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Trade Minister urges manufacturers to embrace local raw materials

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The Minister of Trade, Agribusiness and Industry, Mrs Elizabeth Ofosu-Adjare, has called on manufacturing companies operating in Ghana to prioritise the local sourcing of raw materials as a key strategy for job creation and sustainable industrialisation.

She made the call during a working visit to food manufacturing firm GB Foods on Wednesday, following the company’s decision to venture fully into commercial farming next year to support local sourcing of inputs.

Mrs Ofosu-Adjare commended GB Foods for its high operational standards and described its move into commercial farming as a model for other manufacturers. She noted that by next year, between 90 and 100 per cent of the company’s raw materials could be sourced locally.

“This is exactly what we are looking for. When raw materials are sourced locally, we can confidently say we are industrialising,” she said.

“If we enjoy the entire value chain, that is where the real value lies. Local sourcing means jobs for farmers, transporters and everyone along the value chain.”

The Minister also praised the company’s strict quality control systems, including its laboratories and processing standards, which ensure product safety before reaching the market.

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She acknowledged the challenges confronting manufacturers in Ghana and assured them of government’s commitment to addressing bottlenecks to help the sector thrive.

Beyond domestic production, Mrs Ofosu-Adjare highlighted GB Foods’ growing export footprint, with products reaching markets such as Burkina Faso and 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 and export,” she stated, reaffirming government’s vision of positioning Ghana as an industrial hub in Africa.

During a visit to Precious Textiles Company Limited in Tema, the Minister disclosed that government had developed a draft garments and textiles policy and was preparing to establish three new garment plants nationwide.

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

“The days of sewing uniforms outside Ghana while our factories struggle are over,” she said, adding that a committee would be formed to ensure local factories benefit from government contracts.

Meanwhile, the Director for Institutional Affairs and Agribusiness Africa at GB Foods, Dr J. Teddy Ngu, called for government support to address water supply challenges, noting that the company spent about €700,000 on water annually due to unreliable supply from Ghana Water Limited.

He disclosed that GB Foods was pursuing backward integration and had secured about 6,000 hectares of land in the Afram Plains for large-scale farming.

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The company plans to scale up to a 2,000-metric-tonne-per-day factory by next year, supported by company-owned farms and outgrower schemes covering crops such as tomatoes, onions, ginger, garlic and turmeric.

Dr Ngu said the initiative would create jobs, ensure a steady supply of raw materials and support the company’s plans to expand exports to other African markets.

“Today, Ghanaians are seeing products exported from Ghana to Burkina Faso instead of imports. This is the Ghana-made, export-led economy we are working towards,” he said.

Source:
www.graphic.com.gh

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