Accra, Ghana//- The total value of Ghana’s imports valued GH₵148.6 billion recorded about GH₵4.5 billion higher than its exports valued GH₵144.1 billion in 2022, showing that the country is vulnerable to trade vulnerabilities.
This is according to Ghana 2022 Trade Vulnerability Report.
The maiden report produced and released in August 2023 by the Ghana Statistical Service (GSS) found out that in nine out of the 12 months in 2022, the value of imports was higher than exports.
The largest variation in the month where imports exceeded exports was recorded in September (GH₵4.5 billion).
The number of countries that Ghana imports from (209) is higher by 48 than its number of partner countries for exports (161).
Ghana’s three main export products are gold (37.5%), mineral fuels and oils (30.6%), and cocoa beans and products (12.4%), which constitute over 80.0 percent of all exports.
Mineral fuels and oils account for more than a quarter (26.8%) of total imports, followed by machinery and electrical equipment (13.3%) and chemical products (10.7%).
Ghana’s trade relations, both exports and imports, are predominantly with Europe, constituting more than a third of all exports (35.9%) and imports (39.2%).
This is followed by Asia, with 28.5 percent of all exports and 37.2 percent of imports. The value of imports is higher than the value of exports for all continents except for Africa and North America: exports to other African countries are GH₵13.2 billion higher than imports, and the difference is GH₵6.8 billion for North America.
The partner country is unknown for less than 0.5% of transactions; e.g., for the fuelling of aircrafts.
Export
About half (50.4%) of all Ghana’s exports to Europe goes to Switzerland, followed by 13.0 percent to the Netherlands and 8.9 percent to Italy. China (44.3%) and India (33.9%) together make up more than three quarters (78.2%) of all Ghana’s exports to the Asian continent, the report said.
In Africa, 80. 6 percent of Ghana’s exports go to four countries: South Africa (51.3%), followed by Ghana’s neighbouring countries Burkina Faso (15.7%), Côte d’Ivoire (8.2%) and Togo (5.4%). For North America, 71.4 percent of all exports go to Canada, it added.
Gold makes up more than one third to half of Ghana’s exports to three continents: Asia (35.5%), Africa (46.1%) and Europe (50.4%). Mineral fuels and oils constitute the largest share of Ghana’s exports to North America (80.9%) and Asia (42.6%).
Cocoa is an important export commodity to Europe (22.1%), Asia (7.6%), and North America (13.1%), and is rarely exported to other continents including Africa.
More than 90.0 percent of exports of gold is to three countries: Switzerland (48.1%), South Africa (24.8%), and India (21.4%). China (38.1%), Canada (33.0%) and Italy (6.9%) are the destinations of over three-quarters (78.0%) of mineral fuels and oils exports. Half (50.0%) of cocoa exports goes to three countries.
The main export destination for cocoa is the Netherlands (27.6%), followed by the United States of America (12.7%) and Belgium (9.7%).
Plastics (49.7%), iron and steel (43.6%), and chemical products (39.5%) are mainly exported to Burkina Faso. Switzerland, China, and Canada are Ghana’s major export destinations, with exports of over GH₵15 billion each.
Exports to Switzerland amount to GH₵26.1 billion, making it Ghana’s main export destination, with GH₵7.9 billion more exports than China (GH₵ 18.2 billion), the second leading export destination.
Gold is the predominant export commodity to Switzerland (99.8%), South Africa (89.9%) and India (83.0%). Whereas mineral fuels and oils is the main commodity for China (92.3%) and Canada (96.2%).
At the commodity level, gold bullion (GH₵53.6 billion) and crude petroleum oil (GH₵43.3 billion) are the main export products, together adding up to GH₵96.9 billion, over two-thirds of all exports.
This is followed by cocoa beans and cocoa paste (GH₵13.8 billion combined), as well as cashew nuts (GH₵2.0 billion).
The value of each of the two main commodities is over two times the value of the three other commodities in the top five combined (GH₵15.8 billion). South Africa predominates intra-African trade with exports close to GH₵15 billion.
Ghana’s trade with neighbouring countries is higher compared to other African countries, with more than GH₵1 billion being exported to each neighbouring country.
South Africa (GH₵14.9 billion) is the main export destination within Africa, with over three times the export of the second major destination within Africa, Burkina Faso (GH₵4.6 billion). Gold (89.9%) is the main export commodity to South Africa.
