Ghana’s non-traditional exports (NTEs) sector demonstrated resilience and growth potential in 2024, despite facing global economic headwinds and shifting market dynamics. The sector generated US$3.83 billion in revenue, reaching 152 countries with a diverse portfolio of 609 product lines, involving over 1,500 exporting companies. While the 2024 earnings represent a slight dip of 2.87% compared to the previous year’s US$3.94 billion, the overall trend remains positive, highlighting the strength of Ghana’s NTE sector fundamentals. The marginal decline is primarily attributed to reduced exports of iron and steel products to the ECOWAS region, a factor likely influenced by regional economic conditions. However, this dip was offset by encouraging growth in other key sectors, affirming the diversified nature of Ghana’s NTE portfolio and its ability to withstand localized economic shocks. The long-term performance of NTEs underscores their growing significance in Ghana’s economy. Between 2020 and 2024, NTEs maintained an average annual growth rate of 6.01%, contributing 18.75% to the total merchandise exports in 2024. This consistent growth trajectory positions NTEs as a key driver of Ghana’s future economic prosperity.
The Ghana Export Promotion Authority (GEPA) attributes the sector’s resilience to several factors, including enhanced export competitiveness, streamlined export procedures, and faster consignment processing. These improvements have facilitated smoother trade operations, allowing Ghanaian exporters to access international markets more efficiently. A significant aspect of this success is the strong performance within the African market, particularly the ECOWAS region, which absorbed 45% of all Ghana’s NTEs. Within this regional market, the ECOWAS trade bloc accounts for a substantial 94% of Ghana’s exports to the African Continental Free Trade Area (AfCFTA) market. This strong regional focus highlights the importance of intra-African trade for Ghana’s economic growth and demonstrates the potential of AfCFTA to unlock further opportunities for Ghanaian exporters. The success within the African market is a testament to the vision and perseverance of Ghanaian exporters who have taken advantage of regional trade agreements and capitalized on growing demand within the continent.
The composition of Ghana’s NTEs reveals a strong reliance on value-added products. The manufactured and semi-processed sectors represent the backbone of the export basket, contributing over 83% to total earnings. This highlights Ghana’s move towards exporting higher-value goods, which generates increased revenue and contributes to greater economic diversification. A noteworthy performer within this category is cocoa paste, which experienced a remarkable 35.54% growth, driven by robust demand from Europe and North America. This emphasizes Ghana’s competitive edge in processing cocoa, moving beyond the export of raw beans and capturing more value within the global cocoa value chain. The growth in cocoa paste exports showcases the potential of adding value to traditional agricultural commodities, a strategy that can significantly boost Ghana’s export earnings. The performance of the agricultural sector more broadly also contributed positively, increasing its share to 13.48% of total NTE earnings.
Beyond the core sectors, the industrial arts and crafts sector also exhibited significant growth, registering a nearly 23% increase in earnings. This reflects the growing global appreciation for Ghana’s rich cultural heritage and the increasing demand for unique handmade products. The success of this sector highlights the potential of leveraging cultural assets for economic gain and diversifying the export portfolio beyond traditional commodities. This strengthens the argument for continued investment and support for creative industries, promoting cultural preservation while simultaneously fostering economic growth. The overall success of Ghana’s NTEs demonstrates the effectiveness of GEPA’s strategic focus on deepening regional trade and leveraging trade protocols such as the ECOWAS Trade Liberalization Scheme and the AfCFTA. These agreements provide preferential market access for Ghanaian exporters, enabling them to compete effectively within the regional and continental markets.
Looking forward, GEPA has outlined ambitious plans to further accelerate the growth of NTEs. Central to this strategy is the Accelerated Export Development Programme, which aims to expand market intelligence activities, forge new trade relationships, and enhance collaboration with stakeholders to boost sectors like medical tourism, structured labor export, and IT-enabled services. These initiatives represent a proactive approach to diversifying the export portfolio and tapping into emerging global market opportunities. They also reflect a commitment to fostering innovation and developing new areas of export competitiveness within the Ghanaian economy. Furthermore, GEPA plans to collaborate with Ghanaian tertiary institutions to recruit and strategically position students within the African market. This forward-thinking approach recognizes the importance of developing a skilled workforce capable of driving export growth and capitalizing on the expanding opportunities presented by the African Continental Free Trade Area. This initiative could create a pipeline of talent specifically trained for the demands of international trade, enhancing the long-term competitiveness of Ghana’s export sector.
In essence, the NTE sector represents a critical avenue for Ghana’s sustainable economic transformation. By diversifying the export base, moving towards higher-value products, and leveraging regional trade agreements, Ghana is positioning itself for continued economic growth and increased resilience in the face of global economic uncertainties. The success of the NTE sector reflects a concerted effort by the government, export promotion agencies, and the private sector to build a competitive and diversified export economy. The continued development and expansion of this sector are crucial for creating jobs, generating revenue, and enhancing Ghana’s position within the global marketplace. With the implementation of innovative strategies and the ongoing commitment to fostering a supportive environment for exporters, Ghana’s NTE sector is poised for continued growth and success in the years to come. The call to action for all Ghanaians to contribute to this effort underscores the importance of a collective approach to achieving long-term economic prosperity through export diversification and value addition.
