The Association of Ghana Industries (AGI) has expressed concern over the Electricity Company of Ghana’s (ECG) reported importation of large volumes of electrical cables, particularly aluminium conductors, despite the country’s full capacity to produce such materials locally.
In a statement, Seth Twum-Akwaboah, CEO of AGI described the situation as a “total disregard for local content”, citing reports of over 1,000 containers of imported cables, many of which are allegedly unaccounted for.
The group noted that these imports contravene the Local Content Regulations (L.I. 2354) passed in 2017, which were designed to boost local industry participation in public procurement and infrastructure development.
He highlighted that ECG had previously been a champion of local content, encouraging local manufacturing of aluminium conductors, meter assembly, and wooden pole treatment.
This, he said, led to significant job creation and the development of a robust local supply chain using raw materials such as aluminium from VALCO.
“Today, Ghana has 100% local production capacity for aluminium conductors, yet such imports continue in violation of L.I. 2354,” the CEO lamented, adding that while importers are being paid promptly, local manufacturers are owed huge sums for their supplies.
The association is thus calling on the Minister of Energy and Green Transition to take immediate steps, including: strengthening internal controls and enforcing frequent audits within ECG; investigating and nullifying all import contracts that breach local content laws and prioritizing the payment of arrears owed to local manufacturers, akin to how local power producers are treated.
The AGI further warned that Ghana’s industrialization agenda will falter without strong enforcement of local content policies.
It also clarified that importers of finished products do not qualify as local content suppliers and should not benefit from policies intended to grow domestic industry.
Credit-citibusiness
