Water disaster disrupting manufacturing – AGI president warns industrialisation in peril – Life Pulse Daily
Editor-in-chiefFebruary 20, 20263 Mins read13
Water Crisis Threatens Ghana’s Industrial Growth – AGI President Issues Urgent Warning
Introduction
A severe water shortage is now disrupting manufacturing operations across Ghana, putting the country’s industrialization ambitions at serious risk. Dr. Kofi Nsiah-Poku, President of the Association of Ghana Industries (AGI), has issued a stark warning about the cascading effects of unreliable water supply on production, employment, and economic growth.
Key Points
- Water shortages have forced manufacturers to halt operations for extended periods
- Beverage and food processing companies are especially vulnerable due to high water dependency
- Companies are forced to purchase water externally, increasing production costs
- High interest rates in previous years diverted capital from manufacturing to treasury bills
- Industrial stagnation is contributing to rising unemployment across Ghana
Background
Ghana’s manufacturing sector has long been considered a cornerstone for economic diversification and job creation. However, recent infrastructure challenges—particularly water supply disruptions—are undermining this critical sector. The AGI president’s remarks came during an appearance on Joy News’ PM Express Business Edition, where he outlined how these challenges are compounding existing financial pressures on businesses.
Analysis
The Water Supply Crisis
According to Dr. Nsiah-Poku, some manufacturing facilities have experienced complete water outages lasting up to two weeks. Even when supply resumes, it remains severely restricted—rationed to just twice weekly for approximately six hours per session. This intermittent supply pattern makes continuous production nearly impossible for water-intensive industries.
Impact on Manufacturing Operations
The president shared firsthand experience from his own fruit juice manufacturing facility, which has been forced to operate only twice weekly. To maintain minimal production levels, companies must purchase water from external suppliers and store it in tanks—an added operational expense that further squeezes already thin profit margins.
Financial Pressures Compound the Problem
Beyond the immediate water crisis, Dr. Nsiah-Poku highlighted how previous high interest rates created a financial environment that discouraged manufacturing investment. With borrowing costs prohibitively expensive, many businesses opted to convert assets into cash and invest in treasury bills instead of expanding production capacity.
Economic Consequences
This combination of infrastructure failure and financial disincentives has created a perfect storm for Ghana’s industrial sector. As manufacturing output declines, unemployment rises correspondingly. The president emphasized that without reliable water supply and supportive financial conditions, Ghana cannot achieve its industrialization goals.
Practical Advice
For manufacturing businesses facing similar challenges, consider these strategies:
1. **Invest in water storage infrastructure** – Install large-capacity tanks to capture and store water during available supply periods
2. **Implement water recycling systems** – Where possible, install filtration and recycling equipment to maximize water usage efficiency
3. **Diversify water sources** – Explore borehole drilling or rainwater harvesting as supplementary supply options
4. **Adjust production scheduling** – Plan intensive water usage during known supply periods
5. **Advocate collectively** – Join industry associations to lobby for infrastructure improvements and policy support
FAQ
**Q: Which industries are most affected by water shortages in Ghana?**
A: Beverage manufacturers, food processing plants, textile producers, and any industry requiring significant water input for production processes.
**Q: How long have water shortages been affecting manufacturing?**
A: According to the AGI president, some facilities have experienced disruptions lasting up to two weeks, with ongoing rationing even when supply resumes.
**Q: What alternatives do manufacturers have when water supply is unreliable?**
A: Companies are purchasing water from external suppliers, though this significantly increases production costs and may not provide sufficient volume for normal operations.
**Q: How does this affect employment in Ghana?**
A: Reduced manufacturing output leads to decreased hiring and potential job losses, contributing to rising unemployment rates across the country.
**Q: What is being done to address the water infrastructure issues?**
A: While specific government responses weren’t detailed in the AGI president’s remarks, the severity of the situation suggests urgent infrastructure investment and policy intervention are needed.
Conclusion
The water crisis facing Ghana’s manufacturing sector represents more than an operational inconvenience—it poses an existential threat to the country’s industrialization ambitions. As Dr. Nsiah-Poku emphasized, reliable infrastructure and supportive financial conditions are fundamental prerequisites for industrial growth. Without immediate intervention to address water supply reliability and create favorable conditions for manufacturing investment, Ghana risks watching its economic diversification goals slip further out of reach. The situation demands coordinated action from government, industry leaders, and infrastructure planners to prevent long-term damage to the country’s economic future.
Leave a comment