The Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has called on manufacturing companies operating in Ghana to prioritise local sourcing of raw materials as a critical step toward job creation and sustainable industrialisation.
Her call followed food manufacturing firm GB Foods’ decision to venture fully into commercial farming next year as part of plans to source its raw materials locally.
Speaking to the media during a working visit to the company on Wednesday, Mrs Ofosu-Adjare lauded the company’s high operational standards and its decision to expand into commercial farming, describing it as a model for other manufacturers to emulate.
With this, she said by next year, up to 90 to 100 per cent of the company’s raw materials was likely to be locally sourced.
“This is exactly what we are looking for. When raw materials are sourced locally, we can confidently say we are industrialising.”
“If we enjoy the whole value chain, that is where we get all the value. Sourcing raw materials locally means jobs for our farmers, jobs for our transporters, and benefits for everyone along the chain,” Mrs Ofosu-Adjare added.
She also commended the company for maintaining top-notch production standards, highlighting the company’s laboratories and strict processing systems that ensure quality before products reach the market.
The Minister also acknowledged confronting many manufacturing companies in the country, assuring them of the government’s commitment to tackling those bottlenecks to enable them to thrive.
Beyond local production, the Minister pointed to GB Foods’ growing export footprint, with products reaching markets such as Burkina Faso, 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 touted.
She reaffirmed the government’s vision of positioning Ghana as a hub for industrialisation in Africa, citing the country’s stable democracy and investment-friendly environment.
The Minister also visited Precious Textiles Company Limited in Tema, where she disclosed that the government had developed a draft policy on garments and textiles and was preparing to establish three new garment plants across the country.
“We are high on garments and textiles. As we prepare to roll out new plants, we are also looking at how existing factories like Precious Textiles can be supported to grow,” she said.
The Minister noted that the company had strong capacity but was currently operating at about 30 per cent due to limited business and access to markets.
To address this, she announced plans for the government to prioritise local garment factories in the production of uniforms for security agencies, adding that the government was determined to end the practice of outsourcing garment production abroad while local factories struggle.
“We are putting together a committee to ensure that all security agencies sew their uniforms in Ghana. Factories like this will be brought on board so they can get part of these contracts,” she said.
“The days when we go outside Ghana to sew while our factories suffer are over. With the right contracts and leadership, these factories can be revived, increase employment and eventually compete internationally.”
Dr J. Teddy Ngu, Director for Institutional Affairs and Agribusiness Africa at GB Foods, called for the government’s support, particularly in addressing water challenges to reduce its production cost.
He noted that the company spent €700,000 on water and relied on water tankers for about 90 per cent of its water supply due to infrequent supply by the Ghana Water Company Limited.
Dr Ngu also disclosed that the company was pursuing backward integration and had secured about 6,000 hectares of land in the Afram Plains for large-scale farming.
“We are already growing tomatoes under a pilot phase, and some of the produce has even been consumed locally,” he said.
“By next year, we will scale up to a 2,000-metric-tonne-per-day factory, supported by about 4,000 hectares of company-owned farms and 2,000 hectares cultivated by outgrowers.”
He added that the outgrower scheme would include tomatoes, onions, ginger, garlic, turmeric and other crops, creating jobs while ensuring a steady supply of raw materials for processing and export.
With the company already exporting products to neighbouring Burkina Faso, DDrNgu said the company hoped to expand its exports to other African markets in the next few years.
“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.
- President Commissions 36.5 Million Dollars Hospital In The Tain District
- You Will Not Go Free For Killing An Hard Working MP – Akufo-Addo To MP’s Killer
- I Will Lead You To Victory – Ato Forson Assures NDC Supporters
Visit Our Social Media for More
About Author
