Ghana's Industrial Ambitions Hinge on Reliable Power Supply

Ghana's aspiration to become a competitive industrial and investment hub is increasingly contingent upon its ability to provide reliable, affordable, and sustainable electricity. Emerging industries such as artificial intelligence, data centres, electric mobility, and advanced manufacturing are creating new demands on the country's power infrastructure. The Volta River Authority (VRA) has highlighted the significance of a stable power supply in driving industrial growth. As the country seeks to attract investments and foster economic development, a reliable power supply will be crucial.

The VRA's emphasis on reliable power supply comes as Ghana prepares to introduce new cedi notes into circulation. The Bank of Ghana (BoG) will launch a redesigned series of Ghana cedi banknotes on December 1, 2026, featuring enhanced security features, improved durability, and smaller sizes. This move aims to modernize currency management and strengthen public confidence in the national currency. The introduction of new currency notes is expected to have a positive impact on the economy, but a reliable power supply will remain essential for driving industrial growth.

Ghana's industrial sector is set to receive a boost with the completion of the US$137 million Shiprite project, a ship repair and maintenance facility at the Port of Takoradi. The project has reached financial close, and construction is expected to be completed within 18 months. This development will enhance maritime trade and contribute to the country's economic growth. However, a reliable power supply will be necessary to support the facility's operations and ensure its sustainability.

The government's budget plans for 2027 aim to support economic growth and industrial development. The Minister of Finance, Dr. Cassiel Ato Forson, has announced that the government will lower its primary surplus target from 1.5 percent to 0.5 percent of Gross Domestic Product (GDP). This move is part of a US$10 billion, four-year economic transformation programme branded the New Economy. The programme seeks to finance initiatives that will drive economic growth and development.

Ghana is taking on a leadership role in Africa's digital development, with the Minister for Communication, Digital Technology and Innovations, Samuel Nartey George, appointed as Chair of the African Union Specialised Technical Committee on Communication and Information and Communication Technology (AU STC-CICT). This appointment highlights Ghana's commitment to driving digital development and innovation on the continent. A reliable power supply will be essential in supporting the growth of the digital sector.

Educationists and industry leaders have called for reforms to Ghana's education system to improve learning outcomes, strengthen practical skills development, and better align academic training with the needs of the economy. This initiative aims to equip students with the skills required to drive industrial growth and innovation. A reliable power supply will be necessary to support the growth of industries and create jobs for the country's growing workforce.

The government has announced plans to incentivize businesses under its 24-hour economy policy. The Minister of Finance, Dr. Cassiel Ato Forson, has disclosed that the government will defer import duties, levies, and VAT on qualifying machinery and inputs for one year. Additionally, solar panels and batteries will be exempt from import duty and VAT. These incentives aim to support businesses and drive economic growth, but a reliable power supply will remain crucial for the success of these initiatives.

Key points

• Ghana's industrial ambitions rely on affordable and sustainable electricity.