President John Dramani Mahama has announced plans to reform Ghana’s water sector and introduce private sector participation in the supply of industrial water to strengthen manufacturing.

Speaking at the Presidential Dialogue with the Private Sector in Accra on Monday, the president said water supply for manufacturing requires urgent reform.

“The same applies to water. Water supply for manufacturing must be addressed. We must reform the water sector and include private sector participation in the supply of industrial water,” he stated.

President Mahama explained that although high energy costs and unreliable power remain the dominant constraints across industries, inadequate water supply is also undermining industrial operations. He noted that Ghana’s industrial tariffs remain uncompetitive compared to regional peers and stressed that no country can industrialise sustainably under structurally high energy costs and insufficient utilities.

He emphasised that reforms in the energy and water sectors are foundational to Ghana’s industrial takeoff. According to him, energy reform is not optional, and ensuring reliable water supply for factories is equally critical.

The president indicated that government will move beyond sole reliance on public utilities by engaging the private sector to help meet the growing demand for industrial water, particularly as manufacturing expands.

The proposed reforms form part of broader efforts to address structural constraints facing businesses and improve Ghana’s competitiveness. President Mahama referenced concerns raised by the Ghana Chamber of Commerce, which reported that Ghana is losing competitive ground to Benin, Côte d’Ivoire and Nigeria due to factors including corporate taxation, electricity tariffs, stable power supply and import duties on machinery.

He said government will tackle these issues through comprehensive structural reforms rather than piecemeal adjustments. Measures outlined include maintaining macroeconomic stability, ensuring regulatory clarity, reforming industrial financing, enforcing fair trade practices, and upgrading infrastructure such as roads, utilities, power and water systems.

President Mahama assured the private sector of regular consultations to address obstacles hindering growth. He also urged businesses to scale up domestic production, create more jobs for Ghanaians, prioritise local content, invest in skills development, uphold international product standards and engage transparently in policy discussions.