Value addition and industrialization will yield more revenue for Ghana – GEPA
Actors within Ghana’s and more extensively, Africa’s export sector are being urged to devote all their efforts into adding value to their products and services in order to optimize gains in revenue generation. According to officials of the Ghana Export Promotion Authority “the proof is in the pudding”, when it comes to the ceiling for value-added products against raw materials.
Dr. Martin Akogti, Head of Research at GEPA, revealed that out of the $3.94 B made from Non Traditional Exports in 2023, $3.35B of the total figure came from the manufacturing sector which accounts for 85% of Ghana’s NTEs in 2023. Indeed, the average annual growth for the manufacturing sub-sector in Non Traditional Exports is 14%.
“Basically manufacturers are driving the Non- Traditional Exports. The reason is simple – when you add value to a product, the gains are higher than when you export the raw materials,” he expressed.
“If you take cocoa, chocolate alone is about a 120-billion-dollar-industry. In Ghana when we do the export of only the cocoa beans, the gains are small. But when you add value you earn more,” he added.
This and many more examples of other product lines including shea, gold, oils and more, he cited.
Iron rods, plastic articles and cocoa derivatives from Ghana, according to the Head of Research at GEPA are doing superb in the Sahel and in other African countries, and this has been propelled by the operationalization of the ECOWAS Trade Liberalization Scheme (ETLS). He said ETLS and AfCFTA presents an amazing opportunity for African traders and it is prudent for all actors to pounce on this chance, identify market demands, industrialize, and trade freely.
Taking cognizance of this realization, the Export Promotion Authority, he said, is keen on facilitating financial support for such key manufacturers to even augment their productive capacities. One major institution that has been of help, he said is the Ghana Export-Import Bank (GEXIM).
Dr. Akogti was joined by Chris Amponsah Sackey, the Head of Public Relations at GEPA, who sat with Solomon Anderson for the latest episode of the niche Eye on Port TV program.
Mr. Sackey discussed GEPA’s attempts to scale up the contribution of Ghana’s Industrial Arts and Crafts Sector, which accounted for only 2.43% of non-traditional exports in 2023.
However, all is not bleak for this industry, which is witnessing an average growth rate of 17.85%. According to Mr. Sackey, the performance of ceramics and tiles is improving.
“A lot of factories have been set up who produce tiles and when you go to Côte d’Ivoire, Burkina Faso, tiles are doing so well there in exports and that’s what is contributing to the surge in its contribution.”
Basket-ware, paintings, textiles and fabrics made in Ghana are among the sub-sectors seeing increased attention on the international market and GEPA is poised to do its best to help, he said.
“Recently we had the Adinkra International Arts and Crafts Show, this is part of the programs being specially designed to ensure that we boost that sector. We had over 200 exhibitors displaying their products in Aburi. It was amazing and we are very optimistic that a lot of business will come out of that because we engaged international buyers who bought some samples and we believe a lot of orders will follow.”
He added that for these craftsmen, GEPA, is facilitating training, capacity building and capital injection to improve their efficiencies.
A perfect example he said is the Bauxite Beads Production facility in Abompe in the Fanteakwa South District of the Eastern Region.
Another initiative he said was the Sound Out, an Art Exhibition showcasing artists’ works to boost their trade in local and international destinations.
“The 1-year old boy who recently got his name in the Guinness Book of Records had his artwork displayed there and it was purchased and that contributed heavily to the successes he has chalked,” he revealed.
This and many more initiatives, he said, are being undertaken by his outfit to boost the potential of the industrial arts and crafts sector.
