The Association of Ghana Industries (AGI) is calling on the government to strengthen public financial management systems and implement more robust internal controls to ensure compliance with local content laws following recent revelations surrounding the Electricity Company of Ghana’s (ECG) importation practices.

It has also expressed deep dismay over the power distributor’s actions, calling the situation “unfortunate” for a state institution already burdened with substantial debt.

This comes after reports surfaced about the alleged “loss” of over 1,000 imported containers of electrical cables, including significant quantities of aluminium conductors, which are manufactured locally in Ghana.

The disclosure has raised serious concerns over the ECG’s procurement practices and its disregard for the local content law, L.I. 2354, designed to prioritise Ghanaian-made products.

In a statement dated April 5, 2025 and signed by its Chief Executive Officer, Seth Twum-Akwaboah, the AGI further highlighted the detrimental impact these actions could have on local manufacturers and the wider economy.

Local content

The AGI emphasised that the ECG had long been a proponent of local content, supporting the establishment of factories for the production of aluminium conductors, the treatment of wooden poles and the assembly of meters and transformers.

However, the recent importation of aluminium conductors, which could have been produced domestically using raw materials from the VALCO plant, represents a clear violation of local content principles and threatens the sustainability of local industries.

“For a state institution that is already saddled with huge debts, this is most unfortunate and we acknowledge the efforts so far by the Minister of Energy.

“To support the ECG, the government in 2017 passed the local content law, L.I. 2354, to ensure policy uniformity, which gave much credibility to this initiative.

As a result, thousands of jobs were created. Local manufacturers further responded and actively started using aluminium from VALCO as raw material,” the statement added.

Action

In light of these concerns, the AGI has urged the government to investigate the ECG’s recent imports and nullify any contracts that breach the local content law.

The association also called for frequent audits and the introduction of stronger internal controls to prevent further violations of the law.

“The AGI is calling on the Minister of Energy and Green Transition to strengthen the Public Financial Management Systems with more robust internal controls to monitor and enforce compliance with frequent audits,” the statement read.

Payments

In addition to addressing the ECG’s importation practices, the AGI has called on the government to prioritise the payment of local manufacturers who are owed significant sums of money.

The association expressed concern that while importers are paid promptly, local producers continue to face delays in payments for the goods they supply.

“The ECG must prioritise local manufacturers’ payments in the same manner as local power generators.

Indeed, payment for local manufacturers must be prioritised,” the AGI stated.

The association warned that without urgent action to enforce the local content law and ensure timely payment to local suppliers, the country’s industrialisation efforts could be severely undermined.

The AGI reiterated its commitment to supporting the government in addressing these issues to safeguard the future of local industries.