The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has called for a fundamental shift in Africa’s trade relations with the United States, advocating a move from raw commodity exports to value-added, innovation-driven economic collaboration.
Delivering the keynote address at the African Leaders & Partners Forum in Washington, D.C., last Tuesday, Dr Asiama emphasized the need for strategic reforms to foster shared prosperity amid evolving global trade dynamics.
The forum, organized by the EBII Group and the Embassy of Ghana, convened policymakers, investors, and business leaders on the theme: “Africa & the US: Shaping a Trade-Driven Future.”
Present was the acting Chief Executive of the Ghana Export-Import Bank (GEXIM), Sylvester Adinam Mensah.
Dr Asiama, drawing on Ghana’s economic trajectory, outlined both progress and persisting challenges in US-Africa trade relations.
From aid to strategic trade
While acknowledging the African Growth and Opportunity Act (AGOA) as a pivotal framework from 2000, the BoG Governor said trade remained skewed towards the extractive sectors.
In 2024, total US-Africa goods trade reached $71.6 billion, with Africa recording a $7.4 billion surplus. However, heavy reliance on commodities such as oil (constituting 65 per cent of Nigeria’s exports) and vulnerabilities in cocoa and textiles highlight the urgent need for diversification.
Ghana’s trade with the US, averaging $2.5 billion annually since 2019, reflects this trend.
The country exported $1.6 billion in 2024, primarily crude oil, cocoa and timber, while importing $874 million, yielding a $730 million surplus.
Dr Asiama stressed that long-term gains depended on value addition, citing Ghanaian success stories such as Niche Cocoa’s expansion into Wisconsin and US investments such as Kosmos Energy’s role in Ghana’s oil sector.
Four pillars for sustainable growth
Proposing a recalibrated partnership, Dr Asiama outlined four key pillars: macroeconomic stability, financial resilience, trade integration, and inclusive digital transformation.
He urged reforms to AGOA, which will expire in 2025, to align with Africa’s industrialization agenda, including incentives for value-added exports and digital trade.
“Strategic autonomy means transitioning from being a raw material supplier to a competitive production hub,” he said.
Regarding financial stability, he pointed to Ghana’s Financial Stability Fund, developed with international partners, as a model for crisis resilience but called for a broader adoption of supervisory technology (Suptech) to enhance risk management and credit access.
Investment opportunities
Dr Asiama highlighted high-potential sectors for US investors, including agro-processing, energy infrastructure, and special economic zones under Ghana’s 24-hour Economy policy.
However, he said limited trade financing remained a barrier, advocating US-Africa Trade Finance Hubs, in collaboration with institutions such as Afreximbank and the US EXIM Bank.
On digitalisation, he welcomed the US Digital Transformation with Africa (DTA) initiative but stressed the need for alignment with local priorities, including cybersecurity and interoperable payment systems.
Way forward
Dr Asiama urged the US to support Africa’s trade competitiveness through infrastructure financing, AGOA modernization and green technology partnerships.
“This is not about aid, but mutual growth,” he asserted. “Africa’s youthful population and rapid digital adoption present unparalleled opportunities for US investors.”
The forum ended with a commitment to advance policy dialogues, positioning US-Africa trade as a catalyst for equitable economic transformation.
Source: graphic.com.gh