Ghana Risks up to $21bn Economic Loss as Benin Steps up Investor Attraction Drive – CAG Warns
Ghana risks losing 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 measures are not taken to counter an aggressive investor attraction strategy unveiled by Benin, the Chamber of Agribusiness Ghana (CAG) has warned.
In a media statement dated February 9, 2026, the Chamber said Benin’s policy push targeted at drawing manufacturers from Ghana, Nigeria and across the sub-region poses a “catastrophic” threat to Ghana’s manufacturing base, foreign direct investment (FDI) inflows and skilled labour pool.
According to CAG’s technical analysis, Ghana could see between 395 and 535 factories relocate or shut down between 2026 and 2030, with agro-processing accounting for about 40% of the losses. The Chamber estimates direct and indirect job losses of between 255,000 and 435,000, alongside the migration of up to 7,500 skilled professionals, including engineers, technicians and food scientists.
The statement noted that Ghana is already losing competitiveness, citing the scaling down of operations by multinational firms such as Unilever, Nestlé and Guinness, alongside the relocation of more than 12 cashew processing facilities to Côte d’Ivoire between 2020 and 2024, and several textile manufacturers to Benin to benefit from duty-free access to the Nigerian market.
CAG attributed the trend to stark cost differentials across the region. While Ghana’s corporate tax rate stands at 25% and industrial electricity tariffs range between $0.14 and $0.19 per kilowatt-hour, Benin offers corporate tax rates of 0–5% within special economic zones (SEZs), power tariffs as low as $0.08 per kilowatt-hour, and business registration within 48 hours.
The Chamber warned that without policy intervention, Ghana’s manufacturing contribution to GDP could shrink from 11.3% to 7.8%, alongside FDI diversions of up to $6.6 billion and tax revenue losses of as much as $2.35 billion over the period.
To avert what it described as a national economic emergency, CAG proposed a five-point action plan, including sharp reductions in corporate taxes for agro-processing and manufacturing, zero import duties on capital goods, and the establishment of five strategically located SEZs across the country. Other recommendations include emergency electricity tariff reductions for industry, major port and logistics reforms, and a national skills development and diaspora return programme.
“Ghana stands at a critical crossroads,” the Chamber said, adding that while the country retains advantages such as political stability, rule of law, English language usage 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 cautioned.
