Member of Parliament for Okaikwei Central, Patrick Yaw Boamah, is cautioning the country against the over-reliance on trade opportunities like the African Growth and Opportunity Act (AGOA) provided by the United States government.
The over-reliance on the trade opportunity to the US, the legislator says could cripple long-term economic independence.
In an interview with Accra-based JoyNews, the MP emphasized the need for Ghana to urgently wean itself off decades-old trade facilitation programs such as AGOA. The AGOA is a United States initiative that gives eligible Sub-Saharan African countries duty-free access to the U.S. market. Although AGOA has been in place for nearly two decades, the MP questions Ghana’s level of preparation and industrial transformation under the policy.
“We cannot sit and be spoon-fed for a long time. We need to wean ourselves from some of these policies. AGOA has been in place for close to 20 years. You need to ask yourself, what have you been able to do in the area of AGOA to expand your export potential, to rake in the forex that is supposed to support the growth of your economy?”
As the trade pact, which is periodically reviewed set to expire this year, opening a new opportunity for review and renewal, Patrick Boamah acknowledged the benefits of extending AGOA.
But he warned against complacency. He stressed that AGOA should not be viewed as a permanent lifeline, but rather a temporary leverage Ghana must capitalize on to build a robust, self-reliant industrial economy.
“That is why I was a firm believer in the One District, One Factory program, regardless of the challenges and the abuse of some of the entities. If we don’t take steps as a country to build local capacity in industry, the expected job creation that we’ve been talking about will be an illusion.”
He is therefore urging stakeholders to redirect focus to strategic sectors such as textiles, pharmaceuticals, agro-processing, and import substitution to reduce dependence on imports and create sustainable jobs.
