Former Chairman of Parliament’s Finance Committee, Mr Patrick Yaw Boamah, has warned government to push for the extension of the African Growth and Opportunity Act (AGOA) or prepare for a wave of mass job losses and collapsing export businesses.
Speaking on Joy News’ PM Express Business Edition on Thursday, May 1, the Okaikwei Central MP did not mince words.
“There are companies that purposely set up to benefit from AGOA,” he said, pointing to garment and textile manufacturers like those run by Madam Salma at the UTC and within the Free Zones enclave.
“If we don’t push for an extension, it will lead to a lot of job losses and revenue shortfalls for governments.”
Mr Boamah stressed that the threat was real and immediate.
He said Ghana cannot afford to sit back and hope AGOA will be extended automatically.
“We must push for an extension of AGOA to be able to capitalise on its benefits,” he insisted.
But he was quick to add, “It shouldn’t be in perpetuity. We need to wean ourselves from some of these policies.”
AGOA, a U.S. trade initiative that gives duty-free access to American markets for African products, has been a lifeline for several Ghanaian export firms. But Mr Boamah believes it has also become a crutch.
“You need to ask yourself, what have you been able to do in the area of AGOA to expand your export potential?” he asked. “Have we used this opportunity to build the local industry?”
He didn’t stop at textiles. Boamah also made a strong case for strengthening the pharmaceutical sector.
“Local pharmaceutical companies like Tobinco, Ernest Chemist, Kinapharma, they need to be encouraged to be producing within the local market,” he said.
“This is how you avoid the unnecessary importation of drugs into our system.”
The same principle, he argued, applies to agriculture and agro-based industries. While he welcomed the government’s rhetoric on agribusiness, he pointed out a critical contradiction.
“If you look at the budget lines for the Ministry of Trade and Ministry of Agriculture, very insufficient,” Boamah noted.
“If you want to project hitting the big market with targeted crops, then you must put in the money.”
He expressed disappointment at the underfunding of sectors that could hold the key to Ghana’s industrial future.
“If we don’t take steps as a country to build local capacity in industry,” Boamah said firmly, “the expected job creation that we’ve been talking about will be an illusion.”
Referencing his support for the One District, One Factory initiative, Boamah said that while the program faced challenges and abuse, its core idea remains relevant.
“I was a firm believer in the 1D1F program because it pointed us in the right direction,” he said.
In a global economy where tariff wars and shifting alliances dominate trade policy, Boamah believes Ghana’s only option is to become aggressive and strategic.
“You need to encourage the local business community to increase their export potential by giving them the right or the needed incentive,” he emphasised.
His final message was both a call to action and a reality check.
“We cannot sit and be spoon-fed forever. If we don’t act now, we’ll lose the industries we’ve built. And the jobs will go with them.”
