Chief Executive Officer of the Association of Ghana Industries (AGI) Seth Twum-Akwaboah has called for a pragmatic approach to implementing the African Continental Free Trade Area (AfCFTA), urging faster bilateral collaborations within the sub region as Ghanaian manufacturers prepare to expand exports.
Responding to questions during a media interaction after the AGI National Council Retreat, Twum-Akwaboah stated that while the AfCFTA framework is still evolving, Ghanaian manufacturers cannot afford to wait indefinitely before expanding exports. He emphasized that industries are ready with products and do not necessarily have to wait for all formalities before exporting within the sub region.
The AGI chief explained that reaching consensus among 54 African countries on trade modalities takes time, as each country seeks to protect its domestic industries. He noted that it is easier for two presidents to agree and facilitate trade directly than to wait for continent wide modalities to be finalized.
Twum-Akwaboah noted that Economic Community of West African States (ECOWAS) protocols already provide mechanisms for trade within West Africa, but practical barriers such as excessive documentation and border bottlenecks persist. He urged government to address these operational challenges that continue hindering smooth cross border commerce despite existing regional frameworks.
He cited pharmaceuticals as one area where Ghana has a competitive advantage, stating that Ghana is well positioned to supply pharmaceuticals to most of West Africa except perhaps Nigeria. He emphasized that government must pave the way for easier market access to allow local manufacturers capitalize on regional demand.
Twum-Akwaboah also highlighted opportunities in processed grains including maize, millet, sorghum and soybeans, which could be converted into breakfast cereals for export across the sub region. He argued that Ghana possesses both the raw materials and processing capabilities to serve regional markets in these value added agricultural products.
The AGI emphasized the importance of regional institutional collaboration to address region specific needs and strengthen private sector participation. Twum-Akwaboah urged government to reduce paperwork and streamline export procedures to enable industries formalize cross border trade currently conducted through informal channels.
The AGI chief stated that with over 450 million people in West Africa alone, the sub region represents a huge market. He emphasized that export should not only mean overseas markets, noting that regional trade offers significant opportunities for Ghanaian manufacturers to scale operations and generate foreign exchange.
Twum-Akwaboah reiterated AGI’s commitment to working with government institutions to boost regional trade, expand industrial output and generate foreign exchange to stabilize the Ghana cedi. He called for coordinated efforts between public and private sectors to remove barriers preventing manufacturers from accessing established markets within the sub region.
The AfCFTA entered into force on May 30, 2019, after 24 member states deposited their instruments of ratification following continuous continental engagements spanning since 2012. Trading under the agreement commenced on January 1, 2021, though implementation has proceeded gradually as countries negotiate detailed rules of origin and tariff schedules.
The agreement aims to create a single continental market for goods and services with free movement of business persons and investments, facilitating establishment of a Continental Customs Union. By eliminating barriers to trade in Africa, the objective is to significantly boost intra African trade, particularly trade in value added production across all sectors of the continent’s economy.
AGI has consistently advocated for practical implementation of the AfCFTA rather than waiting for complete policy frameworks. Industry leaders have emphasized that businesses need to begin operating under available protocols while broader continental mechanisms are finalized over coming years.
President John Dramani Mahama announced at the African Union (AU) summit in Addis Ababa on Saturday that Ghana will stop exporting unprocessed minerals by 2030, forcing domestic processing across key commodities. He stated that by 2030, there will not be any raw mineral ores leaving Ghana, emphasizing local value addition.
Mahama also announced that Ghana will stop using foreign financing to purchase cocoa and instead raise domestic bonds in cedis, while unlocking 400,000 tons of cocoa beans for local processing. These policy shifts align with AGI’s long standing advocacy for value addition and export of processed goods rather than raw materials.
The AfCFTA Secretariat led by Secretary General Wamkele Mene has emphasized that successful implementation requires addressing payment challenges, infrastructure bottlenecks and regulatory harmonization. The Pan African Payment and Settlement System (PAPSS) launched in 2022 aims to facilitate instant cross border transfers and reduce reliance on hard currencies for intra African trade.
AGI previously hailed PAPSS introduction, stating that AfCFTA’s success hinges on how businesses can conveniently pay for goods and services. Twum-Akwaboah noted in 2022 that one of the major problems with trading in Africa is how to pay for goods when transactions are done, with difficulties due to different currencies and rates to international currencies.
The association has also emphasized quality standards as critical for AfCFTA success. Twum-Akwaboah stated in 2024 that although the single continental market allows duty free, quota free access to markets across the continent, quality and standards are key considerations for businesses seeking to enter foreign markets across Africa.
Ghana’s manufacturing sector faces significant challenges including high energy costs, limited access to long term financing, infrastructure deficits and competition from imported goods. AGI has consistently advocated for policies addressing these structural constraints to enable local producers compete effectively under AfCFTA.
The association represents over 1,200 member companies across 22 business sectors including food and beverages, pharmaceuticals, chemicals, plastics, textiles, wood products, paper products, metals and engineering. AGI operates through six regional branches providing business development services, policy advocacy and networking platforms for members.
