News Guide Africa

Tag: Global Trade

  • Economists repose confidence in Ghana’s economy amid global trade tensions 

    Dr. Alhassan Iddrisu, Government Statistician in a pose with President John Dramani Mahama

     

     

     

    Adnan Adams Mohammed

     

    In spite of global trade tensions, some economists have reposed confidence in the country’s fragile economy, which has a history of vulnerability to external shocks.

     

    Among such is the Government Statistician, Dr. Alhassan Iddrisu, who has said despite external headwinds, including the ongoing global tariff war, Ghana’s economy continues to show signs of resilience.

     

    According to provisional data from the Ghana Statistical Service, the economy expanded by 5.3% in the first quarter of 2025, up from 4.9% recorded during the same period in 2024. At a press briefing the Government Statistician explained that the latest figures suggest that Ghana has, so far, managed to shield its economy from the adverse effects of global trade tensions.

     

    “We are all aware of what is happening. All other things being equal, one would have assumed that because of the trade war and trade tension, it should have a significant dampening effect on growth. What we are seeing is that the numbers we are seeing for the first quarter of 2025 in terms of growth don’t seem to suggest that the impact of the trade tensions is very significant on Ghana but this is early days yet. Data shows so far Ghana has been resilient and robust in terms of absorbing the shocks with regards to the trade tensions,” he said.

     

    Meanwhile, a Managing Partner at policy advisory firm Konfidants, Michael Kottoh, has indicated that, amid rising global trade tensions, Ghana has a unique opportunity to position itself as a strategic export hub, particularly within the African Continental Free Trade Area (AfCFTA).

     

    Speaking at the 2025 Citi Business Forum themed “The Global Tariffs Dispute: Navigating Ghana’s Recovery Strategy,” and held in Accra on Thursday June 12, he noted that while trade wars between major economies pose risks, they also open doors for smaller economies like Ghana to capitalise on emerging supply chain gaps.

     

    “In terms of opportunities, we could seize U.S. niche advantages while rivals pay higher tariffs,” he noted. “Lesotho has been crying a lot, South Africa is complaining a lot—we could potentially, using AfCFTA, attract some of that export.”

     

    A Pathway to Garment Sector Growth

     

    Kottoh emphasised the potential for Ghana to expand its garment and textile sector by absorbing production contracts that are under pressure in other African nations.

     

    Countries like Lesotho, which have been struggling with shifting global trade conditions, could see some of their export-oriented manufacturing relocate to Ghana, he suggested.

     

    “Lesotho could relocate some of those contracts to Ghana,” Kottoh explained. “So these are potential advantages—but we need to be strategic and understand which product lines, which value chains, which alliances and partnerships are required to take advantage of these.”

     

    Strategic Planning Is Key

     

    While the global tariff disputes have created disruptions in traditional trade routes, Kottoh cautioned that Ghana’s ability to benefit from these shifts will depend on clear strategy, sector-specific focus, and targeted partnerships across supply chains.

     

    “We need to be strategic and understand which product lines, which value chains, which alliances and partnerships are required to take advantage of these.”

     

    Disjointed Africa’s trade policy response

     

    Consequently, the Chief Executive Officer of the African Centre for Economic Transformation (ACET), Mavis Owusu Gyamfi, is worried over Africa’s lack of a coordinated response to global economic disruptions, particularly in the wake of tariff hikes initiated by the United States.

     

    Also, speaking at the 2025 Citi Business Forum under the theme “The Global Tariffs Dispute: Navigating Ghana’s Recovery Strategy,” she highlighted that other regions, notably Asia, responded swiftly and strategically to the recent tariff increases announced by U.S. President Donald Trump.

     

    She questioned Africa’s lack of a unified and proactive stance in contrast to the Asian response, noting that despite not having a formal bloc like the African Union or a framework like the African Continental Free Trade Area (AfCFTA), Asia was able to organise an effective strategy.

     

    She expressed disappointment in Africa’s silence and lack of coordination in the face of rising global economic tensions. She urged the African continent to approach global economic shocks with a collective strategy rather than panicking.

     

    “Where is our common voice? Remember, Asia is not a bloc. It doesn’t tout to be AU or AfCFTA or any of the things we are so proud about. It doesn’t do it. It doesn’t have a theoretical framework that it is proud of, but it had a structure for implementation in a crisis.

     

    “The thing that disappointed me the most in all of this was that Africa forgot why we set up the AfCFTA in the first place. Africa forgot the processes we have in place for the African Union. In fact, Africa forgot we had the AFDB because it wasn’t until a week ago that I heard an AFDB statement on the tariffs,” she stated.

