Industry's contribution to Ghana's Gross Domestic Product (GDP) increased from $11.9 billion to $18.7 billion between 2012 and 2021, led by an increase in the manufacturing sector's value-added to GDP.
In its report on Ghana, the African Development Bank said that this nearly quadrupled to 6.6 percent from 2.5 percent.
Gross fixed capital creation increased as well, rising by 65% from $7.4 billion in 2012 to $12.2 billion in 2021 (at constant 2010 prices). All African Development Fund nations had an increase of 49%.
The economic diversification index grew from 0.77 to 0.81 for the same time frame.
Finally, throughout the same period, Ghana's score on the logistics performance index increased from 2.51 to 2.57. Despite these successes, the AfDB reported that the nation's ranking on the global competitiveness index fell.
Ghana's industrialization for the period of 2012–2021 was directed by the Ghana Industrial Policy of 2011, which was supplemented by the Made–in–Ghana Policy and a 10-point industrialization plan as of 2016.
The National Industrial Revitalization Programme, which includes the National Entrepreneurship and Innovation Programme and such flagship projects as "One District One Factory" and "One Region One Park," was followed by the Industrial Sector Support Programme 2011-2015 in the implementation of these policies.
According to the AfDB, Ghana's industrial strategies have a dual strategic emphasis that builds on the country's comparative advantages and market potential.
One is to develop manufacturing operations, particularly the processing sectors of modernised agricultural value chains, and to encourage local content in resource-based enterprises.
The task is anticipated to be led by the business sector.
Way ahead
According to the AfDB, industrialization in Ghana will diversify the economy and increase wealth creation with the proper policies in place.
Additionally, it will generate more and better employment, mostly in the private sector. Because of this, the Bank's country plan for 2019–2023 has a focus on the growth of the private sector and the industrial sector.
In November 2021, the Bank authorised the capitalization of $40 million under this pillar.
Development Bank Ghana is a recently founded organisation that aims to remove a significant obstacle to industrialization led by the private sector.
It was determined that Micro, Small, and Medium-Sized Enterprises engaged in agribusiness, manufacturing, information and communication technology, and high-value services will get long-term, cheap financing from Development Bank Ghana.
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