The Non-Traditional Exports (NTEs) sector has continued to show great signs of contributing tremendously to Ghana’s revenues over the last few years, led by a strong demand for Cashew Nuts.
According to data from the Bank of Ghana, Cashew Nuts maintained its position as the largest Non-Traditional Export Commodity in the country, recording a year-on-year growth of 29.73 percent in its export value in the second quarter of 2021.
Foreign exchange from cashew exports rose to US$116.17 million between April and June 2021 from US$89.55 million recorded in the corresponding period of last year. The rise in the value of cashew exports by US$26.62 million is higher than the individual contributions of all the other 8 Top Ten Non-Traditional Export commodities, excluding Palm oil and its fractions.
With this sterling performance, the share of Cashew exports in the Top Ten Non-Traditional Exports rose to 36.70 percent in Q2 2021, up from 32.79 percent in Q2 2020.
An assessment of the Top Ten Non-Traditional Export commodities in the second quarter of 2021 show that the revenues raised from these commodities registered a year-on-year growth of 15.76 percent.
Top Ten Non-Traditional Export commodities
The value of the Top Ten Non-Traditional Export commodities exported during the period under review amounted to US$316.53 million compared to US$273.44 million recorded for the same period in 2020. This means Ghana obtained US$ 43.09 million more in the second quarter of 2021 compared to the corresponding period last year.
The strong improvement in the revenues from these commodities may be as a result of the re-opening of the global economy and its supply chains. In Q2 last year, most economies were under lockdown with trade plummeting to its lowest levels, impacting on the country’s exports.
Among the top ten non-traditional items exported in the review period were cashew nuts, prepared or preserved tuna, palm oil and its fractions, aluminum, among others.
As the second highest non-traditional export commodity, the export value of Palm oil and its fractions declined to US$46.18 million in Q2 2021 from US$55.65 million in Q2 2020. This consequently saw its share within the top ten non-traditional exports declined from 20.35 percent in Q2 2020 to 14.59 percent in Q2 2021.
Performance of Other NTE commodities
Prepared or preserved tuna maintained its position as the third largest non-traditional export commodity in the second quarter of 2021 with an export value of US$25.65 million, accounting for 8.10 percent of the total value of the Top Ten Non-Traditional Exports. The data however, show that the value of Prepared or preserved tuna declined in Q2 2021 when compared to US$36.25 million recorded in the corresponding period last year.
Aluminium was one of the best performing NTE commodities in Q2 2021 as it moved from the 9th position in Q2 2020 to 4th in Q2 2021. Its export value rose to US$23.14 million in Q2 2021 from US$9.46 million recorded in the corresponding period last year. The recent performance also saw its share in the top ten NTE commodities increase to 7.31 percent from 3.46 percent in Q2 2020.
Technically specified natural rubber (TSNR); Shea (karite) oil and fractions; Avocados, guavas, mangoes and mangosteens, fresh or dried; Iron/Steel; Bars and rods of iron or non-alloy steel; Bananas (including plantains), fresh or dried made the list of the Top ten NTEs in Q2 2021.
Ghana is currently pursuing export diversification which seeks to strengthen the exportation of other export commodities aside traditional export products such as cocoa, crude oil, gold and timber. In line with this, Ghana launched a National Export Development Strategy (NEDS) with a target of achieving US$25 billion in non-traditional exports by the year 2022.