AGI Urges Government to Prioritise Industry to Sustain Ghana’s Economic Stability
President of the Association of Ghana Industries (AGI), Dr. Kofi Nsiah-Poku, has called on the government to prioritise the manufacturing sector, warning that persistent challenges facing industry could undermine Ghana’s recent macroeconomic stability gains.
Speaking in an interview on PM Express Business Edition on Thursday, February 19, 2026, Dr. Nsiah-Poku stressed that the industry remains the backbone of the economy, with strong linkages to the services sector.
“When industry is doing well, it will drive all the services that we have. If industry is not operating, people don’t have money in their pockets to spend and drive the service industry,” he said.
He pointed to unreliable and costly utility supply as a major constraint on manufacturing, arguing that industries cannot survive without stable access to water and electricity. According to him, priority must be given to industry in both the supply and pricing of utilities to enhance competitiveness.
Dr. Nsiah-Poku expressed concern that Ghanaian industries pay higher utility tariffs than domestic consumers, a situation he described as unusual and counterproductive.
“It is only in Ghana that you see industry paying higher than domestic use. We have been subsidising domestic consumption, and this should not happen because we are competing with other countries,” he noted.
He warned that high production costs have rendered local manufacturers uncompetitive, contributing to rising imports and putting pressure on the cedi.
“When imports increase, you put pressure on the economy. The dollar keeps rising, the cedi depreciates, and households feel the stress because what you earn in one month cannot buy the same items the next month,” he added.
While acknowledging that businesses continue to face difficulties, the AGI President noted that Ghana’s economy has recently shown signs of stability, with moderating inflation, easing interest rates and relative exchange rate stability. However, he questioned the sustainability of these gains without deliberate policy support for industry.
“The key issue is how sustainable this stability is going to be,” he said, citing frequent policy changes, inconsistent tax regimes, power fluctuations and inadequate water supply as longstanding challenges confronting manufacturers.
Dr. Nsiah-Poku further urged closer engagement between government and industry to consolidate recent economic gains and improve cost competitiveness, expand production and boost exports.
He cautioned that Ghana’s current economic performance remains heavily dependent on a narrow range of commodities, exposing the country to external shocks.
“Cocoa prices went as high as US$13,000 and are now below US$4,000. Oil prices have also fluctuated significantly, and gold prices are easing after recent highs,” he observed.
According to him, diversifying the economy through industrialisation is critical to sustaining growth and macroeconomic stability.
“The only way we can sustain the gains we have achieved so far is through industry — converting the raw materials we produce locally, adding value, exporting, and earning more foreign exchange,” Dr. Nsiah-Poku said.
He reiterated that a strong and competitive manufacturing sector remains central to reducing import dependence, stabilising the currency and supporting long-term economic resilience.
