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Ghana’s love for imported goods “bleeding the economy” – IMANI warns

Policy think tank IMANI Africa has raised concerns over Ghanaians’ persistent preference for imported goods, warning that the trend is quietly undermining the country’s economy and threatening local industry growth.

In its latest Criticality Analysis of Governance and Economic Issues (September 29 – October 4, 2025), copied to Metro TV, IMANI described the culture of import preference as “a deep-seated national habit” that continues to drain foreign reserves and weaken domestic production capacity.

The analysis referenced recent remarks by Minister of Food and Agriculture, Eric Opoku, who revealed that locally produced rice is now cheaper than imported brands, yet consumer choices remain skewed towards foreign options.

According to the Agric Minister, “by choosing imported rice, Ghanaians are creating jobs in the country where the rice came from, at the expense of their own people.”

IMANI observed that the issue extends far beyond rice.

“The same pattern runs through poultry, tomato paste, textiles, and even processed foods,” the report stated, noting that imported goods dominate store shelves and shape local tastes.

The think tank warned that this preference carries significant economic consequences.

“Each time consumers choose imports, Ghana loses valuable foreign currency,” the analysis noted.

It added that billions of dollars are spent annually on food imports, “draining reserves and putting pressure on the cedi.”

Such trends, IMANI explained, “weaken the local currency, drive inflation, and widen the trade deficit,” creating what it described as “an economic leakage that deprives domestic producers of the multiplier effect that comes from money circulating within the local economy.”

The dominance of foreign products, the report continued, also “erodes the competitiveness of local industries,” leaving farmers and small-scale producers with shrinking markets and reduced profitability.

This, it argued, discourages investment and innovation, particularly in rural communities where agriculture remains a key source of livelihood.

Beyond economics, IMANI pointed to a cultural problem at the root of the issue.

“Many consumers associate imported goods with higher quality and prestige, while seeing local products as inferior,” the analysis said.

The think tank described this as a “preference gap” that weakens the impact of government policies aimed at promoting local production.

The report further cautioned that over-reliance on imports exposes the country to external shocks such as global supply disruptions, price hikes, and export bans – all of which have previously led to domestic shortages and food inflation.

IMANI highlighted the broader social costs of this trend, noting that “when consumers turn to foreign goods, income and job opportunities in farming communities shrink, slowing rural development and fueling migration to urban areas.”

The think tank, however, acknowledged progress in local agricultural production, citing the Agric Minister’s observation that more young people are venturing into farming.

But it warned that without a matching shift in consumer behavior, production surpluses could easily lead to waste.

“Without that shift, production surpluses could turn into post-harvest losses, discouraging new entrants and stalling investment,” the report said.

IMANI concluded that Minister Opoku’s appeal for Ghanaians to “support the effort by prioritizing local produce” is not just a patriotic plea but “sound economic reasoning.”

The group emphasized that sustaining gains from agricultural initiatives will require a deliberate change in consumer habits.

“Without that change, even the best production policies risk being undermined by our own spending habits.”

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