Government must look beyond 24-hour economy to revive manufacturing, policy group says
Government must look beyond 24-hour economy to revive manufacturing, policy group says
Ghana’s 24-hour economy policy alone will not be enough to expand the manufacturing sector or boost export growth, the AfCFTA Policy Network said on Saturday, urging the government to adopt a more comprehensive industrial strategy.
Louis Yaw Afful, Executive Director of the AfCFTA Policy Network, said manufacturing’s 10% share of gross domestic product was “a growing concern” and required targeted reforms beyond the government’s flagship initiative.
“If our goal is to see accelerated export growth through value addition and transformative exports, then a holistic approach is needed beyond the 24-hour economy,” Afful said in a statement.
The government is still working on legislation for the 24-hour economy and has about two years remaining in its current term before the next election, he noted.
Afful called for greater focus on small-scale manufacturers and a deliberate push for import substitution. He cautioned that China’s offer of 100% zero tariffs could disadvantage Ghana if its manufacturing base remains weak and uncompetitive.
“China knows we have a weak, non-competitive manufacturing sector, and we will tend to export natural resources and raw or semi-finished products,” he said.
The policy think tank also recommended a review of the One District One Factory programme, calling it a strategic manufacturing drive that should be prioritised rather than abandoned. Existing manufacturing infrastructure should be completed instead of starting new projects, Afful added.
He further urged the government to maintain a competitive and sustainable energy policy for manufacturers and to review the mandates of the National Investment Bank and Development Bank Ghana to ensure stable liquidity for the sector.
“Consolidate sustainable liquidity for the manufacturing sector if we desire industrialization,” he said.
The AfCFTA Policy Network is a Ghana-based think tank focused on economic and governance issues across the continent.
