Ghana’s 2025 Budget Statement, presented on March 11, 2025, by the finance minister, Ato Forson, has drawn mixed reactions from various quarters.
While the government has highlighted critical interventions in education, healthcare, and economic stabilization, many industry watchers, including Ambidexterity for Africa (A4A), are raising important questions about the country’s industrialization agenda and readiness for global markets.
Is industrialization still on the agenda?
One of the most glaring concerns from industry experts is the absence of a clear and coordinated pathway for industrialization within the GH¢226 billion budget. Apart from an allocation of GH¢1.5 billion under the Agriculture for Economic Transformation Agenda (AETA) — itself lacking in detail on how it will translate into industrial value — there appears to be no substantial blueprint to drive growth in Ghana’s industrial and manufacturing sectors.
Harmony Attise, Founder of Ambidexterity for Africa (A4A), a platform focused on strengthening African businesses for industrialization and competitiveness, explained: “Industrialization is not just another sector to be managed; it is the engine that drives sustainable development, job creation, and economic resilience.
When we don’t see deliberate policies and investments to build our industrial base, we must ask: where is the strategy to move Ghana beyond dependency and into real value creation?”
The budget’s silence on specific industrial growth trajectories, apart from general references to stabilization and agriculture, has raised concerns about Ghana’s readiness to compete under frameworks like the African Continental Free Trade Area (AfCFTA).
Key questions the budget fails to answer
In reviewing the government’s 2025 Budget Statement, Ambidexterity for Africa (A4A) has identified several critical questions that remain unanswered — questions that speak directly to the heart of Ghana’s industrialization and competitiveness agenda:
- Where are the sector-specific strategies to add value to Ghana’s natural resources and raw materials? Ghana’s economy continues to depend heavily on raw commodity exports, from cocoa to gold. Yet, without industrial value addition, the country risks remaining a raw materials hub rather than an industrial player.
- What is the plan to enable Ghanaian businesses to adopt advanced technologies and compete globally? No concrete support mechanisms were outlined to help businesses adopt innovation, research, and development (R&D) or modern manufacturing technologies.
- How will the government tackle structural barriers to competitiveness? High production costs, limited innovation financing, and weak integration into supply chains continue to limit the competitiveness of Ghanaian firms. The budget does not outline a clear strategy to address these issues.
- If Ghana plans to benefit from AfCFTA, what is the roadmap for strengthening industrial capacity? Without targeted industrial policies and investment in innovation, Ghana risks being sidelined in regional and global trade markets.
Growth, but growth of what?
Another tension raised is the focus on growth without clarity on what kind of growth is being pursued. While the government emphasizes social programs and stabilization — which are indeed necessary — the lack of investment in industrial capacity raises questions about how long such growth can be sustained without a vibrant, competitive private sector.
Harmony further elaborates: “If we are only focused on social interventions without ensuring that our industries are strong enough to create jobs and generate revenue, we are setting ourselves up for dependency on aid and external financing. Growth must be driven by a thriving industrial sector that can stand on its own in competitive markets.”
Mining revenue and industrial development
Interestingly, the budget proposes an increase in the Growth and Sustainability Levy on mining companies from 1% to 3%, a move expected to boost government revenue. However, there is no corresponding policy detailing how this additional revenue will be used to support industrial development, technology transfer, or innovation.
As the Executive director for A4A, Harmony points out: “If we are extracting more from our natural resources, the critical question is — to what end? Without deliberate reinvestment into industrial and technological capacity, we are simply taxing without transformation.”
What should have been in the budget?
We at A4A believe that this budget was a unique opportunity to launch a National Industrial Competitiveness Framework, and its absence is a missed chance to set a clear direction. Such a framework could have included:
- Sector-specific policies aimed at value addition and export diversification.
- Incentives and innovation financing to help businesses adopt modern technologies and scale.
- Support for industrial clusters to improve productivity and reduce costs.
- Capacity-building for firms to balance operational efficiency with innovation — a capability known in business circles as “ambidexterity.”
Can the private sector fill the gap?
While government leadership is crucial, platforms like Ambidexterity for Africa (A4A) are already working to close some of these gaps by supporting businesses to build innovation and competitiveness capacities.
“At A4A, we have developed practical tools to assess companies’ readiness for innovation and growth. We also work on capacity-building programs that help firms become competitive not just locally but globally.
However, for this to succeed at scale, government partnership is essential. Industry and government must work hand-in-hand to create an ecosystem where businesses can thrive.” – Harmony Attise.
To ensure Ghana does not lose another year to inaction on industrial competitiveness, A4A is calling for urgent steps:
- Develop a National Industrial Competitiveness and Innovation Strategy tied to concrete budget lines and targets.
- Establish an Industrial Competitiveness Fund, potentially using part of the increased mining revenues, to support industrial capacity building and innovation.
- Adopt assessment and capacity-building tools that help firms understand and improve their global competitiveness.
- Foster partnerships between government, industry, and academia to co-create practical and implementable policies.
Ghana’s place in the global economy
With AfCFTA and the ongoing shifts in global supply chains, Ghana is at a pivotal moment. Whether it becomes a competitive industrial player or remains a raw materials exporter depends on the decisions made today.
In Harmony Attise’s words: “Ghana has immense potential. But without intentional investment in industrial capacity, innovation, and competitiveness, that potential will remain unrealized. We need to start thinking and acting like a country that wants to compete, not just survive.”
The time to act is now.
