Manufacturing Sector Gains Momentum as Construction Activity Slows
Activity in Ghana’s manufacturing sub-sector showed signs of improvement in July 2025, buoyed by higher tax collections and increased pension contributions, even as the construction industry recorded a decline in cement sales, according to the Bank of Ghana’s September 2025 Monetary Policy Report.
Total direct taxes collected rose by 14.8% year-on-year to GH¢5.27 billion in July 2025, compared with GH¢4.59 billion in the same period a year earlier. Cumulatively, direct taxes for the first seven months of 2025 grew 26.2% to GH¢47.59 billion, from GH¢37.70 billion in 2024.
Income tax—comprising PAYE and self-employed contributions—accounted for 43% of the total, while corporate taxes contributed 35.8%, and other tax sources made up the remaining 21.2%, the central bank said.
Private sector workers’ contributions to the SSNIT Tier-1 Pension Scheme rose by 8.6% year-on-year to GH¢513.34 million in July 2025, from GH¢472.81 million in July 2024. Over the first seven months of the year, total contributions increased 22.6% to GH¢3.48 billion, up from GH¢2.84 billion in the corresponding period last year.
Construction Activity Contracts
The construction sub-sector, however, saw a slowdown, with cement sales the main proxy for construction activity falling 10.7% year-on-year to 212,735 tonnes in July 2025, down from 238,168 tonnes a year earlier.
Despite the annual decline, cement sales grew 3.1% month-on-month, compared with 206,282 tonnes sold in June 2025. Cumulatively, sales for the first seven months of 2025 edged up 2.8% to 1.64 million tonnes, from 1.60 million tonnes during the same period in 2024.
The year-on-year decline, the report noted, reflected a moderation in construction activity during the review period.
Industrial Electricity Demand Rises
Industrial electricity consumption – a key indicator of industrial output – rose 11.6% year-on-year to 316.04 gigawatt hours in July 2025, from 283.26 gigawatt hours in July 2024.
For the first seven months of the year, total industrial power consumption increased 9.2% to 2,175.84 gigawatt hours, compared with 1,992.94 gigawatt hours in the same period of 2024.
The uptick in electricity use, combined with the robust tax and pension data, points to a gradual recovery in Ghana’s manufacturing sector amid improved business confidence and stabilising macroeconomic conditions.
