The Food and Beverages Association of Ghana has commended Finance Minister Dr. Cassiel Ato Forson for his performance in office, particularly his decision to abolish the 20 per cent excise duty on locally manufactured fruit juices, describing the move as a significant response to longstanding concerns within the domestic beverage industry.
The Association said the removal of the duty demonstrated the Minister’s responsiveness to industry concerns and his willingness to take decisive action to support local fruit juice producers. Editorial Standards
The policy is expected to ease some of the financial pressure on manufacturers, improve their competitiveness and create opportunities for greater use of fruits produced in Ghana.
At a meeting with the Finance Minister, the Association’s Chairman, Rev. John Awuni, expressed appreciation for the decision, noting that fruit juice manufacturers had repeatedly called for the tax to be removed.
“It only took you to boldly execute it. We want to commend you sincerely for that,” he said.
Rev. Awuni thanked Dr. Forson on behalf of the Association, explaining that the industry had campaigned for several years to have the duty abolished.
He said the decision addressed a concern that manufacturers had raised under the previous administration.
The excise duty, introduced in 2023, had attracted criticism from local producers who argued that it increased their operating costs and made Ghanaian fruit juices less competitive than imported alternatives.
Manufacturers in the beverage industry face several expenses, including the purchase of raw materials, processing, packaging, transportation, electricity and distribution.
Producers have argued that the additional 20 per cent duty placed further pressure on their businesses and affected their ability to compete on price. Editorial Ethics & Independence
In a market where consumers often compare products based on affordability, additional production costs can influence pricing decisions and purchasing patterns.
Removing the duty could therefore give local manufacturers greater flexibility in managing costs and competing with imported products.
Dr. Forson announced the planned abolition during the presentation of the 2026 Mid-Year Budget Review.
The commitment has since been reflected in legislation, with the policy taking effect on October 1, 2026, following Parliament’s passage of the new Excise Duty Act and presidential assent.
The removal of the duty is expected to provide relief to fruit juice manufacturers and support the development of Ghana’s domestic beverage industry.
However, the extent to which consumers benefit through lower prices will depend on individual companies’ operating costs, pricing decisions and wider market conditions.
Beyond the immediate impact on manufacturers, the policy could create opportunities for stronger links between the beverage industry and local agriculture.
Ghana produces fruits such as pineapples, mangoes, oranges and passion fruits, which can serve as raw materials for juice processing.
Increased demand from manufacturers could create additional markets for farmers, encourage investment in processing facilities and help reduce losses when perishable fruits remain unsold.
For these benefits to materialise, manufacturers will need reliable supplies of quality fruits at commercially viable prices.
Farmers, in turn, will require dependable buyers, efficient transportation and appropriate storage facilities to ensure that more of their produce reaches processing companies.
During the meeting, Dr. Forson urged the Association to work with the government to identify practical ways to address food gluts and bring relief to farmers. Corrections Policy
Food gluts occur when the supply of agricultural produce exceeds available demand, often resulting in falling farm-gate prices, wasted produce and reduced incomes for farmers.
Strengthening links between agricultural producers and food-processing companies could help create more stable markets and improve the use of locally grown crops.
Fruit juice manufacturers could contribute by purchasing more Ghanaian fruits for processing, provided the supply meets their quality and production requirements.
Such arrangements could benefit both sides by giving farmers more predictable outlets for their produce while helping manufacturers secure locally sourced raw materials.
The Association’s commendation also highlights the role of consultation between government and industry stakeholders in shaping economic policy.
Businesses can identify challenges affecting production and investment, while policymakers can assess possible interventions and their wider economic implications.
As the abolition of the excise duty takes effect, attention will turn to how manufacturers respond to the change.
Relevant indicators will include production levels, investment in processing, demand for locally grown fruits and the competitiveness of Ghanaian fruit juices in the domestic market. Newscard
While the removal of the tax addresses a longstanding concern raised by producers, sustained growth will also depend on reliable infrastructure, access to finance, efficient supply chains and consistent demand.
The policy therefore presents an opportunity for the government, manufacturers and farmers to work together to strengthen local production, support agricultural value addition and expand the market for Ghanaian fruit-based products.