Ghana's Manufacturing Revolution: Local Sourcing Drives Industrial Growth and Job Creation

Ghana's manufacturing sector is experiencing a transformative shift as companies embrace local sourcing strategies, creating a ripple effect of economic opportunities across the value chain. This strategic pivot promises to accelerate industrialization while positioning the country as a continental manufacturing hub.

GB Foods Leads the Charge with 90% Local Sourcing Target

Trade Minister Elizabeth Ofosu-Adjare recently highlighted GB Foods as a shining example of this manufacturing evolution during a working visit to the company. The food manufacturing giant is set to achieve an impressive 90-100% local sourcing rate by 2025, a milestone that exemplifies Ghana's industrial potential.

"This is exactly what we are looking for. When raw materials are sourced locally, we can confidently say we are industrialising," Minister Ofosu-Adjare emphasized. "If we enjoy the whole value chain, that is where we get all the value."

The company's ambitious backward integration strategy includes securing 6,000 hectares in the Afram Plains for large-scale farming operations. By 2025, GB Foods plans to operate a 2,000-metric-tonne-per-day factory supported by 4,000 hectares of company-owned farms and 2,000 hectares cultivated through outgrower schemes.

Creating Jobs Across the Agricultural Value Chain

This local sourcing revolution extends far beyond manufacturing walls. The outgrower program will encompass diverse crops including tomatoes, onions, ginger, garlic, and turmeric, creating employment opportunities for farmers while ensuring steady raw material supply for processing and export.

"Sourcing raw materials locally means jobs for our farmers, jobs for our transporters, and benefits for everyone along the chain," the Minister noted, highlighting the multiplier effect of this approach.

Export Success Stories Fuel Continental Ambitions

Ghana's manufacturing prowess is already making waves across West Africa. GB Foods currently exports products to Burkina Faso, contributing valuable foreign exchange earnings. Dr. J. Teddy Ngu, Director for Institutional Affairs and Agribusiness Africa at GB Foods, expressed optimism about expanding to additional African markets.

"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," Dr. Ngu stated.

Textile Industry Revival on the Horizon

The government's commitment to local manufacturing extends to the textile sector, where significant opportunities await. During a visit to Precious Textiles Company Limited in Tema, Minister Ofosu-Adjare announced plans for three new garment plants and a strategic shift toward local uniform production for security agencies.

Currently operating at just 30% capacity, Precious Textiles represents untapped potential in Ghana's manufacturing landscape. The Minister's announcement of prioritizing local garment factories for government contracts signals a new era for the industry.

"The days when we go outside Ghana to sew while our factories suffer are over. With the right contracts and leadership, these factories can be revived, increase employment and eventually compete internationally," she declared.

Positioning Ghana as Africa's Manufacturing Hub

With the African Continental Free Trade Area headquarters in Ghana, the country enjoys a strategic advantage for continental trade. The Minister emphasized Ghana's investment-friendly environment and stable democracy as key factors attracting manufacturers.

"Manufacturing in Ghana and exporting to West Africa and beyond is the future," Minister Ofosu-Adjare stated, reinforcing the government's vision of positioning Ghana as Africa's industrial powerhouse.

Addressing Infrastructure Challenges

Success stories come with challenges that require government support. GB Foods spends approximately €700,000 annually on water, relying on tankers for 90% of its supply due to inconsistent public water provision. Addressing such infrastructure bottlenecks remains crucial for sustaining manufacturing growth.

The Minister acknowledged these challenges, assuring manufacturers of the government's commitment to creating an enabling environment for industrial success.

This manufacturing renaissance represents more than economic growth; it embodies Ghana's transformation into a modern, industrialized nation capable of competing on the global stage while creating prosperity for its citizens.