An Associate Director, Tax and Legal at Deloitte Ghana, Gilbert Yirenkyi-Addo has expressed worry about the lack of skilled labour in advanced technologies, constraining industrial growth in Ghana.
According to him, the world is now fixated on digitalisation and Artificial Intelligence and therefore Ghana must develop its industrial economy by investing more in technology, create deliberate policy for the manufacturing sector to thrive.
Mr. Yirenkyi Addo disclosed this as a panelist at the annual Association of Ghana Industries Industrial Summit and Exhibition. The topic for the panel discussion was “Promoting Industrial Development in Ghana; How External Factors Impact our Potential for Growth”.
External Factors Influence Industrial Development
He stated that the success of industrial development is significantly influenced by various external factors.
“These factors, which are often beyond the direct control of the government, can either create opportunities or pose significant challenges to Ghana’s potential for industrial growth’, he said. “Nevertheless, the current global happenings present Ghana the opportunity to take advantage and become a competitive hub”, he added.
He further stated that external factors such as global economic conditions, commodity price fluctuations, Foreign Direct Investment (FDI) patterns, international trade policies, technology adoption, and skills availability have a significant impact on Ghana’s industrial development.
Therefore, he cautioned against the overdependence on primary commodity exports such as oil, gold and cocoa, which make the Ghanaian economy vulnerable to global price changes, impacting revenue and the stability of the Ghana cedi.
“When global commodity prices fall, Ghana’s export revenues decline, leading to a loss of foreign exchange and a weakened currency [the cedi], thereby reducing government revenue. This negatively impacts the government’s ability to finance crucial infrastructure projects and industrial support programmes”.
Overconcentration of FDIs in Extractives
Mr. Yirenkyi-Addo was also concerned about the concentration of FDIs in the oil and gas and mining sectors, saying, it hinders diversification and technology transfer to other industries.
According to him, the concentration of FDIs in the extractive sector has led to the crowding out of other industrial sectors, particularly manufacturing and this remains a key concern in Ghana.
He added that “The manufacturing sector faces competition from imports and challenges in fully leveraging opportunities like the African Continental Free Trade Area due to non-tariff barriers and infrastructure gaps. A lack of skilled labour in advanced technologies also constrains industrial potential as the world is now relying more on digitalization and AI technologies in various aspects of economic growth”.
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