Despite the launch of the African Continental Free Trade Area (AfCFTA) and its promise to transform intra-African trade, Ghana continues to trade more extensively with Europe than with its African neighbours, raising questions about structural bottlenecks within the continent’s trade architecture.
Trade data over the years show that the European Union remains one of Ghana’s largest trading partners, accounting for a significant share of exports such as cocoa, gold, oil and processed agricultural products, as well as imports including machinery, pharmaceuticals and manufactured goods.
By contrast, intra-African trade still represents a relatively modest portion of Ghana’s total trade volumes.
In an interview, Mr. Kwame Oppong Ntim, Director of Agribusiness at the Ministry of Trade, Agribusiness and Industry (MOTAI), the imbalance is rooted in historical trade patterns and structural challenges that predate AfCFTA.
“Ghana’s trade orientation toward Europe did not begin today. It is the result of decades of structured trade relationships, harmonised standards, predictable logistics and established financing systems that make doing business with Europe relatively straightforward,” Mr. Oppong Ntim explained.
He noted that European markets offer clear regulatory frameworks, stable demand and long-standing trade agreements that reduce uncertainty for exporters.
However, African markets, though geographically closer, are often fragmented by differing standards, customs procedures and infrastructure gaps.
AfCFTA, which officially commenced trading in 2021 and is headquartered in Accra, was designed to address many of these challenges by creating a single African market for goods and services.
The agreement aims to boost intra-African trade by reducing tariffs, eliminating non-tariff barriers and promoting value addition across the continent.
However, Mr. Oppong Ntim said implementation gaps continue to limit the agreement’s full potential. “AfCFTA is not a magic wand. While the framework exists, countries are at different stages of readiness.
Issues such as customs digitisation, trade facilitation, mutual recognition of standards and transport connectivity are still works in progress,” he said.
One major constraint is infrastructure. High transportation costs, limited rail connectivity and inefficient ports and border posts make trading within Africa more expensive and time-consuming than shipping goods to Europe.
For many Ghanaian exporters, it is often cheaper and faster to send goods to Rotterdam or Antwerp than to neighbouring African markets.
Another factor is the structure of Ghana’s exports. The country’s export basket remains dominated by primary commodities, many of which are demanded more consistently by European markets.
African economies often produce similar raw materials, limiting opportunities for complementary trade unless value addition is increased.
“Until we significantly scale up agro-processing and manufacturing, intra-African trade will remain limited,” Mr. Oppong Ntim said. “Africa cannot trade raw materials with itself at scale; value addition is the real game changer.”
Access to trade finance also plays a role. European buyers typically have stronger access to credit, insurance and structured payment systems, reducing risks for Ghanaian exporters.
Also, smaller African markets may struggle with payment delays and currency risks, discouraging cross-border trade.
Despite these challenges, Ghana has taken steps to position itself as a leader in AfCFTA implementation.
Mr. Oppong Ntim said targeted support for agribusiness and manufacturing firms would be critical to shifting trade patterns.
“If we want Ghana to trade more with Africa, we must produce what Africa needs competitively, at scale and to agreed standards,” he noted.
He added that harmonising standards, improving border efficiency and strengthening regional logistics corridors would help Ghanaian businesses tap into African markets more effectively.
As AfCFTA continues to evolve, analysts believe the gap between Ghana’s trade with Europe and Africa could narrow over time. However, doing so will require sustained policy reforms, infrastructure investment and private sector readiness.
“For now, Europe remains Ghana’s dominant trade partner,” Mr. Oppong Ntim said. “But with the right investments and full AfCFTA implementation, Africa can become not just a political priority, but a commercially viable destination for Ghanaian goods.”
