Finance Minister Dr. Cassiel Ato Forson has announced plans to introduce stricter local procurement laws to protect Ghanaian farmers, revive struggling manufacturing industries and create employment opportunities for local businesses ahead of the 2027 Budget.

Speaking during a stakeholders’ engagement with manufacturers in Kumasi ahead of the 2027 Budget presentation, Dr. Forson said the government intended to redirect public expenditure towards domestically produced goods rather than relying heavily on imported products.

The Finance Minister explained that although the government commits substantial financial resources to the Free Senior High School (Free SHS) programme annually, local rice farmers continue to struggle to secure reliable markets for their produce.

“The money I collect on behalf of the people of Ghana, if I want to use it to buy rice, that rice must be Ghanaian. It must feed our students and support our farmers at the same time.”
Minister for Finance, Dr. Cassiel Ato Forson

His proposed approach seeks to connect government funded food procurement directly to domestic agricultural production, ensuring that public expenditure supports farmers, processors, distributors and other participants in the agricultural value chain.

Government Targets Rice Import Restrictions

Dr. Forson expressed concern about the disconnect between government spending on institutional feeding programmes and the difficulties confronting domestic rice producers.

He disclosed that approximately GH¢4.5 billion to GH¢5 billion is spent annually on Free SHS, with about GH¢3.5 billion allocated to food provision.

According to him, such expenditure should provide a dependable market for Ghanaian agricultural produce, particularly rice, rather than allowing imported products to dominate institutional procurement.

The Finance Minister consequently announced plans to introduce direct-purchasing legislation requiring government-funded institutions to prioritise locally produced rice.

The proposal comes amid persistent challenges within Ghana’s rice industry, including competition from imported varieties, inadequate processing capacity, market access difficulties and inconsistent demand for locally produced rice.

Data from the Ministry of Food and Agriculture indicate that provisional paddy rice production declined from approximately 1.44 million metric tonnes in the 2023/2024 cropping season to 1.13 million metric tonnes in 2024/2025, representing a decline of about 21.8 per cent.

Meanwhile, the government has set an ambitious target of achieving rice self-sufficiency by 2028 under the Regional West Africa Resilient Rice Value Chains Development Project (REWARD-Ghana).

According to the Ministry of Food and Agriculture, milled rice production increased from approximately 900,000 tonnes in 2024 to 960,000 tonnes in 2025. However, domestic production currently meets only about 56 per cent of national demand, leaving the remaining 44 per cent to imports.

Ghana also spends an estimated US$320 million to US$500 million annually on rice imports, highlighting the potential economic benefits of strengthening domestic production.

“If you want to import 100,000 metric tons of rice, you must prove that you bought 50,000 tons from our farmers first before we grant you an import permit.”
Minister for Finance, Dr. Cassiel Ato Forson

Local Textile Factories in Focus

The Finance Minister also turned attention to Ghana’s struggling textile and garment manufacturing industry, questioning why public institutions continue to procure uniforms from foreign suppliers while domestic factories face difficulties sustaining their operations.

He specifically cited uniforms purchased for the Ghana Armed Forces and the Police Service, arguing that government procurement contracts should be directed towards local textile manufacturers capable of supplying such products.

The concern reflects longstanding challenges within Ghana’s textile industry, which has experienced factory closures, declining employment, high production costs and competition from imported and pirated fabrics.

Dr. Forson believes that directing public procurement towards local manufacturers could help reverse the industry’s decline and create employment opportunities for skilled and unskilled workers.

“Why are we using our money to buy uniforms from another country? Buy from our local textile mills. Buy from our national factories. If for no other reason, at least five or six people will get jobs.”
Minister for Finance, Dr. Cassiel Ato Forson

Procurement Laws to Enforce Compliance

Dr. Forson indicated that the government intended to establish a legal framework to ensure that local procurement commitments were implemented and not treated merely as policy declarations.

He stressed that compliance would be mandatory, warning that individuals and businesses that deliberately disregard the proposed requirements could face sanctions.

The approach signals a potential shift towards using public procurement as an instrument of industrial development, agricultural transformation and employment creation.

For manufacturers, the proposed measures could create opportunities to expand production, improve capacity utilisation and secure more predictable demand through government contracts.

For farmers, particularly rice producers, guaranteed institutional markets could improve income stability and encourage investment in production, processing and storage.

However, the effectiveness of the proposals will depend on implementation, product quality, competitive pricing, reliable supply and the capacity of local producers to meet institutional demand.

Government will also need to ensure that procurement arrangements remain transparent and that local suppliers are not disadvantaged by inefficiencies within the supply chain.

“These won’t just be policies we announce or positions we change. We’re putting them into law. And if you fail to comply or do something contrary to them, you’ll be punished.”
Minister for Finance, Dr. Cassiel Ato Forson

As preparations intensify towards the 2027 Budget, the Finance Minister’s remarks point to an economic strategy that seeks to make government expenditure work more directly for domestic producers.

The proposed rice purchasing requirements and preference for locally manufactured uniforms could become significant interventions in Ghana’s efforts to strengthen agricultural value chains, revive manufacturing and retain more economic value within the country.