Energy Crisis Threatens Industrial Growth

By Esther Korantemaa Offei

The growing energy challenges confronting Ghana’s industrial sector have sparked renewed debate over the future of local manufacturing and the country’s competitiveness within the global economy. Following concerns raised by the Association of Ghana Industries (AGI) that energy has become a major obstacle to industrial growth, several Ghanaians who spoke to The New Finder called for urgent reforms and alternative energy investments to protect local industries.

Many of the citizens interviewed stressed that stable and affordable electricity remains central to industrial productivity, cost reduction and long-term economic growth.

One respondent proposed the creation of localized power systems dedicated specifically to industrial enclaves. According to him, industries and manufacturing hubs should operate on separate energy grids powered by solar, gas or hybrid systems to reduce pressure on the national grid and guarantee uninterrupted power supply.

“One practical solution is the development of localised power supply systems dedicated specifically to industries and should operate independently from the national grid,” he told The New Finder.

He explained that such a system would help industries reduce production costs and avoid frequent interruptions that continue to affect manufacturing operations across the country.

“This would reduce dependence on the national grid, lower production costs and minimise disruptions caused by power challenges,” he said.

The respondent further noted that reliable energy would help industries plan production more efficiently while attracting private investment into industrial infrastructure.

“So let’s have these industries and industrial zones on a different power grid so that they have their own way of having energy and not depend entirely on the national grid,” he added.

Another citizen who spoke to the New Finder argued that Ghana must begin seriously exploring nuclear energy as part of efforts to diversify the country’s energy mix and ensure long-term stability in power generation.

According to him, Ghana’s current energy structure remains vulnerable to disruptions caused by fuel shortages and weather conditions affecting hydro and solar power generation.

“I think nuclear energy has been something we’ve ignored for so long,” he stated.

He observed that while many countries are increasingly embracing renewable energy, solar and wind systems still depend heavily on weather conditions, making them less reliable for industries that require constant electricity for production.

“But if you look at nuclear, whether it rains or shines, when your plant is in place, you are good to go,” he explained.

The respondent also highlighted recent technological advances in modular nuclear systems, noting that smaller and more flexible nuclear facilities are now available and could help countries like Ghana secure stable power supply in the long term.

“Now we have very small and modular nuclear facilities that can fit on a truck, so government should look at these alternatives and invest in them,” he added.

Others emphasized the need for government to diversify investments across several energy sources, including solar, hydro and gas-powered systems.

One respondent said Ghana’s industrial future could be threatened if energy costs remain high under the African Continental Free Trade Area framework.

“In my opinion, the practical solution that can help Ghana’s industries is for the government to diversify investments in energy,” the respondent stated.

The citizen also suggested that government should revisit plans to develop nuclear energy while improving efficiency within the country’s power distribution system.

The ongoing concerns raised by the AGI and the views shared by citizens reflect the growing urgency surrounding Ghana’s energy sector and its impact on industrial development. Analysts say without reliable and affordable electricity, local industries may continue to struggle with high production costs, reduced output and declining competitiveness in both regional and international markets.