The President of the Association of Ghana Industries (AGI), Seth Twum-Akwaboah, has warned that the ongoing conflict in the Middle East could soon have negative consequences for Ghana’s manufacturing sector if global disruptions persist. Speaking on JoyNews’ PM Express programme, he explained that international tensions are already affecting global supply chains and may eventually increase production costs for local factories.
According to him, Ghanaian manufacturers may not immediately feel the impact because most factories operate within production cycles that typically last between three and six months. During this period, companies often rely on previously purchased raw materials and inputs, which temporarily shields them from sudden global price changes.
However, Mr. Twum-Akwaboah cautioned that the situation could become more difficult once existing stock levels are exhausted. He noted that many manufacturers in Ghana depend heavily on imported raw materials, machinery, and components from international markets. If the conflict continues and disrupts supply chains, businesses may face higher costs when importing new materials.
He also pointed out that rising fuel prices, shipping delays, and additional logistics costs linked to global tensions could increase the overall landed cost of goods. In some cases, shipping companies are already introducing “war risk charges” of about $1,500 to $2,000 per container, which could significantly affect manufacturing operations.
Despite the potential risks, the AGI president said the industry is not panicking but is closely monitoring developments. He expressed hope that global leaders would resolve the conflict quickly to prevent prolonged disruption to international trade and supply chains.
Source: MyJoyOnline (JoyNews)
Reporter: Seth Twum-Akwaboah (Interview on PM Express)
