Ghana faces the potential loss of up to 21.3 billion United States dollars in manufacturing capacity, skilled labour and foreign direct investment over the next five years if the country fails to respond swiftly with competitive policy reforms, the Chamber of Agribusiness Ghana has warned.
The caution, issued in a statement on Monday, follows the launch of an aggressive investor attraction strategy by neighbouring Benin Republic aimed at drawing manufacturers from Ghana, Nigeria and across the West African sub-region.
According to the Chamber’s technical analysis, Ghana faces the potential relocation or closure of between 395 and 535 factories from 2026 to 2030, with agro-processing accounting for about 40 per cent of the affected facilities.
The statement, signed by Chief Executive Officer Anthony Kofituo Morrison, warned that without urgent intervention, Ghana could lose between 255,000 and 435,000 jobs over the next five years, alongside significant erosion of manufacturing capacity and human capital.
Skills migration alone is projected to cost the country up to 1.19 billion dollars in lost investment in trained professionals, the Chamber stated.
The warning follows Benin’s announcement of a new strategy leveraging lower taxes, cheaper electricity, faster port clearance and duty-free access to key markets to attract manufacturers from Ghana and other neighbouring countries.
The Chamber noted that Benin’s approach includes competitive electricity tariffs significantly lower than Ghana’s current industrial rates, streamlined port operations with faster turnaround times, reduced corporate tax burdens, and preferential trade access through bilateral agreements.
Morrison stated that Ghana’s manufacturing and agro-processing sectors are facing mounting pressure as regional competitors roll out aggressive incentive packages that are drawing factories, capital and skilled labour away from the country.
He urged the government to treat the situation as a national emergency, cautioning that continued inaction would deepen factory closures, job losses and skills migration.
The Chamber’s analysis identified several critical factors driving potential relocations, including rising production costs, unstable electricity supply, high taxes and levies, bureaucratic bottlenecks in business registration and permits, and limited access to affordable credit for manufacturing expansion.
The Chamber called for immediate policy interventions including competitive energy pricing for industrial users, streamlined port and customs operations, targeted tax incentives for manufacturing and agro-processing, improved access to trade finance, and investment in industrial infrastructure.
Morrison emphasised that Ghana’s traditional advantages such as political stability, skilled workforce and market access are no longer sufficient to retain manufacturers without matching the aggressive incentive packages being offered by regional competitors.
The statement noted that the time for action is now, as manufacturers are actively evaluating relocation options and making decisions that could permanently reshape West Africa’s industrial landscape.
The Chamber of Agribusiness Ghana represents agribusiness companies, national agriculture associations and farmer based organisations across the country, advocating for policy reforms to strengthen the agricultural and agribusiness value chain sector.
