By Adnan Adams Mohammed
The escalating conflict in the Middle East, involving the United States, Israel, and Iran, is no longer just a distant geopolitical crisis.
For Ghana’s manufacturing sector, the “war drums” are beginning to echo in the form of disrupted shipping routes and surging production costs.
Industry leaders and regulators are now sounding the alarm: while the impact may not be felt today, a “ticking time bomb” of supply chain exhaustion could soon hit local shelves.
The CEO of the Association of Ghana Industries (AGI), Seth Twum Akwaboah, while speaking on Joy News’ PM Express, urged calm but warned against complacency. He explained that most Ghanaian factories operate on a three-to-six-month production cycle. Because many manufacturers stocked up on raw materials before the February 2026 escalation, prices remain temporarily stable.
“During that period, if there are major disruptions, it may not affect you much because we bought the goods at a particular price,” Mr. Akwaboah noted. “For now, we are not panicking. We are just hoping and waiting to see how things progress.”
However, that “buffer” is finite. Once current stocks are depleted, factories will have to re-enter a global market defined by chaos and high costs.
The “strait” of uncertainty
The heart of the problem lies in the Strait of Hormuz, a critical maritime artery that became a flashpoint on February 28, 2026. The Ghana Shippers Authority (GSA) has issued a stern warning to importers and exporters to prepare for “unavoidable” delays.
According to data from the United Nations Conference on Trade and Development (UNCTAD), the Strait carries:
25% of global seaborne oil trade;
33% of global seaborne fertilizer trade;
Significant volumes of Liquefied Natural Gas (LNG).
With major shipping lines now rerouting vessels to avoid the conflict zone, the “landed cost” of goods in Ghana is set to skyrocket.
The high price of “war risk”
The most immediate financial blow to Ghanaian businesses comes in the form of War Risk Surcharges. These are additional fees imposed by shipping lines to cover the increased insurance and security costs of navigating near conflict zones.
Mr. Akwaboah revealed that these charges are now as high as US$1,500 to US$2,000 per container.
“If this is added to your cost and unplanned, you can imagine the impact,” he said. He further detailed a “negative domino effect”:
Longer Routes: Rerouting ships adds weeks to delivery times.
Higher Fuel Prices: Disrupted oil flows push up logistics costs.
Input Shortages: Raw materials from Southeast Asia are failing to arrive on schedule.
A plea for diplomacy
The AGI CEO emphasized that Ghana’s manufacturing sector heavily reliant on imported machinery and raw materials cannot sustain a prolonged disruption.
In a candid moment, he pointed toward international diplomacy as the only long-term solution, referencing the need for global leaders, including American President Donald Trump, to iron out differences and restore global trade stability.
For now, Ghana’s factories continue to hum, but the shadow of the Middle East conflict is growing longer. If the tension in the Strait of Hormuz drags on, the “Made in Ghana” label may soon come with a much higher price tag.
