Ghana's local leather and footwear manufacturing industry faces imminent collapse. This is due to a significant influx of cheap Chinese imports. These imports threaten thousands of jobs and undermine local production capacity.
The Ghana Leather and Footwear Manufacturers Association (GLFMA) states that Chinese imports accounted for over 70 per cent of footwear sold in Ghana between 2024 and 2025. The value of these imports exceeded GHS 480 million ($40 million at an average exchange rate of GHS 12 to $1). Ghana's footwear exports remain below GHS 12 million ($1 million), creating a severe trade imbalance impacting economic stability.
This situation highlights a broader challenge for Ghana's industrialization drive, particularly in sectors where local industries struggle against foreign competition. The government has prioritized industrial growth through initiatives like 'One District, One Factory.' However, this goal is difficult to achieve when local businesses face unfair competition and high operational costs. Data from the Ghana Statistical Service often shows a reliance on imported goods, impacting local manufacturing output and employment figures. This trend impedes self-sufficiency and economic diversification.
Mr. Gilbert Akwasi Ntim, President of the GLFMA, stated the industry reached a critical point. He noted that some importers evade taxes by misclassifying finished Chinese footwear as rubber scrap. This practice allows them to pay duties as low as five per cent. Local manufacturers, in contrast, pay a combined tax rate of about 36.1 per cent on imported raw materials. This significant tax disparity creates an uneven playing field.
The GLFMA has proposed several measures. They advocate for higher tariffs on finished footwear imports from outside the African Continental Free Trade Area (AfCFTA). They also seek reduced or zero duties on raw materials for local production. Furthermore, the association calls for an executive directive. This directive would compel state institutions like the Ghana Armed Forces and Ghana Police Service to buy footwear exclusively from certified local manufacturers. These policy changes could protect existing jobs and stimulate growth in the domestic industry.
Failure to act could lead to widespread job losses in the sector. It could also force GLFMA members to stage public demonstrations. The Ministry of Trade and Industry, the Ghana Revenue Authority, and the Ghana EXIM Bank must consider these demands. A renewed 'Buy Ghana Made Footwear' campaign could also boost consumer preference for local products. This would strengthen the local economy and reduce reliance on imports. Markets will closely monitor the government's response to this urgent appeal.