President Mahama has announced an ambitious target to increase manufacturing’s contribution to Ghana’s Gross Domestic Product from 10 percent to at least 15 percent by 2030, backed by plans to create 500,000 industrial jobs.
Addressing business leaders in Accra, the President noted that Ghana’s manufacturing sector has remained stagnant for more than five decades.
“For over five decades, Ghana’s manufacturing sector has contributed around 10% to GDP. Meanwhile, emerging Asian economies, starting from a similar basis, have achieved manufacturing of 20% to 30% of GDP,” he said.
He warned that without decisive reforms, Ghana risks falling further behind its regional competitors.
On the back of this, “I therefore set a national target.”
“Manufacturing must contribute at least 15% of GDP by the year 2030, supported by 500,000 new quality industrial jobs.”
The President referenced a recent report by the Ghana Chamber of Mines indicating Ghana is losing investment competitiveness to neighbouring countries including Benin, Côte d’Ivoire, and Nigeria.
He cited high electricity tariffs, unstable power supply, machinery import duties, and corporate taxation as major obstacles discouraging industrial investment.
“No industrial nation thrives under structurally high costs of power,” he said.
President Mahama announced plans to accelerate energy sector debt restructuring, expand renewable energy generation, introduce differentiated off-peak tariffs for industry, and improve transmission efficiency.
He also pledged to expand access to industrial financing through partnerships with the Bank of Ghana and development finance institutions.
“These reforms are not incremental adjustments, they are structural reforms necessary to change our trajectory,” he said.
The President said achieving the 15 percent target would position Ghana as a competitive manufacturing hub in West Africa.
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Source: www.myjoyonline.com