Ghana Risks Losing 435,000 Jobs to Regional Competition
By Praisebell Rosemond Larbi
Ghana’s manufacturing and agro-processing sectors are coming under growing strain as neighbouring countries roll out aggressive incentive packages that are drawing factories, capital and skilled labour out of the country, the Chamber of Agribusiness Ghana has warned.
In a statement, the Chamber said intensifying competition within the West African sub-region, particularly from Benin, Nigeria and Côte d’Ivoire, is threatening Ghana’s industrial base at a critical moment for economic recovery and job creation.
The Chamber estimates that without urgent policy intervention, Ghana could lose between 255,000 and 435,000 jobs over the next five years, alongside a significant erosion of domestic manufacturing capacity. It further projected that skills migration alone could cost the country as much as US$1.19 billion in lost investment tied to the training and development of professionals who may relocate to more competitive jurisdictions.
The warning follows the announcement by Benin of a new industrial attraction strategy targeting manufacturers in Ghana, Nigeria and across the wider West African region. The strategy leverages a mix of fiscal and operational incentives, including ultra-low taxes, cheaper electricity, faster port clearance processes and duty-free access to selected regional and international markets.
According to data cited by the Chamber, Ghana’s corporate income tax rate of 25 percent and industrial electricity tariffs ranging between US$0.14 and US$0.19 per kilowatt-hour compare unfavourably with Benin’s regime. Manufacturers operating in Benin’s Special Economic Zones reportedly enjoy tax rates of between zero and five percent, alongside power tariffs as low as US$0.08 per kilowatt-hour.
The Chamber described the situation as a defining test of Ghana’s industrial future.
“Ghana stands at a critical crossroads, warning that Benin’s aggressive strategy, combined with mounting competitive pressure from Nigeria and Côte d’Ivoire, poses an existential threat to our industrial development,” the statement said.
Despite the severity of the challenge, the Chamber stressed that the decline is not inevitable and can be reversed with decisive policy action. It argued that Ghana’s underlying fundamentals market access, political stability, human capital and agribusiness potential remain strong, but are being undermined by uncompetitive cost structures and slow policy responses.
“What we lack is competitive policy. This can be fixed with political will and urgent action,” the Chamber noted.
It urged government to treat the situation as a national emergency, warning that continued inaction would accelerate factory closures, deepen unemployment and intensify the outward migration of skilled labour.
“The time for action is now, calling for targeted tax incentives, energy cost reforms, faster regulatory approvals and a renewed focus on industrial competitiveness to retain and attract investment,” the statement said.
The Chamber concluded that safeguarding Ghana’s manufacturing and agro-processing base is essential not only for jobs, but for long-term economic resilience, export growth and food security.
