Ghana, US trade hits $3.7bn in 2022

Total trade in goods between the United States of America and Ghana rose to an all-time high to $3.7 billion. 

Ghana had a $1.8 billion trade surplus with the United States in 2022. 

Total exports from Ghana to the United States in 2022 amounted to $2.7 billion.

The major Ghanaian exports to the United States include crude oil, cocoa bean, paste, and butter, apparel, rubber, and casava.

The United States is Ghana’s fourth largest export market.

On the other hand, total imports from the United States in 2022 is valued at $1 billion.

The major U.S. exports to Ghana include cars, machinery, paper products, plastics, medical devices, fertilizers, and agricultural goods.

Ghana is the United States’ third largest export market in Sub-Saharan Africa behind South Africa and Nigeria.

Trade in services is also strong and growing and with the African Growth and Opportunities Act (AGOA) trade preferences, Ghanaians can export more than 6,500 products to the United States duty-free.

The United States Government continues to support economic development as Ghana’s top development partner. 

In 2022, U.S. bilateral assistance to Ghana totaled over $150 million with programs in health, economic growth, agriculture, education, human rights, governance, and security. 

Last year, the U.S. Government provided over $32 million in agricultural assistance in Ghana. 

More recently, the U.S. Development Finance Corporation announced new support for $25 million in financing for micro, small, and medium sized enterprises in the agricultural sector in Northern Ghana.

Supporting digital economic development, the United States recently announced a $300 million investment in data centers in Africa, including Ghana.

Foreign direct investment (FDI) from the United States totaled $421 million in 2021.  In 2022, Ghana received $1.5 billion in FDI from all sources.
Ghana’s tourism industry continues to grow, generating $2.4 billion in 2022.  Americans are now the largest number of international visitors to Ghana, accounting for roughly 100,000 visitors per year.  

More than 100 U.S. companies and brands operate in the Ghanaian market, investing locally and employing Ghanaians. 

U.S. investment in Ghana is concentrated in energy, mining, agro-processing, healthcare, ICT, consumer goods, and food packaging. 

The 2023 Ghana-US Business Expo was yesterday held on the theme, “Leveraging Ghana-US Trade Relations for Growth and Prosperity.”

The event, an initiative of the American Chamber of Commerce in Ghana, the Ghana Embassy in Washington, and the US Embassy in Accra among others, sought to provide a platform for fostering bilateral trade collaborations and economic growth between Ghana and the United States.

It brought together stakeholders that included government officials, industrialists, and technocrats to exchange ideas, explore opportunities and form strategic partnerships.

Mr Kobina Tahir Hammond, Minister of Trade and Industry, says Ghana desires to increase its exports to the United States (US) market, arguably the most lucrative consumer market globally.

He indicated that the Government had stepped up support for the private sector, both domestic and foreign, to enhance production and export capacity, particularly in the manufacturing sector, with notable opportunities for export into the U.S. market.

The Minister urged Ghanaian manufacturers with capacity to export to take advantage of existing trade agreements including the African Growth and Opportunity Act (AGOA) and explore opportunities in the US Market.

“We believe that this (increased in Ghanaian exports to US) can be achieved through increased investment from the U.S, especially in respect of harnessing the considerable and largely untapped U.S. market opportunities offered under the African Growth and Opportunity Act (AGOA) and the Prosper Africa Initiative of the U.S. Government,” he said.

Madam Marisa Lago, the US Under Secretary of Commerce for International Trade, said both countries must strive to identify, reduce, or eliminate barriers that serve as inhibiting factors to improving trade and investment.

“Given the variety of crises occurring that can stifle economic activity, it is important to ensure that business environments continue to support and foster entrepreneurship, innovation, investment and trade,” she said.

Madam Virginia Palmer, the Ambassador of the US to Ghana observed that US companies have been at the forefront of development in many sectors of the Ghanaian economy especially in areas such as telecommunications, mining, energy, food processing and packaging.

She noted that these companies together with their local private sector counterparts have a critical role to play towards Ghana’s path to growth and economic recovery despite navigating through a difficult macroeconomic environment during the past year.