Ghana, USA bilateral trade hits $3.7 billion in 2022
Trade relations between Ghana and the United States of America (USA) remains resilient.
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This is evident from last year’s bilateral trade in goods which totalled $3.7 billion – an all-time high, the American Ambassador to Ghana, Virginia Palmer, said.
In a written interview with the Graphic Business, she also indicated that “our bilateral trade in services is growing as well.
“Our trading relationship and the more than 100 American companies active in the Ghanaian market support jobs and economic prosperity on both sides of the Atlantic,” she added.
Regarding the attractiveness of Ghana to U.S. investors, she said: “U.S. companies continue to knock on Ghana’s door; it is up to the government to create the right conditions to win their partnership and investment.”
“With support from the International Monetary Fund (IMF), we are hopeful that Ghana will pay arrears and implement the structural reforms needed to ensure it is back on the path to sustainable economic growth.”
On how the U.S. is going to help Ghana and for that matter businesses navigate the current economic conditions, Ms Palmer said the U.S. was Ghana’s largest bilateral development partner, adding that in 2022, bilateral assistance totalled over $150 million with programmes in health, economic growth, agriculture, education, human rights, governance and security.
“Last year, the U.S. Government provided over $32 million in agricultural assistance in Ghana. More recently, the U.S. Development Finance Corporation announced new support for $25 million in financing for micro, small and medium sized enterprises in the agricultural sector in Northern Ghana.
The United States recently announced a $300 million investment in data centres in Africa, including Ghana, and the Export-Import Bank of the United States has also authorised $1.6 billion for infrastructure investments in Africa. We hope to see some of this funding directed to critical infrastructure in Ghana,” she added.
Most promising sectors
Ms Palmer said more than 100 U.S. companies and brands are active in the Ghanaian marketplace in most major segments of the economy.
She said those companies had invested in key sectors including energy, mining, agro-processing, ICT, health care, food packaging, consumer goods, among others.
The US Ambassador said: “To make Ghana a welcoming environment for this investment, companies are looking for contract sanctity, independent courts, freedom from corruption, regulatory predictability, payment of government arrears and consultation on new localisation and other requirements.
“We see exciting opportunities for greater U.S. participation in all of these sectors. Most of the companies visiting Ghana as part of business delegation come from the automotive, ICT and consumer goods sectors. We hope that new partnerships forged during their visit will lead to expanded trade and more economic opportunities for Americans and Ghanaians.”
Ghana’s comparative advantage
Ms Palmer said Ghana was already a big exporter of cocoa products, apparel, rubber, cassava, nuts and petroleum among others.
She noted for instance that last year, Ghana had a trade surplus with the United States to the tune of $1.8 billion dollars.
The U.S. Ambassador also noted that a potential new opportunity to expand Ghana’s exports to the United States was lithium, adding that “U.S. companies are interested in investing in Ghana to help develop this new industry.
“Ghana’s growing digital economy has the potential to increase exports of business and Information and Communications Technology (ICT) services among others. The other big opportunity to grow services trade is tourism.
Americans are now Ghana’s largest group of international visitors. Ghana has the potential to attract even more visitors with strategic investments in tourism infrastructure.”
On what measures Ghana could take to enhance trade and investment between the United States and Ghana, she said the most important thing Ghana could do to increase trade and investment was to support a favourable and predictable business environment.
This is fundamental to attracting new U.S. investment in Ghana and improving economic prosperity in the long-term.
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“The world of potential investors is small, and they talk to one another. When U.S. companies thrive, they spread the word – leading to new companies entering the market. It’s a virtuous cycle.”
“The same holds true when the business environment deteriorates – giving companies pause on entering the market or forcing them to seek alternative destinations for their business and investment,” she added.
Ms Palmer said: “We want American companies to choose Ghana, and to this end we encourage the Government of Ghana to support policies that attract investment, like balanced localisation requirements, streamlined import/export processes, respect for contract sanctity and respect for human rights.
These are the types of issues raised in the U.S. Government’s National Trade Estimate report – and, when appropriately addressed, can drive new trading relationships.”
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