Ghana’s domestic footwear industry is facing a deepening crisis as a surge in low-cost imports—primarily from China—continues to erode the competitiveness of local manufacturers, prompting urgent calls for government intervention.
The Ghana Leather and Footwear Manufacturers Association (GLFMA) has warned that the sector is nearing collapse, with imported shoes accounting for more than 70% of the domestic market in 2024 and 2025. The association says the trend reflects a growing dependence on foreign products that is steadily displacing local production. Read here
According to industry estimates, Ghana spent over $40 million on footwear imports during the period, while exports remained below $1 million, highlighting a widening trade imbalance that manufacturers say is unsustainable.
Speaking at a press conference in Kumasi, GLFMA President Gilbert Akwasi Ntim said local producers are struggling under what he described as “unfair economic conditions,” driven largely by high input costs and weak policy enforcement.
He pointed to heavy taxation on raw materials, including synthetic inputs used in shoe production, which significantly increases manufacturing costs. As a result, locally made footwear is often priced higher than imported alternatives, making it difficult for domestic firms to compete.
Compounding the issue, the association alleged that some importers are exploiting loopholes at ports by misclassifying finished footwear as low-duty items such as rubber scrap, enabling them to pay significantly reduced tariffs. This practice, manufacturers say, further distorts the market in favor of imports.
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In response, the GLFMA is calling for a series of policy measures aimed at restoring competitiveness and protecting local industry.
Central to its demands is an increase in tariffs on finished footwear imports from outside the African Continental Free Trade Area (AfCFTA). The association argues that such a move would help curb the influx of cheap imports while remaining consistent with regional trade commitments.
At the same time, manufacturers are urging the government to eliminate or significantly reduce import duties on raw materials used in domestic production. They say this would lower costs, improve pricing competitiveness, and encourage investment in local manufacturing.
The association is also advocating for stricter customs enforcement to prevent tariff evasion and ensure fair competition in the market.
Beyond trade and tax reforms, the GLFMA is pushing for a public procurement policy that would require state institutions—including the military, police, and public schools—to source footwear from local manufacturers. Industry leaders believe such measures would provide a stable source of demand and help sustain production levels.
The group has further called for a nationwide “Buy Ghana Made Footwear” campaign to promote locally produced goods and strengthen consumer support for domestic industry.
Analysts say the challenges facing Ghana’s footwear sector reflect broader structural issues common across many African economies, where local manufacturers struggle to compete with cheaper imports due to high production costs, limited economies of scale, and policy gaps.
While initiatives such as the AfCFTA aim to boost intra-African trade and industrialization, experts note that national-level policies remain critical to ensuring local industries can benefit from these frameworks.
For Ghana, the stakes are high. The leather and footwear sector supports thousands of jobs across the value chain, from raw material processing to manufacturing and retail.
Industry leaders warn that without immediate intervention, the country risks losing a key segment of its manufacturing base, along with the associated employment and value-added opportunities.
“The situation has reached a critical point,” Ntim said. “If urgent steps are not taken, the industry may not survive.”
The government has yet to formally respond to the association’s proposals, but the growing pressure underscores the need for a coordinated policy approach to balance trade liberalization with domestic industrial development.
As imports continue to dominate the market, the coming months are likely to determine whether Ghana’s footwear sector can recover—or face long-term decline.
