GHANA stands out as one of Africa’s highly coveted business locations due to a variety of factors including its growing economy, legal framework to support trade, and strategic geographical positioning.
Ghana has been receiving increasing attention as a trading partner for Trinidad and Tobago and it would be of particular interest to local businesses that wish to explore opportunities to expand their portfolio of exports beyond the region.
With this in mind, the Trinidad and Tobago Chamber of Industry and Commerce (T&T Chamber), in collaboration with the Trinidad and Tobago Manufacturers’ Association and exporTT Limited, will embark on a Trade Mission to Ghana over March 10 to 17.
The mission is aligned with the Ministry of Trade and Industry’s mandate to create new external market opportunities for enterprises in Trinidad and Tobago, one of which is a Trade Mission to Ghana as part of its schedule for 2024.
It is intended that the Business-to-Business (B2B) discussions that will be undertaken during this mission will create new distribution links within Ghana, as well as neighbouring territories in West Africa.
In the interest of reciprocity, the mission will also facilitate Ghanaian business interests who may desire to obtain a commercial footprint in Trinidad and Tobago, specifically for local distributors who may be seeking expanded access to raw material suppliers as inputs to production.
Background
In August 2023, a Ghanaian delegation made an official to Trinidad and Tobago with a view to establishing diplomatic and economic ties between our respective countries.
As part of the visiting delegation’s itinerary, the T&T Chamber met with representatives from the Ghana Investment Promotion Centre (GIPC) and the Ghana Export Promotion Authority (GEPA), to explore strategic collaboration to foster mutually beneficial relationships between the two nations. Following this initial exchange, a Doing Business in Ghana session was facilitated by the T&T Chamber in December 2023, to stimulate additional interest in the market.
The success of these preliminary undertakings, coupled with the impending Trade Mission have led the T&T Chamber to take a deeper dive into the true market opportunity that exists for its members who are looking to untapped markets outside the Caribbean region.
Market Overview
Ghana’s attractiveness as an export market for Trinidad and Tobago is bolstered by:
1. A sound macroeconomic environment.
2. Key economic, commercial and cultural similarities—both GIPC and GEPA emphasised this during and post visit to T&T.
3. Export-free zones where goods traded with other countries are exempt from customs duties and some laws. Additionally, 100% foreign ownership of enterprises is permitted.
4. Ease of immediate access to all markets of the Economic Community of West African States (ECOWAS), effectively allowing Ghana to serve as a commercial gateway.
5. The size and demographics of the market (as highlighted earlier).
6. Availability of trained, highly skilled labour.
Ghana possesses a fast-growing, young, globally and digitally connected population of 31 million.
It is the third largest US export market for goods in Sub-Saharan Africa. Beyond its traditional industries of agriculture, mining—and more recently—oil and gas production, the country’s digital, financial services, education, and franchising sectors are emerging.
Ghana’s ports (Ghana Ports and Harbours Authority—https://www.ghanaports.gov.gh/) and daily direct flights from the United States allow for ease of transit for both passengers and cargo.
As the host to the new African Continental Free Trade Area Secretariat (African Continental Free Trade Area—https://au-afcfta.org/about/) Ghana is at the heart of Africa’s transformative regional integration and is a great place to launch your business strategy for the African continent.
Sectors of focus
The services sector is the largest contributor to Ghana’s GDP—it constituted 49% of GDP in 2021 because of growth in the education, health, and ICT service industries, among others. This is followed by the industrial sector, which contributes 30% of GDP, followed by the agricultural sector at roughly 21%. Agriculture employs about 45% of Ghana’s workforce, mainly consisting of small landholders. A brief value proposition for Ghana’s key economic sectors is as follows:
1. ICT/Fintech—Ghana recognises the potential of ICT to drive innovation, create jobs, and foster economic growth. The country focuses on enhancing digital infrastructure and leveraging technology for development.
2. Transport and Logistics—Ghana offers access to a market of over 375 million people. Companies aiming to set up in Ghana benefit from the country’s well-established ports like the Port of Tema and Port of Takoradi, facilitating efficient import-export activities and serving as vital hubs for regional trade.
3. Professional Services—Ghana’s professional services sector offers a burgeoning opportunity for local and international firms due to the country’s expanding economy and growing demand for specialised expertise in legal, financial, and consulting services.
4. Agriculture—as one of the major sectors of the Ghanaian economy, agriculture remains a priority. The cultivation of crops such as cocoa, cashew, and other cash crops, alongside fisheries and livestock farming, is crucial for food security and export revenue.
5. Manufacturing—the manufacturing sector, including food processing, textiles, pharmaceuticals and light manufacturing, is a priority for Ghana.
6. Beverages—companies can tap into the Ghanaian market by exporting products and establishing partnerships with local distributors. Additional market research will aid in identifying Ghanaian preferences in terms of flavours, packaging, and marketing strategies, which is crucial for successful market entry.
Trade Mission
The collaborative efforts of the T&T Chamber, the Trinidad and Tobago Manufacturers’ Association, and exporTT Ltd in spearheading this Trade Mission are a testament to the goodwill that has been established between our respective countries, and the importance of opening this economic gateway to West Africa.
We invite our collective members and wider stakeholder groups with an interest in market expansion to contact us by emailing bbenoit@chamber.org.tt for further details on the mission and to register to join the T&T delegation.
This article was developed by the Trade and Business Development Unit of the T&T Chamber of Industry and Commerce.