Mahama pledges action on free zones incentives after touring Tema, Afienya manufacturing hubs

President John Dramani Mahama has signalled renewed government focus on Ghana's manufacturing sector, visiting key industrial facilities in Tema and Afienya on Thursday to assess operations and hear directly from manufacturers about pressing challenges. The tour underscores the administration's commitment to strengthening domestic production and job creation in a sector critical to Ghana's economic diversification.

The presidential delegation, led by Minister for Trade, Agribusiness and Industry Elizabeth Ofosu-Adjare, inspected five companies at the Afienya Industrial Enclave: Juidine Corporation Ghana Limited, Huaguang New Energy Battery Ghana Ltd, Qian Feng Intel Corporation, Zema New Energy Limited and Baoxu Automobile Manufacturing Ghana Limited. The group also visited Dignity DTRT Limited, a major textile and garment producer based in Tema.

Manufacturing and investment focus

The visits reflect a broader government strategy to engage directly with manufacturers, understand operational challenges and create conditions for sustainable industrial growth. By touring facilities across different sectors—from automotive and battery manufacturing to textiles—the President demonstrated awareness of Ghana's industrial diversity and the need for tailored support across value chains.

During the tour, President Mahama called on workers to maintain high standards of dedication and commitment, emphasising that employee effort directly influences business growth and expansion. This messaging aligns with government rhetoric around productivity-driven development, though observers note that worker incentives and fair compensation remain concerns in Ghana's manufacturing sector.

Free zones crisis and swift government response

The most significant outcome of the visit was President Mahama's announcement of an urgent inter-ministerial meeting to address widespread complaints from free zones operators. Under Ghana's new Customs Act, 2026, businesses operating in free zones have reportedly lost key tax and duty incentives that previously made the zones attractive for foreign and local investment.

The meeting, scheduled for the following week, will involve the Ministry of Trade, Agribusiness and Industry, the Ghana Free Zones Authority and the Ministry of Finance. This rapid response suggests the government recognises the severity of the situation—if manufacturers lose competitive advantages, investment flows to the zones could decline sharply, threatening thousands of jobs and undermining industrial strategy.

Why it matters for Ghana

Ghana's industrial zones, particularly in Tema and Afienya, are anchors for manufacturing employment and foreign direct investment. Any erosion of incentives threatens to reverse years of efforts to position Ghana as a manufacturing hub within West Africa. The Customs Act changes appear unintended in their impact, suggesting a coordination failure between legislative and policy frameworks.

For workers, investors and supporting industries, the stakes are high. Manufacturing in these zones accounts for thousands of direct and indirect jobs. A slowdown would ripple through supply chains, transport, logistics and services sectors. Additionally, Ghana's ambition to reduce import dependency and build export-led growth depends on a healthy manufacturing ecosystem.

The President's swift commitment to review the Customs Act provisions signals that government recognises the problem and intends to act quickly. However, implementation will depend on whether the inter-ministerial meeting yields concrete amendments and whether other regulatory obstacles are simultaneously addressed. Manufacturers will be watching closely for tangible outcomes within weeks, not months.