The decision by China to scrap tariffs for almost all African nations—excluding Eswatini due to its ties with Taiwan—may appear advantageous on the surface, but economist and chartered accountant Dr Samson Anomah warns that it offers little real value to Ghana.
While China expanded its duty-free policy from 33 least-developed African nations to 53 countries as of 2024, Dr Anomah insists that this is not a development Ghana should celebrate.
The policy, which is set to remain in place until 30 April 2028, is viewed by the economist as more of a strategic move for China than a genuine economic windfall for African partners.
Speaking in an interview on Nyankonton Mu Nsem on Rainbow Radio 87.5FM, Dr Anomah opined that the nation must tread with caution.
He questioned the practicality of the deal, noting that the news sounds sweet to the ears but raises fundamental questions about Ghana’s export capacity.
He asked whether the country truly possesses substantial goods to export to China, suggesting that the only primary commodity available would be raw cocoa, which is already subject to rigorous quality controls.
Dr Anomah noted that the commodity they may consider is cocoa, but questioned if the country even has the quantity to export, further explaining that illegal mining activities and environmental degradation have compromised the quality of Ghanaian cocoa.
Consequently, the country may fail to meet China’s standards while facing stiff competition from other nations that can.
Dr Anomah urged a shift in focus toward value addition rather than being swayed by China’s announcement.
He argued that without processing raw materials locally, Ghana risks gaining nothing substantial from the arrangement.
To remedy this, he advised the government to support the manufacturing sector by creating an enabling environment, specifically citing the urgent need to address unstable power supplies that currently hinder local producers.
He described the initiative as a “Mickey Mouse” zero tariff and warned against the historical habit of exporting raw materials for minimal returns. He stressed that the country must stop exporting raw materials for peanuts and instead prioritise industrial growth.
Dr Anomah characterised the move as an agenda for China to expand its own economic influence, often at the expense of local economies that agree to such deals.
He added by advising the government to focus on fostering an environment where businesses can thrive.
This includes creating robust markets, providing a cheaper supply of electricity, and establishing manufacturing companies capable of producing goods at a lower cost.
By doing so, Ghanaian products can become competitive on the global stage, ensuring the country generates genuine revenue rather than relying on lopsided trade agreements.
By: Rainbowradioonline.com/Ghana
