US Corporations critical to Ghana’s recovery and economic growth, says Ambassador Virginia Palmer
In a resonating address at the U.S.-Ghana Business EXPO 2023, under the theme “Leveraging U.S.-Ghana Trade Relations for Growth and Prosperity,” U.S. Ambassador to Ghana, Virginia Palmer, underscored the pivotal role played by American corporations in propelling development across several vital Ghanaian sectors. Ranging from telecommunications and mining to energy, food processing, and packaging, these corporations have emerged as linchpins in Ghana’s economic evolution.
Ambassador Palmer offered a candid reflection on the formidable journey undertaken by both U.S. enterprises and the remarkably resilient Ghanaian private sector, navigating a testing macroeconomic milieu in the past year. Crucially, she highlighted that the future of Ghana’s resurgence and economic rebound hinges critically on the continued involvement of U.S. enterprises.
“U.S. companies have been at the forefront of the development of many of Ghana’s key sectors, from telecommunications, to mining to energy, to food processing and packaging. I salute these pioneers and longstanding veterans on the market. They, along with the incredibly resilient local Ghanaian private sector, have navigated through a difficult macroeconomic environment during the past year. And their role will be critical to Ghana’s resumed growth and economic recovery,” she posited.
Amid this backdrop, the U.S. Embassy stands poised to facilitate the forging of fresh collaborative endeavors and partnerships between American and Ghanaian enterprises, building upon the already robust edifice of trade and investment.
Notably, the rapport between the United States and Ghana has burgeoned into a dynamic business and economic alliance. The preceding year witnessed a landmark pinnacle in trade of goods, scaling an impressive $3.7 billion. Furthermore, Ghana secured a notable $1.8 billion trade surplus vis-à-vis the United States in 2022. This mutual economic enmeshment also extends to the services realm, with the African Growth and Opportunities Act (AGOA) providing Ghanaians the advantage of duty-free export of over 6,500 products to the United States.
Unwaveringly, the United States Government continues to underpin Ghana’s economic advancement, retaining its stature as the country’s premier developmental partner. The committed support is evidenced by a substantial financial allocation of over $150 million in bilateral assistance during 2022. This comprehensive backing spans diverse spheres including health, agriculture, education, human rights, governance, and security.
Agriculture emerges as a strategic focus, accentuated by a $32 million agricultural assistance initiative last year. Notably, recent strides include the proclamation by the U.S. Development Finance Corporation to channel $25 million towards financing micro, small, and medium-sized enterprises in the agricultural domain within Northern Ghana.
With an eye toward digital economic evolution, the United States has propelled an impressive stride through its announcement of a $300 million investment into African data centers, prominently featuring Ghana. This intervention is poised to usher in a new era of digital progress.
The economic ledger underscores the vigor of the Ghana-U.S. relationship, underscored by a trade balance spotlighting Ghana’s exports totaling $2.7 billion to the U.S. in 2022. Emblematic exports include crude oil, cocoa in various forms, apparel, rubber, and cassava. Conversely, the United States contributes its own array of exports such as automobiles, machinery, paper products, medical devices, fertilizers, and agricultural commodities to Ghana.
Conspicuously, Ghana emerges as a pivotal destination for U.S. exports within Sub-Saharan Africa, occupying the third position behind economic giants South Africa and Nigeria. Foreign direct investment (FDI) infusions also form a critical dimension, with an impressive $421 million being channeled from the United States to Ghana in 2021. This substantial investment inflow continued its ascent, culminating in a formidable $1.5 billion FDI from varied sources during 2022.
In a symphony of trade, investment, and collaborative vigor, the U.S.-Ghana liaison stands resolute as a beacon of mutual prosperity and shared growth on the global economic stage.
