Closure of Tobacco and Cigarette Production in Ghana: A blow to the Economy, not to smoking habits
A Historical Overview of Tobacco in Ghana.
Tobacco cultivation and cigarette manufacturing have deep historical roots in Ghana, dating back to colonial times. Initially cultivated in parts of the Northern, Bono, and Volta Regions, tobacco provided farmers with a dependable cash crop. By the 1960s and 1970s, Ghana became an active player in the tobacco industry, with British American Tobacco establishing a major manufacturing plant in Takoradi.
The industry created jobs, boosted exports, and contributed significantly to national revenue. However, by the late 1990s, increasing global awareness of the health risks of smoking, led by the World Health Organization, pressured many developing countries, including Ghana, to reduce or end tobacco production.
Following Ghana’s signing of the WHO Framework Convention on Tobacco Control, local cigarette factories were eventually shut down in the early 2000s, marking a decisive shift from economic gain to public health protection.
*A Health Victory with Economic Loss*
While the move was celebrated as a health milestone, it came with unintended economic consequences. Cigarettes never disappeared from the Ghanaian market. Instead, the end of local production opened doors for foreign imports and smuggling networks.
Imported cigarettes, many untaxed, now dominate the market, draining the economy of revenue once earned from local taxes, manufacturing jobs, and agricultural activity. At the same time, smuggling has increased, undermining customs control and public health regulation.
In effect, Ghana stopped producing cigarettes but did not stop smoking.
*Health Progress Without Behavioral Change*
The government deserves credit for measures such as banning cigarette advertising, introducing graphic health warnings, restricting public smoking, and increasing excise taxes on imports.
However, smoking habits persist, especially among youth and low-income earners. Weak enforcement, porous borders, and the absence of widespread anti-smoking education or rehabilitation programs have slowed progress. Nicotine addiction remains deeply rooted, making bans alone insufficient.
*Hard Questions for Policymakers and the Global Health System*
If Ghana is banned from producing cigarettes, why are other nations freely exporting them to us?
Does the WHO tobacco control framework apply equally to all countries or mainly to developing ones?
Why should Ghana lose jobs and tax revenue while foreign manufacturers profit from our market?
Would it not make more sense to regulate local production, tax it heavily, and use the funds for public health?
How can Ghana enforce a tobacco ban when imports keep flooding the market through land and sea borders?
Isn’t this policy punishing Ghana economically while failing to reduce consumption?
Shouldn’t the fight against tobacco addiction include rehabilitation, counseling, and education rather than prohibition?
*Government Interventions and Policy Recommendations*
To balance health protection with economic sustainability, Ghana’s government can adopt interventions that address both demand and supply sides of the problem.
1. Strengthen Border and Customs Enforcement
Equip the Ghana Revenue Authority and Customs Division with better surveillance technology and training to detect smuggled cigarettes. Increase penalties for illegal importation and distribution of unlicensed tobacco products. Collaborate with ECOWAS partners to harmonize border controls and excise duties on tobacco to reduce smuggling incentives.
2. Regulate Instead of Completely Prohibiting
Consider controlled licensing for local or regional cigarette manufacturing under strict health regulations. Impose high taxes and health levies on every locally produced or imported pack, dedicating part of the proceeds to healthcare and anti-smoking education. Require clear and graphic warning labels in local languages on all products.
3. Invest in Public Education and Behavior Change
Launch national campaigns that expose the dangers of smoking and nicotine addiction. Introduce smoking cessation programs in hospitals and community clinics, including counseling and nicotine-replacement therapy. Integrate anti-tobacco education into school curricula from the basic level upward.
4. Support Alternative Livelihoods for Farmers
For former tobacco farmers, provide incentives and training to shift to alternative cash crops such as shea, cashew, groundnuts, or soybeans. Create a Tobacco Transition Fund to help rural families adapt and sustain income without returning to illicit tobacco farming.
5. Introduce a Health and Sin Tax Policy Framework
Pool taxes from tobacco, alcohol, and other high-risk products into a National Preventive Health Fund. Use this fund to finance cancer screening programs, respiratory disease clinics, and public health research.
6. Strengthen Regional and Global Advocacy
Ghana should lobby for global fairness in tobacco control. If production is harmful, then no country should profit from exporting cigarettes to others. Through the African Union and ECOWAS, Ghana can advocate for a collective African position on tobacco trade that protects both health and economic interests.
7. Encourage Research and Data Tracking
Invest in national surveys on smoking trends to guide evidence-based policy. Track the economic cost of tobacco-related diseases versus potential revenue from regulated production.
*Conclusion*
Ghana’s decision to shut down tobacco production was guided by good intentions to save lives and promote public health. But the reality is complex. Smoking persists, imports rise, and the economy suffers.
The country must now pursue a balanced and intelligent approach that combines regulation, education, and enforcement. Instead of losing both control and revenue, Ghana can create a model that protects public health while defending economic stability.
The real question remains: Is Ghana fighting tobacco, or merely fighting itself?
By Curtice Dumevor public health expert
