Ghana’s manufacturing sector grew by 6.6% in the first quarter of 2025, according to data from the Ghana Statistical Service, defying a broader slowdown in industrial activity largely caused by a sharp decline in oil and gas output.
The overall industrial sector expanded by just 3.4% year-on-year, nearly half the 6.7% growth recorded in Q1 2024. The drop was largely driven by a steep 22.1% contraction in oil and gas, which pulled down the sector’s overall performance. In contrast, manufacturing posted steady gains, supported by stronger domestic demand, improved infrastructure, and targeted government policies.
Analysts attribute the sector’s resilience to increased consumption of locally made goods and ongoing initiatives to integrate SMEs into production value chains. Investments in transport, energy access, and storage infrastructure under national industrialisation programmes have also enhanced manufacturing competitiveness.
The data points to a structural shift in Ghana’s industrial economy, with non-extractive segments like manufacturing gaining prominence. This mirrors broader economic trends—non-oil real GDP grew 6.8% in Q1, outpacing the headline GDP growth rate of 5.3%.
With oil revenue volatility continuing to weigh on the extractive sector, manufacturing is emerging as a vital pillar in Ghana’s drive to diversify its economy and build long-term resilience.
