Ghana’s industrialization agenda is gaining renewed energy as government announces firm restrictions on the export of non-ferrous scrap metals and raw rubber—a decisive move aimed at strengthening local manufacturing, preserving raw materials, and creating thousands of jobs nationwide. The policy, announced during the presentation of the 2026 Budget to Parliament by Finance Minister Dr. Cassiel Ato Forson, forms part of the larger Feed the Industry Programme designed to ensure sustainable supply of raw materials to domestic producers.

The decision marks a significant shift in Ghana’s approach to industrial development. For years, various sectors—including construction, automotive, electrical manufacturing, and machine fabrication—have struggled due to inconsistent access to raw materials. At the same time, scrap metal merchants and rubber exporters have exported large volumes of Ghana’s valuable industrial inputs to foreign markets where they are processed and re-imported at higher cost.

This cycle, government argues, undermines Ghana’s global competitiveness, slows industrial growth, and denies Ghanaians much-needed manufacturing jobs.

A Case for Retaining Scrap Metals for Local Industry

Ghana produces an estimated 91,000 metric tons of scrap metals annually. However, local industries that rely on metals for production—such as aluminium and copper cable manufacturers, machine parts fabricators, household appliance makers, and metal construction firms—have consistently reported shortages.

Despite these shortages, exporters have been shipping scrap metals to markets in Asia, Europe, and North America, where they are melted and processed. Ghana then imports finished metal products at higher value, widening the industrial trade imbalance.

Dr. Forson described this as unsustainable:

“As part of the Feed the Industry Programme and to support the local metals industry, government will be restricting the exportation of non-ferrous scrap metals.”

Non-ferrous metals—like aluminium, copper, lead, zinc, and brass—are essential for emerging manufacturing sectors such as renewable energy components and electric vehicle accessories. Keeping these metals within the local economy is expected to stimulate new industrial lines, reduce import dependency, and strengthen manufacturing capacity.

Ghana’s metal processing capacity far exceeds current usage, meaning the country can absorb nearly all locally generated scrap metals. For policymakers, this makes the restriction both economically logical and strategically beneficial.

Securing Raw Rubber for Local Value Addition

Rubber is another major industrial input whose export has significantly grown in recent years. Ghana’s raw rubber processing capacity is approximately 178,000 tons per year, yet much of the product is shipped out in unprocessed form.

Government’s new directive will reverse this trend by ensuring raw rubber is retained for domestic factories.

Dr. Forson noted:

“As part of efforts to secure sustainable supply of raw materials for domestic processing and the development of the local value chains, government will be restricting the export of raw rubber.”

Rubber is essential for tyre manufacturing, footwear, hoses, belts, gloves, automotive components, and emerging high-tech material production. By retaining raw rubber locally, government projects that Ghana will be able to expand its manufacturing capacity, create more jobs, and build a globally competitive rubber value chain.

Linking Industrial Policy With Job Creation

Industrial restrictions alone cannot transform an economy. Recognizing this, government is simultaneously investing in factories and agro-processing infrastructure to absorb these raw materials and generate nationwide employment.

One of the flagship interventions is the construction of three modern garment factories in the Bono East, Central, and Eastern Regions. These factories are expected to operate in three shifts—morning, afternoon, and night—creating an estimated 27,000 jobs for young people, especially women.

This forms part of the renewed drive to revive the African textile and garment value chain, a sector that has massive global demand yet remains underdeveloped in Ghana.

Strengthening Food Processing and Reducing Post-Harvest Losses

Beyond metals and rubber, government is also focusing on agribusiness transformation. Seven new agro-processing plants are being established to process key food crops such as yam, fish, poultry, cashew, rice, shea butter, and palm kernel oil.

Ghana loses billions annually due to post-harvest spoilage. The establishment of these plants aims to tackle that challenge while providing stable markets for farmers, improving food security, and expanding Ghana’s export basket.

These factories will operate under broader governmental efforts to promote industrial zones, support rural economic development, and improve farmer incomes through value addition.

Boosting Export-Led Agriculture

To strengthen Ghana’s non-traditional exports, Dr. Forson outlined progress under the President’s Accelerated Export Development Programme. Among the major developments are the establishment of two new cashew processing factories financed by the Ghana Exim Bank.

These factories, sited at Sampa in the Jaman North Municipality and at Aboabo in the Techiman Municipality, are expected to significantly expand the cashew processing industry. Cashew remains one of Ghana’s top agricultural exports, yet most of it is exported raw. The new plants aim to change this by processing cashew locally into kernels, oils, by-products, and export-ready consumer goods.

This approach not only creates manufacturing jobs but also strengthens foreign exchange earnings—critical at a time when Ghana is working hard to stabilize the cedi and grow export revenues.

A Unified Vision for Industrial Growth

Taken together, Ghana’s restrictions on scrap metals and raw rubber exports, the expansion of agro-processing, and the construction of garment and cashew factories form a unified national strategy. The aim is clear: to build a self-sufficient industrial ecosystem where raw materials stay within Ghana, industries thrive, youth gain stable employment, and exports increase.

The policy is expected to face some opposition from exporters who have benefited from global scrap and rubber markets. However, government maintains that domestic industrial growth must take precedence over short-term export gains.

As Ghana continues to reposition its economy, these restrictions are not merely limitations—they are strategic investments in national growth.

FAQs

1. Why is the government restricting scrap metal exports?

To ensure raw materials remain in Ghana to support local industries, manufacturing expansion, and job creation.

2. What metals are affected?

Non-ferrous metals such as aluminium, copper, zinc, brass, and lead.

3. Will the ban affect exporters?

Yes, exporters will need to redirect materials to local processors instead of international buyers.

4. Why restrict raw rubber?

To support tyre manufacturing, footwear production, and local rubber-based industries that need consistent raw material supply.

5. What new factories are being built under the plan?

Three garment factories in Bono East, Central, and Eastern Regions, and seven agro-processing plants across Ghana.

6. How many jobs are expected from the new garment factories?

An estimated 27,000 jobs across three shifts.

7. What is the role of the Ghana Exim Bank in this strategy?

It is financing two new cashew processing plants to expand Ghana’s export-ready production capacity.

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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