Ghana’s golden reputation precedes it. As the world’s second-largest producer of cocoa and a major player in gold mining, the country’s economy has long been tied to the fate of these traditional exports. But what happens when the glitter fades?
This is where the concept of Non-Traditional Exports (NTEs) comes in. Often overshadowed by their established counterparts, NTEs represent a hidden potential waiting to be tapped.
From processed fruits and vegetables to handcrafted textiles and flourishing tech startups, Ghana boasts a diverse range of NTEs that could be the cornerstone of a more resilient economy.
The essence of diversification is undeniable. While cocoa and gold bring in significant revenue, their value fluctuates with the whims of the global market.
A slump in cocoa prices, for instance, can have a ripple effect throughout the economy, impacting livelihoods and hindering growth. By nurturing NTEs, Ghana creates a buffer against these external shocks.
NTEs are not just a safety net; they’re brimming with untapped potential. Take the cashew industry, for example. Ghana is a major producer of raw cashew nuts, but the real value lies in processing them further. Investing in local processing facilities would not only create jobs but also generate a higher profit margin from the finished product.
According to the Chief Executive of Tree Crops Development Authority (TCDA), William Agyapong Quaittoo, Ghana’s cashew processing rate stands at a mere 10 percent of its total production.
To address this gap, the government aims to increase the processing capacity to 50 percent within six years.
“The feasibility study is being done and soon we will see the establishment of various cashew factories in catchment areas such the Bono, Bono-East, Savannah and Oti regions and other places. It spans about eight regions.”
William Agyapong Quaittoo
Moreover, the Ghanaian textile industry, renowned for its vibrant kente cloths, is a prime example. Investing in NTEs empowers local artisans and entrepreneurs, fostering a sense of ownership and pride in the national identity.
NTEs Booms Ghana’s Export
According to the latest data from the Ghana Export Promotion Authority (GEPA), Ghana’s Non-Traditional Exports (NTEs) have experienced a significant increase in value, reaching $3.9 billion in 2023 compared to the $3.5 billion recorded in 2022.
This growth has been attributed to a combination of structural changes within Ghana’s NTE ecosystem and the effective implementation of the National Export Development Strategy (NEDS).
The semi-processed goods sub-sector emerged as the primary driver of Ghana’s NTE earnings, contributing a remarkable 85.04% of the total earnings in this category.
In 2023, earnings from this sub-sector exceeded $3.3 billion, marking a substantial 14.15% increase from the previous year.
Notable performers within this sub-sector included products like iron and steel circles, rods, sheets, articles of plastic, shea oil, and cut fruit.
Iron and steel circles, rods, sheets, and billets emerged as the top earners, surpassing even cocoa paste, with a striking 78.13% growth driven by demand from infrastructure and construction projects.
Conversely, cocoa paste and cocoa butter earnings declined, while canned tuna showed modest growth.
Shea oil experienced a significant surge in demand and production, growing by 26.51%. Cashew nuts, however, declined by 10.43%, and natural rubber sheets and aluminum plates, sheets, and coils faced decreases due to market challenges and changing consumer preferences.
The path to diversification won’t be without challenges. Streamlining export procedures, ensuring quality control, and finding new markets all require focused effort. But the rewards are substantial.
By nurturing its NTEs, Ghana can build a more robust, resilient, and ultimately, brighter economic future, one that shines not just with gold, but with the brilliance of its own diverse potential.
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