Ghana’s Minister of Trade, Agribusiness and Industry, Mrs Elizabeth Ofosu-Adjare, has called on manufacturing companies to prioritise locally sourced raw materials, describing the move as essential for job creation, agricultural growth and sustainable industrialisation.

Her remarks followed a decision by food manufacturing company, GB Foods, to venture fully into commercial farming from next year, as part of plans to source its raw materials within Ghana.

Speaking during a working visit to the company on Wednesday, the Minister praised GB Foods for its high operational standards and commitment to backward integration, describing the initiative as a model other manufacturers should emulate.

By next year, she noted, between 90 and 100 per cent of the company’s raw materials could be sourced locally.

“When raw materials are sourced locally, we can confidently say we are industrialising,” Mrs Ofosu-Adjare said.

“If we enjoy the full value chain, that is where real value is created. Local sourcing means jobs for farmers, transporters and everyone along the chain.”

The Minister stressed that agriculture remains central to Ghana’s industrial ambitions, particularly when linked directly to manufacturing and processing.

She also commended GB Foods’ production systems, including its laboratories and quality controls, which ensure products meet market standards before distribution.

Beyond domestic production, Mrs Ofosu-Adjare highlighted the company’s growing export footprint, with products already 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,” she said, pointing to Ghana’s role as host of the African Continental Free Trade Area (AfCFTA) Secretariat.

During the visit, the Minister acknowledged challenges faced by manufacturers, assuring them of the government’s commitment to addressing infrastructure and operational bottlenecks.

She later visited Precious Textiles Company Limited in Tema, where she revealed that the government had developed a draft garments and textiles policy and planned to establish three new garment factories nationwide.

Although Precious Textiles has a strong capacity, the factory currently operates at about 30 per cent due to limited demand and market access.

To address this, the Minister announced plans to prioritise local garment factories in producing uniforms for security agencies.

“The days where we sew uniforms abroad while local factories struggle are over,” she said, adding that a committee would be set up to ensure local factories benefit from government contracts.

Dr J. Teddy Ngu, Director for Institutional Affairs and Agribusiness Africa at GB Foods, said the company is pursuing backward integration to reduce costs and secure a stable raw material supply.

He disclosed that the company had secured about 6,000 hectares of land in the Afram Plains, with pilot tomato production already underway.

By next year, GB Foods plans to operate a 2,000-metric-tonne-per-day processing factory, supported by 4,000 hectares of company-owned farms and 2,000 hectares cultivated by outgrowers.

The outgrower scheme will cover crops such as tomatoes, onions, ginger, garlic and turmeric, creating jobs while strengthening Ghana’s agricultural value chain.

Dr Ngu also called for government support to address water supply challenges, noting that the company currently spends about €700,000 on water annually due to unreliable supply.

Source: AccessAgric