Ghana urged to leverage trade policies to accelerate export diversification, economic transformation
Ghana’s merchandise trade competitiveness according to a new report launched by the World Bank, declined over the last decade (2010-2019) resulting in a reduction in the number of exporting firms and their participation in Global Value Chains (GVCs).
Despite the reduction in the country’s trade competitiveness, there were some improvements in the country’s transport logistics and access to ICT infrastructure that can be leveraged for expanded trade and economic transformation.
The World Bank report titled “Ghana Trade Competitiveness Diagnostic – Strengthening Ghana’s Trade Competitiveness in the Context of AfCFTA,” further asserts trade in services and foreign direct investments are also important for ensuring deeper integration into GVCs and efficiency of the manufacturing sector.
Delivering the keynote speech at the launch of the report, World Bank Country Director for Ghana, Liberia and Sierra Leone, Pierre Laporte, remarked findings from the book “should motivate policy makers to harness the transformative potential of trade by cultivating export-oriented activities in both the manufacturing and services sectors.”
Co-author of the report, Daniel Boakye also speaking at the report launch, noted “Ghana is well positioned to leverage trade in services, including logistics services, foreign direct investment and trade policy to consolidate the country’s comparative advantage as a hub for business and financial services in the West Africa sub-region.”
Some key findings of the report include:
• Ghana’s decline in merchandise trade competitiveness over the last decade (2010-2019)
• Improvement in transport logistics and access to ICT infrastructure
• Impressive performance in services exports
• Significant opportunities for increased intra-Afrixa trade and regional integration
Regarding policy recommendations made by the report to aid Ghana strengthen its trade competitiveness particularly in the context of AfCFTA include;
• Enhancement of Ghana’s participation in GVCs, deepen regional and global integration efforts
• Improve efficiency of trade facilitation by strengthening customs administration to reduce costs
• Undertake policy reforms to take advantage of potential opportunities offered by AfCFTA and GVCs
• Streamline regulatory environment for services sector
