Ghana is entering a new phase of industrial transformation as the government rolls out targeted interventions across textiles, garments, metals, rubber, and agro-processing — sectors positioned at the heart of value addition and job creation. In the 2026 Budget presentation, Finance Minister Dr. Cassiel Ato Forson laid out a major industrial push designed to restrict raw material exports, build new factories, and strengthen domestic value chains that have long been underutilised.

At the core of this renewed strategy is a simple proposition: Ghana must process more of what it produces. From metals to rubber, cashew to shea, and textiles to modern garments, the government is shifting the economy away from raw commodity dependence toward manufacturing-driven growth. The plan aligns with Ghana’s broader goals of creating jobs, raising export revenue, and building a competitive industrial base capable of sustaining long-term economic expansion.

A New Era for Textiles and Garments

The textiles and garments sector — once a major employer — has struggled for decades due to ageing infrastructure, weak capital investment, and market pressures from imports. But government now considers the sector a priority industry with enormous potential to generate decent jobs and reposition Ghana as a competitive manufacturing hub in West Africa.

As part of this renewed focus, three new garment factories will be established through public–private partnerships in the Bono East, Central, and Eastern Regions. These facilities are designed to operate in three shifts, enabling continuous production cycles and maximising output. According to Dr. Forson, the factories are expected to create approximately 27,000 direct jobs, with thousands more indirect roles emerging in supply chains, logistics, cotton farming, and local transport.

This renewed push into garment manufacturing aligns with broader global trends. With rising labour costs in Asia and increasing interest in near-shoring, West Africa is becoming an attractive alternative for global apparel sourcing. Ghana’s investment in modern garment facilities positions the country to benefit from this shift and to expand its presence in competitive export markets.

Scrap Metal Export Restrictions to Feed Domestic Manufacturing

One of Ghana’s long-standing industrial challenges is the chronic mismatch between raw material supply and domestic processing capacity. Despite having the ability to process over 237,300 metric tons of non-ferrous metals annually, the country generates just over 91,000 metric tons in scrap metals — much of which ends up being exported in raw form.

The consequences are severe:

• Domestic processors face shortages

• Local metal fabrication industries operate far below capacity

• Exporters earn far less than processors and manufacturers would

In 2024 alone, Ghana exported 43,430 metric tons of scrap metals — nearly half of its annual output — even though local factories desperately need these materials.

To address this, the government is rolling out strict restrictions on the export of non-ferrous scrap metals under the Feed the Industry Programme. The policy aims to:

• Ensure sustainable supply for domestic processors

• Strengthen local value chains

• Promote component manufacturing for automotive, tools, electronics, and machinery industries

This intervention is expected to unlock growth in industrial clusters and reduce Ghana’s reliance on imported metal inputs.

Rubber Export Restrictions to Protect Local Factories

A similar policy will apply to Ghana’s rubber sector. The country currently has a processing capacity of 178,420 tons per year, significantly higher than the annual raw rubber production of about 100,000 tons. Yet, despite this clear gap, raw rubber still leaves the country unprocessed.

Government will now restrict raw rubber exports to ensure that:

• Local processors have guaranteed supply

• Ghana builds a strong rubber-based industrial ecosystem

• Jobs are created in tyre manufacturing, rubber footwear, sealants, and machinery parts

• Export earnings rise through value-added products rather than raw exports

Rubber remains one of the most versatile industrial inputs, and Ghana’s enhanced domestic focus is expected to support long-term diversification in manufacturing.

Agro-Processing Takes Centre Stage

The agro-processing sector received one of the biggest boosts in the 2026 Budget. Seven new factories across the Northern, Central, Ahafo, Bono, North East, Bono East, and Western North Regions will be fully operationalised. These facilities will process key agricultural commodities including:

• Yam

• Fish

• Poultry

• Cashew

• Rice

• Shea butter

• Palm kernel oil

Combined, the plants are expected to create around 700 direct jobs, with thousands more to emerge through out-grower schemes, transport services, warehousing, packaging, and supply chain operations.

More importantly, these plants will help reduce post-harvest losses — a major challenge that drains income from farmers and weakens rural economies. By offering consistent offtake and reliable pricing, the new factories will strengthen local agricultural value chains and improve rural livelihoods.

Cashew Processing Expansion Moves Into High Gear

Cashew remains one of Ghana’s strongest non-traditional export earners. However, the bulk of the country’s cashew is exported raw, limiting revenue and job creation.

Under the President’s Accelerated Export Development Initiative, government is expanding domestic cashew processing through two new state-supported factories:

• Sampa in the Jaman North Municipality, Bono Region

• Aboabo, Techiman in the Bono East Region

The Ghana Exim Bank will finance these plants, which are expected to significantly increase Ghana’s capacity to process cashew kernels for export.

This expansion strengthens Ghana’s ambition to become a major global player in the cashew value chain — not just as a supplier of raw nuts, but as a competitive exporter of high-value processed products.

A Broader Strategy for Industrial Transformation

These industrial measures reflect a broader policy shift aimed at reshaping Ghana’s economic structure. By restricting raw exports, supporting new factories, and strengthening local industries, government seeks to reduce Ghana’s dependence on commodity exports and increase domestic manufacturing output.

The long-term goal is clear:

• Create sustainable jobs

• Build globally competitive industries

• Increase export earnings

• Reduce import dependence

• Drive inclusive economic growth

If successfully implemented, the 2026 industrial strategy has the potential to transform Ghana’s manufacturing base and strengthen its economic resilience in the years ahead.

FAQs

1. Why is the government restricting scrap metal exports?

To ensure that domestic processors have sufficient raw materials and to strengthen local manufacturing industries that rely on metal inputs.

2. What is the purpose of restricting raw rubber exports?

The aim is to secure raw material supply for domestic rubber processors and to develop competitive rubber-based industries locally.

3. How many garment factories will be opened under the new plan?

Three new garment factories will be established in Bono East, Central, and Eastern Regions, creating approximately 27,000 direct jobs.

4. What agricultural products will the new agro-processing factories handle?

The plants will process yam, fish, poultry, cashew, rice, shea butter and palm kernel oil.

5. Why is cashew processing receiving special attention?

Cashew is one of Ghana’s most promising non-traditional exports, and expanding local processing increases value addition, jobs, and export revenue.

Source: Accra Street Journal

Last Updated on November 15, 2025 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

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