Trade Minister K.T. Hammond talks enhanced trade policies to boost Ghanaian exports to the U.S.
In a resolute proclamation, Ghana’s Minister for Trade and Industry, K.T. Hammond, has underscored the Ghanaian Government’s unwavering commitment to propelling the country’s private sector towards amplified exports, with a particular focus on the expansive U.S. market. Cognizant of the vast consumer landscape in the United States, Hammond underscored the government’s determined stance to foster a conducive environment for Ghanaian enterprises to capitalize on this pivotal avenue.
Addressing an august gathering at the 2023 U.S.-Ghana Business EXPO on August 10, 2023, Hammond articulated that the government’s compass is fixed on empowering the private sector to navigate the intricacies of the U.S. market under the strategic banner of the African Growth and Opportunity Act (AGOA).
“The U.S.-Ghana EXPO stands as a testament to the enduring commitment to cultivate robust bilateral trade affiliations between Ghana and the U.S.,” affirmed Hammond, a sentiment that resonates with the substantive import of the trading rapport shared between the two nations.
The economic interplay between the United States and Ghana has burgeoned into a dynamic and mutually beneficial relationship, reaching a zenith in 2022. The year witnessed an unprecedented milestone as the total value of traded goods between the nations scaled to a notable $3.7 billion.
A remarkable feature was Ghana’s trade surplus with the United States, amounting to $1.8 billion during the same period. Notably, this buoyancy extends beyond tangible goods, encompassing services. Leveraging the privileges of AGOA, Ghanaian exporters can transact over 6,500 products with the U.S., unburdened by duty charges.
Underscoring its role as a chief partner in Ghana’s developmental trajectory, the U.S. Government’s concerted efforts in 2022 materialized in bilateral assistance surpassing the $150 million mark. These strategic initiatives spanned crucial domains including health, economic growth, agriculture, education, human rights, governance, and security. This steadfast commitment also extended to Ghana’s agricultural sector, as evinced by a $32 million financial infusion. More recently, the U.S. Development Finance Corporation amplified its commitment by endorsing a $25 million financing initiative tailored for micro, small, and medium-sized enterprises operating within Northern Ghana.
In the realm of digital economic evolution, the United States affirms its support with a substantial $300 million injection into African data centers, a gesture encompassing Ghana as well.
Traversing the contours of trade, the two-way trade value between the U.S. and Ghana in 2022 soared to $3.7 billion, with Ghana’s exports to the U.S. ringing in at $2.7 billion. Ghana’s export portfolio boasts crude oil, cocoa derivatives, apparel, rubber, and cassava. Meanwhile, the U.S. plays the role of Ghana’s fourth-largest export market, partaking in the exchange of vehicles, machinery, paper commodities, plastics, medical devices, fertilizers, and agricultural products. The gravity of this engagement is further underscored by Ghana’s position as the third-largest export market for the U.S. within Sub-Saharan Africa, trailing only South Africa and Nigeria.
Regarding foreign direct investment (FDI) inflows, a record sum of over $421 million coursed from the United States to Ghana in 2021, a testament to the latter’s allure as an investment destination. This magnetic pull persisted and even intensified in 2022, as Ghana welcomed a robust $1.5 billion in FDI from diverse sources, heralding its steadfast march as a beacon for foreign investments.
