Ghana's footwear industry is facing a severe crisis. Over 70% of footwear sold in Ghana between 2024 and 2025 was imported from China. These imports were valued at more than GHS 480 million ($40 million).
This large influx of foreign footwear is causing local businesses to fail. It is destroying jobs and threatens the entire leather industry in Ghana. Local manufacturers claim they face unfair competition due to high taxes on raw materials and alleged evasion of duties by importers of finished products.
This situation highlights ongoing challenges for Ghana's industrialisation goals. Persistent trade imbalances and competition from cheaper imports have long plagued local industries. The government's 'One District One Factory' initiative aims to boost local production, but sectors like footwear still struggle. Data from the Ghana Statistical Service (GSS) and UN Comtrade confirm the significant market share of imported shoes. Ghana's footwear exports remain below GHS 12 million ($1 million), showing a huge imbalance.
Gilbert Akwasi Ntim, President of the Ghana Leather and Footwear Manufacturers Association (GLFMA), described the situation as “economic sabotage.” He stated that local manufacturers were being treated unfairly compared to importers. Mr. Ntim added that many local shoe producers in Kumasi, Accra, and Takoradi have either shut down or reduced their operations.
The current import duty on some raw materials for local shoe production is 10%. However, additional charges through the ICUMS system push the total tax burden to about 36.1%. These charges include VAT, NHIL, and GETFund levies. Meanwhile, GLFMA alleges some importers deliberately misclassify Chinese shoes. They declare them as rubber scrap or waste materials to avoid the 35% duty on finished footwear imports. This allows them to bring in finished products at much lower costs.
The GLFMA has called on several government bodies to act immediately. These include the Ministry of Trade and Industry, the Ghana Revenue Authority (GRA), and the Ghana Standards Authority (GSA). The association demands increased tariffs on finished footwear imported from outside the African Continental Free Trade Area (AfCFTA). They also seek a zero-percent duty on raw materials for local manufacturers. Access to low-interest loans for industrial machinery is another key demand.
The GLFMA also wants a mandatory local procurement policy. This would require the Ghana Armed Forces, Police Service, Immigration Service, and public schools to buy shoes from certified local manufacturers. If the government does not take urgent action, the GLFMA warns it may withdraw from government trade promotion activities. It may also intensify media engagements and stage peaceful demonstrations. These actions aim to protect local jobs and businesses. The association believes Ghana's footwear industry could create thousands of jobs and boost economic growth with proper support.