Prof. Godfred Bokpin, a finance and economics expert at the University of Ghana Business School, has criticized the US-imposed 10% universal tariffs on imports, including Ghanaian goods, as “a slap on Africa’s face”.
The tariffs, announced on April 2, 2025, aim to address US economic and national security concerns related to global trade deficits.
Ghana’s export sector, particularly under the African Growth and Opportunity Act (AGOA), is expected to face significant challenges.
AGOA provides duty-free, quota-free access to the US market for key Ghanaian products like apparel, cocoa derivatives, shea butter, and horticultural goods.
However, the new tariffs may increase costs and reduce competitiveness for Ghanaian businesses in the US market.
The Ghanaian government is exploring strategies to mitigate the potential impact on exports.
The Ministry of Trade, Agribusiness, and Industry has assured the private sector of its commitment to protecting Ghanaian exports.
Diplomatic efforts are underway to engage with US authorities and negotiate a waiver or reduction in tariffs.
In an interview on Morning Starr with Naa Dedei Tettey, Prof. Bokpin described the situation as slap on Africa, emphasizing the importance of intra-regional trade within Africa.
He cited low trade volumes among African countries (around 18%) compared to other regions like Asia and North America (over 70%).
He suggested improving fiscal connectivity to boost intra-regional trade, which could help mitigate the effects of external tariffs.
Prof. Bopkin noted, “……..I think this is a slap on our face, actually Africa. Why am I saying that? If you look at the continent of the world, Africa is one of them that trade far less among itself, Intra-Regional trading is probably around 18% or less than that. Meanwhile, Intra-Regional trade within Asia,Intra-Regional trade within the North America and the rest of them, some of them is more than 70%, more than 50%.”
“Even though we talk about the African Continental Free Trade Area (AfCFTA) and the rest of them, the uptake has been a bit low even under the guided Trade Initiative but the reality is also that Intra-Trade within Africa is much more involves value-added products compared to trade between Africa and the rest of the world. So it means that if Africa were to Intra-Regional Trade and we are able to improve the fiscal connectivity because one big challenge to Intra-Regional Trade in Africa is lack of fiscal connectivity.”
Meanwhile, the government and stakeholders are working together to address the challenges posed by the US tariffs and find solutions to protect Ghana’s export sector.
