The Association of Ghana Industries (AGI) has expressed deep concern over reports of large-scale electrical cables importation by the Electricity Company of Ghana (ECG), describing it as a total disregard for the country’s local content regulations.
This comes in the wake of media reports suggesting the importation and alleged loss of over 1,000 containers of electrical cables and materials, including aluminium conductors, by ECG – a state institution already grappling with significant debt.
According to AGI, rumours of such materials’ unwarranted import have persisted for over a year, undermining local manufacturing efforts and breaching Legislative Instrument (L.I.) 2354 – which was passed in 2017 to promote local content in the energy sector.
“For a state institution that has historically supported local content and encouraged the establishment of local factories for producIng aluminium conductors, treatment of wooden poles and assembly of meters and transformers, this is most unfortunate,” AGI said in a statement signed by its Chief Executive Officer, Seth Twum-Akwaboah.
The AGI highlighted that local manufacturers responded positively to ECG’s earlier support by investing in the value chain, including sourcing aluminium from VALCO – a move that fostered job creation and vertical integration.
“Ghana currently has 100 percent local production capacity for aluminium conductors, using raw materials from VALCO. The continued importation of such products therefore constitutes a direct violation of L.I. 2354,” AGI added.
The association further lamented that while importers are promptly paid, local manufacturers are owed significant sums despite their ongoing contribution to the economy through job creation and industrial development.
In light of the situation, AGI has called on the Minister for Energy and Green Transition to take immediate action by:
- Strengthening public financial management systems with robust internal controls and regular audits to ensure compliance;
- Investigating and nullifying all imports that contravene L.I. 2354;
- Ensuring prompt payment of arrears owed to local manufacturers, giving them equal priority to local power generators.
AGI also emphasised that merely importing finished items does not constitute local content and warned that, without a strict enforcement regime, Ghana’s ambition for industrialisation could be undermined.
“AGI awaits government action on this critical matter and stands ready to support in every way possible,” the statement concluded.
