Terra Industries Expands Operations to Ghana, Citing Investment Climate

Nigerian defence technology startup Terra Industries is making a significant strategic move by establishing its first overseas manufacturing facility in Accra, Ghana. This expansion marks a pivotal moment for the company as it seeks to scale rapidly and capitalize on emerging market opportunities across Africa.

The new 34,000-square-foot plant, named Pax-2, will be operational from June 2026 and is projected to become the largest drone manufacturing facility in Africa – more than doubling the footprint of Terra’s existing Abuja factory. This investment underscores the company’s ambitious goal to position itself as a leading provider of autonomous surveillance systems for the continent.

Ghana’s Attractive Investment Environment

The decision to locate the plant in Ghana was driven by several factors, including:

• Tax incentives: Ghana offers a 10-year corporate tax holiday followed by a reduced 15% rate through its free zones regime
• Duty exemptions: Imported machinery and raw materials are exempt from duties
• Political support: The Ghanaian government has demonstrated a clear commitment to developing the country’s defense industry

By contrast, Terra Industries indicated that progress under Nigeria’s Defense Industries Corporation Act 2023 has been slow, limiting opportunities for growth.

Expanding Market Reach and Capabilities

Terra Industries currently holds contracts protecting over USD 11 billion in critical infrastructure across eight African nations. With the new Ghana facility, the company aims to produce up to 50,000 drone units annually by 2028, significantly expanding its market reach.

The move also aligns with Ghana’s broader economic development strategy, particularly in agriculture and precision farming applications where drones can provide valuable data and support. The government has already allocated significant resources to these sectors as part of a comprehensive agricultural transformation agenda.

While Terra Industries generates most of its current revenue from Nigeria, the company views Ghana as a strategic gateway to new markets and opportunities across West Africa and beyond.