AGI renews call for bold reforms to boost industrial competitiveness, endorses 24-Hour Economy

The Association of Ghana Industries (AGI) is urging government to intensify policy reforms aimed at strengthening industrial competitiveness, deepen support for the proposed 24-hour economy, and fast-track measures contained in the 2026 National Budget.

Speaking at the AGI Industry and Quality Awards, AGI President Dr. Humphrey Ayim Darke said the 24-hour economy remains of “keen interest” to the industrial sector but stressed that its success hinges on reliable power, efficient infrastructure, and consistent regulation.

“A 24-hour economy does not happen by chance; it requires reliable power, robust infrastructure, regulatory consistency, and business-friendly policies,” he said.

Dr. Ayim Darke welcomed government’s allocation of GH¢15.2 billion to address energy sector shortfalls and GH¢4.8 billion to clear outstanding debts to Independent Power Producers (IPPs), describing the investment as a positive signal toward stabilizing power supply—an essential requirement for factories operating multiple shifts.

He also encouraged industries to adopt renewable energy solutions, energy-efficient technologies, and greener production methods to reduce operational costs as businesses expand round-the-clock operations.

The AGI President commended government for scrapping the COVID-19 Health Recovery Levy and restoring the VAT structure, which effectively reduces the rate from 21.9% to 20%. He further acknowledged the extension of zero-rating for local textile manufacturers, noting that the relief will support competitiveness.

However, he emphasized that additional interventions are needed to protect Ghanaian industries both locally and internationally.

A major concern raised was the rise in unfair trade practices. Dr. Ayim Darke warned that parallel and substandard imports—many of which evade taxes and standards—continue to undermine local manufacturers and deprive the state of significant revenue.

“These imports drain substantial tax revenue through lost VAT, import duties, excise taxes, and statutory payments,” he noted.

He called for stronger border controls, closer collaboration between the GSA, FDA, Customs, and AGI, and stricter penalties for offenders.

Vice President Professor Jane Naana Opoku-Agyemang commended the award winners for their contribution to national development and reiterated government’s position that industrialisation is essential to Ghana’s economic independence.

She described the 24-hour economy as one of the “boldest and most transformative policies,” designed to increase capacity, boost employment, enhance resource utilisation, and drive export growth.

“We are incentivizing businesses, especially in manufacturing and light industry, to operate in shifts around the clock,” she said.

The Vice President highlighted complementary initiatives—including Feed the Industries, accelerated export development, and improved access to raw materials—as crucial to advancing industrial expansion. She acknowledged challenges such as high production costs, unstable power supply, and limited access to credit, but assured industry of government’s determination to address them.

Minister for Trade, Agribusiness and Industry, Mrs. Elizabeth Ofosu-Adjare, reaffirmed government’s commitment to building a competitive 24-hour industrial ecosystem. She pointed to reforms such as digitalised business processes, streamlined customs procedures, and enhanced quality standards as key improvements.

She also referenced new regulations requiring exporters to repatriate earnings through licensed banks within 100 days of shipment—an intervention she said has restored confidence in Ghana’s foreign exchange system.

Mrs. Ofosu-Adjare further highlighted progress on infrastructure projects, including support for the Abidjan–Lagos Corridor, investments in energy stability, and the expansion of industrial parks. She urged industries to adopt internationally recognised certifications and strengthen internal quality management systems, saying, “Quality is the gateway to competitiveness.”

AGI Chief Executive Officer Seth Twum-Akwaboah reiterated that, despite improvements in taxes and exchange rate stability, unfair trade practices remain one of the biggest threats to domestic industry.

“Government’s 24-hour economy will be a major game changer if industry is properly incentivized to scale. But there will be no basis for industry to produce more if our market is flooded with cheap imports,” he said.

He pledged AGI’s full support in the fight against illicit and substandard goods, describing industrial recovery as a “shared responsibility.”

The awards ceremony honoured companies and individuals for excellence in manufacturing, quality assurance, innovation, and leadership. Dr. Ayim Darke encouraged industry players to “seize this moment” and work collaboratively with government to build a resilient, sustainable, and globally competitive industrial sector.