Ghana’s Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu‑Adjare, has sounded the alarm over persistent shortages of raw materials, warning that the deficit is hampering the productivity and sustainability of local industries.
Trade and Industry Minister-designate Ofosu Adjare, during her parliamentary appearance, acknowledged that the One District One Factory (1D1F) programme has underperformed due to limited access to raw materials and capital, leaving many factories operating below capacity or dormant.
She noted that despite government backing, implementation challenges have persisted, with factories often unable to secure necessary inputs.
The Association of Ghana Industries echoed these concerns, highlighting that around 90% of raw materials used by local manufacturers are imported, driving up production costs, fueling inflation, and weakening the cedi.
In response, the government is advancing its 24-Hour Economy policy, which includes strategies like contract farming, input price controls, and targeted finance to ensure steady supplies for agro-processors.
Plans are also in motion to compel exporters of non-ferrous scrap metals to reserve some materials for local industry to strengthen domestic supply chains and reduce import dependence.
Ghana’s heavy reliance on imported raw materials continues to strain industrial growth, leaving initiatives like One District One Factory underutilized and contributing to broader economic vulnerabilities such as inflation and currency instability.
Structural challenges like inconsistent financing and a lack of domestic input sources have exposed a strategic gap in industrial planning.
Looking ahead, the government is banking on the July 24 National Agribusiness Forum to anchor a new policy direction focused on developing raw material hubs and agro-industrial parks.
Incentives tied to the 24-Hour Economy policy are also expected to support firms, while deeper engagement with exporters and agribusiness stakeholders aims to secure a more reliable domestic input supply.
The Trade Minister’s alarm underscores a systemic challenge: local industries are crippled by raw material shortages, supply chain inefficiencies, and financial constraints. Addressing this requires integrated policy action, local sourcing, contract farming, financial reform, and targeted incentives to transition Ghana’s industrial base from import-dependent fragility to resilient, value-added production.
Source: Myxyzonline.com
