13 Aug The West African hub for manufacturing and trade
Ghana is an increasingly important and thriving hub for manufacturing and trade. Partly, this is because it is home to one of West Africa’s largest ports and a world-class international airport. Additionally, it offers free access to a market of over 350m people in the Economic Community of West African States and membership of the African Continental Free Trade Area. The government has also made concerted efforts to ensure that the country offers the ideal environment for investors in manufacturing and exports in order for the country to move up the industrialisation value chain. It has, for example, set up extensive free zone areas for investors exporting 70% or more of their output, where residents benefit from advantages such as tax exemptions on imports and exports, and on corporate tax for 10 years, after which they pay reduced rates.
Both industrial and consumer products are made in the country for local use and export, with areas of specialisation that include food production, mineral processing, healthcare products, textiles and garments, while international companies that have recognised the benefits of using Ghana as a base include Unilever, Guinness, Coca Cola and Toyota. The impact of coronavirus on slowing global trade has opened up even more profitable opportunities for companies to manufacture goods for use in Ghana and export to the advancing West African region, particularly in areas like the food value chain, other fast-moving consumer goods, pharmaceuticals, technology, fashion and lifestyle products, says Minister for Information Kojo Oppong Nkrumah: “Our strategy is to focus a lot more attention on the local production of items that we were previously importing, and building partnerships between Ghanaian entrepreneurs and international businesses.”