US-Ghana relations still strong, reinforced
Formal diplomatic relations between Ghana and the United States of America dates back to 1957, following Ghana's independence from Britain.
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Relations between the two countries have been cordial and bonds of friendship and cooperation continue to be strengthened, in various sectors.
These are manifested in political, economic, defence and security cooperation, education, as well as in law enforcement in respect of narcotics and drug control.
Both countries share a long history of promoting democracy, human rights, and the rule of law.
Ghana has set an example for countries throughout Africa in promoting strong democratic institutions, transparent and peaceful transitions of power, and regional stability.
Indeed, the return to democratic rule in 1993 by Ghana has culminated in the exchange of several high-level official visits at the presidential, parliamentary and other levels.
Heartwarmingly, the relations between Ghana and the US have been further strengthened over the past decades with the exchange of bilateral visits between the two countries.
Notable visits to Ghana from distinguished American leaders include those by former Presidents Bill Clinton and Barack Obama in 1998 and 2009, respectively, while they were still in office.
In 2018, Ghana played host to the First Lady of the US, Melania Trump.
Quite recently, in August 2019, the 52nd speaker of the United States House of Representatives, Nancy Pelosi, embarked on a visit to Ghana, together with Representative Karen Bass and other members of the Congressional Black Caucus.
These high-level visits have been reciprocated by Ghana’s former and current President, starting from Dr Kwame Nkrumah. Former President John Agyekum Kufuor’s state visit to the US in 2008 as well as various visits by other Ghanaian dignitaries at various arms of government have been recorded as some of the memorable ones.
Other former presidents of Ghana, Jerry John Rawlings, John Evans Atta Mills, John Dramani Mahama and currently President Nana Addo Dankwa Akufo-Addo have all led high-powered delegations to visit the US and held various forms of discussions with leadership of the latter.
On the economic front, nothing has been left to chance, as the US’ goals in Ghana are to promote economic growth through increased trade and investment, investment in people, promotion of peace, regional security, and improvement in accountable governance as well as strengthening institutions.
The US is one of Ghana’s principal trading partners. An active American Chamber of Commerce works closely with the Embassy to develop even closer economic ties in the private sector.
American investment remains strong, evidenced by the 37 U.S. companies that have made new investments in Ghana in the last five years.
Even more exciting is the 79 new investments or trade deals that have been made over the past year, totalling $800 million.
Bilateral trade between Ghana and the US totalled $1.5 billion in 2020, down from $1.8 billion in 2019 due, primarily, to a drop in Ghana’s oil exports.
As a beneficiary of the African Growth and Opportunity Act (AGOA), Ghana has duty-free access to the US market for over 1,800 products, in addition to the more than 5,000 products that are eligible for duty-free access under the Generalised System of Preferences programme. An estimated 100 US companies maintain operations in Ghana.
They include Coca Cola, Twitter, Cargill, Newmont, IBM, Cummins, ExxonMobil, Price waterhouse Coopers (PwC), and many other household names.
Ghana’s relative political stability and security, and its well-educated, English-speaking workforce make it an attractive hub for doing business in West Africa.
Defence, security
The US and Ghana work together on various defence and law enforcement issues. Both countries’ militaries cooperate in numerous joint training exercises through the U.S. Africa Command.
Both countries have a bilateral International Military Education and Training programme, a Foreign Military Financing programme, and numerous humanitarian affairs projects, including a relationship between the Government of Ghana and the North Dakota National Guard under the auspices of the US Department of Defence State Partnership Programme.
Ghana continues to participate in the Global Peacekeeping Operations Initiative, in which the US facilitates the development of an interoperable peacekeeping capacity among African nations.
Ghana is a partner country for the African Peacekeeping Rapid Response Partnership.
The Department of State’s Bureau of International Narcotics and Law Enforcement Affairs’ (INL) goal is to help build more accountable governance institutions in Ghana that respect human rights, and advance stability, peace, and security.
Another goal is to build institutional capacity in the criminal justice sector to curb transnational organised crime, including financial crimes, drug trafficking, and human trafficking incidents, as well as combat rising drug abuse.
