Non-Traditional Exports surge by 11.75% to $3.9bn in 2023 driven by iron and steel products
Ghana’s Non-Traditional Exports (NTEs) achieved a significant milestone in 2023, recording an 11.75% increase in earnings, reaching a total of $3.94 billion.
This remarkable growth in NTEs, as reported by the Ghana Export Promotion Authority (GEPA), represents 24% of the nation’s total merchandise exports and signifies substantial progress towards Ghana’s ambitious target of $25.3 billion in NTE earnings by 2029.
The rise in exports of iron and steel products was identified as the primary driver behind this expansion.
Iron and Steel Products Lead the Surge
In 2023, iron and steel products, encompassing circles, rods, sheets, and billets, emerged as the top NTE earners, generating USD 447.80 million and surpassing cocoa paste, which traditionally held the lead position.
This shift underscores a diversification trend within Ghana’s export portfolio, moving beyond the dominance of cocoa-related products.
The report highlighted that 1,702 companies were involved in exporting 625 non-traditional products to 156 countries.
Notably, a small group of 88 companies accounted for 80% of the total NTE earnings, indicating a concentration of export prowess within a relatively limited number of enterprises.
Market Dynamics and Destination Insights
Burkina Faso surfaced as the top market destination for Ghana’s NTEs, absorbing 20% of the exports. The Netherlands followed closely, accounting for 15%.
Other significant markets included Togo, Cote D’Ivoire, and Mali, which together comprised 30% of the top ten market destinations for NTEs.
The diversification of market destinations extends beyond the regional ECOWAS bloc to North America (10%), India (8%), Italy (6%), Belgium (6%), and the United Kingdom (6%).
This diverse geographical spread underscores the global appeal and competitive positioning of Ghanaian NTEs. It also reflects the success of GEPA’s strategic initiatives in tapping into new markets and enhancing existing trade relationships.
Sectoral Performance and Growth
The manufactures and semi-processed sub-sector remains the dominant force in Ghana’s NTE landscape, contributing an impressive 85.04% of the total NTE earnings.
In 2023, this sub-sector recorded earnings of $3.35 billion, marking a 14.15% increase compared to USD 2.94 billion in 2022.
The growth within this sector is attributed to the strong performance of iron and steel products, articles of plastic, shea oil, and cut fruit.
Structural Changes and Strategic Interventions
The robust growth in NTEs can be attributed to a series of structural adjustments and the diligent execution of key initiatives under the National Export Development Strategy (NEDS). The NEDS, a comprehensive framework aimed at enhancing the export landscape, has played a pivotal role in transforming Ghana’s export dynamics.
These efforts are complemented by GEPA’s proactive measures, including extensive market research, targeted export promotion campaigns, and capacity-building programs designed to elevate the international competitiveness of Ghanaian exporters.
The implementation of NEDS at the district level, through sensitization programs, has been instrumental in raising awareness among businesses and stakeholders about their roles in achieving national export objectives.
This grassroots approach ensures a broad-based participation in the export sector, fostering a more inclusive economic growth model.
Ghana’s impressive performance in NTEs for 2023 reflects the effectiveness of targeted export strategies and the resilience of its export sector. With sustained efforts and strategic implementation of NEDS, Ghana is well-positioned to achieve its long-term export goals, contributing to economic growth and diversification.
The rise in NTEs not only demonstrates the success of current policies but also sets a strong foundation for future advancements in Ghana’s export landscape.
