1. Industry of Ghana and its problems.
The word “Industry” have many dimensions to define different aspects, sometime it is
concept but many time it is construct, because it have multi dimensions that made reader confused
to get an exact idea about. In general industry is a specific field of profession, which performs
accordingly. In economics industry specifically associates with any company that utilizes raw
material and produces goods and services to sell in the market. When life start there was no such
need of mass production there was horticulture and hunting culture in which people used to hunt
and live upon on the fruits and animals. Population increase and developed with the passage of
time, growth in population increase the demand of food and other necessities made people thought
about new system that can facilitate by filling their needs. There are many types of industry,
classified with the level of its functions are; primary industry, secondary industry, and tertiary
industry. And other classification with their production fields, like textile industry, food industry,
telecommunication industry.
Industrial revolution is the period which starts from 1760 to 1840 in which the production
and consumption started and touch the height of its peak in the west especially in England. When
mechanism and power invented, this paved the way for industry. Western people are the pioneers
of the industrialism in the world. The concept of industry spread rapidly in the entire world. All
the industry established in the west but they are highly dependent on the third word, which is fully
fertile for raw material. That need of the west start thinking to occupy the third world and get ram
material and brought it to their native lands for manufacturing, then this production to sell in the
rest of world. The period of occupation called colonial period, and the pet term is “colonialization”
to define the whole process. Countries that were under domination located most of them in the
continents of Asia and Africa. Unwillingly and at the same time luckily, west established industries
in their colonial countries. Ghana was famous because of its natural blessed mines of gold. This
made British to dominate the Ghana and ruled there with use of their force, and established there
many types of industry in the country. They mainly established industry mines gold industry,
tobacco industry, and citrus juice industry that provide vitamin c.
Ghana is an agricultural country is an agricultural country; agriculture is the main source
of GDP and per capita income. Agriculture has 56% of the workforce. Services also a big source
of income of Ghana, which is the 29% of total work force. Industry unfortunately on the worst

2. scale in Ghana, sometimes it is high and mostly downward. And it has only 15% of the total work
force, due to lack of education, skills, and expertise in the technology. The know how rate is too
low to meet certain criteria. But luckily Ghana earns 28.7% of the total GDP, while the agriculture
only 21.5% share in the GDP of Ghana. Initially Ghana emerged as domestic industrial country,
afterward with the technological development in Africa, Ghana proved itself as big exporter in all
Africa.
Objectives on industry
 Production of goods to meet domestic needs.
 To export the goods and earn revenue for the nation.
 Create jobs opportunities and employment.
 Development in every sector.
 Socio- technological development.
 Economic development.
 Improving infrastructure.
 Develop and maintain relation with countries you need raw material, and your receiver of
export.
 Little land is enough for maximum producing.
Types of industry working in Ghana
All the types of industry working in Ghana, classified into three categories are;
Primary industry (natural resources)
This type of industry simply means growing of crops, or fishing and farming. In other
words all the production, we produce from natural resource, like mines, agriculture. As the Ghana
is weak in industrial technology, this situation promote the primary industry in which less
infrastructure produce lot of output without the high expertise. It is the 60% of GDP of Ghana.
Some major key players of primary industry in Ghana are;
1. Agriculture
Agriculture is one of the great source of income of Ghana, engaged 60% of population,
coverings various fields. Ghana blessed with bundle of natural fertile resources, that earning is the
major part of GDP. Now Ghana is able to export its products in the market of the world. Cash
harvests of Ghana are, cocoa, rice, banana, cassava, shea nuts, peanut and corn. That industry
earning shares 49.6% of the GDP.

3. 2. Mining
Ghana one of those countries blessed with marvelous treasures, it surprising fact that Ghana
is the second largest gold producer and exporter of the world, if we talk globally Ghana is the 9th
major country who mining and exporting of gold. Gold mining is more than 90% of total mining,
in other mining resources bauxite, manganese, and diamond. There are many mining companies
in all over Ghana, but 300 registered companies working. Mining is earning 4.05% of total GDP
of Ghana, and mining industry sharing 37% of total export.
3. FishingAquaculture
Although fishing is not able to export in the world market, but it is fully meeting the
domestic needs of the country. Aquaculture has much importance in the primary industry of
Ghana, we can’t even minimize the importance that department. The history of aquaculture in
Ghana is not too old; it is recently adopted by Ghanaian’s. During 2003 fishing was meeting 51.6%
of domestic need, same field in 2004 producing 61.9%, that shocking figure is the open secrete of
progress in fishing. Tilapia is the most produced fish in Ghana which is 80% of the total fishing,
in other fish’s Heterotis niloticus, which is the 20% of total fishing. The total worth of fishing in
Ghana around about is 1.5 million US dollar.
Secondary industry (manufacturing unit)
Secondary industry is directly link with primary industry, it involve manufacturing of
goods and sell to consumer. Secondary industry encircled a large segment of industrial sector. It
utilized raw material and produced goods for the market. Manufacturing industry of Ghana rooted
back to British occupation on gold coast (Ghana), when they established mechanism for gold. After

