Ghana's Manufacturing Sector Embraces Local Sourcing to Fuel Economic Growth and Job Creation
Ghana's manufacturing landscape is experiencing a transformative shift as companies increasingly embrace local sourcing strategies, positioning the country as a regional industrial hub while creating thousands of jobs for Ghanaians.
Trade Minister Elizabeth Ofosu-Adjare has championed this movement, highlighting how manufacturing firms are revolutionizing their operations by sourcing raw materials locally, a strategy that promises to unlock Ghana's full industrial potential.
GB Foods: A Success Story in Local Value Chain Integration
Leading the charge is GB Foods, which has announced plans to source 90 to 100 percent of its raw materials locally by 2025. The company's ambitious expansion into commercial farming represents exactly the kind of innovative thinking that positions Ghana as Africa's next manufacturing powerhouse.
"This is exactly what we are looking for. When raw materials are sourced locally, we can confidently say we are industrializing," Minister Ofosu-Adjare emphasized during her visit to the company's facilities.
The economic impact is substantial: local sourcing creates jobs for farmers, transporters, and countless others along the value chain, demonstrating how strategic business decisions can drive nationwide economic growth.
Export Success: Ghana Products Reaching Regional Markets
GB Foods' success extends beyond local production. The company is already exporting to Burkina Faso, contributing valuable foreign exchange earnings to Ghana's economy. This export-led growth model exemplifies the potential for Ghanaian manufacturers to serve the broader West African market.
"Manufacturing in Ghana and exporting to West Africa and beyond is the future," the Minister noted, highlighting Ghana's strategic advantage as host to the African Continental Free Trade Area headquarters.
Massive Agricultural Investment: 6,000 Hectares for Food Security
Dr. J. Teddy Ngu, Director for Institutional Affairs at GB Foods, revealed the company's impressive backward integration plans: 6,000 hectares of secured farmland in the Afram Plains for large-scale agricultural production.
The ambitious project includes:
- 4,000 hectares of company-owned farms
- 2,000 hectares cultivated by outgrowers
- Production capacity of 2,000 metric tonnes per day
- Cultivation of tomatoes, onions, ginger, garlic, and turmeric
This outgrower scheme represents a win-win model, creating rural employment while ensuring steady raw material supply for processing and export.
Textile Industry Revival: Government Support for Local Production
The government's commitment to industrial growth extends to the textile sector, where Minister Ofosu-Adjare announced plans for three new garment plants nationwide. During her visit to Precious Textiles Company Limited in Tema, she outlined strategies to boost the sector's capacity utilization from its current 30 percent.
A game-changing policy shift will prioritize local garment factories for security agency uniform production, ending the practice of outsourcing abroad while domestic factories struggle.
"The days when we go outside Ghana to sew while our factories suffer are over," the Minister declared, signaling a new era of local content policies.
Investment Opportunities and Challenges
While celebrating these successes, industry leaders acknowledge infrastructure challenges. GB Foods invests €700,000 annually on water supply, relying on tankers for 90 percent of their water needs due to irregular public supply.
However, these challenges present opportunities for investors and development partners to support Ghana's industrial transformation through infrastructure development.
Vision 2025: Ghana as Africa's Manufacturing Hub
With its stable democracy, investment-friendly environment, and strategic location, Ghana is positioning itself as the premier destination for manufacturing investments in Africa. The success stories emerging from companies like GB Foods demonstrate the country's readiness to lead Africa's industrial revolution.
As Dr. Ngu noted, "Today, Ghanaians are seeing products exported from Ghana to Burkina Faso instead of imports. This is the Ghana-made, export-led economy we are working towards."
This transformation represents more than economic policy; it's a vision of African self-reliance and prosperity that resonates with diaspora communities and international investors alike.