Ghana Ranks 4th in Intra-African Exports with US$6 B

Ghana has emerged as the fourth-largest exporter within Africa, with intra-African trade reaching US$6 billion, according to the latest African Trade Report by Afreximbank.

This is a major development for the country, showcasing its increasing integration into regional markets and its expanding role in the continent’s trade landscape.

The report highlighted that intra-African trade surged to US$192.2 billion in 2023, up from US$137 billion in 2020, with intra-African exports growing from US$72.8 billion to US$110.3 billion during the same period. Intra-African trade now accounts for 14.9% of Africa’s total trade, a rise from 13.6% in 2022, driven largely by regional trade bloc efforts and the African Continental Free Trade Area (AfCFTA) initiative.

Ghana’s export portfolio is primarily composed of industrial products, minerals, processed goods, and cocoa. The country has successfully diversified its export base, moving beyond raw materials to include refined petroleum, aluminium products, foodstuffs, and textiles.

Notably, gold, kitchenware, hose pipes, and crude petroleum oils are among the leading goods exported to African nations, with South Africa and Burkina Faso being its top markets. Ghana’s top 10 products account for 79% of its total intra-African exports, reflecting the country’s robust trade in key commodities.

While South Africa continues to lead intra-African trade with exports valued at US$29.6 billion, Ghana’s strong performance is credited to its active participation in regional trade agreements, including ECOWAS and AfCFTA. The latter, headquartered in Accra, aims to eliminate trade barriers and tariffs, facilitating easier market access for Ghanaian goods and enhancing the country’s competitiveness across the continent. AfCFTA targets a 90% reduction in tariffs over time, further boosting Ghana’s ability to penetrate African markets.

The establishment of the AfCFTA Secretariat in Ghana has also provided a strategic advantage, positioning the country as a central hub for intra-African trade. This has particularly benefited sectors such as manufacturing and agriculture, with the local processing of raw materials gaining momentum under initiatives like the government’s One District, One Factory (1D1F) program.

These efforts have helped Ghana shift its focus from exporting raw commodities to value-added products, enhancing the country’s export value and appeal.

In preparation for AfCFTA, Ghana has made substantial investments in infrastructure, including the expansion of the Tema Port and upgrades to transportation networks.

Additionally, customs reforms and the digitization of trade processes have streamlined export procedures, reducing delays and transaction costs. These improvements have enabled Ghana to trade more efficiently within Africa and foster stronger economic ties with key partners such as Nigeria, Côte d’Ivoire, and South Africa.

Looking ahead, experts believe Ghana’s intra-African trade has the potential to grow further as AfCFTA removes more trade barriers. Continued industrialization, innovation, and investments in technology are seen as critical to sustaining this momentum and increasing the country’s competitiveness in African markets.

Ghana’s rising export figures reflect its strategic efforts toward greater regional integration and economic diversification, positioning it as a major player in intra-African trade. As the AfCFTA continues to unfold, Ghana is expected to leverage its position to further boost its trade capacity and reinforce its standing as a leading hub for economic cooperation across the continent.

Source:thehighstreetjournal.com