A new report by the African Centre for Economic Transformation (ACET) has placed Ghana among the 30 least competitive African nations in exports, highlighting deeper structural issues within the economy.
While much attention has been given to Ghana’s growth in sectors like fintech and oil production, the report says that the country’s reliance on raw commodity exports continues to hinder long-term transformation.
For decades, Ghana’s economy has leaned heavily on cocoa and gold, with crude oil in 2011 providing some diversification.
However, despite multiple government initiatives aimed at industrialization and value addition, the country remained in a cycle of exporting raw materials while importing high-value finished products. This imbalance weakens the economy, contributing to inflation, currency depreciation, and vulnerability to global price fluctuations.
The ACET report raises an urgent question: Can Ghana break free from the commodity trap? Countries like Eswatini have successfully leveraged their manufacturing industries to boost exports, yet Ghana’s industrial sector has not seen similar success. High production costs, inadequate infrastructure, and limited investment in technology continue to hinder progress.
According to Dr. Edward Brown, Senior Director of Research and Policy at ACET, he said the ability of companies to survive and grow depends on their capacity to compete internationally. “Without cost-effective production and quality-driven exports, Ghana will struggle to establish a strong presence in the global market”, he said.
The report said Ghana must not only expert more to achieve its revenues but rather export in a smart way, this means moving beyond raw commodities and focusing on higher-value products, processed cocoa instead of raw beans, refined petroleum instead of crude oil, and finished textiles instead of cotton exports.
The report said achieving this shift required targeted government intervention to lower production costs, improve infrastructure, and support industries that can drive export diversification.
Investment in research, innovation, and technology is also critical to making Ghanaian businesses more competitive globally, it added.
