Trade Minister calls for local sourcing to boost jobs and industrial growth

The Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has urged manufacturing companies in Ghana to place greater emphasis on sourcing raw materials locally as a key driver of job creation and sustainable industrialisation.

Her call followed a decision by food manufacturing company GB Foods to venture fully into commercial farming from next year as part of efforts to secure locally sourced raw materials.

Speaking to the media during a working visit to the company on Wednesday, Mrs Ofosu-Adjare praised GB Foods for its high operational standards and its move into commercial agriculture, describing the initiative as a model that other manufacturers should emulate. She noted that the company was likely to source between 90 and 100 per cent of its raw materials locally by next year.

“This is exactly what we want to see. When raw materials are sourced locally, we can confidently say that we are industrialising,” she said. “When we enjoy the entire value chain, that is where the real value lies. Local sourcing creates jobs for farmers, transporters and everyone along the chain.”

The Minister also commended the company’s stringent production processes, citing its laboratories and quality assurance systems that ensure products meet required standards before reaching the market.

She acknowledged the challenges facing many manufacturing firms in the country and assured them of government’s commitment to addressing bottlenecks to enable the sector to grow and thrive.

Beyond local production, Mrs Ofosu-Adjare highlighted GB Foods’ expanding export footprint, with products already reaching markets such as Burkina Faso, contributing to Ghana’s foreign exchange earnings.

“Manufacturing in Ghana and exporting to West Africa and beyond is the future. With the African Continental Free Trade Area headquartered here, Ghana is the right place to invest, manufacture and export,” she stated.

She reiterated government’s vision of positioning Ghana as a leading industrial hub in Africa, pointing to the country’s stable democracy and investor-friendly environment.

The Minister later visited Precious Textiles Company Limited in Tema, where she disclosed that government had developed a draft policy on garments and textiles and was preparing to establish three new garment factories across the country.

“We are placing strong emphasis on garments and textiles. As we prepare to roll out new plants, we are also looking at how existing factories like Precious Textiles can be supported to expand,” she said.

Mrs Ofosu-Adjare noted that although the company had strong capacity, it was currently operating at about 30 per cent due to limited access to markets and business opportunities. To address this, she announced plans for government to prioritise local garment factories in the production of uniforms for security agencies.

She said a committee would be set up to ensure that uniforms for all security agencies are produced locally, adding that government was determined to end the practice of outsourcing garment production abroad while local factories remain underutilised.

“The days of sewing uniforms outside Ghana while our factories struggle are over. With the right contracts and leadership, these factories can be revived, create jobs and eventually compete on the international market,” she said.

Meanwhile, Director for Institutional Affairs and Agribusiness Africa at GB Foods, Dr J. Teddy Ngu, called for government support, particularly in addressing water supply challenges to help reduce production costs. He revealed that the company spends about €700,000 annually on water and relies on water tankers for nearly 90 per cent of its supply due to irregular flow from Ghana Water Limited.

Dr Ngu also disclosed that GB Foods was pursuing a backward integration strategy and had secured about 6,000 hectares of land in the Afram Plains for large-scale farming. He said the company was already cultivating tomatoes under a pilot phase, some of which had been consumed locally.

“By next year, we plan to scale up to a 2,000-metric-tonne-per-day factory, supported by about 4,000 hectares of company-owned farms and 2,000 hectares cultivated by outgrowers,” he said.

He added that the outgrower scheme would cover crops such as tomatoes, onions, ginger, garlic and turmeric, creating employment while ensuring a reliable supply of raw materials for processing and export.

With products already being exported to Burkina Faso, Dr Ngu said the company aims to expand into other African markets in the coming years.

“Ghanaians are now seeing products made in Ghana being exported rather than imported. This is the export-led, Ghana-made economy we are working towards,” he added.