The Chamber of Agribusiness Ghana (CAG) says the newly approved three-year extension of the African Growth and Opportunity Act (AGOA) offers Ghana a critical window to fix long-standing weaknesses in its agribusiness export performance and gain a stronger foothold in the United States market.
The U.S. House of Representatives passed the extension with an overwhelming bipartisan vote of 340–54, maintaining duty-free access for eligible African exports to the world’s largest consumer market.
While welcoming the decision, CAG cautioned that Ghana risks repeating past underperformance unless urgent structural and policy reforms are implemented.
Since AGOA was introduced in 2000, Ghana’s annual exports under the programme have averaged between $150 million and $200 million, with agricultural and agro-processed products contributing less than 15 percent.
In 2022 alone, agricultural exports to the U.S. under AGOA stood at just $45 million, less than two per cent of Ghana’s estimated agricultural export potential and under 0.5 percent of total U.S. agricultural imports from AGOA-eligible countries.
CAG said Ghana’s weak showing contrasts sharply with the performance of peer countries. Kenya, for example, recorded about $500 million in agricultural exports to the U.S. under AGOA in 2022, demonstrating the impact of targeted investment, export readiness, and supportive infrastructure.
According to the Chamber, Ghana’s biggest challenges remain structural. These include limited cold chain infrastructure, inadequate export certification capacity, and low awareness of AGOA requirements among small and medium-scale agribusinesses.
CAG estimates that between 30 and 40 percent of the country’s perishable produce is lost each year due to poor storage and logistics systems. Compounding the problem is the existence of only one internationally certified food testing laboratory in the country.
Compliance costs were also cited as a major barrier. Certification by the U.S. Food and Drug Administration can cost between $5,000 and $25,000 per facility, an amount beyond the reach of most local agribusinesses.
When combined with high export financing costs, historically ranging from 25 to 35 percent, investment in quality upgrades and market expansion has remained limited.
Despite these constraints, CAG acknowledged recent progress. Initiatives such as the National Export Development Strategy, the creation of a dedicated AGOA desk at the Ghana Export Promotion Authority, and growth in horticultural and shea butter exports have laid a foundation for improvement.
The Chamber also noted that domestic cocoa processing capacity has increased from 25 percent to 35 percent of total production since 2020.
To fully exploit the AGOA extension, CAG is urging swift action between 2026 and 2027. Key proposals include setting up an AGOA Readiness Task Force, establishing a $50 million AGOA Export Fund to support certification and working capital, and scaling up investments in cold storage and food testing infrastructure.
Medium-term priorities include diversifying export products, developing agro-processing export zones, and strengthening partnerships with U.S. distributors and buyers.
With Ghana’s agricultural GDP estimated at about $14 billion and the U.S. agricultural import market exceeding $150 billion annually, CAG believes that capturing even a one percent share in select product categories could significantly boost export earnings and generate thousands of jobs.
“The three-year extension is both an opportunity and a mandate for transformation,” the Chamber said, calling on government, financial institutions, and the private sector to act decisively to build a competitive, export-ready agribusiness sector that can thrive beyond AGOA’s eventual expiration.
