Ghana targets manufacturing boom as Mahama sets 15% GDP Goal by 2030

Ghana aims to raise manufacturing’s share of the economy to at least 15 percent of gross domestic product by 2030 as part of an industrial expansion strategy that could create up to 500,000 jobs, President John Dramani Mahama said on Thursday.

Speaking at the inauguration of a new cement plant in Tema, Mahama said boosting manufacturing was central to the government’s long-term economic transformation agenda.

“Our ambition is to increase the share of manufacturing in Ghana’s GDP to at least 15 percent by 2030,” he said.

Mahama said the expansion could generate roughly half a million additional jobs across the economy as new factories and industrial zones are developed.

The president pointed to a wave of recent factory projects as evidence that the strategy was gaining momentum.

Over the past month alone, Mahama said he had commissioned several new manufacturing facilities and launched construction of others in sectors ranging from ceramics to glass production.

In western Ghana’s Shama district, the government recently inaugurated an expanded ceramic tile factory while launching construction of a new sanitary ware plant and a glass manufacturing facility.

The glass factory will be Ghana’s first major domestic producer since the collapse decades ago of the Aboso glass factory originally established under Ghana’s first president, Kwame Nkrumah.

“Since that factory collapsed, every piece of glass you see anywhere in this country is imported,” Mahama said.

Once operational, the new glass plant is expected to supply construction materials for Ghana’s growing housing and infrastructure sectors, while potentially exporting to neighbouring countries.

The government’s industrial push comes as Ghana expands major infrastructure projects under its “Big Push” development programme.

Mahama said more than 60 billion Ghanaian cedis (US$4.8 billion) had been committed to infrastructure investment, including about 50 billion cedis in road construction contracts.

“These roads, interchanges and drains are all being built with cement produced in Ghana,” he said.

The government hopes that expanding domestic manufacturing will reduce import dependence and strengthen supply chains for key sectors including construction and infrastructure.

The Tema industrial area, long considered Ghana’s manufacturing hub, is also set for major upgrades.

Mahama said the government had signed agreements with private sector partners to rehabilitate the industrial zone’s roads, drainage systems and wastewater treatment facilities.

The redevelopment will involve companies and institutions including the Tema Development Corporation and Volta Aluminium Company.

Officials say the improvements are intended to modernise infrastructure and attract further industrial investment.

Mahama said maintaining a stable and predictable policy environment would be key to sustaining investor confidence.

“When the policy environment is transparent and stable, the private sector responds and mobilises capital,” he said.

The government has also sought closer engagement with industry groups to address sector challenges.

Mahama praised ongoing dialogue between authorities and the Chamber of Cement Manufacturers Ghana aimed at stabilising prices and supporting investment in the construction materials sector.

Economists say manufacturing growth could help diversify Ghana’s economy, which has historically relied heavily on exports of commodities such as gold, cocoa and oil.

For Mahama, the expansion of industry represents a continuation of Ghana’s early development vision.

“Industrialisation remains the key to unlocking Ghana’s future,” he said.

Manufacturing has long been identified as a key pillar for economic transformation in Ghana, but the sector has struggled to expand significantly over the past two decades despite several policy initiatives.

After independence in 1957 under Kwame Nkrumah, Ghana pursued an ambitious state-led industrialisation strategy, establishing factories in areas such as textiles, steel, food processing and vehicle assembly. These industries were designed to reduce reliance on imports and build a strong domestic industrial base.

However, many of these state-owned enterprises collapsed or declined during the economic crises of the late 1970s and early 1980s. Structural adjustment reforms supported by the International Monetary Fund and the World Bank led to trade liberalisation and privatisation, exposing local manufacturers to intense international competition.

As a result, Ghana’s manufacturing sector gradually shrank relative to other parts of the economy, particularly services and extractive industries.

Today, manufacturing contributes less than 10 percent of Ghana’s gross domestic product, and the economy remains heavily dependent on exports of raw commodities such as gold, cocoa and crude oil.

The country is one of the world’s leading gold producers and a major cocoa exporter, but limited domestic processing means much of the value from these resources is captured abroad.

Successive governments have therefore attempted to revive manufacturing as part of broader industrialisation strategies.

Under the administration of former President Nana Akufo-Addo, the government introduced the One District One Factory initiative, aimed at establishing manufacturing plants in each of Ghana’s districts to stimulate local industry, create jobs and promote regional economic development.

The programme focused on sectors such as agro-processing, textiles, ceramics and food production. While several factories were established under the initiative, analysts say challenges including financing constraints, energy costs and infrastructure gaps slowed its overall impact.

Industrial development has also been affected by macroeconomic pressures in recent years, including high inflation, currency depreciation and rising borrowing costs, which have increased production expenses for local manufacturers.

Access to finance remains a major constraint for many businesses, particularly small and medium-sized enterprises that form the backbone of Ghana’s manufacturing sector.

Energy supply has also historically been a challenge. Periods of electricity shortages—locally referred to as “dumsor”—have disrupted industrial production and raised operational costs for factories forced to rely on generators.

Despite these challenges, Ghana retains several advantages that policymakers believe could support future industrial expansion.

The country has a relatively diversified economy, a strategic coastal location with access to regional markets and a growing population that provides both a labour force and a consumer base.

Ghana also hosts the headquarters of the African Continental Free Trade Area Secretariat in Accra, positioning the country at the centre of efforts to expand trade across Africa’s single market.

The AfCFTA is expected to create a market of more than 1.3 billion people, offering Ghanaian manufacturers potential access to a vast continental consumer base.

Against this backdrop, the current push by President John Dramani Mahama to raise manufacturing’s contribution to 15 percent of GDP by 2030 reflects renewed efforts to accelerate industrialisation, diversify exports and create more jobs for Ghana’s growing population.

Economists say achieving this goal will require sustained investment in infrastructure, industrial policy reforms and stronger support for domestic manufacturing firms to compete in both regional and global markets.