The Association of Ghana Industries (AGI) has called on government to place manufacturing at the forefront of its economic agenda, cautioning that Ghana’s recent macroeconomic stability could be undermined if longstanding challenges facing industry are not addressed.
President of the Association of Ghana Industries, Dr. Kofi Nsiah-Poku, made the appeal in an interview on PM Express Business Edition on Thursday, February 19, 2026. He stressed that industry remains the backbone of the economy and plays a critical role in driving growth across other sectors.
According to him, when the industrial sector performs strongly, it stimulates activity within the services sector because businesses and workers have income to spend. However, when industry struggles, the effects are felt across the wider economy.
Dr. Nsiah-Poku identified unreliable and expensive utility supply as one of the biggest obstacles to manufacturing. He argued that industries cannot operate competitively without stable access to electricity and water, and urged government to prioritise industry in both the supply and pricing of utilities.
He expressed concern that in Ghana, industries often pay higher utility tariffs than domestic consumers, describing the situation as unusual and harmful to competitiveness. He noted that while domestic consumption has been subsidised, manufacturers competing on the international market are left to bear higher production costs.
The AGI President warned that rising production costs have weakened the competitiveness of local manufacturers, leading to increased imports and additional pressure on the cedi. As imports grow, he explained, demand for foreign exchange rises, contributing to currency depreciation and reducing the purchasing power of households.
Although he acknowledged that Ghana’s economy has shown signs of improvement in recent months, including moderating inflation, easing interest rates and relative exchange rate stability, Dr. Nsiah-Poku questioned how sustainable these gains would be without deliberate support for industry.
He pointed to frequent policy changes, inconsistent tax regimes, power fluctuations and inadequate water supply as persistent challenges that continue to undermine industrial growth.
Dr. Nsiah-Poku also called for stronger engagement between government and the private sector to consolidate recent gains, improve cost competitiveness, expand production and boost exports.
He cautioned that Ghana’s economy remains heavily dependent on a limited range of primary commodities, making it vulnerable to global price shocks. Fluctuations in cocoa, oil and gold prices, he said, highlight the risks of relying on raw commodity exports.
According to him, diversifying the economy through industrialisation and value addition is critical to sustaining growth and macroeconomic stability.
He emphasised that strengthening manufacturing will help reduce import dependence, stabilise the currency and build long-term economic resilience.
