Local businesses are well positioned to benefit from the African Continental Free Trade Area

The Association of Ghana Industries (AGI) has said that companies in the country are well positioned to benefit from the African Continental Free Trade Area (AfCFTA).

The implementation of the much anticipated Agreement which was scheduled for July 1 2020, has been moved to 2021.

President of the AGI, Dr Yaw Adu-Gyamfi has indicated that because of the investment and policy direction of government, local industries are poised and well supported to meet international global standards.

“If you look at the ten prone industrial policies that have come from the Ministry of Trade and Industry, {it} is basically on how to prepare us for the continental free trade agreement. So now, when this continental free trade agreement kicks in, you are going to see a lot of local companies that are basically going to export their products from here to other countries, be it pharmaceuticals, garments a lot of local companies are really going to do export.”

 Dr Adu-Gyamfi added that, the working relations between companies and the export development companies will help boost their chances of accessing foreign markets and enhance the contribution of the manufacturing sector to Ghana’s Gross Domestic Product (GDP).

“And with our working in correlation with the export development companies, we are going to do a lot of work. So this government is really being business minded in helping us shape the way industry is. And you will see that, a year to come the GDP, in terms of {the} manufacturing sector are going to grow compared to the past years.”  

There have been some concerns about the effects of the AfCFTA on Ghanaian industries, with some local businesses fearing being wiped out from the local market.

However, the Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Mr Yofi Grant has also assured local businesses that the implementation of the AfCFTA in Ghana will rather open vast opportunities for them to explore in the international market.

Mr. Grant has also indicated elsewhere that, the quality of goods and services in the country will shoot up with the opening up of the Ghanaian market for other African countries under the AfCFTA.

This, he believes will put Ghanaian businesses at an advantage position since the quality in production and services in the country are ahead of many countries on the continent.

For some time now, there have been disagreements about the nature of trade laws in the country, which many believe will hinder trade between Ghana and other countries. Mr Grant has also pointed out that Ghana is in the process of putting these laws in order.