PREPAREDNESS OF LOCAL BUSINESSES PARTICIPATING IN THE AFCFTA AGREEMENT IMPLEMENTATION IN GHANA

The report evaluates Ghana's institutional and private sector readiness for the AfCFTA, which officially commenced trading on 1 January 2021. While the Ghanaian government has established policy frameworks and institutional structures, such as the National AfCFTA Coordinating Office, the report finds that local small and medium enterprises (SMEs) face significant hurdles. Key findings indicate low production capabilities, limited knowledge of the agreement's protocols, and a lack of export certificates among many firms. However, some companies like Kasapreko Company Limited and Ghandour Cosmetics Limited have successfully exported to other African markets. The report recommends the development of a public national strategic plan, increased decentralized stakeholder consultations, and financial strategies to reduce lending interest rates for local industries.

• Ghana officially began implementing the AfCFTA in January 2021, developing policy-level initiatives including the National AfCFTA Policy Framework and Implementation Plan for Boosting Intra-African Trade (BIAT) and the National Export Development Strategy (NEDS).
• The Ghanaian government has established several institutional structures to manage the AfCFTA, including an Inter-Ministerial Facilitation Committee, a National AfCFTA Steering Committee, Technical Working Groups, and a National AfCFTA Coordinating Office at the Ministry of Trade and Industry.
• Local business production capabilities in Ghana are generally low, which may hinder their ability to produce competitively and fully utilize the AfCFTA.
• Ghanaian SMEs struggle to compete on price and volume due to high production costs driven by expensive raw materials, high credit costs, and high utility charges, although they maintain a competitive advantage in product quality.
• There is a significant lack of knowledge and understanding regarding the AfCFTA among the business community, particularly concerning the Rules of Origin.
• Many Ghanaian firms are locally focused and lack the necessary export certificates required to enter foreign markets under the AfCFTA.
• Two Ghanaian companies, Kasapreko Company Limited and Ghandour Cosmetics Limited, serve as success stories by securing licenses and exporting containers of beverages and cosmetics to South Africa and Guinea, respectively.
• A critical gap exists in the implementation process because the national AfCFTA Policy Framework has not been made public and a detailed national strategic plan has not yet been developed.
• High interest rates on lending are a major barrier for Ghanaian SMEs, making them less competitive compared to firms in other African economies like South Africa, Egypt, Tunisia, and Morocco.

APA

Good Governance Africa (2021). PREPAREDNESS OF LOCAL BUSINESSES PARTICIPATING IN THE AFCFTA AGREEMENT IMPLEMENTATION IN GHANA. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2021/10/AfCFTA-Implementation-Background-Report-on-Ghana.pdf

Chicago

Good Governance Africa. PREPAREDNESS OF LOCAL BUSINESSES PARTICIPATING IN THE AFCFTA AGREEMENT IMPLEMENTATION IN GHANA. 2021. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2021/10/AfCFTA-Implementation-Background-Report-on-Ghana.pdf.

Wikipedia

{{cite report |author=Good Governance Africa |title=PREPAREDNESS OF LOCAL BUSINESSES PARTICIPATING IN THE AFCFTA AGREEMENT IMPLEMENTATION IN GHANA |date=July 2021 |url=https://digitalmallblobstorage.blob.core.windows.net/wp-content/2021/10/AfCFTA-Implementation-Background-Report-on-Ghana.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{goodgovernanceafrica2021preparedness, author = {{Good Governance Africa}}, title = {{PREPAREDNESS OF LOCAL BUSINESSES PARTICIPATING IN THE AFCFTA AGREEMENT IMPLEMENTATION IN GHANA}}, institution = {Good Governance Africa}, year = {2021}, month = jul, url = {https://digitalmallblobstorage.blob.core.windows.net/wp-content/2021/10/AfCFTA-Implementation-Background-Report-on-Ghana.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }