Accra: Louis Yaw Afful, an International Trade Consultant, has raised alarms over the rapid expansion of digital and e-commerce trade in Ghana, which he believes poses a significant threat to the country's manufacturing sector and Africa's export competitiveness under the African Continental Free Trade Area (AfCFTA). Afful, who also serves as an AfCFTA and Investment Promotion Consultant, explained that while digital platforms have increased market access, approximately 70 percent of products traded online in Ghana are imported from outside Africa, particularly from Asia.
According to Ghana Web, Afful shared his concerns during a media forum organized by the Ghana Ports and Harbours Authority (GPHA), focusing on 'Investment Outlook in Ghana under AfCFTA.' He highlighted that the influx of inexpensive foreign goods through digital channels is outcompeting domestically produced items, even in categories where Ghana has sufficient raw materials. He warned that a weakened local manufacturing base could undermine Ghana's ability to export competitively under AfCFTA and potentially destabilize foreign exchange earnings.
Afful urged for stronger import-substitution policies, effective implementation of digital taxation, and intentional support for domestic producers to protect Ghana's industrial foundation. He also pointed out that Ghana's current performance under AfCFTA is marked by an imbalance, with the country importing more goods from within the trade area than it exports, raising concerns about Ghana's trade position in the bloc.
He cited trade data indicating that Ghana accounts for over 40 percent of imports within the AfCFTA preferential trading system, while its export share remains relatively low. "If you look at the AfCFTA import and export data, we have been at the receiving end. others are exporting more to Ghana. South Africa has about 50 percent on the export side," Afful noted.