As the United States imposes new tariffs on global trade, experts are urging African nations, including Ghana, to accelerate efforts to diversify exports within the African Continental Free Trade Area (AfCFTA). The call follows a recent announcement by U.S. President Donald Trump, who imposed a 34% tariff on imports from China, a 20% tariff on those from the European Union, and a 10% baseline tariff on imports from countries with trade surpluses with the U.S., which includes Ghana.
Economist Prof. Godfred Bokpin highlighted the importance of shifting focus to expanding trade within the AfCFTA and enhancing the competitiveness of Ghana’s export sector. He emphasized that rather than complaining about the tariffs, Ghana should adapt by diversifying its export markets and improving domestic production capabilities. With trade barriers already in place with regions like the EU, Ghana’s focus should be on long-term solutions.
In line with this, Tsonam Akpeloo, the Greater Accra Regional Chairman of the Association of Ghana Industries (AGI), stressed the need for Ghana to reduce reliance on international suppliers by developing local raw materials. He pointed out that the rising tariffs would increase production costs, as many raw materials, like those for sanitary pad production, are imported from the U.S. Developing alternatives locally would help mitigate such price increases and strengthen the local manufacturing sector.
Experts agree that Ghana’s best course of action lies in regional trade expansion and bolstering domestic production. These strategies are seen as vital steps to counteract the negative effects of U.S. tariffs, and to ensure economic resilience amid the changing global trade landscape.
Source: citi newsroom