AGI calls for stronger import controls, lower VAT as industry backs 24-hour economy policy  

The Association of Ghana Industries (AGI) has renewed calls for bold reforms to strengthen Ghana’s industrial competitiveness, urging government to deepen support for the proposed 24-hour economy, enforce stricter import regulations, and accelerate policy measures outlined in the 2026 National Budget.  

Speaking at the AGI Industry and Quality Awards, Dr Humphrey Ayim Darke, AGI President said the 24-hour economy was of “keen interest” to industry players but cautioned that such a system could only succeed on the back of reliable power, efficient infrastructure, and consistent regulation.  

“A 24-hour economy does not happen by chance, it requires reliable power, robust infrastructure, regulatory consistency, and business-friendly policies, “he said.   

Dr Ayim Darke commended government for allocating GH¢15.2 billion to address energy sector shortfalls and GH¢4.8 billion to clear debts owed to Independent Power Producers (IPPs), saying the move signals a renewed commitment to power stability, critical for factories operating multiple shifts.  

He further called for the adoption of renewable energy, energy-efficiency technologies and greener production processes to reduce operational costs as industries scale round-the-clock production.  

The AGI President praised government for removing the COVID-19 Health Recovery Levy and restoring the VAT structure, which effectively reduces the rate from 21.9% to 20%.   

He said extending zero-rating for local textile manufacturers also provides essential relief.  

However, he stressed that more needed to be done to strengthen Ghanaian industries in local and export markets.  

A recurring theme was the growing threat of unfair trade practices. Dr Ayim Darke warned that parallel and substandard imports, products that evade taxes and standards continue to undermine local producers and erode government revenue.  

“These imports drain significant tax revenue through lost VAT, import duties, excise taxes and statutory payments,” he said.  

He called for stronger border controls, enhanced collaboration among the GSA, FDA, Customs, and AGI, and tougher penalties for violators.  

Professor Jane Naana Opoku-Agyemang, Vice President of Ghana, hailed the award winners for their contribution to national development and said government viewed industrialisation as central to economic independence and resilience.  

She described the 24-hour economy as one of the “boldest and most transformative policies,” designed to expand capacity, increase employment, maximize resource utilisation and boost exports.  

“We are incentivizing businesses, especially in manufacturing and light industry to operate in shifts around the clock,” she said.  

She also pointed to complementary programmes such as Feed the Industries, accelerated export development, and improved access to raw materials as key pillars that would reinforce industrial expansion.  

The Vice President acknowledged persistent challenges, including high production costs, inconsistent power supply, and limited access to credit but assured industry leaders that government remained committed to tackling them.  

Mrs Elizabeth Ofosu-Adjare, Minister of Trade, Agribusiness and Industry, reaffirmed government’s commitment to creating a competitive 24-hour industrial ecosystem.   

She said ongoing reforms such as digitisation of business processes, streamlined customs procedures, and strengthened quality standards were improving predictability for businesses.  

She highlighted new measures requiring exporters to repatriate earnings through licensed banks within 100 days of shipment, a step she said restored confidence in the foreign exchange system.  

The Minister also pointed to progress in infrastructure development, including support for the Abidjan–Lagos Corridor initiative, investments in energy stability, and the expansion of industrial parks to support 24-hour production.  

“Quality is the gateway to competitiveness,” she noted, urging industries to adopt internationally recognised certification and strengthen internal quality systems.  

Mr Seth Twum-Akwaboah, AGI Chief Executive Officer, echoed these concerns, noting that despite progress on taxes and exchange rate stability, unfair trade practices remained one of the biggest threats to domestic industry.  

“Government’s 24-hour economy will be a major game changer if industry is incentivized well enough to scale, but there will be no basis for industry to produce more if our local market is flooded with cheap imports,” he said.   

He pledged AGI’s support to government in intensifying the fight against illicit and substandard goods, describing the path to recovery as a “shared responsibility.”  

The ceremony honoured companies and individuals who demonstrated outstanding performance in manufacturing, quality assurance, innovation, and leadership.   

He urged industry players to “seize this moment” and work with government to build a resilient, sustainable and globally competitive industrial sector.  

Source: GNA  

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