A GNA Feature by Stephen Asante
Accra, March 06, GNA – Industrialisation, technological advancement, and ingenuity defined Ghana’s development course after gaining independence from Britain in 1957.
Under the charismatic Osagyefo Dr Kwame Nkrumah, the first president, the Convention Peoples Party (CPP)-led government considered industrialisation as a key factor for modernisation, sustainable growth and making the people more productive.
The government invested heavily in infrastructure and was involved in the domestic production of previously imported consumer goods, processing of exports of primary products, and the expansion of building materials and electrical, electronic, and machinery industries.
That agenda would ensure massive investment in large-scale state-owned enterprises, infrastructure and state-of-the-art engineering projects and training programmes in the First Republic (1957-1966), the like never seen in any post-independence sub-Saharan African country.
Come to think of some flagship projects, such as the Akosombo Dam, a major hydroelectric dam on the Volta River in southeastern Ghana, creating Lake Volta and generating over 1,020 megawatts of electricity for the country and neighbouring countries.
Sadly, he did not get the opportunity to supervise it use and that of the Volta Lake, intended to a waterway heavy lifting, irrigation, aquaculture and even a climate modifier.
Nkrumah’s industrialization policy was to free the country from needless imports, pursue scientific and technogical advancement and decent jobs.
Other import substitution projects included the Zuarungu Meat Factory, Wenchi Tomato Factory, Kade Match Factory, Akosombo Textiles Limited, Pwalugu Tomato Factory, Tarkwa Bonsa Tyre Factory, Bolgatanga Rice Mill Factory, Cocoa Silo, Tema, as well as the Ghana Black Star Line with 15 ships. Domestic Banks were also create to facilitate deposit mobilization and credit for the production sectors.
The Ghana Commercial Bank (GCB), Agricultural Development Bank (ADB), and Ghana Ports and Harbours Authority (GHAPOHA).
“The extensive industrialisation programme, which emphasised import substitution, was pursued to transform the industrial structure, and reduce the Ghanaian economy’s dependence for goods on colonial powers and other foreign economies,” says Professor Festus Ebo Turkson of the Department of Economics, University of Ghana (UG), Legon.
The initial plan to create a state-managed import substitution industrialisation (ISI) strategy through the development of large-scale, state-owned capital-intensive manufacturing industries did have the intended impact.
In his assessment of Ghana’s development trends, Prof. Kwabena Frimpong-Boateng, renowned physician and cardiothoracic surgeon, who is a former Minister of Environment, Science, Technology and Innovation, eulogises Nkrumah for his visionary leadership.
“I believe that Nkrumah should be seen not only in terms of the physical things he built, which were massive and no one else comes near him, but also in terms of how he affected human lives.”
It is significant to note that the following factories and industries were all executed in the First Republic: State Boatyards Corporation, State Brick and Tile Corporation, State Cannery Corporation (Nsawam), State Cocoa Products Corporation, State Distilleries Corporation, State Electronic Products Corporation Sanyo factory, (Tema), Glass Manufacturing Corporation, State Marble Works Corporation, State Paints Corporation, Sheet Metal Works Corporation, State Textile Manufacturing Corporation Akosombo, and GIHOC Nzema Oil Mills Company Limited.
Others are the GIHOC Vegetable Oil Mills Company Limited, Tema Food Complex Corporation (TFCC), Fibre Bag Manufacturing Corporation (Kumasi Jute Factory), Kwame Nkrumah Steel Works Corporation, Paper Conversion Corporation, State Footwear Corporation (Kumasi shoe factory), Sugar Products Corporation (Komenda & Asutuare), State Advertising Company, GIHOC Bottling Company Ltd, GIHOC Pharmaceuticals, GIHOC Paper Conversion Co. Ltd., GIHOC Printing & Paper Products, GIHOC Refrigeration and Household Products Ltd., Mosquito Coil Co Ltd, and Abosso Glass Factory.
It is estimated that, from a contribution of 19 per cent to gross manufacturing output in 1962, SOEs (state owned enterprises) produced 32 per cent and 42 per cent of gross manufacturing output in 1966 and 1967, respectively.
Between 1960 and 1966, when Nkrumah was overthrown, Ghana’s Gross Domestic Product (GDP) increased 47 per cent, from US$181.00 to US$266.00. By 1964, Nkrumah’s development plans had begun to bear fruits for Ghana as the GDP figures confirm.
Sadly, Nkrumah’s trajectory of industrialisation, which were part of a broader policy and modernisation efforts aimed to build a human capital for sustained growth, stalled in the late 1960s due to a mix of external shocks, macroeconomic mismanagement, political instability, and policy shifts.
These factors led to a weakening of gains and the need for a re-evaluation of industrial policies to adapt to contemporary realities and sustainably revive industrialisation and inclusive development.
