According to a recent report by the Chamber of Agribusiness Ghana (CAG), the country is facing a potential economic crisis due to aggressive industrial competition from neighboring Benin. The Chamber warns that Ghana could lose up to $21.3 billion in economic value and approximately 435,000 jobs over the next five years if current trends persist.
The technical analysis released by the Chamber indicates that between 395 and 535 factories are at risk of relocating to competing regional economies between 2026 and 2030. Agro-processing firms, which represent a significant portion of Ghana’s industrial base, are expected to account for 40% of these departures. The shift is largely attributed to Benin’s newly implemented investor-attraction strategy, which offers more favorable conditions for manufacturing and agribusiness.
The Chamber highlighted several key areas where Ghana has become uncompetitive, including high corporate taxation, expensive electricity tariffs, and prolonged port dwell times. These factors have made the cost of doing business in Ghana significantly higher than in Benin, Côte d’Ivoire, and Nigeria. Consequently, Ghana’s manufacturing sector is projected to shrink from 11.3% of GDP to 7.8% within the forecast period.
Despite these warnings, the Chamber noted that Ghana maintains core advantages such as democratic stability, a strong rule of law, and its status as the headquarters for the African Continental Free Trade Area (AfCFTA). However, the organization stressed that these strengths are insufficient on their own. They have called for immediate government intervention to lower operational costs and protect the industrial sector from a total collapse.