4. the independence of Ghana the Nkrumah, first president of Ghana, focused on the demolishing of
tribal system and adoption capitalism as well as industrialism. Secondary industry plays always a
key role in the development of any country. One of the most important advantage of the
manufacturing industry is that minimum land and maximum production.
Industry secured 25% of total GDP of Ghana, which is unfortunately is not a big amount
but not a refutable deal for the developing country. Development ratio of industry in the country
is 7.1 which made Ghana 38th fastest increasing industry of the world. Leading manufacturing
industry of Ghana are; electronic manufacturing, automotive manufacturing, car manufacturing,
light, cement and other manufacturing units.
Electronic industry
The history of electronic industry in Ghana starts from 1974, when government introduced
heavy industry in the country. Electronic equipment is most import parts of appliances today life.
Unfortunately this sector too weak to meet the need of domestic, this situation allow to import the
western appliances in the country
Textile industry
Textile is very important sector in the industry of world. But unfortunately entire Africa
generally and Ghana especially fertile less in the textile industry there are many factor which are
the hurdles in the development of textile industry. Textile industry is mainly in northern part of
the country. There are many types of textile industry working in the country. Types are; hand
woven textile industry (also known as kente cloths), hand printed traditional textile industry in
other words known as andinkra, fanti cloth, machine printed fabrics and wax resist local fabrics.

5. Automotive industry of Ghana
It is one of the most heavy industry of the world, when a country moves this ward we say
it is on the peak of technology. Recently Ghana moved on with the help of China and India. Car
manufacturing is developing day by day in Ghana. First company of automobile in Ghana is Suame
Industrial Development Organization.
Wood sector of Ghana
Ghana is now the 38th fastest growing economy in business and export. As well as many
other sectors wood industry also developing in Ghana, earning a big deal of revenue. Wood sector
of Ghana is the 8th big earner of the foreign, which earning around about 11% of total economy of
the country. Ghana is the big exporter of the wood in all Africa, and from rest of the world. An
estimation of 2006 shows that earn e €125.82 million in value and 328,620 m3 in volume.

6. The ownership of industry
Ownership is divided into 3 categories are, first and major one is private sector second one
is government sector and mix ownership on third ranked which the combination of private and
government both.
Industry in Ghana is too weak to meet domestic needs of the nation. Most of goods
imported by the western and Asian countries. But Ghana is sustained economy in the Africa. Ghana
in the top 5 developed country in technology. There are many problems which are obstacles in the
development of the country. Essentials element for establishing industry are land, capital,
expertise, and technology.
Obstacles facing industry in Ghana.
There are many hurdles and obstacles in which industry of Ghana is suffering. Every
manufacturing unit need some basic and essential key facilities to sustain and maintain its business.
Major ones are;
Technical educationExpertise
In contrast with agriculture, the industrial sector must needed expert to run and operate the
business in a fine way. Ghana is a under developed country in the continent Africa is not still able
1%
10%
100%
1000%
Private ownership government owned sector governement and private
mix
80%
12% 8%
2.4
4.4
1.8
2
2
3
MANUFACTURING OF OWNERSHIP
GHANALIVE.TV B Y S A M U EL TOU R E
PVT sector GOVT sector MIX of both

7. to produce its educated working power. How can be possible to have high figure of expert
employees in firm where the total ratio of education is not sustained and well established. Ghana
now launch a plan to engage its youth in the technical vocational education.
No great investors no one ready for experiment
Investor is the first key player of any firm sector, which play a major role to establish the
industry. As Ghana is developing economy of Africa, so there is very little class of elite people
who can invest in this sector, but foreign is not willing to invest. Foreign investors are the asserts
of industry especially when we talk about 3rd world countries like Ghana.
Less attraction for the foreign investors
Your environment is the most influential part to attract the foreign investors. Ghana is
blessed natural resources but not still able to utilized as well as it can. Government policies,
taxation, and the working condition must be supporting for the investors.
Government policy and taxation
In the past few decades there was no friendly environment in Ghana. Business friendly
conditionsalsovarycountrytocountry,butthe basicdemandsandnecessitiesare the same everywhere.
There isrole of governmentisvisible,evenabindmancanperceive the role of government.Government
must be serious to establish the industry and attract to investors. Recently government made a plan to
facilitate the investor top come and enjoy working environment. Now very investor from china like
telecommunication, from India car manufacturing unit like Mahindra established new industries in the
different part of the Ghana.
Workforce
• Distribution of Labor Force by Type of Employment (%)
• Type of work 1988/89 1991/92 1998/99% Change1988 - 99
• Paid Work: Public 14.0 13.5 9.8 - 30.0
• Paid Work: private formal 6.3 3.9 4.4 -30.1
• Paid Work: informal 2.7 3.1 2.6 - 4.0
• Export farmer 7.0 6.3 7.8 11.4
• Food Crop farmer 38.8 43.6 41.6 7.2
• Non-farm self-employ. 30.5 27.6 31.6 3.6
• Others & non-working 0.8 2.0 2.1 ----

