Tema Free Zones enclave – the nation’s premier free trade zone – is facing an unprecedented crisis as a mounting garbage problem threatens to drive away businesses and international investors.

The crucial hub for manufacturing and export sectors is grappling with fallout from the overburdened Kpone Landfill site located directly behind its walls.

Sources within the enclave report that several businesses are on the brink of closure due to the landfill’s proximity.

“We have seen international financiers pull out of deals solely because of this site,” said a senior executive at one of the affected companies, speaking on condition of anonymity.

“The economic impact is severe and immediate,” he added.

The Kpone Landfill, described as Ghana’s largest, has become a significant environmental hazard.

Originally designed to process 500 tonnes of waste daily, it now receives approximately 2,000 tonnes per day following closure of the Achimota landfill site. This four-fold increase has overwhelmed the US$12.5million World Bank-sponsored solid waste disposal facility, which opened in 2013.

“The toxic fumes from burning garbage are making it impossible for us to operate. We are facing potential shutdowns if this is not addressed urgently,” the aforementioned executive said.

Some of the affected businesses include Ferro Fabrik Ltd., MND Metals Co. Ltd., Gapuma Ghana Ltd., Success Africa Ltd. and Polytanks Limited. These companies form a critical part of the domestic industrial base, and their potential closure could have ripple-effects throughout the economy.

The situation forms part of developments which have raised alarm bells among environmental experts. They have warned that it is not just an economic issue but also a public health crisis waiting to happen.

Also, the long-term exposure to these toxic fumes could lead to severe health problems for workers and residents in the area.

The crisis also highlights challenges of waste management in rapidly growing African urban centres. With Ghana’s urban population growth rate at approximately 3.4 percent as of 2021, the pressure on existing waste management infrastructure is intensifying.

The Ghana Free Zones Authority, responsible for overseeing the enclave, has yet to comment publicly on the situation. However, sources indicate that urgent meetings are being held with government officials to address the crisis.

Economic analysts have also suggested the development could have broader implications, as the Free Zones enclave is a key driver of Ghana’s export-oriented growth strategy.

They warned that if international investors lose confidence due to this environmental crisis, it could significantly impact foreign direct investment inflows and overall economic performance.

As the situation unfolds, calls are growing for a comprehensive waste management strategy for the Greater Accra region. Proposals range from investments in waste-to-energy plants to stricter regulations on waste disposal and ambitious recycling programmes.

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