By Jibril Abdul Mumuni, GNA
Accra, Nov. 11, GNA – The Association of Ghana Industries (AGI) has called on the Government to make import substitution a central pillar of the 2027 Budget, to drive industrial growth and accelerate economic transformation.
The AGI said Ghana possessed significant untapped industrial capacity in several sectors and that targeted policy interventions could help local manufacturers meet a larger share of domestic demand.
Dr Kofi Nsiah-Poku, President of the AGI, made the call in an interview monitored by the Ghana News Agency ahead of the presentation of the 2027 Budget.
The Finance Minister, Dr Cassiel Ato Forson, is expected to announce a major economic transformation programme anchored on industrial growth and import substitution.
The AGI President noted that while the 2026 Budget had helped restore a measure of macroeconomic stability, the next phase of economic management should focus on growth, industrial expansion and job creation.
The AGI President stressed that import substitution offered a practical route to industrial growth because many locally manufactured products already had sufficient production capacity to meet market demand.
Industries producing flour, vegetable cooking oil, electrical cables, towels and baby diapers possessed substantial installed capacity, yet many factories were operating below 50 per cent utilisation.
He said the country continued to spend significant amounts on importing products that could readily be produced domestically, despite the existence of excess capacity in some manufacturing subsectors.
Dr Nsiah-Poku urged authorities to strengthen border surveillance and customs enforcement to prevent unfair trade practices that undermine local manufacturers.
He expressed concern about instances where imported goods entered the country through unapproved routes or were undervalued at the ports, resulting in lower duty payments and unfair competition for domestic producers.
The AGI President said improved enforcement would not only support local industries but also enhance domestic revenue mobilisation for national development.
He welcomed Government’s proposed economic transformation agenda and pledged the association’s support to achieving it, stressing that the success of the programme would depend largely on effective implementation.
“The ideas are good, but implementation is what will determine whether the objectives are achieved,” he said.
Ghana continues to spend billions of dollars annually on imports, including petroleum products, machinery, pharmaceuticals and consumer goods, placing pressure on foreign exchange reserves and the cedi.
Industry leaders argue that a significant portion of these imports can be produced locally, as many manufacturers have excess production capacity but struggle to compete with imported goods.
Successive governments have, therefore, promoted import substitution as a strategy to reduce the import bill, conserve foreign exchange, create jobs and strengthen domestic industrial growth.
Import substitution has long featured in Ghana’s industrialisation agenda as a strategy to reduce dependence on imported finished goods, conserve foreign exchange and stimulate local production.
GNA
Edited by Agnes Boye-Doe
Reporter: Jibril Abdul Mumuni