A strategic alignment between the government’s 24-hour economy initiative and the previous administration’s industrial agenda could unlock transformative growth for Ghana’s manufacturing sector, argues Dela Agbo, CEO of EcoCapital Investment.
Speaking in an interview with B&FT, Agbo emphasized that merging the round-the-clock production model with the One District, One Factory (1D1F) program—backed by targeted fiscal incentives—could amplify productivity, equity market gains, and broader economic resilience.
“Imagine factories under 1D1F operating non-stop. The output surge would ripple across the real economy and stock market, creating a win-win for businesses and investors,” Agbo stated. His optimism contrasts with lingering investor caution, driven by policy uncertainties and global economic headwinds. Yet he pointed to the Ghana Stock Exchange’s (GSE) stellar 56.17% return in 2024, which crowned it Africa’s top-performing bourse, as proof of latent potential.
The GSE’s 2024 performance revealed stark sectoral divides. Consumer goods dominated, fueled by Unilever Ghana’s 140.4% rally, which saw shares leap from GH¢8.11 to GH¢19.50. Guinness Ghana Breweries and Fan Milk followed with gains of 61.8% and 13.9%, respectively, signaling robust domestic demand. However, not all thrived: Dannex Ayrton Starwin slid 5%, while Intravenous Infusions flatlined.
Banking stocks mirrored the uneven momentum. Ecobank Transnational soared 106.7%, and GCB Bank rose 87.4%, though Trust Bank Gambia inched up just 1.2% and Cal Bank plummeted 27.1%. Mining and energy sectors also saw mixed results, with NewGold ETF surging 78.7% and TotalEnergies climbing 45.8%, while AngloGold Ashanti shares stagnated.
Analysts link the consumer sector’s outperformance to Ghana’s resilient domestic demand, even as external pressures like currency volatility and tax reforms loom.
Agbo underscored the delicate balance between fiscal policy and investor confidence. While the proposed repeal of the e-levy and COVID-19 levy could ease public frustration, he warned of risks to revenue targets. “The solution isn’t leaning harder on the same taxpayers—it’s widening the net,” he stressed, advocating for systemic reforms to boost compliance.
Drawing parallels to the U.S. tax system, Agbo proposed introducing refund mechanisms to incentivize filings. “If Ghanaians see potential benefits, not just obligations, compliance could rise organically,” he explained.
Currency stability emerged as another critical factor. Agbo noted that SMEs, the backbone of Ghana’s economy, are disproportionately battered by cedi fluctuations. “Unstable exchange rates paralyze planning. Steady the currency, and businesses—and investors—will follow,” he said.
He also criticized steep import duties, which erode profit margins and deter expansion. “High tariffs strangle local businesses. Reforming this could unlock growth,” he added.
Despite challenges, Agbo expressed confidence in Ghana’s trajectory, citing the GSE’s election-year resilience as a hopeful sign. “With prudent policies—tax tweaks, currency stability, and incentives—Ghana can attract lasting investment,” he asserted.
As the government navigates competing priorities, the interplay between industrial strategy and market dynamics will likely dictate whether 2024’s stock market boom evolves into sustained, inclusive growth. For now, Agbo’s vision hinges on one imperative: “Policy isn’t just about plans—it’s about execution.”
