Dependence on primary commodities puts economy at risk – Analyst
By Samuella Antwi
Economic analyst Emmanuel Boateng has cautioned that the nation’s continued dependence on primary commodities such as cocoa, gold and oil leaves the economy dangerously exposed to global market shocks and rising trade tensions.
Speaking on the Business Breakfast Show on Zed 101.9FM, Mr Boateng noted that Ghana’s export trade is heavily concentrated in Asia and Europe, making the country vulnerable to protectionist policies, especially from major economies like the United States.
While recent tariff reductions have offered temporary relief, he warned that stricter trade barriers, particularly on processed cocoa, could derail efforts to add value locally.
“Until we are able to add value to the things that we produce, it becomes very difficult to make sustainable gains from our exports,” he said, stressing the urgent need for investment in manufacturing and agro-processing.
Mr Boateng argued that Ghana has yet to fully exploit its agricultural potential or position itself as a regional manufacturing hub, even as global supply chains realign in response to US-China trade tensions.
“We are not really taking advantage of what we are able to do with agriculture,” he explained, adding that the country risks missing opportunities to diversify and expand its industrial base.
Turning to the broader picture, Mr Boateng highlighted structural weaknesses in Ghana’s economy. With government revenue and foreign exchange earnings heavily tied to volatile commodity markets, any global downturn has ripple effects on trade balances, fiscal stability and the cedi.
However, he pointed to a silver lining: slower global growth could ease inflationary pressures in advanced economies, potentially reducing Ghana’s external financing costs.
Still, he emphasised that long-term resilience requires bold structural reforms, a stronger private sector and policies that allow businesses to thrive.
Referencing Dr Kwame Nkrumah’s economic blueprint, the economic analyst lamented the nation’s failure to leverage its own developmental vision compared to countries like Malaysia and South Korea.
“Ghana can be truly independent. But only if we stop destroying our local industries and allow the economy to breathe,” he added.
