AGI Slams ECG Over Cable Imports and Demands Local Manufacturer
Payments
The Association of Ghana Industries has issued a strong warning to the
Electricity Company of Ghana over what it describes as the reckless importation
of electrical cables and the neglect of local producers. The AGI is demanding
the immediate settlement of debts owed to Ghanaian manufacturers while raising
serious concerns about missing imported containers and the breach of local
content laws.
This development has sparked public outcry, as the ECG reportedly brought in
more than 1,000 containers of electrical cables and aluminium conductors,
materials that can be produced locally. AGI insists that the imports are
unnecessary, especially since Ghana has the full capacity to produce such items
domestically. The group has condemned the move, stating that it undermines
efforts to promote local industry and violates Ghana’s legal frameworks on
local content.
The AGI's criticism follows recent investigations revealing that several of
the imported containers cannot be traced. According to the association, these
activities are not only suspicious but also contradict the government’s pledge
to support local industries. They believe ECG has failed to honour its
commitment to Ghanaian businesses that have invested heavily in manufacturing
and job creation.
The Chief Executive Officer of AGI, Seth Twum-Akwaboah, expressed deep
disappointment over the ECG's actions. He noted that local manufacturers of
aluminium conductors are owed large sums of money, yet ECG continues to pay
foreign importers instead of settling outstanding debts to domestic suppliers.
He described the situation as disheartening, particularly for a state
institution already burdened by significant financial challenges.
Twum-Akwaboah reminded the public and ECG of the country’s efforts in
previous years to promote industrial growth through policies that encouraged
local production. He recalled that government backing led to the establishment
of local factories to produce aluminium conductors, treat wooden poles, and
assemble meters and transformers. These moves resulted in the passage of
Legislative Instrument 2354 in 2017, a law that reinforced Ghana’s local
content strategy and aimed to protect and expand the local industry.
The AGI said that ECG’s recent actions completely disregard this law, which
is still in effect. They called on the Ministry of Energy and other relevant
authorities to take swift action by investigating all contracts and imports
that appear to breach L.I. 2354. According to AGI, Ghana currently has 100
percent local production capacity for aluminium conductors, sourcing raw
materials from VALCO. This means there is no justifiable reason for ECG to rely
on imports.
The association has made three main demands. First, it is calling on the
Ministry of Energy and Green Transition to enhance public financial management
systems and carry out regular audits to ensure all state institutions comply
with local content regulations. Second, AGI wants a full investigation into all
imported materials and the cancellation of contracts that do not align with
national laws. Finally, they are asking ECG to prioritise payments to local
manufacturers who are key players in Ghana’s economic development.
AGI also warned that not all local suppliers qualify under the local content
laws. The association explained that businesses that simply import goods into
the country without adding value should not be considered part of the local
manufacturing sector. They clarified that true local content support should go
to those who engage in actual production or value addition within Ghana.
The group is concerned that if these issues are not addressed, Ghana’s dream
of industrial transformation will not be realised. They warned that without
full support and protection of domestic manufacturing, the country will
continue to rely on imports, undermining job creation and economic
sustainability.
The AGI further stated that the country cannot continue to ignore the
contributions of its own manufacturers while favouring external sources. They
believe the time has come for state institutions, especially those funded by
the public, to reflect the national vision of self-reliance and economic
independence.
The association is urging all stakeholders, including government ministries,
the energy sector, and civil society, to rally behind local industries. They
stressed that local manufacturing is key to Ghana’s future and should not be
sacrificed for quick fixes or deals that do not benefit the economy in the long
run.
They concluded that Ghana must protect its own, stop unnecessary imports,
and begin giving local manufacturers the respect and financial support they
deserve.
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