Processed and semi processed products sub-sector emerged as the highest contributor to non-traditional export earnings (NTEs) in 2021, growing by 17 percent compared to the value recorded in 2020.
The sub-sector’s contribution to total earnings amounted to $2.8 billion in 2021 compared to the 2020 figure of $2.4 billion, a report by the Ghana Export Promotion Authority (GEPA) revealed.
The amount is 84.84 percent of the total value of export earnings for the year in review, which stood at $3.3 billion.
The GEPA report, dubbed ‘Analysis of Non-Traditional Export Statistics’, stated that the significant growth in demand for processed and semi-processed products was triggered by a resumption of industrial activities in key markets as Covid-19 restrictions were lifted in a number of destinations.
The report, launched by the GEPA, listed the top 10 leading NTE products as cocoa paste, cocoa butter, cashew nuts, articles of plastics, canned tuna and natural rubber sheets.
The rest are refined palm olein, iron/steel circles, rods, sheets and billets, cocoa powder and aluminium plates.
It noted that cocoa paste maintained its lead over cocoa butter as the highest earner, with aluminium plates, sheets and coils as the lowest earners.
The first and 10th earned $495.89 million and $90.98 million, respectively, while average revenue from the top 10 earners stood at $209.686 million.
Total value of the top 10 leading products amounted to a little over $2 billion, representing 62.96 per cent of total NTE earnings in the period under review.
Cocoa paste, which is the biggest earner, contributed 14.89 percent of the total NTEs while aluminium plates, sheets and coils contributed 2.73 per cent.
NTE earnings for the period under review (January to December 2021) amounted to US$3.30 billion, reflecting an increase of about 18% over the 2020 earnings of US$ 2.846 billion. Over the last five years (2017 to 2021), Ghana’s NTE’s grew at an annual average rate of 7.07% and contributed 22.62% to the total national merchandise exports of Ghana in 2021.
The NTE sector is categorized into three main sub-sectors: Agriculture, Processed/Semi-Processed, and Industrial Art & Craft sub-sectors (Handicrafts).
According to GEPA, the processed and semi-processed sub-sector has unlimited potential for growth and remains a major driving power for the country’s economic growth.
“This is why government’s transformation agenda for economic growth is expected to materialize through accelerated industrialization and value addition to achieve increased export earnings. In aggregate terms, the processed cocoa sector experienced a growth of 24.9 per cent in 2021 relative to 2020.”GEPA
Ghana Export Promotion Authority (GEPA) is the National Export Trade Support Institution that facilitates the development and promotion of exports of Ghana.
GEPA, an agency of the Ministry of Trade and Industry, was established by an Act of Parliament (396), in 1969, with the mandate to develop and promote exports of Ghana.
GEPA focuses on the diversification of Ghana’s exports from traditional export products (Unprocessed Minerals, Cocoa Beans, Timber Logs and Electricity) to Non-Traditional Export (NTE) products (any export product other than the traditional exports).
GEPA’s 13-member Governing Council is mandated is to continue with the promotion of Exports to ensure the achievement of the USD 25.3 billion export target by 2029.