Ghana Leather Manufacturers Demand Zero Import Duty on Raw Materials to Boost Local Industry

Ghana Leather Manufacturers Demand Zero Import Duty on Raw Materials to Boost Local Industry

Accra, Ghana – June 2, 2026 – The Ghana Leather Manufacturers Association (GLMA) is urgently petitioning the government to eliminate import duties on essential raw materials. The association argues that current tax policies inflate production costs, severely hindering the competitiveness of local leather businesses against cheaper imports.

The GLMA, led by President Mr. Gilbert Akwasi Ntim, highlighted a significant structural imbalance in Ghana’s border tax regime during a press conference in Accra. He pointed out the paradoxical situation where imported finished leather products face lower taxes than the raw materials Ghanaian manufacturers need to produce similar goods.

This fiscal disparity, according to Mr. Ntim, places local businesses at a substantial disadvantage. It makes it nearly impossible for them to compete with the influx of inexpensive imported leather products flooding the domestic market.

The association believes that a decisive government intervention, specifically reducing import duties on raw materials to zero percent, would drastically cut production expenses. This would, in turn, invigorate local manufacturing capabilities and create significant growth opportunities within the leather sector.

Mr. Ntim emphasized the potential of Ghana’s workforce, stating, “If the government gives us the zero per cent duty as a raw material input/output, then we can also lower our production costs so that we can fill the entire continent with the Ghanaian-made footwear.” He added that local production could supply footwear for schools, military, and state agencies, thereby contributing significantly to the national Gross Domestic Product (GDP) and protecting the economy.

Such a policy shift is also seen as a crucial step towards achieving Ghana’s broader industrialization goals. It would encourage local value addition and provide much-needed financial relief to small and medium-sized enterprises (SMEs) within the leather ecosystem, many of which are currently struggling to survive.

Consequently, the GLMA has formally appealed to the Ghana Revenue Authority (GRA), the Ministry of Trade and Industry, and the Ministry of Finance. They are calling for a comprehensive review of the existing tax structure and immediate customs duty relief for indigenous manufacturers.

In a firm warning, Mr. Ntim declared that the association would not passively watch their businesses collapse. He indicated a readiness to escalate their advocacy if the government fails to address their concerns. “As a country, we export over 40 million US dollars to China, and we import poverty back home to collapse the local footwear industry,” he stated, criticizing the current export-import dynamics.

He directly challenged the GRA and relevant ministries, asserting, “So we are telling the GRA that we will not stop here, and we are telling the government, especially the Ministry of Trade and the Ministry of Finance, that if they refuse to hear our pains, they will hear our boots on the streets.”

The Ghana Leather Manufacturers Association remains resolute in its position. They maintain that fundamental reforms to the import duty regime are essential for enhancing the competitiveness of local leather goods, securing industrial jobs, and ensuring the long-term economic development of the sector.

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