Ghana secures 0% tariff deal from China, eyes electric car plant and aluminium industry boost

Ghana has secured a landmark 0 per cent tariff concession on all its exports to China, following high-level bilateral talks between Ghana’s Foreign Minister, Mr Samuel Okudzeto Ablakwa, and his Chinese counterpart, His Excellency Wang Yi.

The agreement, announced by Mr Ablakwa in a social media post on Thursday, marks a significant milestone in Ghana-China relations and is expected to deepen trade, boost industrialisation, and create jobs for Ghanaians.

“China has offered 0% tariff on all exports from Ghana,” the Minister disclosed. “This 0% tariff on 100% of goods from Ghana and other African countries will bolster trade, create jobs and produce more Ghanaian entrepreneurs.”

Mr Ablakwa noted that China is Ghana’s largest trading partner, with bilateral trade volumes exceeding US$11 billion in 2024. He described the talks, which took place on the margins of the ongoing China-Africa summit in Changsha, as “productive and impactful”.

The Foreign Minister further revealed that both sides discussed new industrial initiatives aligned with President John Mahama’s development vision. These include leveraging Ghana’s bauxite reserves to establish an integrated aluminium industry, supported by modern rail infrastructure to ensure cost-effective transportation and value addition.

“Our discussions also touched on new industrial projects in line with President Mahama’s vision, including exploiting our bauxite for an integrated aluminium industry powered by modern rail infrastructure,” Mr Ablakwa stated.

One of the most forward-looking outcomes of the talks was a mutual agreement to explore the establishment of an electric vehicle (EV) manufacturing plant in Ghana, anchored on the country’s strategic lithium deposits. Lithium is a key component in battery production and an essential resource in the global transition to clean energy.

“Our bilateral engagement… further agreed to work towards establishing an electric car manufacturing plant in Ghana anchored on Ghana's strategic lithium deposits,” the Minister said.

In a move to institutionalise this renewed cooperation, Ghana and China are set to sign a special Economic Partnership Agreement (EPA). Mr Ablakwa indicated that the EPA would formalise the frameworks required to support trade expansion, joint ventures, and technology transfer.

“Ghana and China will soon sign a special Economic Partnership Agreement to concretise our mutually beneficial partnership,” he said.

The Minister also paid tribute to the enduring friendship between Ghana and China, rooted in the post-independence era under Dr Kwame Nkrumah and Chairman Mao Zedong.

“President Mahama's administration is firmly committed to leveraging diplomacy for the transformation of our dear country,” Mr Ablakwa wrote. “Kwame Nkrumah and Chairman Mao will be proud of what Ghana 🇬🇭 China 🇨🇳 relations has achieved 65 years after they laid the foundation.”