Source your raw materials locally – Trade Minister urges manufacturers
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Source your raw materials locally – Trade Minister urges manufacturers

The Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has urged manufacturing companies operating in Ghana to prioritise the local sourcing of raw materials as a key driver of job creation and sustainable industrialisation.

Her call followed a decision by food manufacturing firm GB Foods to venture fully into commercial farming next year as part of efforts to source most of its raw materials locally.

Speaking to the media during a working visit to the company on Wednesday, December 17, 2025, Madam Ofosu-Adjare praised GB Foods for its high operational standards and plans to expand into commercial farming, describing the move as a model other manufacturers should emulate.

She said the initiative could see between 90% and 100% of the company’s raw materials sourced locally by next year.

“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 the value lies. Local sourcing means jobs for farmers, jobs for transporters and benefits for everyone along the chain,” she added.

The Minister also commended the company for maintaining high production standards, highlighting its laboratories and strict processing systems that ensure quality control before products reach the market.

Madam Ofosu-Adjare acknowledged the challenges confronting many manufacturing companies in the country and assured them of the government’s commitment to addressing bottlenecks to enable the sector to thrive.

She further noted GB Foods’ growing export footprint, with products reaching markets such as 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 and export,” she said.

She reaffirmed the government’s vision of positioning Ghana as a hub for industrialisation in Africa, citing the country’s stable democracy and investment-friendly environment.

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

“We are prioritising garments and textiles. As we prepare to roll out new plants, we are also looking at how existing factories like Precious Textiles can be supported to expand,” she said.

She noted that the company has significant capacity but is currently operating at about 30% due to limited business opportunities and access to markets.

To address this, Madam Ofosu-Adjare announced plans for the government to prioritise local garment factories in the production of uniforms for security agencies, stressing the need to end the practice of outsourcing garment production while local factories struggle.

“We are putting together a committee to ensure that 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 of sewing uniforms outside Ghana while our factories suffer are over. With the right contracts and leadership, these factories can be revived, increase employment and eventually compete internationally,” she added.

Meanwhile, Dr J. Teddy Ngu, Director for Institutional Affairs and Agribusiness Africa at GB Foods, called for government support, particularly in addressing water supply challenges to help reduce production costs.

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

Dr Ngu also revealed that GB Foods is pursuing backward integration and has secured about 6,000 hectares of land in the Afram Plains for large-scale farming.

“We are already growing tomatoes under a pilot phase, and some produce has 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 added.

He said the outgrower scheme would include crops such as tomatoes, onions, ginger, garlic and turmeric, creating jobs while ensuring a steady supply of raw materials for processing and export.

With the company already exporting to Burkina Faso, Dr Ngu said GB Foods plans to expand exports to other African markets in the coming years.

“Today, Ghanaians are seeing products exported from Ghana to Burkina Faso instead of imports. This is the Ghana-made, export-led economy we are working towards,” he said.

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