Ghana must have strategic response to US tariffs - Ghana Business News

The U.S. government has imposed a 10% tariff on select imports. This includes goods from Ghana, impacting the country's export-oriented industries. Tourism Consultant Dr. Nana Baa Wiredu believes the Ghanaian government must work with the private sector. He sees this challenge as an opportunity for economic transformation.

Dr. Wiredu acknowledges that U.S. tariffs threaten Ghana's export sectors. Products like cocoa, aluminum, and agricultural commodities are particularly affected. However, he urges the country to confront these challenges head-on.

He suggests strengthening trade diplomacy efforts regionally and globally. This will help preserve Ghana's preferential access to key markets. "We should engage with our partners in the U.S. and beyond," Dr. Wiredu said.

He also emphasizes exploring new market opportunities through the African Continental Free Trade Area (AfCFTA). Launched in 2019, AfCFTA allows Ghana to expand trade within Africa and offset losses from U.S. tariffs.

"The AfCFTA is a game-changer for us," he stated. It provides access to over 1.3 billion people and fosters partnerships with regional neighbors.

To enhance competitiveness, Dr. Wiredu calls for initiatives supporting local enterprises. These should focus on improving productivity, product quality, and value addition capabilities.

"Targeted incentive schemes can encourage businesses to modernize," he suggested. Tax breaks and low-interest loans could help companies adopt innovative technologies.

The goal is for Ghanaian exports to compete on price and quality despite tariffs. Empowering local producers will position Ghana as a reliable supplier of various goods.

Dr. Wiredu also stresses boosting investment promotion strategies to attract foreign direct investment (FDI). This should target industries less affected by U.S. tariffs.

Ghana's strategic location and favorable business environment can attract multinational companies seeking a foothold in Africa, he noted.

Political stability, infrastructure, and a skilled workforce are key assets for job creation and economic diversification.

"By diversifying our economy, we can reduce reliance on vulnerable sectors," he explained.

Additionally, Dr. Wiredu highlights strengthening Ghana's tourism sector for foreign exchange generation and job creation.

"Ghana’s rich cultural heritage offers unique opportunities as a tourist destination," he said.

He reiterates the need for a comprehensive national tourism strategy to attract more visitors to Ghana.

"Developing high-quality tourism infrastructure will diversify our economy," he added.

As Ghana faces challenges from U.S. tariffs, Dr. Wiredu remains confident in its strategic approach focused on trade diplomacy and development initiatives.

"We did not choose this challenge but will choose our response," he concluded confidently about Ghana's future economic prospects.