The Ghana Plastic Manufacturers’ Association (GPMA) has expressed concerns over the government’s planned ban on polystyrene foam products, urging authorities to extend the implementation timeline and address the potential economic impact on the industry.
The Environmental Protection Authority (EPA) announced in May 2026 that the production and use of expanded polystyrene (EPS) foam products will be prohibited from January 1, 2027, as part of efforts to improve environmental sanitation, reduce plastic waste, protect public health, and promote sustainable development.
The ban will cover a wide range of EPS products, including food packaging containers, takeaway packs, disposable cups and plates, foam food packs used by restaurants and chop bars, packaging materials, insulation products, foam mattresses, bedding products, and other foam-based items intended for human use.
However, in a statement dated June 12 and addressed to the EPA’s Chief Executive Officer, the GPMA said while it supports the objective of protecting the environment, the proposed implementation period is too short and could have severe consequences for businesses and jobs.
The association is therefore calling for a minimum transition period of 18 months before the ban takes effect. Alternatively, it is requesting government compensation for investments in machinery and equipment, which it estimates at GH¢1.493 billion.
The statement, signed by GPMA President Ebbo Botwe, outlined several concerns about the impending ban, including job losses, financial commitments, export market disruptions, and the inability of existing machinery to be repurposed.
According to the association, the plastic manufacturing industry currently operates more than 171 production facilities across the country and directly employs over 41,000 people. It further estimates that the broader plastic value chain, including recycling, sachet and bottled water production, beverage manufacturing, and related sectors, supports approximately 3.71 million jobs.
The GPMA warned that a sudden ban could lead to widespread job losses at a time when employment opportunities remain limited in the country.
The association also noted that the sector plays a significant role in Ghana’s economy, ranking among the country’s leading export industries after gold, crude oil, cocoa, and cashew.
Beyond Ghana, the GPMA said the decision could affect regional markets, as more than half of the industry’s exports are destined for ECOWAS countries, including Togo, Nigeria, Benin, Côte d’Ivoire, Liberia, Sierra Leone, Niger, Mali, and Senegal.
It pointed out that many of these countries have not introduced similar bans, raising concerns about the competitiveness of Ghanaian manufacturers.
“GPMA will support the proposed ban provided this action is taken at zero cost to our capital machinery investment of GH¢1.493 billion,” the association stated.
It argued that investments in polystyrene production facilities were made under the existing regulatory framework and that any transition should be accompanied by measures to protect investors from significant losses.
The manufacturers further revealed that many companies financed their investments through bank loans and other financial commitments, warning that the proposed timeline could trigger a financial crisis within the sector.
According to the association, banks have already begun expressing concerns about the ability of manufacturers to repay loans if their machinery becomes obsolete following the ban.
“Since EPA’s press release, the banks have taken serious concern as to what will happen to our machinery and how to recover their loans if the machines become scraps,” the statement noted.
The GPMA also argued that most polystyrene manufacturing equipment cannot be modified to produce alternative packaging materials, including bioplastics, because the machines are specifically designed for foam production.
The association added that returns on investments in such machinery typically take up to 10 years, with some companies having acquired equipment only recently. As a result, an early ban could leave businesses unable to recover their capital investments.
It also warned of the possibility of capital flight, as affected manufacturers may be forced to relocate their machinery and operations to neighbouring countries where such products remain legal, potentially increasing pressure on Ghana’s foreign exchange reserves.
The association has therefore appealed to the EPA to review the implementation timeline and engage industry players to ensure a smooth transition that balances environmental objectives with economic realities.