8. • Est. Labor force (ml) 5.4 6.0 7.5 38.9
Energy crisis
Energy crisis not only problem of Ghana, entire 3rd world is badly facing the shortage of
energy to run business sector. Ghana is badly suffering in energy crisis. Load shading is menace
problem of Ghana which wrapped all sector under its crises. Ghana has ability to produce 29000
MW, but only 12 MW currently producing. Many firms switch to other countries for their survival.
Present government making a long term plan for fully salvation from this evil, an estimation
showing that Ghana may overcome that crises till 2016. Not only energy problem but also much
expensive energy available to the industrialists.
Poor road network
Most of road laid in the rural areas, where not concrete and reliable roads. Industry have to
suffer when distributing goods in the market.
Technology
Weak and poor infrastructure is also big factor which help to stop the any kind of industry.
Technology variations from one part of the world to other is also a big problem in the failure of
industry. Technology invented in the north and move very slowly toward the south or 3rd world,
so technology very important factor in this regard.
Globalization
No doubt globalization is blessings but at the same time it is evil for domestic industry.
Globalization mostly suitable advanced country like America and UK. Our local industry total
collapsed with the entrance of external products. Many scholars present their views in the favor of
globalization, infect they are strongly inspire by west. All the scholars no doubt have a good
approach on the behalf of western progress. They ignore the reality of that if the adoption of
western product, which are manufactured by high technology, can sealed your own industry. It is
true that competition with international make domestic industry to upgrade the standard, on the
other hand industry of 3rd world countries they flopped instead of flourish. According to my point
of view globally leaned follow but improved your own industry.
“It is possible that local firms will be deprived of the opportunity to grow” (Hillebrandt, 1999)

9. Word-system theory and dependency theory
These are the concept or theories prevailed in the worlds which simply means the division
of labor between inter-regional and transnational countries. These concepts divided word into three
categories are;
 Core states located in the north equator of the world, much socially, economically, and
technologically advanced.
 Sami-peripheral countries these countries have both characteristics core and peripheral
states located in the almost dominated by core and dominate the peripheral states.
 Peripheral countries mostly in the Asia, Africa and the rest of the world, also known as 3rd
world. Much backward by culturally, technologically, socio-economically as well as
politically
All African nations especially Ghana have to leave the world system and adopt new one
relevant to their conditions. On the other hand the concept of neo-imperialism and neo-
colonialism also prevailed in the 3rd world, in which the trade flow between the west and east,
west on the top of the world dominate the east with its multi-dimension of power. Neo-colonialism
is the concept in which the link between the old lords and the countries got liberty from the lords.
Major efforts to develop industry.
Although Ghana is very poor conditions of industry, but at the same time some efforts
made to improve the industry in Ghana, are;
Conference of African industry ministry 1971 (CAMI)
It was very important and most effective initiative, in the history of Africa, with the help
of united nation industrial development organization. In which Ghana fully participated, and
present its ideas with vision of improved itself.
Lagos Plan of Action
It was one of the most important step taken by the Africa in which the proposal of
industrialization presented for the economic development of Africa. That plan was a milestone for
the development of Africa. Ghana also follow the key points of that plan.
Ghana Industrial Policy document
It is the complete plan made the government for the industrial sector to develop. It
provide new direction and aim to development of the industry sector, it not only provide the
direction but also made regulations for the industry sector. It is implemented officially in 2006.

10. Industrial Sector Support Programme (ISSP)
ISSP is not a new plan it is directly link with its initiative plan Ghana industrial policy
document. It is implementation of the Ghana industrial policy document. This plan took from the
China.
Conclusion
Industry in Ghana is too poor to meet the demands but it doesn’t mean it can’t be improved.
Government and other authorities must need to pay attention in this regards. There is no single
factor responsible for the failure of industry in Ghana, bulk of factors that involve to degrade the
industry in Ghana like socio-technological weakness, lack of investors, low rate of expertise and
no technical education, energy shortage, harsh and fast rules and no friendly environment for the
entrepreneurs. The question raised that, how can be improved the industrial flaw? There is need of
multi-dimension plan to enhance the productivity of industry. First of all we have to develop 5
year plan to develop infrastructure, and make really effort to implement the strategy in a real way.
Secondly need create industry friendly climate to attract the investors to establish their firm. We
need to subsidies the entrepreneurs to launch their businesses. Taxation and permission must be
easy to access. Thirdly energy crises to overcome through a proper plan to enhance the
productivity. Fourthly we have to upgrade the system of education by adding technical education.
Fifthly the roads network must be standardized and must have accordance with the heavy traffic.
Sixthly need to attract foreign investors through ambassadors. Seventhly must needed to leave the
currently world system which makes us slaves instead of lords. Industry is very important so we
can make progress through advancement in the industry.
“It was Nkrumah’s belief that every imported item which could have been manufactured
locally,providedthat conditionsallowedit, addedto Ghana’s continuingeconomicdependence onthe
colonial system and delayed industrial growth”