     

     

  • IMF, WTO raise concerns over global trade tensions ….as major economies react to U.S tariffs adjustment

     

    IMF, WTO warn of global trade risks amid rising U.S. tariffs

     

    Adnan Adams Mohammed

     

    International Monetary Fund (IMF) and the World Trade Organisation (WTO) have waded into the escalating global trade tensions cautioning of grave consequences.

     

    According the IMF boss, Kristalina Georgieva, the rising trade tensions bring “uncertainty that is costly”, warning that the complexity of modern supply chains means that tariffs can disrupt the flow of goods and services.

     

    She has however appealed to the United States government and its trading partners to work constructively to resolve trade tensions and reduce uncertainty. The Fund had earlier noted that, the tariff measures announced by President Donald Trump pose a significant threat to the global economy at a time of sluggish growth

     

    “We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth. It is important to avoid steps that could further harm the world economy”, Madam Georgiava said in a short statement a fortnight ago while, reacting to the announcement of U.S. tariffs.

     

    “We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty.”

     

    She added, “We will share the results of our assessment in the World Economic Outlook, which will be published at the time of the IMF/World Bank Spring Meetings later this month”.

     

    Meanwhile, the World Trade Organization (WTO) is urging African nations to intensify intra-African trade as a strategic buffer against the impact of newly imposed global tariffs.

     

    Speaking at the opening of the WTO’s 2025 Forecast Meeting in Geneva, WTO Director-General Dr. Ngozi Okonjo-Iweala acknowledged that the impact of these tariff changes will not be uniform across the continent.

     

    “Whilst the present trade situation is being sorted out, including a plea for the possibility of tariff exemptions for most of Africa, since this is where the largest number of Least Developed Countries (32 of the 44) are found, I have a message for the continent itself. This message is the need for more self-reliance. The external environment has changed and is more adverse,” she said.

     

    She emphasized the importance of regional trade integration through the African Continental Free Trade Area (AfCFTA), stating it will be critical in helping countries cushion the effects of external shocks.

     

    “Aid is drying up and trade is becoming more politicized. So there needs to be a focus on raising domestic resources, attracting domestic, regional and foreign investments, on faster and greater trade integration within the continent such that intra-Africa trade is lifted well beyond the current 16%,” she added.

     

    She further highlighted lessons the world can learn from the ongoing global tensions “The first one is over-dependence: One of the clearest lessons from the COVID-19 crisis was the importance of diversifying sources of supply.

     

    Today’s trade tensions remind us that we must also diversify demand. Overconcentration—whether in where we buy from or where we sell to—leads to overdependence, making economies more vulnerable to shocks and fostering a sense of unfair burden sharing.”

     

    President Donald Trump on Wednesday, March 26, announced 25% tariffs on all cars shipped to the United States, a significant escalation in a global trade war.

     

    The tariffs, set to take effect on April 3, are aimed at expanding America’s auto manufacturing prowess. For decades, because of a free trade agreement, automakers have treated Canada, Mexico and the United States as one big country, with no tariffs among them. Although the United States is already home to a significant automobile making industry, Trump wants to grow it further.

     

    “Frankly, a friend has often been much worse than a foe. And what we’re going to be doing is a 25% tariff on all cars that are not made in the United States,” Trump told reporters before signing an executive proclamation in the Oval Office. “If they’re made in the United States, it’s absolutely no tariff.”

     

    On Wednesday, April 2, President Trump also unveiled an ambitious set of tariffs, including a 34% levy on imports from China and a 20% tax on goods from the European Union, signalling a dramatic intensification of global trade tensions.

     

    These sweeping measures also impact Ghana, which will face a 10% baseline import tax.

     

    Speaking from the Rose Garden, Trump declared a national economic emergency, justifying the tariffs as a means to revitalize domestic manufacturing and end what he referred to as decades of economic exploitation by foreign nations.

     

    “Our country has been looted, pillaged, raped, and plundered by other nations,” Trump stated. “Taxpayers have been ripped off for more than 50 years. But that will not happen anymore.”

     

    The newly imposed tariffs, introduced without Congressional approval under the 1977 International Emergency Powers Act, target numerous countries with significant trade surpluses with the U.S. Ghana, along with other affected nations, will be subjected to a 10% import tax across the board, adding pressure to global supply chains.

     

    China’s retaliatory tariffs have been met with another tariff hike on American goods from that country, which raises them to 125%, while Trump has paused the baseline tariffs imposed on other countries by 90 days. But, countries like Ghana which had 10% tariffs adjustment had taken effect.

