Plastic Manufacturers Demand Extension of Styrofoam Ban, Seek GH¢1.493 Billion Bail Out
–-Warn of Massive Job Losses, Business Closures and Financial Crisis if Ban Takes Effect in 2027
The Ghana Plastic Manufacturers’ Association (GPMA) has appealed to the Environmental Protection Authority (EPA) and government to reconsider the implementation timeline of the proposed ban on polystyrene foam products, warning that the move could trigger widespread job losses, business closures and significant economic disruption.
While the Association says it supports efforts to improve environmental sanitation and promote sustainable alternatives, it insists that the January 1, 2027 deadline announced by the EPA is too short and could have devastating consequences for the industry.
In a petition addressed to the EPA and signed by GPMA President, Ebbo Botwe, the Association called for an extension of the transition period to at least 18 months and urged government to compensate affected manufacturers for investments estimated at GH¢1.493 billion.
“The transition is inevitable, but it must be done fairly. These investments were made under the existing regulatory framework and therefore a sudden transition will present several challenges,” the Association stated.
The EPA, led by Chief Executive Officer Prof. Nana Ama Brown Klutse, announced in May 2026 that it would ban the production and use of expanded polystyrene (EPS) foam products as part of measures aimed at reducing plastic pollution, protecting public health and promoting sustainable development.
The ban covers a wide range of products, including takeaway food containers, disposable cups and plates, foam packaging materials, insulation products, mattresses and other polystyrene-based items used in commercial and domestic activities.
According to the GPMA, the industry currently operates more than 171 manufacturing facilities across the country and directly employs over 41,000 workers. The Association further claims that millions more jobs are linked to the broader plastics value chain, including recycling, sachet water production, beverage manufacturing and related sectors.
The Association argues that a sudden implementation of the ban could put approximately 3.7 million jobs at risk at a time when unemployment remains a major national challenge.
“Rapid implementation of the ban will not be in the interest of government, neither will it be in the interest of the investor community,” the statement noted.
Beyond employment concerns, the GPMA highlighted the sector’s contribution to Ghana’s economy, describing plastics as one of the country’s leading export industries. It noted that about 57 percent of plastic exports are destined for ECOWAS countries, including Togo, Nigeria, Benin, Côte d’Ivoire, Liberia, Sierra Leone, Senegal, Mali and Niger.
The manufacturers stressed that many of these countries have not introduced similar restrictions, raising concerns about the competitiveness of Ghanaian businesses.
The Association also expressed fears over the potential impact on the banking sector, revealing that many companies acquired their production equipment through loans and other financial arrangements.
“Our investments in plants, machinery and operational requirements are presently tied to bank loans and financial commitments. Any attempt to start the proposed Styrofoam ban from January 1, 2027 will cause a major financial crisis for the plastic industry,” the group warned.
According to the manufacturers, financial institutions have already begun raising concerns about the ability of companies to repay outstanding loans if the machinery becomes obsolete following the ban.
The GPMA further argued that most styrofoam manufacturing equipment cannot be converted to produce alternative packaging materials, including bioplastics, because the machines are specifically designed for polystyrene production.
The Association revealed that some companies only recently invested in new equipment, with expected cost recovery periods extending well beyond 2027.
One manufacturer, it noted, purchased new machinery just two years ago and is projected to recover its investment by 2030.
“Styrofoam machines cannot be retooled to manufacture other plastic packaging products. Enforcing the ban within the proposed timeline will result in huge financial losses for affected companies,” the statement said.
The manufacturers also cautioned against possible capital flight, warning that businesses may be compelled to relocate operations and machinery to neighbouring countries with more favourable regulatory environments.
The Association further explained that raw materials used in producing styrofoam products are also utilised in the manufacture of other items such as pens and industrial products, making any blanket restrictions on imports potentially harmful to other sectors of the economy.
For these reasons, the GPMA is urging the EPA and government to review the implementation timeline and engage stakeholders to develop a more practical transition framework.
“It is crucial that EPA reviews the proposed timelines to ease uncertainty in the industry and allow businesses adequate time to adjust,” the Association appealed.
The appeal sets the stage for further discussions between regulators and industry players as Ghana seeks to balance environmental sustainability objectives with economic and employment considerations.
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