Ghana’s leading industrial body has issued urgent demands for government protection of manufacturers currently benefiting from the cancelled One District, One Factory programme as authorities implement the flagship 24-hour economy policy, warning that policy disruptions could derail existing investments and employment.
Association of Ghana Industries President Humphrey Ayim-Darke delivered the appeal Tuesday at the Ghana Industrial Summit and Exhibition 2025, emphasizing that companies heavily invested under 1D1F tax exemptions require guaranteed continuity to prevent operational chaos during the transition period.
The intervention comes as manufacturers face mounting pressure from what AGI describes as an “unprecedented surge” in parallel imports that are undermining local competitiveness through what Ayim-Darke termed “artificial cost advantages” gained by evading proper regulatory oversight.
Government officially cancelled the 1D1F programme in July 2025, replacing it with the 24-hour economy initiative, but AGI argues that abrupt policy shifts without transition protection could devastate companies that structured their operations around previous incentive frameworks.
The association’s concerns reflect broader uncertainty among manufacturers about whether existing benefits will transfer seamlessly to the new policy architecture, particularly as tax exemptions granted under the previous administration remain crucial for expansion and job creation.
Ayim-Darke specifically called for extending current incentive structures into the 24-hour framework, arguing that continuity represents essential protection for businesses that committed substantial resources based on previous government guarantees. The AGI President emphasized that such incentives remain “a necessity” for triggering business expansion in Ghana’s challenging economic environment.
The timing proves particularly significant as local manufacturers reportedly struggle against increasingly sophisticated import networks that AGI claims circumvent standard quality and safety protocols. These parallel products allegedly gain competitive advantages by avoiding appropriate regulatory checks, creating what the association describes as fundamentally unfair market conditions.
According to industry analysis, the parallel import phenomenon has intensified since early 2025, coinciding with broader economic pressures that have made cheaper alternatives more attractive to cost-conscious consumers. This trend threatens to undermine the industrial development goals that both 1D1F and the 24-hour economy policies were designed to achieve.
The association’s warnings extend beyond immediate transition concerns to encompass systemic challenges facing Ghana’s manufacturing sector. Rising electricity costs, inconsistent power supply, and regulatory uncertainty have created what AGI characterizes as a hostile environment for domestic production, requiring coordinated government intervention to maintain competitiveness.
Ayim-Darke called for “balanced electricity tariff pricing” that ensures both affordable power access and reliable supply networks, arguing that stable energy infrastructure represents a prerequisite for successful 24-hour economy implementation. Without addressing these fundamental challenges, the association suggests that extended operational hours could actually increase business costs rather than boost productivity.
The industrial leader’s comments highlight tensions between policy continuity and economic transformation as Ghana’s new administration implements its signature economic initiatives. While the 24-hour economy promises expanded production capabilities and job creation, manufacturers worry that transition disruptions could eliminate gains achieved under previous programmes.
AGI’s parallel import concerns reflect broader challenges facing African manufacturers as global supply chains adapt to post-pandemic conditions and shifting trade patterns. The association argues that regulatory enforcement must strengthen significantly to prevent unfair competition from products that bypass standard import procedures and quality controls.
Industry observers note that successful policy transitions require careful balancing between innovation and stability, particularly for sectors that require long-term investment planning. Manufacturing companies typically commit resources based on multi-year projections, making sudden policy changes potentially devastating for ongoing operations and expansion plans.
The association stressed its commitment to supporting Ghana’s economic transformation while demanding that government ensure fair business environments that protect existing investments. AGI emphasized that manufacturers remain willing partners in national development efforts but require predictable regulatory frameworks to sustain growth and employment.
As government prepares comprehensive 24-hour economy implementation, the association’s demands represent broader private sector concerns about policy coordination and business environment stability. The success of Ghana’s industrial transformation agenda may depend significantly on how effectively authorities address these transition challenges while maintaining momentum toward expanded production capabilities.
