Ghana plastic manufacturers demand US$95M bailout or 2030 deadline for polystyrene ban

GHANA – Ghana’s Plastic Manufacturers Association has called for an extension of the planned polystyrene foam ban to 2030 or a GH¢1.49 billion (US$95 million) bailout, warning that the January 2027 deadline threatens 3.71 million jobs and could trigger a banking crisis.

The association, representing over 171 production factories, argues that specialized styrofoam machinery cannot be retooled for alternative packaging, leaving manufacturers facing total asset losses if the ban proceeds as scheduled by the Environmental Protection Authority. 

Investment recovery periods for this equipment range from five to ten years, with some companies having purchased new lines as recently as two years ago and not projected to break even until 2030.

How GH¢1.49 Billion (US$95M) Industry Investment Could Become Scrap

GPMA President Ebbo Botwe stated in a petition to the EPA that the sector’s capital investments in plants and machinery total GH¢1.493 billion (US$95 million), which would be rendered obsolete under the current timeline. 

The association noted that styrofoam manufacturing equipment is designed exclusively for polystyrene production and cannot be converted to manufacture bioplastics or other packaging alternatives. 

Financial institutions have already expressed concern over outstanding loans tied to these assets, with banks reportedly panicking about recovery prospects if machinery becomes scrap.

What 3.71 Million Jobs at Risk Means for Ghana’s Economy

The GPMA’s petition highlighted that the plastics industry directly employs 41,395 workers across 171 factories, with an additional 1.89 million jobs in recycling and 1.43 million in sachet water, bottled water and beverage sectors. 

In 2023, plastics ranked as Ghana’s fifth-largest commodity export after gold, crude oil, cocoa and cashew nuts, with 57 percent of exports destined for ECOWAS countries. 

The association warned that manufacturers could relocate operations to neighboring countries without similar restrictions, worsening domestic inflation and draining foreign exchange reserves as Ghana turns to imported alternatives.

What Manufacturers Demand Instead of 2027 Deadline

The GPMA has proposed a four-part counter-proposal: an immediate ban on imports of finished styrofoam products by 2027 to protect local manufacturers, a deadline extension to 1 January 2030 for production phase-out, introduction of an Extended Producer Responsibility framework, and tax waivers and subsidies for companies forced to purchase new machinery. 

The EPA has begun stakeholder consultations with industry bodies including the Association of Ghana Industries and the Ghana National Chamber of Commerce and Industry as part of a phased engagement process.

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