Ghana’s economy grew by 5.3% in the first quarter of 2025, with economist Dr. Paul Appiah Konadu urging policymakers to prioritize the manufacturing sector after it posted 6.6% growth.
The Pentecost University scholar emphasized that manufacturing offers Ghana’s most viable path for job creation and inclusive economic expansion, contrasting it with the limited employment benefits of extractive industries like oil and mining.
“Manufacturing is the most labour-intensive sector and has the greatest potential for mass employment,” Dr. Appiah Konadu told The High Street Journal. He noted that while extractive industries contribute to GDP, “foreign nationals dominate high-value jobs while local employment opportunities remain limited.” The economist proposed redirecting oil revenues to industrial development, citing the need to process raw materials domestically rather than exporting them unrefined.
With raw gold, cocoa and oil constituting 84.1% of Ghana’s 2024 export earnings, Dr. Appiah Konadu stressed the economic imperative of local value addition. He pointed to Ghana’s monthly $450 million expenditure on refined oil imports as evidence of missed opportunities, while advocating for revived domestic refining capacity. The African Continental Free Trade Area (AfCFTA) presents a critical opportunity, he said, allowing Ghana to access a 1.4 billion-consumer market for value-added goods.
The economist identified key challenges including high borrowing costs, with interest rates exceeding 25%, and infrastructure deficits in power and transportation that undermine industrial competitiveness. His recommendations come as Ghana’s currency stabilization and reduced import costs create favorable conditions for manufacturing expansion. Ghana’s economic trajectory reflects a broader continental pattern where industrialization has proven essential for sustainable, employment-intensive growth.