The Ghanaian government is calling for a strategic partnership with the United States of America to set up a post Covid-19 economic transformation agenda which will mutually benefit the two countries.
This is according to the Ghanaian Trade and industry minister Alan Kyerematen, who says that this will enable the country to attract more investments from the USA to take advantage of the African Continental Free Trade Area
Ghana is currently USA’s 83rd largest goods trading partner with $1.8 billion in total (two way) goods trade during 2019. Goods exports totaled $840 million; goods imports totaled $943 million. The U.S. goods trade deficit with Ghana was $103 million in the same year.
The Ghanaian Trade minister also explained that the country’s economy was being diversified from cocoa, gold and oil to pharmaceutical, energy and telecommunications, amongst others.
Speaking at the virtual 2021 US Ghana Business Forum which opened yesterday, Mr. Kyerematen said “we {government} have launched a very aggressive programmes for industrial transformation which I believe offers strategic entry points for US investments into our country.” He said
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Further Mr. Kyerematen says that the strategic anchor industries to propel this transformational agenda between this two Nations for the better course will include; vehicle assembling and component manufacturing, garments, petro-chemicals, agro-industry, industrial chemicals including the process of industrial salt, Integrated bauxite and aluminium, iron and steel and the manufacture of machinery and equipment.
While most countries’ economies have incurred adverse economic impacts due to the global pandemic, each country is impacted in ways unique to its circumstances. Unfortunately, the economic impacts of COVID-19 in Ghana have been severe. Due to the nature of its economy, much of Ghana’s population was pushed further into poverty as a result of the pandemic.
In July 3, a latest survey showed how took a sharper dive from an expected 6.2% to 2.8%. With a market based economy primarily powered by international trading and imports, disruptions to global commerce and supply chains significantly impacted Ghana’s economy.
Reduced trade and reserves rippled over to reductions in government revenues and increased unemployment even as the country incurred the increased expenditure and debt-burdens costs of the pandemic.
Ghana’s economy’s open nature has made it particularly vulnerable to global economic volatilities and to cushion this the trade and industry minister says with also USA economy victim of this the capacities of countries to be able to emerge from this pandemic will depend very much on strategic partnerships between countries.
“I believe that the USA and Ghana should have a strategic partnership arrangement to develop a post Covid-19 economic transformation agenda which will support the two economies to our mutual benefits”, Mr. Kyerematen said.
He pointed out that the 2021 US Ghana Business Forum is critical as it provides another opportunity for the two countries to plan ahead for the future.
“In my view however, we have now reached a major turning point in US Ghana relations, and therefore this year’s forum could not have come at a better time. And I say this based on a number of strategic considerations”, he added.
US investors continue to choose Ghana as preferred investment destination
US Ambassador to Ghana, Stephanie Sullivan, said despite the Covid-19 pandemic, several American companies continue to choose Ghana as a preferred investment destination.
“American investors are eager to partner with Ghanaian businesses across a wide range of industry, from logistics to raw materials and much more. Despite the pandemic [Covid-19], this year several American brands have chosen Ghana as a market for growth.”
Twitter announced in April 2021 that it will open its West Africa office Ghana, there was also a cosmetic firm and two pizza franchising firms. It should be noted that in May, United Airlines reopened its direct non-stop route between Washington DC and Accra.
She also pointed out that Ghanaians firms are doing well in the United States as consumers are getting quality products from Ghana.
The 2021 US Ghana Business Forum has become necessary to bring clarity to the new US administration to Africa in the context of the Africa Continental Free Trade Agreement.
The forum aims to strengthen trade and investment, promote business partnerships and opportunities between U.S. and Ghanaian companies in key sectors including Technology and Digitization, Energy and Mining, amongst others
