West Africa, EU compete for top spot in Ghanaian exports
The West African sub-region is set to overtake the European Union (EU) as the largest contributor to revenues from the country’s non-traditional exports (NTEs).
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This follows the increasing preference by Ghanaian exporters, who are facilitated by the Ghana Export Promotion Authority (GEPA), to export more of their wares to the sub-region than to the EU.
The development is highly influenced by the EU’s stringent requirements and distance, which means that companies exporting to the region would have to incur a comparatively higher cost before their cargo can be sent there.
The EU is home to about 28 countries and was, until recently, the major export destination for Ghana’s myriad of NTEs.
The union’s influence in the country’s export potential is, however, beginning to wane, while that of the West African sub-region, comprising about 16 countries, picks up.
Data from the GEPA currently shows that as of 2012, export revenues from the sub-region was about US$1.42 million behind the US$7.48 million that was raked in from exports to the EU.
The EU’s contributions for 2012 translated to about 34.1 per cent of total export earnings for that year, while that of the West African sub-region’s contributions, which was about US$6.1 million, accounted for about 31.7 per cent for the period’s total, the data further showed.
The export authority, which regulates the NTE sector, sees this development as a positive trend and is now working to entrench it.
Mr Stephen Normeshie, the Director for Internal Audit at the GEPA, told the Daily Graphic in Accra that the authority was collaborating with the various exporters to reduce the country’s overdependence on the EU market, while increasing their presence in the sub-region.
“The target is, by 2015, we should have 60-40 per cent for West Africa and EU or even 70-30 respectively,” Mr Normeshie added.
The authority organised about 47 companies to participate in the Abuja Fair, which runs from September 26 to October 10, and Mr Normeshie said such initiatives were aimed at deepening the country’s export presence in the sub-region.
He also mentioned the solo exhibitions in Liberia and Cote d’ Ivoire as some events the authority will take advantage of to market the country’s export potential to buyers in the sub-region.
“In fact, we are doing all we can to make the sub-region the largest market for our exports,” he added.
But while doing this, Mr Normeshie, who was once the acting Chief Executive Officer of GEPA, said the authority would not relent on finding new markets and buyers in other regions outside of the sub-region and the EU.
“The focus is to find markets for our exports and wherever we will get those markets is fine for us. However, we think there is a lot of potential in the West Africa sub-region that we can to take advantage of,” he said.
By Maxwell Adombila Akalaare/Daily Graphic/Ghana