Ghana’s economy is expected to grow by an additional 0.5% of gross domestic product (GDP) per year over the next 10 years due to the implementation of the African Continental Free Trade Agreement. According to the World Bank’s Trade Competitiveness Report, this is very important and should motivate the government to continue with the ongoing negotiations and implementation of the AfCFTA protocols.

According to the report, the recent entry into force of the African Continental Free Trade Area (AfCFTA) presents Ghana with significant opportunities for export expansion and diversification.

Again, it can improve productivity through economies of scale and attract more foreign direct investment (FDI).

“Ghana’s impressive services trade performance over the past decade is a good indicator of Ghana’s potential to realize its diversified trade agenda in the medium to long term. Indeed, improving trade in services, particularly in dynamic and innovative sub-sectors, alone contributes to structural transformation, trade diversification and export growth.

“Furthermore, improving the performance of the services sector is a key element to ensure the efficiency of the manufacturing sector and the ability to improve the country’s participation in global value chains,” he stressed.

The report also expressed satisfaction that Ghana has strengthened its comparative advantage as a regional trading hub, which can be leveraged for more diversified trade and economic transformation, hence it continues to make strides in terms of logistics. transport ; expansion and improvement of essential infrastructure such as seaports and air transport services.

He, however, warned that the vulnerability of the country’s economy to external shocks has been highlighted by the collapse in crude oil prices during the Covid-19 pandemic, despite the economy having largely benefited from the increase in raw material prices.

The extractive sector has supported the economy in difficult times

According to the World Bank, Ghana’s foreign trade grew alongside a strong pre-COVID economy, thanks to its extractive sector.

“Ghana’s economy has experienced an average annual GDP growth of 6.4% over the period 2010-2019, supported by a strong foreign trade performance. However, the level of concentration of Ghana’s commodity export base has increased over the past decade”.

In 2019, exports of extractive products constituted more than 70% of total exports, compared to almost 60% in 2010.

The report focused on Ghana’s performance in exporting goods and services and examines the potential for leveraging trade policies to accelerate export diversification and economic transformation.

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