the market.

Despite having the capacity to produce goods such as cables, diapers, and cooking oils, Ghana continues to rely heavily on imports. This reliance, Twum-Akwaboah argued, weakens the local manufacturing sector, stifling economic growth and job creation. He called for stronger enforcement of existing trade policies, suggesting the formation of a task force to ensure compliance, thereby reducing the pressure on local industries facing rising costs, inflation, and high energy prices.

Another pressing issue raised by AGI is the impact of dollarisation on the economy. Finance Minister Dr. Mohammed Amin Adam warned businesses against hoarding foreign currency, a practice that exacerbates exchange rate volatility and undermines the stability of the cedi. Some companies have been found converting cedi earnings into dollars, creating artificial shortages and worsening the cedi’s depreciation. Twum-Akwaboah backed the Minister’s call for ethical business practices, urging AGI members to avoid such damaging actions.

Twum-Akwaboah also underscored the need for collaboration between the government and industry stakeholders to reform the tax regime and improve access to capital for businesses. For local industries to compete on a global scale, Ghana must also reassess its macroeconomic environment, ensuring stability in exchange rates and reducing the high cost of doing business.

This call for reassessment comes at a time when the country is grappling with economic challenges, and AGI’s advocacy is a timely reminder of the importance of aligning industrial policies with national economic goals. A shift towards stronger local production could serve as a catalyst for industrial growth, fostering job creation and reducing Ghana’s dependence on imports.