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Ghanaian businesses to no longer pay tariff on exported goods to China
Ghanaian businesses to no longer pay tariff on exported goods to China
By: Nii Ammui Fio | 2 mins read
Ghanaian exporters are set to benefit immensely as the Chinese government eliminates tariffs on all goods imported from Ghana. The decision, announced by Ghana’s Foreign Affairs Minister Samuel Okudzeto Ablakwa, is expected to stimulate trade and open up broader opportunities for Ghanaian enterprises in the Chinese market.
“This 0% tariff on 100% of goods from Ghana and other African countries will bolster trade, create jobs and produce more Ghanaian entrepreneurs,” Mr Ablakwa said in a social media post on June 12.
The announcement followed a high-level bilateral meeting between Minister Ablakwa and his Chinese counterpart, His Excellency Wang Yi, held on the sidelines of the ongoing China-Africa summit in Changsha, China, on Wednesday, June 11.
According to Mr Ablakwa, this latest development forms part of a broader Economic Partnership Agreement being finalised between the governments of Ghana and China, aimed at strengthening what he described as a "mutually beneficial partnership."
As part of the agreement, both countries have committed to collaborating on industrialisation efforts consistent with President John Mahama's vision. Discussions included developing an integrated aluminium industry centred on Ghana’s bauxite resources and supported by modern rail infrastructure.
Additionally, the two nations have agreed to pursue the establishment of an electric vehicle manufacturing plant in Ghana, a move to strategically leverage the country’s lithium deposits and position it as a hub for green automotive innovation in West Africa.
The removal of the tariff means Ghanaian export companies will no longer bear the cost of import duties when their products enter the Chinese market. This will make Ghanaian goods more affordable to Chinese consumers, thereby increasing demand. In the long run, the growth in exports could drive up production and create more job opportunities in Ghana.
Chinese consumers are also expected to benefit from this policy, as they will be able to purchase Ghanaian goods at more competitive prices.
China remains Ghana’s top trading partner, with bilateral trade exceeding US$11 billion in the past year. Ghana primarily exports gold, cocoa, and oil to China, while importing machinery, electronics, textiles, and construction materials.
The tariff elimination is the latest milestone in a long-standing relationship between the two countries. Over the years, China has supported Ghana with financial assistance and technical expertise in key sectors. Notably, in 2018, both countries signed several agreements, including the One Belt, One Road Memorandum of Understanding, as well as deals covering nuclear energy cooperation, aviation, maternal health, infrastructure projects such as the Cape Coast Stadium expansion, and the supply of vehicles to the Ghana Police Service.
Minister Ablakwa reaffirmed the Mahama administration’s diplomatic strategy to use foreign relations as a tool for national transformation.
“Kwame Nkrumah and Chairman Mao will be proud of what Ghana-China relations has achieved 65 years after they laid the foundation,” he remarked.
