- US$20m CSIR Endowment Proposal Puts Research Financing at Centre of Industrial Debate
Ghana’s industrial ambitions face a challenge that cannot be solved by building factories alone: much of the technology businesses use is imported, while locally developed alternatives struggle to attract investment and customers.
Dr William Owusu Odro, Director of the Council for Scientific and Industrial Research’s Institute of Industrial Research (CSIR-IIR), says the private sector often looks abroad for technological solutions, particularly to China, even when Ghanaian research institutions have the expertise to develop equipment suited to local conditions.
“Unfortunately, we have a private sector that thinks that all the solutions are in China, so they are quick to go and import the technologies from China,” he said in an interview on Tuesday, November 3. His concern points to a persistent gap between research capacity and industrial demand: local institutions may be able to develop solutions, but manufacturers must be willing to test, finance and adopt them.
The scale of Ghana’s trade with China illustrates the imbalance Dr Odro wants policymakers and businesses to confront. Figures he cited show that Ghana imported approximately US$21.8 billion worth of goods from China between January and August 2026, while exports to the Asian economy were about US$1.3 billion. That implies imports were nearly 17 times the value of exports, with a rough difference of US$20.5 billion over the period.
The figures do not, by themselves, explain how much of the import bill consists of industrial machinery, consumer goods or inputs used by local manufacturers. Nor do they show how much of the export total was made up of processed products. But the imbalance raises a wider question about Ghana’s position in global production: whether the country can move from purchasing technology and manufactured goods to designing, adapting and selling more of its own.
Imports are not inherently a problem. Foreign machinery, expertise and technology transfers can help businesses expand production and improve productivity. For firms facing immediate operational needs, an imported solution may be the most available option. The risk arises when reliance becomes the default, leaving local research and engineering with too little demand to mature into commercially viable products.
Dr Odro argues that imported equipment often has to be modified to work effectively in Ghana. “Regardless of the fact that when the technology gets into Ghana, there is a need to adapt it to the Ghanaian environment. But what we offer is a solution that is already adaptable to the Ghanaian environment,” he said.
That claim puts the cost of technology in a broader frame. The initial purchase price is only one part of the investment. Adaptation, spare parts, maintenance, training and the time required to keep equipment operational can add to the total cost over its lifespan. A locally developed solution may be better matched to local conditions, but it will need to demonstrate reliability, quality and value before businesses choose it over a familiar imported product.
The challenge is therefore not simply to persuade companies to “buy Ghanaian”. Local technologies must meet clear performance standards, come with dependable after-sales support and be priced competitively. Businesses need evidence that a product will reduce costs, improve output or solve a specific operating problem. Without that evidence, calls for local patronage may not change investment decisions.
The research system also has a financing problem. Dr Odro said government funding for CSIR largely covers staff salaries, leaving limited resources for research and development. Research requires more than skilled scientists: laboratories, testing equipment, technical staff, materials and repeated trials all require sustained funding.
CSIR is anticipating a US$20 million start-up endowment fund that would be invested to support the institution’s financial sustainability. “So currently we are anticipating that CSIR will need an amount of about 20 million USD as a startup endowment fund that would help us to be more sustainable,” Dr Odro said.
The proposal recognises that research institutions need a predictable source of financing beyond salary support. But the impact of an endowment would depend on how it is established and managed, how investment returns are used, and whether funding reaches research projects that can address practical industrial needs. The amount is a financing requirement CSIR is anticipating; the statement does not say that the fund has been secured.
A stronger link between laboratories and factories is equally important. Manufacturers are best placed to identify problems in production, while research institutions can bring technical expertise to developing and testing solutions. Regular collaboration could help research respond to real demand and give businesses a clearer route to assess a technology before committing to wider use.
Government procurement could also help credible local innovations gain an initial market. Public institutions and state-owned enterprises can sometimes serve as early customers, giving a product a chance to demonstrate performance. Any such support, however, would need transparent standards, competitive evaluation and safeguards against protecting a product that does not deliver. Public money should help build a market for useful technology, not shield it from scrutiny.
Industrial policy could address the other parts of the commercialisation gap: intellectual property arrangements, access to prototype and testing facilities, financing for scale-up, and links between research institutions and domestic firms. The key is continuity. A promising prototype does not automatically become a reliable product, and a product does not automatically become a sustainable manufacturing business.
Dr Odro’s warning is ultimately about the economics of industrialisation. Ghana’s production ambitions will remain exposed if factories rely heavily on imported systems but domestic research is left without the resources or commercial partners to develop alternatives. Yet technological independence does not mean rejecting foreign technology. It means building the capacity to choose, adapt, maintain and, where it makes economic sense, produce technology locally.
The next step is to turn that principle into measurable commitments: finance for research, company-led demand for solutions, practical testing, and procurement decisions based on performance and cost over time. Without that bridge between research and industry, Ghana risks continuing to import answers to problems its own institutions may be capable of solving.
