Ghana, one of Africa’s leading gold producers and a major oil exporter has seen a remarkable increase in its exports of gold, mineral fuels and oils in the first half of 2023, according to a report by the Ghana Statistical Service (GSS).
The report, which analysed the trade vulnerabilities and opportunities of the country, revealed that gold, mineral fuels and oils accounted for 64% of Ghana’s total exports in the first six months of the year, up from 58.5% in the same period in 2022.
Gold exports alone contributed 37.6% of the total export value, reaching $5.29 billion, a 9.4 percentage point increase from 2022. This was driven by higher global prices of the precious metal, which averaged $1,814 per ounce in the first half of 2023, compared to $1,646 in 2022.
Mineral fuels and oils, which include crude oil and natural gas, made up 26.4% of the total export value, amounting to $3.72 billion, an 8.5 percentage point decrease from 2022. This was mainly due to lower production volumes of crude oil, which dropped from 35.7 million barrels in the first half of 2022 to 31.4 million barrels in 2023, as well as lower average prices, which fell from $61.1 per barrel in 2022 to $59.6 in 2023.
The report also showed that Ghana’s main export destinations were Switzerland, the United Arab Emirates, the United States, India and China, which together received 68.4% of Ghana’s total exports. Switzerland was the largest buyer of Ghana’s gold, while the UAE was the largest buyer of Ghana’s crude oil.
Ghana’s trade performance in the first half of 2023 was remarkable, given the challenges posed by the COVID-19 pandemic, which disrupted global supply chains and demand. The country also faced domestic issues such as high public debt, currency depreciation and rising inflation, which affected its economic growth and stability.
However, Ghana has taken several measures to mitigate the impact of the crisis and boost its trade potential. The country launched its national plan for the implementation of the African Continental Free Trade Area (AfCFTA) in August 2022, which aims to enhance Ghana’s competitiveness and diversify its export products and markets. Ghana also participated in the AfCFTA Guided Trade Initiative in October 2022, which facilitated the issuance of certificates of origin for 30 Ghanaian firms to trade under the AfCFTA.
The GSS report also identified some opportunities for Ghana to increase its exports of other products, such as cashew nuts, mangoes, tuna and plastic products, which have a high and growing demand in the world market. The report also recommended that Ghana should improve its trade infrastructure, reduce non-tariff barriers and enhance its trade policy and incentives to foster intra-African trade, which accounted for only 14% of Ghana’s total trade in 2019.
Ghana’s trade outlook for the second half of 2023 is positive, as the global economy recovers from the pandemic and the demand for Ghana’s main exports remains strong. The country also stands to benefit from the AfCFTA, which offers a huge market of 1.3 billion people and a combined GDP of $3.4 trillion. Ghana, as the host of the AfCFTA Secretariat, is well-positioned to take advantage of the opportunities and challenges of the continental free trade area.
Source: MyJoyOnline
