High costs, no water and unemployment threatening industrial growth, says AGI president

President of the Association of Ghana Industries, Dr Kofi Nsiah-Poku, has warned that persistent water shortages, high interest rates and rising unemployment are threatening Ghana’s industrial growth.

Speaking on Joy News’ PM Express Business Edition on Thursday, he painted a stark picture of the operational challenges facing manufacturers, especially beverage producers that depend heavily on water.

“It is so bad in the sense that for about two weeks, water wasn’t running, and when it started, they were rationing it twice a week, and it runs for about only six hours,” he said.

Dr Nsiah-Poku revealed that even his own fruit juice factory has been affected.

“I also have an industry there producing fruit juice, and they work only twice, and we have to buy water from outside to put in the water tanks before you can do production,” he disclosed.

According to him, such conditions make serious industrialisation impossible.

“So as a nation, we cannot industrialise with this kind of situation,” he stressed.

Beyond water shortages, he pointed to the impact of previously high interest rates on business expansion.

“Even before, the interest rate was so high that you know, it was not worth borrowing money to do business,” he said.

He explained that the high rates distorted economic incentives.

“It was rather more interesting to really change your money, your asset, into cash, and just go and buy treasury bills,” he noted.

Dr Nsiah-Poku said the combined effect of weak industrial growth and financial pressures has had consequences for employment.

“So unemployment has become very high because the industry is not growing, it’s rather falling,” he said.

Despite the grim assessment, he signalled the need for a turnaround.

“But we’ve come to a point where we have to reverse it, and that is what I’ve come to do,” he added.

His remarks highlight mounting pressure on the productive sector, as manufacturers grapple with unreliable utilities and financial constraints.

For an economy seeking to expand local production and create jobs, the AGI President’s warning underscores the urgency of stabilising critical infrastructure and reducing the cost of doing business.

Without reliable water and affordable financing, he suggests, industry cannot thrive — and jobs will remain at risk.