Food and Beverages Association of Ghana (FABAG) Outlines Expectations for 2026 Budget

The Food and Beverages Association of Ghana (FABAG) has called on the government to prioritize key areas in the 2026 National Budget Statement and Economic Policy to support business recovery, competitiveness, and sustainable industrial growth in the food and beverage sector.

Key Expectations

Reduction in Nuisance Taxes: FABAG expects the government to rationalize and review the multiplicity of taxes, levies, and charges imposed on the food and beverage sector, including the COVID-19 levy, excise duties, and environmental excise tax.
Foreign Exchange Stability and Inflation Management: The association urges the government to adopt pragmatic fiscal and monetary measures to ensure exchange rate stability and control inflation, supporting price predictability and investor confidence.
Support for Local Manufacturing and Value Addition: FABAG recommends clear incentives and tax reliefs for local food and beverage manufacturers to enhance capacity, productivity, and export potential.
Halt on New Taxes and Levies: The association expects a firm assurance from the government that no new taxes will be introduced in 2026, with efforts directed towards improving revenue collection efficiency and expanding the tax net.
Strengthening of Regulatory Environment: FABAG suggests streamlining overlapping regulatory functions among agencies like the Ghana Revenue Authority (GRA), Food and Drugs Authority (FDA), and Ghana Standards Authority (GSA) to reduce bureaucratic bottlenecks and unnecessary costs.
Promotion of Sustainable Practices: The association encourages the government to provide incentives for environmentally sustainable packaging and production, such as tax rebates or grants for companies adopting eco-friendly technologies.
Promotion of Investment and Job Creation: FABAG recommends measures to attract local and foreign investment into agro-processing and manufacturing, ensuring value addition, technology transfer, and decent job creation.

FABAG’s Position
FABAG believes that a business-friendly 2026 Budget will stimulate investment, production, and revenue generation, ultimately improving the welfare of Ghanaians. The association reiterates its commitment to working with the government to build a stable and growth-oriented economy.

Read full release below:

3RD NOVEMBER, 2025

PRESS RELEASE
THE EXPECTATIONS OF THE FOOD AND BEVERAGES ASSOCIATION OF GHANA (FABAG) IN THE 2026 BUDGET STATEMENT

The Food and Beverages Association of Ghana (FABAG) is eagerly awaiting the presentation of the 2026 National Budget Statement and Economic Policy by the Honourable Minister of Finance. As an important stakeholder in Ghana’s manufacturing and trade ecosystem, the Association believes the upcoming budget will reflect policies that support business recovery, competitiveness and sustainable industrial growth in the food and beverage sector.
Over the past years, our industry has endured numerous challenges, including high import duties rising production costs, unstable exchange rates, inflationary pressures and excessive taxation. These factors have placed significant strain on manufacturing, importers and distributors, threatening jobs and reducing Ghana’s attractiveness as a business destination within the sub-region
FABAG therefore calls on the Minister of Finance to use the 2026 Budget to prioritize the following key areas:
1. Reduction in Nuisance Taxes:
The Association expects the government to rationalize and review the multiplicity of taxes, levies, and charges imposed on the food and beverage sector, including the COVID – 19 levy, excise duties, the Environmental Excise (Producer Responsibility) tax, container fumigation fees, and finally regulatory fees. The cumulative taxes have increased the cost of doing business, undermined competiveness and encouraged smuggling of cheaper products into the country. The Association expects the 2026 Budget to introduce targeted tax reliefs for local producers, especially Small and Medium Enterprises (SMEs), to encourage investment, job creation, and formalization.
2. Foreign Exchange Stability and Inflation Management
The depreciation of the cedi and the general instability continues to hurt local businesses by raising import and production costs. FABAG urges the government to adopt pragmatic fiscal and monetary measures that ensure exchange rate stability and control inflation to support price predictability and investor confidence.
3. Support for Local Manufacturing and Value Addition
The 2026 budget should include clear incentives and tax reliefs for local food and beverage manufacturers to enhance capacity, productivity, and export potential. This includes access to affordable credit, energy cost reduction, and infrastructure support to enable factories to operate competitively.
4. Halt on new Taxes and Levies
The Association expects a firm assurance from government that no new taxes will be introduced in 2026, as the business community is already overburdened. Instead, efforts should be directed towards improving revenue collection efficiency and expanding the tax net.
5. Strengthening of Regulatory Environment:
FABAG expects government to streamline overlapping regulatory functions among agencies such as the GRA, FDA, and GSA, to reduce bureaucratic bottlenecks, duplication, and unnecessary costs to businesses.
6. Promotion of Sustainable Practices
FABAG encourages the government to provide incentives for environmentally sustainable packaging and production. Introducing tax rebates or grants for companies adopting eco-friendly technologies will align the industry with global sustainability standards and Ghana’s climate commitments rather than imposing environmental taxes.
7. Promotion of Investment and Job creation:
The budget must clearly outline measures to attract both local and foreign investment into the agro-processing and manufacturing sub-sectors, ensuring value addition, technology transfer, and the creation of decent jobs for Ghanaians.
As a critical partner in national development, the Food and Beverages Association of Ghana reiterates its commitment to working with the government to build a stable and growth-oriented economy. We believe that a business –friendly 2026 Budget will not only stimulate Investment and production but also enhance revenue generation and improve the welfare of Ghanaians.
Signed:
FABAG