Ghana Must Streamline Trade Processes to Boost Competitiveness, Says Africa Trade Academy CEO
Dode Seidu, Chief Executive Officer (CEO) of the Africa Trade Academy, has emphasized the urgency for Ghana to overhaul its trade policies to enhance competitiveness, following the recent shift in global trade dynamics on the back of the imposition of tariffs on economies by the US.
Speaking at the NorvanReports and Economic Governance Platform (EGP) X Space Discussion on the topic, “Trade Without Privilege: Can Ghana Compete in a Tariff World?”, Mr Seidu argued that the United States’ imposition of tariffs should serve as a wake-up call for developing countries, particularly Ghana.
Mr Seidu expressed surprise upon hearing the news, noting that for nearly a century, the global trend had been focused on reducing tariffs to zero, a movement that led to the creation of the World Trade Organization (WTO) and the proliferation of trade agreements.
However, the U.S. position, he contended, underscores the inequities of past tariff cuts, which have not been reciprocated by other nations. The U.S. government’s recent stance highlights its frustration with unequal tariff practices, according to him, which points to the growing importance of developing nations rethinking their trade frameworks.
“Ghana’s trade barriers, particularly non-tariff obstacles, need urgent attention,” Mr Seidu remarked, noting that excessive fees, charges, and regulatory burdens on importers and exporters are a significant hindrance to trade. For instance, Seidu pointed out that to export from Ghana, businesses are required to obtain multiple permits, a process that not only incurs high costs but also creates unnecessary delays.
“These barriers, though often designed for regulatory oversight, impose a disproportionate burden on businesses and hinder trade efficiency,” he explained.
Moreover, the U.S. Trade Representative (USTR) report for 2024 highlights the issue of non-tariff barriers, with Ghana being a notable example. According to the report, the U.S. faces significant challenges in exporting goods to Ghana due to the myriad levies and fees imposed during the importation process, including the COVID-19 levy, Ghana Get Fund levy, and others.
Mr Seidu suggested that Ghana could use the current global tariff debates as an opportunity to streamline its trade processes and enhance the efficiency of cross-border transactions.
In his analysis, Mr Seidu also encouraged Ghana to refocus its trade strategy on regional and continental markets. While global trade remains vital, he emphasized that Ghana’s largest trading partners are in the ECOWAS region, including neighboring Burkina Faso and Côte d’Ivoire. “We need to think strategically about regional trade,” he urged. “Instead of solely focusing on access to markets like the U.S., we should focus on reducing trade barriers within our own continent.”
Mr Seidu further proposed the establishment of mutual recognition agreements between Ghana and other ECOWAS nations to simplify trade processes. He pointed to the example of cross-border cooperation between Ghana’s FDA and Nigeria’s NAFTA to streamline regulatory procedures, allowing businesses to bypass repetitive registration processes.
He also highlighted recent developments in the Sahel region, with Burkina Faso and other countries in the alliance instituting new import duties. Mr Seidu, however, warned that as these countries diverge from ECOWAS trade instruments, Ghana must adapt its strategy to maintain and expand its regional trade relationships.
“The AFCFTA offers substantial opportunities for Ghana, however, we must ensure that our products can compete effectively within the continental market by removing unnecessary barriers and streamlining trade procedures,” Mr Seidu concluded.
