Ghana could lose between $12.6 billion and $21.3 billion in economic value and as many as 435,000 jobs over the next five years if urgent steps are not taken to counter an aggressive investor-attraction strategy by neighbouring Benin, the Chamber of Agribusiness Ghana (CAG) has warned.
In a media statement issued on February 9, 2026, the Chamber described Benin’s new policy push aimed at attracting manufacturers from Ghana, Nigeria and across the sub-region as a serious threat to Ghana’s manufacturing sector, foreign direct investment (FDI) inflows and skilled labour base.
According to CAG’s technical analysis, between 395 and 535 factories could relocate or shut down between 2026 and 2030 if current trends persist. Agro-processing is expected to bear the brunt, accounting for roughly 40 percent of the projected losses. The Chamber estimates that direct and indirect job losses could range from 255,000 to 435,000, alongside the possible migration of up to 7,500 skilled professionals, including engineers, technicians and food scientists.
CAG noted that Ghana is already showing signs of declining competitiveness. Several multinational companies including Unilever, Nestlé and Guinness have scaled down operations in recent years. Between 2020 and 2024, more than 12 cashew processing facilities reportedly relocated to Côte d’Ivoire, while a number of textile manufacturers have moved operations to Benin to take advantage of duty-free access to the Nigerian market.
The Chamber attributed these developments largely to significant cost disparities within the sub-region. Ghana’s corporate tax rate stands at 25 percent, while industrial electricity tariffs range from $0.14 to $0.19 per kilowatt-hour. In contrast, Benin offers corporate tax rates of between 0 and 5 percent within special economic zones (SEZs), electricity tariffs as low as $0.08 per kilowatt-hour, and business registration processes that can be completed within 48 hours.
Without decisive policy intervention, CAG warned that Ghana’s manufacturing contribution to GDP could fall from 11.3 percent to 7.8 percent. The country also risks losing up to $6.6 billion in diverted FDI and as much as $2.35 billion in tax revenue over the period.
To avert what it described as a national economic emergency, the Chamber proposed a five-point action plan. Key recommendations include substantial reductions in corporate taxes for manufacturing and agro-processing firms, zero import duties on capital goods, and the establishment of five strategically located special economic zones nationwide. Other measures include emergency electricity tariff relief for industry, sweeping port and logistics reforms, and a national skills development programme linked to a diaspora return initiative.
“Ghana stands at a critical crossroads,” the Chamber said, noting that while the country still enjoys advantages such as political stability, the rule of law, English-language use and hosting the AfCFTA Secretariat, these strengths are being undermined by uncompetitive policies.
“Every week of delay means more factories lost, more jobs eliminated, and more skilled professionals leaving our shores,” the statement warned.
Source: norvanreport