     

  • Exporters, analysts react to 10% U.S tariff on Ghanaian export amidst Ambassador’s reassurance

    U.S. tariff sparks concern among Ghanaian exporters.

     

     

    Adnan Adams Mohammed

     

    Ghanaian exporters have reacted to the 10% tariff adjustment by the United States against all imports from Ghana highlighting a threat to Ghana-US bilateral trade relations.

     

    The Importers and Exporters Association of Ghana indicates that the imposition of the tariffs could adversely impact the business community, particularly those involved in export activities.

     

    The U.S current administration under President Donald Trump has in the past days embarked on tariff hikes in what he describes as trade and economic transformation in favour of the U.S economy including 14% tariffs on Nigeria, 34% tariffs on Chinese imports and a 20% tax on goods from the European Union. These measures have heightened global trade tensions and sparked mixed reactions from world leaders.

     

    “I must say it is a big blow to the Ghanaian business community, especially the exporters,” Samson Asaki Awingobit, the Executive Secretary of the Importers and Exporters Association of Ghana noted in his reaction to the US government’s decision.

     

    He called on the Government of Ghana to address the issue and provide solutions to mitigate the effects of the tariff.

     

    “We believe that the Government of Ghana will definitely have to tell us something about what they are going to do to salvage the situation at this point in time,” he added.

     

    According to the White House however, the measures are reciprocal tariffs designed to counter what the US perceives as unfair trade practices. Speaking from the Rose Garden, President Trump defended the tariffs as part of a national economic emergency, arguing that they were necessary to protect domestic manufacturing and counter decades of what he described as unfair economic practices.

     

    Meanwhile, a veteran finance and economic journalist  has waded in the debate as to the possible impact of the US tariffs adjustment, asserting that, the new condition provides double edge impact.

     

    “To be sure, there will be negative repercussions for Ghana, a country that now exports somewhere between US$2.4 billion and US$2.7 billion to the United States annually. However, the public reaction by many trade analysts and economic commentators has been completely over the top – yes there will be some degree of threat to the country’s foreign exchange earnings and even more definitely, there will be some job losses, but altogether, the new situation is not a major threat to the Ghanaian economy.

    “Indeed, properly handled it may present major opportunities.”

    He admonished that, “First of all, government should not be in any hurry to announce retaliatory tariffs immediately as they would serve little purpose. Not only does America not rank among Ghana’s top  export markets, but even more importantly, Ghana maintains a healthy trade surplus with that country. Indeed, the imposition of the lowest baseline tariff on Ghana in part reflects America’s relative disinterest in dramatically changing its trade relationship with us. However an immediate, unmeasured retaliation by Ghana could serve to stoke a fire that has barely been lit.”

    Again, he stressed that, “the structure of Ghana’s exports to the US means that the tariffs will not significantly reduce our export earnings from that country since the primary exports are cocoa beans and crude oil, two commodities that America direly needs.

    “Indeed, the biggest threat to Ghana is the fate of the many small sized enterprises that sell all sorts of non traditional exports to that country in fragmented volumes and consequently relatively small values. While any reduction in demand for such exports would not dramatically reduce Ghana’s overall export revenues derived from America, there is the real possibility of significant job losses, especially among small enterprises whose exports to the US are their primary source of income.

    “For such enterprises therefore there is the need to identify and exploit export markets in other parts of the world, which certainly exist; after all, who could have predicted, three decades ago that China would today provide Ghana with its largest export market. Besides, the African Continental Free Trade Agreement (AfCFTA) has opened the door to vastly increased exports, as well as imports, from fellow African countries on preferential terms.”

    Apparently, the US Ambassador to Ghana, Virginia Evelyn Palmer, has reassured Ghanaians about the resilience of the U.S.-Ghana trade relationship, which currently exceeds US$3 billion in bilateral trade and investment. She expressed confidence that Ghana’s key exports, such as gold and gas, would remain vital to global trade and would not be significantly affected by U.S. policy shifts.

     

    “The life-saving programmes are all to be continued. The new face partnership will maintain all of the life-saving programmes. The U.S. and Ghana have a very warm, close relationship, as you all know, and that is founded on four pillars.

     

    “We have the historical and cultural [ties]. Also, more than US$3 billion in bilateral trade investment is one of the key pillars. There are also goods and services—gold coming from here, gas coming from here—and we have automobiles and pharmaceuticals coming from the United States.

     

    “So, it is something that builds prosperity in all the countries. It is all to say that no matter the changes in language and no matter the change in focus, Ghana remains an important part of the United States, and we will continue to be so,” she stated.

     

    Palmer’s remarks reinforce the enduring strength of the U.S.-Ghana partnership, even as radically new global trade policies evolve.