AfCFTA or crisis? Ghana faces tough choices amid US tariff war

Ghana's $4.3 billion export industry faces a major challenge. The United States has imposed a 10% tariff on Ghanaian products. This move could severely impact industries that benefit from duty-free access under the African Growth and Opportunity Act (AGOA).

For years, Ghanaian exporters in textiles, cocoa, and agriculture relied on the US market. Now, these tariffs threaten their pricing advantage. Experts suggest that the African Continental Free Trade Area (AfCFTA) is Ghana’s best chance for survival.

However, the Minority Caucus in Parliament criticizes the government for neglecting AfCFTA. They point to inadequate funding and lack of policy direction. The previous administration created a National AfCFTA Policy Framework, but the current budget does not prioritize its implementation.

This raises concerns about Ghana's ability to benefit from intra-African trade. A strong AfCFTA strategy could help businesses reduce reliance on US markets. For example, the apparel industry could target South Africa, Nigeria, and Kenya.

Processed cocoa and yams could find new markets in North and East Africa as well. Yet, government inaction poses a significant challenge. Industry players argue that without investment in trade infrastructure and support for exporters, Ghana may miss out on AfCFTA benefits.

The US tariffs act as a wake-up call for Ghana. The country must choose between uncertain Western markets or fully embracing AfCFTA opportunities. The coming months will be crucial for determining whether Ghana's export sector can thrive through intra-African trade resilience or falter under external pressures.