AGI Warns Against ECG’s Non-Compliance with Local Content Laws in Cable Imports

The Association of Ghana Industries (AGI) has raised concerns about the Electricity Company of Ghana’s (ECG) continued importation of electrical cables, including aluminium conductors, despite the country’s full local production capacity. AGI’s CEO, Seth Twum-Akwaboah, criticized the ECG for disregarding the Local Content Regulations (L.I. 2354), which are aimed at fostering domestic industry participation in infrastructure projects. The association highlighted reports of over 1,000 containers of imported cables, some of which are reportedly unaccounted for.

According to AGI, the continued imports violate regulations that were intended to support local manufacturers and ensure job creation within the country’s supply chain. Twum-Akwaboah emphasized that ECG had once been a strong advocate for local content, helping to grow industries like aluminium conductor manufacturing and wooden pole treatment. This led to substantial job creation and a thriving local supply chain using materials like aluminium from the VALCO factory.

Despite Ghana’s full capability to produce aluminium conductors domestically, imports persist, with ECG allegedly paying importers promptly while leaving local suppliers with unpaid arrears. The AGI is calling on the Minister of Energy and Green Transition to intervene by enforcing stricter internal controls at ECG, auditing their operations more frequently, and investigating and nullifying contracts that violate local content laws.

AGI warns that the nation’s industrialization efforts will be hindered if local content policies are not enforced effectively. They also pointed out that importers of finished products should not be considered local content suppliers, as such practices undermine the growth of domestic industries. The association urges the government to prioritize the payment of debts owed to local manufacturers to ensure a fair and competitive industry environment.

Source: citi newsroom