Notably, because of the liberalisation of imports and interest rates, high public expenditure, and a huge surge of imports, the situation led the economy into severe balance of payment problems and to a 90 per cent devaluation of the cedi in 1971.
Economists argue that the years in which negative growth was experienced generally coincided with changes in government and sometimes with policy changes or reversals.
In its 2025 Policy Notes Overview, titled: ‘Transforming Ghana in a Generation’, the World Bank notes that “Ghana’s history is marked by persistent governance issues that have obstructed policy reforms and prevented structural transformation and hindered economic diversification, thereby perpetuating a ‘boom and bust’ cycle”.
The world’s apex financial group states that sudden macroeconomic stops and crises have led the country to request a record 17 programmes with the International Monetary Fund (IMF), remaining under active IMF programmes for 40 out of its 69 years of history.
That scenario does not paint a better picture of a country whose socio-economic success stories post-independence inspired many other African countries to fight for freedom from colonial rule.
As the country marks 69 years of independence, it is important to reinforce national policies and measures backed by strong legal framework to advance the nation’s industrial and technological agenda.
Ghana ought to pursue a manufacturing export-led transformation with the capacity to absorb low to medium-skilled workers as previously observed in East Asia and other newly industrialised countries.
In the 2026 State of the Nation Address (SONA), President John Mahama indicated that Ghana aimed to raise manufacturing’s share of the economy to at least 15 per cent of the GDP by 2030, as part of an industrial expansion strategy that could create up to 500,000 jobs.
“Celebrating 69 years of independence on the theme, ‘Building Prosperity, Restoring Hope’, is not merely ceremonial. It is the blueprint that guides my administration’s vision and action.
“It reflects where we have been, acknowledges the difficulties we have endured, and confidently declares where we are headed. At the heart of this vision are two complementary and mutually reinforcing agendas: the Resetting Ghana Agenda and the Accra Reset,” the President stated.
In considering growth through innovation, there is no denying the fact that certain key factors are not glossed over: That is, more money for developing knowledge-intensive professions, especially in science, technology, engineering and mathematics.
In the history of industrial revolution, Africa is yet to make a mark at any stage of the revolutionary process as is the case with Ghana.
As the world experiences the wave of the fourth industrial revolution, it is important to invest in the requisite technical and institutional infrastructure, research and development to create new knowledge.
The creation of new knowledge through science, innovation and engineering education is the drive that invigorates professions and transforms national infrastructure, both technological, industrial and institutional.
“STEM education is not only a prelude to engineering, but also to innovation and manufacturing in the 21st Century. It is also crucial to fields in all areas of society,” Professor Mark Adom-Asamoah, immediate-past Provost of the College of Engineering (CoE), Kwame Nkrumah University of Science and Technology (KNUST), tells the Ghana News Agency (GNA).
Admittedly, the dynamics of global economic integration and advances in technology are presenting complex development challenges that can be addressed only by embracing opportunities for change.
Over the years, the issue of jobless growth and the poor performance of manufacturing have become major concerns in the country for many years.
Generally, the country has undergone three major episodes of industrialisation, namely an inward overprotected import substitution industrialisation strategy (1965-83), an outward liberalised industrialisation strategy (1984-2000), and since 2001, an industrial architecture based on value- added processing of Ghana’s natural resource endowments through a private sector-led accelerated industrial development strategy.
As the first country in sub-Saharan Africa to set the stage for self-rule and economic independence, Ghana is marking its 69th anniversary, hoping to change the narrative.
It is imperative to redirect attention towards identifying and supporting sectors with more significant employment potentials to provide decent employment for a rapidly growing population.
“In the long term, failure to reform Ghana’s growth model to tackle long-standing issues, adapt to the global landscape, and meet citizens’ aspirations would lead to a slow and inevitable decline.
“Without reforms, growth is expected to plateau within 15 years at only about 3.8 per cent (2.4 per cent per capita), with the country reaching the upper-middle income status only after 2050,” the World Bank cautions.
The world’s apex financial group adds that ambitious reforms have the potential to transform Ghana within a generation, tripling its per capita income by 2050.
“By implementing comprehensive policies and institutional reforms that enhance productivity, improve the quality of infrastructure services, and elevate human capital and workforce skills, the country can sustain economic growth exceeding 6.5 percent, fully offsetting headwinds from demographic trends and the decline in natural resources.
“The objective is to elevate Ghana among the top performers in the lower-middle-income country (LMIC) group in terms of productivity, public and private investment, human capital growth, and labour force participation.
“With moderate reform efforts, economic growth can still be maintained at 5.5 percent,” the World Bank notes.
GNA
06 March 2026
Edited by Samuel
