The Ghana Statistical Service (GSS) has announced that Ghana’s trade surplus for the third quarter of 2024 hit GH¢3.9 billion. This figure, we are told, marked a significant turnaround from a deficit of GH¢2.3 billion during the same period in 2023.
This milestone was attributed to a combination of increased exports valued at GH¢74.8 billion and relatively controlled imports of GH¢70.9 billion.
Among others, the performance is hinged on the gold bullion, whose export share rose significantly from 42.5% in 2023 to 62.1% in 2024, contributing GH¢46.5 billion to the economy.
These figures may reflect economic resilience and growth and strikingly underscore the need to consolidate these gains. The government would have to implement strategic policies and diversification.
There are examples across Europe and other nations that Ghana could examine and adopt proven strategies to sustain and enhance its trade position.
It is important to make the point that our heavy reliance on gold exports, which account for over 60% of our export revenue, is a double-edged sword.
We agree that the gold export drives immediate growth, but we also think that it leaves the economy vulnerable to fluctuations in gold prices. As a remedy, we should put measures in place to actively diversify our export base.
For instance, South Africa, another gold-exporting nation, has invested in industrialisation and the export of manufactured goods to complement its natural resource exports. This brings us to the point of improving on the government’s one district, one factory policy, which aims to place the nation at a production state.
We have reported recently about the setting up of gold manufacturing plants in Ghana, intended to add value to the raw gold before export. It is our hope we as a nation could add value to its abundant raw materials, including cocoa and manganese, by expanding these processing industries.
We can also cite the United States example, with agricultural export. In the United States, agricultural exports are bolstered by a well-developed food processing sector. They convert raw produce into high-value products. It is our thinking that Ghana can replicate this approach by developing agro-processing zones to maximise the potential of agricultural outputs.
We are aware that products from the first factory under the one district, one factory policy, the Ekumfi juice, are exporting their well-packaged juice abroad. This is juice processed from pineapple grown domestically. We need to leverage that to expand to other farm produce.
It is important to check the tax regime and expand the revenue mobilisation drive to aid the growth of the economy.
In our opinion, to sustain the growth, Ghana should capitalise on the African Continental Free Trade Area to export more processed goods and services to neighbouring countries. We should strengthen our participation in regional value chains to boost export diversification and resilience.
In all these, efficient infrastructure is essential for trade growth. The government initiated a policy to build roads across the country. This, in our view, must be continued, as well as the railways, to ensure seamless connectivity to its export destinations.
We believe that our trade surplus in 2024 is a testament to the potential to excel in global trade. However, we also believe that sustaining success requires a forward-looking strategy that emphasises diversification, industrialisation, energy efficiency and regional integration.
We can learn from global examples to create a robust, self-reliant economy that ensures long-term prosperity.
