Trade Minister Pushes Local Sourcing to Spur Jobs

By Praisebell Rosemond Larbi

The Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has urged manufacturing firms operating in Ghana to prioritise the local sourcing of raw materials as a deliberate strategy to create jobs, deepen value addition and accelerate sustainable industrialisation.

The Minister made the call following the decision by food manufacturing company, GB Foods, to venture fully into commercial farming from next year as part of its backward integration strategy to secure local raw material supply.

Speaking to journalists during a working visit to the company on Wednesday, Mrs Ofosu-Adjare praised GB Foods for its high operational standards and its commitment to sourcing inputs locally, describing the move as a practical example of the industrial transformation government seeks to promote.

She indicated that once the company’s farming plans take full effect, between 90 and 100 per cent of its raw materials could be sourced locally.

“This is exactly what we are looking for. When raw materials are sourced locally, we can confidently say we are industrialising,” she said.

“If we enjoy the entire value chain, that is where we get all the value. Sourcing locally means jobs for farmers, jobs for transporters, and benefits for everyone along the production chain,” the Minister added.

Mrs Ofosu-Adjare also commended the company’s production processes, particularly its laboratories and strict quality assurance systems, which ensure that products meet high standards before reaching consumers.

She acknowledged the operational challenges confronting many manufacturers in Ghana, including infrastructure and utility constraints, and assured industry players of government’s commitment to addressing these bottlenecks to improve competitiveness and productivity.

Beyond domestic production, the Minister highlighted GB Foods’ growing export footprint, noting that the company currently exports to 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, produce and export,” she said.

The Minister reaffirmed government’s broader vision of positioning Ghana as an industrial hub in Africa, citing the country’s stable democracy and investor-friendly environment as key advantages.

As part of her tour, Mrs Ofosu-Adjare also visited Precious Textiles Company Limited in Tema, where she disclosed that government has developed a draft garments and textiles policy and is preparing to establish three new garment plants across the country.

She noted that while Precious Textiles has strong installed capacity, it is currently operating at about 30 per cent due to limited access to markets.

To address this, the Minister announced plans for government to prioritise local garment factories in the production of uniforms for security agencies, stressing that outsourcing such contracts abroad while local factories struggle must end.

“We are putting together a committee to ensure all security agencies sew their uniforms in Ghana. Factories like this will be brought on board to benefit from these contracts,” she said.

“The days when we go outside Ghana to sew while our factories suffer are over. With the right leadership and contracts, these factories can be revived, create jobs and eventually compete internationally.”

Dr J. Teddy Ngu, Director for Institutional Affairs and Agribusiness Africa at GB Foods, appealed for government support, particularly in addressing water supply challenges, which significantly increase production costs.

He revealed that the company spends about €700,000 annually on water and relies on water tankers for nearly 90 per cent of its needs due to erratic supply from the Ghana Water Company Limited.

Dr Ngu also disclosed that GB Foods has secured about 6,000 hectares of land in the Afram Plains for large-scale farming as part of its backward integration drive.

“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 plan to 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 explained that the outgrower scheme would cover crops such as tomatoes, onions, ginger, garlic and turmeric, creating jobs while ensuring a steady supply of raw materials for processing and export.

With products already reaching Burkina Faso, Dr Ngu said the company aims to expand exports to other African markets in the coming years, aligning with Ghana’s vision of a Ghana-made, export-led industrial economy.