In furtherance of these objectives, INL has supported institutional development across the criminal justice sector.
Through the US International Visitor Leadership Programme, Ghanaian officials have become acquainted with US congressional and state legislative practices and have participated in programmes designed to address other issues of interest.
Youth exchange and study programmes in abroad are also robust and growing between US and Ghanaian universities as well as non-governmental organisations.
At the US state level, the State Partnership Programme aims to promote greater economic ties between Ghana and US institutions, including the National Guard.
The US enjoys a dynamic people-to-people relationship with Ghana.
Ghana participates in more than 25 US-funded exchange programmes, including the flagship Mandela Washington Fellowship (MWF) and hosts one of four Young African Leadership Initiative (YALI) Regional Leadership Centres that train young leaders in leadership, entrepreneurship, and professional development.
Thousands of Ghanaians have been educated in the US.
Numerous partnerships exist between US higher education and scientific institutions, and cultural links are strong, particularly between Ghanaians and African Americans.
In 1961, Ghana also hosted the first group of Peace Corps Volunteers to serve overseas, and prior to the COVID-19 pandemic and worldwide evacuation of volunteers, hosted more than 100 volunteers.
Assistance to Ghana
US development assistance to Ghana is implemented by the US Agency for International Development (USAID), the Millennium Challenge Corporation (MCC), and others.
USAID-managed development assistance to Ghana has supported the country in improving the power sector, increasing food security, enhancing basic health care, increasing access to quality basic education, and strengthening local governance to benefit all Ghanaians.
The West Africa Trade and Investment hub, located in Accra, provides technical assistance to help small business persons to grow their businesses and access new customers in the US and the West Africa sub region.
Bilateral economic relations
With a Gross Domestic Product (GDP) growth rate of 6.5 per cent in 2019, Ghana was among the fastest-growing economies in the world.
However, the COVID-19 pandemic dealt a severe blow to the country’s economy.
Ghana’s response to the coronavirus exacerbated its already strained fiscal and debt outlook, resulting in a significant rise in its debt-to-GDP ratio from 75.9 per cent in September 2022 to 93.5 per cent according to the Bank of Ghana's January 2023 economic and financial data summary.
Although the nation heavily depends on the export of primary commodities – gold, cocoa, and oil, they only make up 24 per cent of GDP and 83 per cent of exports. Ghana is looking to rebound in the years ahead.
It is worthy to note that the country is taking an increasingly important continent-wide leadership role on bolstering intra-Africa trade after becoming the host of the Secretariat of the African Continental Free Trade Area (AfCFTA) in August 2020 and completing its first shipments under the agreement in January 2021.
Once fully implemented, it is expected that AfCFTA will present tremendous opportunities for US companies operating on the African continent with harmonised rules of origin, reduced technical barriers to trade, and a new trade dispute settlement mechanism.
Bilateral economic relationship is focused on bolstering two-way trade and investment while promoting enterprise-driven development, particularly through the increased participation of women and youth, and better development outcomes for Ghana’s most vulnerable citizens.
The US remains Ghana’s largest bilateral development partner, with US economic assistance focused on enhancing the competitiveness of local firms. As a focus country of the US Feed the Future initiative, the US Government in Ghana is strengthening market systems in the agricultural sector.
US government agencies, including the US Commercial Service, US Foreign Agricultural Service, and the US Trade and Development Agency, are supporting new and stronger commercial partnerships between US exporters and Ghanaian consumers.
International membership
In June 2021, Ghana was elected to serve as a non-permanent member of the UN Security Council for 2022-2023.
The two countries belong to a number of same international organisations, including the United Nations, International Monetary Fund, World Bank, and World Trade Organisation.
Ghana is also an observer to the Organisation of American States. Ghana has a strong track record of contributing troops to international peacekeeping forces.
In foreign affairs, Ghana generally follows the consensus of the Non-aligned Movement and the African Union on economic and political issues that do not directly affect its own interests.
Undoubtedly, US-Ghana relations remain strong and both countries continue to look for ways to strengthen ties between them.
The current visit of the Vice-President of the US, Kamala Harris, to Ghana, is considered one of the ways the two countries could reinforce the work they will continue to do together.