Ghana's export ambitions hits brick wall
GHANA’s ambitious export diversification goals have hit a wall, with a commanding 94.47 per cent of all non-traditional exports (NTEs) failing to reach beyond West Africa, particularly beyond the Economic Community of West African States (ECOWAS) member states.
This comes three years into the African Continental Free Trade Area (AfCFTA) implementation, with Ghana’s export footprint barely making an impression across the broader African marketplace despite hosting the AfCFTA Secretariat in Accra.
Benin and Liberia were the only markets with growth in 2024 recording 35.10 per cent and 35.34 respectively.
This reflects increased demand for Ghanaian products, potentially due to improving trade logistics, cross-border trade reforms, or targeted market development under the National Export Development Strategy (NEDS).
While export to Mali dropped by 43.22 per cent, Niger and Guinea recorded 52.44 per cent and 40.36 per cent decline respectively, likely impacted by regional instability, security concerns or logistical constraints that disrupted trade routes.
Nigeria, Ghana’s largest economic partner in the region, saw a sharp 34.43 per cent decline, possibly due to foreign exchange restrictions, border control policies or high inflation that affected import demand.
Togo and Côte d’Ivoire, typically strong trade partners, also posted double-digit declines, signalling possible market saturation or increased competition from other regional suppliers.
Despite a 4.95 per cent decline, Burkina Faso remained Ghana’s largest ECOWAS export destination driven largely by the trade in iron/steel rods, billets and construction materials, although performance dipped due to higher production and logistics costs in Ghana’s manufacturing sector.
In an interview with the Graphic Business following the release of the latest Annual Non-Traditional Export Statistics Report by the Ghana Export Promotion Authority (GEPA), the President of the Federation of Associations of Ghanaian Exporters (FAGE), Mr Davis Korboe, said exporters were failing to capitalise on the opportunities presented by the AfCFTA due to persistent logistics challenges and high tariffs that keep them confined to ECOWAS markets.
Bottlenecks
He said the primary bottlenecks preventing market diversification included circuitous shipping routes and non-operational zero-tariff agreements outside ECOWAS.
“If I have to ship to Kenya, for instance, my goods have to go all the way to Europe before being redirected to Kenya. That alone discourages many exporters from tapping into East, Central or North African markets,” he stated.
The logistics challenges, he said, were further compounded by the delayed implementation of zero tariffs under AfCFTA, making trade within ECOWAS where the ECOWAS Trade Liberalisation Scheme (ETLS) is more functional and a safer option for exporters.
“The zero-tariff benefit promised under AfCFTA has not fully kicked in. Naturally, exporters will choose markets where trade costs are lower and routes are more predictable,” he added.
U.S tariffs
The call comes at a critical time as U.S. President Donald Trump’s recent announcement of a 10 per cent blanket tariff on imports threatens to further constrain Ghana’s traditional export markets.
Mr Korboe said: “With the U.S. imposing additional tariffs, the African market becomes even more important.”
“It would be economic suicide to ignore the continental opportunity while facing increased barriers in Western markets. I don’t think Trump is going to remove those tariffs for us.”
However, he said development was a potential catalyst for change, stating: “For me, it’s a blessing in disguise. We should look at the AfCFTA market. If you have a $3.4 trillion GDP market sitting within your region, why would you just want to tap into some one billion or other market?”
“The vision of a united African market is powerful, but until the logistics and policy bottlenecks are cleared, it remains just a vision,” he added.