In a move to strengthen Ghana’s industrial sector and reduce reliance on imports, the Minister of Finance, Dr. Cassiel Ato Forson, has announced a new policy that will require all state agencies to source essential goods from local producers. The policy is set to address the country’s ongoing dependence on imported basic commodities, such as sugar and rice, despite the nation’s ability to produce these items domestically.
Dr. Forson made the announcement during a meeting with the leadership of the Association of Ghana Industries (AGI), underscoring the government’s commitment to fostering the growth of local industries and creating more jobs within the country. “We have the capacity to produce these essential goods locally, and it’s time to leverage government procurement to support our own industries,” he said.
The policy will soon see the publication of a list of essential items that must be procured locally by public sector agencies. As part of the new framework, any future government procurement from abroad will require special approval from the Office of the President. This move is part of a broader initiative to use government spending as a strategic tool to stimulate domestic production and economic growth.
Dr. Forson also expressed deep concern about the harmful effects of smuggling, which he said undermines local businesses and jeopardizes the success of the government’s industrialization efforts. He revealed that key smuggling routes have already been identified, and stringent measures are in the pipeline to curb the influx of smuggled goods, which often flood the market and unfairly compete with locally manufactured products.
As part of the government’s industrial agenda, Dr. Forson also proposed a collaborative effort with industry leaders to align local businesses with the country’s 24-hour economy program. This initiative aims to boost production capacity and ensure a steady flow of goods in the market, thereby promoting sustainable economic expansion.
Dr. Humphrey Ayim-Darke, President of AGI, welcomed the minister’s announcement and expressed his optimism for the future of Ghana’s industrial sector. He commended the government for its proactive stance in supporting local businesses and emphasized the importance of continued dialogue between the government and industry players to achieve lasting economic improvements.
The mandatory local procurement policy is expected to provide a significant boost to the manufacturing sector, helping to create more opportunities for local businesses and ensuring that public funds are channeled into the growth of the national economy. This strategic shift marks a decisive step in Ghana’s efforts to strengthen its industrial base and reduce its dependence on imported goods.
