An International Relations expert, Dr. Ishmael Hlovor, has put forward a strategy aimed at enhancing intra-Africa trade to reduce transaction costs across the continent.
This call to action comes in response to the United States’ recent imposition of a 10 percent reciprocal tariff on all imports of foreign-origin goods from Ghana.
The new tariff policy, set to take effect this week, has sparked concerns within Ghana’s private sector, with industry experts warning that it could negatively impact exports and government revenue.
Speaking to Starr News, Dr. Hlovor stated that strengthening intra-African trade is crucial for boosting economic activity and promoting sustainable growth across the continent.
“COVID-19 was a clear signal that when pushed to the wall, the world will prioritize its own interests,” Dr. Hlovor noted. “We shouldn’t have waited for this to happen, but now that it has, it’s time for Africa to rise. We must focus on increasing intra-Africa trade, but this can only be achieved by improving our production capacity. Currently, due to the production of similar commodities across the continent, trade within Africa remains challenging.
“Furthermore, Africa’s infrastructure to facilitate trade is still basic, making it often easier to communicate with Europe or America than to connect with neighboring African nations.”
Dr. Hlovor added, “If we can reduce transaction costs between African countries, we can significantly improve intra-Africa trade. Data shows that Africa is the only continent with such low levels of intra-regional trade. In other regions, substantial trade happens among regional partners, but in Africa, it remains limited. Now is the time to move beyond rhetoric and invest in the infrastructure that will enable African countries to trade with each other. This must happen immediately. We need to look within Africa for solutions to these challenges.”
Source: Ghana/StarrFM103.5 FM/Benjamin Sackey