However, for all other products exported within Africa, the neighbouring countries are more important export destinations. In particular, much iron and steel, as well as plastics and chemical products are exported to neighbouring countries.
Import
Almost two-thirds (63.3%) of Ghana’s imports from Europe are from the United Kingdom (34.2%), the Netherlands (19.2%) and Switzerland (9.9%). Two countries constitute almost two-thirds (62.1%) of imports from Asia. Almost half of Ghana’s imports from Asia come from China (47.7%) followed by India (14.4%).
Within Africa, South Africa is the main import trading partner, with almost a quarter (23.8%) of the total value of imports from African countries, followed by Egypt (14.3%).
Furthermore, the report said Ghana imports a wide variety of commodities from all continents, with Europe being the only continent where one commodity accounts for over half of all imports (55.6% for mineral fuels and oils).
Machinery and electrical equipment are major import commodities from Asia (19.1%) and Europe (10.4%). The import of vehicles and automotive parts account for about a third (32.8%) of imports coming from North America.
China is the lead import partner for five out of the eight classifications: machinery and electrical equipment (33.3%), chemical products (26.0%), iron and steel (54.5%), plastics (29.3%), and other products (17.0%).
The United Kingdom (42.2%) and the Netherlands (23.1%) together make up two-thirds (65.3%) of all imports of mineral fuels and oils.
The United States of America (26.7%) is the leading country of origin for vehicles and automotive parts. Almost a third of vegetable products originate from Vietnam (31.1%).
The highest share of Ghana’s imports come from China, with a total import value of over GH₵25 billion. No other country’s import value exceeded GH₵20 billion, with all countries in Africa having import values below GH₵5 billion.
China is the main country of origin of Ghana’s imports, contributing GH₵26.4 billion. The top five countries for imports in all represent a total value of GH₵74.3 billion which is half the value of all imports in 2022.
Mineral fuels and oils is the main trading commodity for the United Kingdom (84.1%) and the Netherlands (82.3%); however, for the three other countries in the top five, no commodity makes up more than half of imports.
Vehicles and automotive parts are the leading import items originating from the United States of America (38.5%), while machinery and electrical equipment (25.1%) make up the highest share for China, and other products (26.4%) for India.
The import of diesel and light oils, motor spirit, super as individual commodities have a total combined value of GH₵34.9 billion, which represent almost a quarter of all imports.
South Africa is the only African trading partner with imports of over GH₵3 billion.
Ghana’s imports are higher than GH₵1 billion for eight different African countries: South Africa, Egypt, Togo, Côte d’Ivoire, Nigeria, Burkina Faso, Morocco, and Algeria.
The value of imports from South Africa (GH₵3.8 billion) is more than twice the value of all other countries in the top five trading partners within Africa except for Egypt (GH₵2.3 billion).
Mineral fuels and oils contribute to at least a fifth of imports from South Africa (22.9%), Togo (21.8%) and Nigeria (29.3%). The top five countries within Africa from which Ghana’s imports originate include all neighbouring countries except Burkina Faso.
Mineral Fuels and Oils
Ghana exports GH₵4.3 billion more of mineral fuels and oils than it imports. The main source of Ghana’s exports of mineral fuels and oils is petroleum oils and oils obtained from bituminous minerals, crude, making up 98.2 percent of all exports of mineral fuels and oils.
Light oils, motor spirit, super and diesel, automotive gas oil, together make up 87.9 percent of the imports of mineral fuels and oils.
Over 70.0 percent of the exports of petroleum oils and oils obtained from bituminous minerals, crude goes to China (38.8%) and Canada (33.6%). Diesel, automotive gas oil, is mainly imported from the United Kingdom (50.7%), as well as light oils, motor spirit, super (42.6%).
For both these import products the Netherlands is a major trading partner as well, with 19.1 percent and 32.2 percent of the imports of diesel, automotive gas oil, and light oils, motor spirit, super, originating from the Netherlands respectively.
Export Import
This report provides insights into the performance, competitiveness, and trends of Ghana’s international trade.
The findings contribute to understanding and analysing Ghana’s trade dynamics, facilitating evidence-based decision making and finally supporting economic development.
Overall, the value of imports exceeded that of exports by GH₵4.5 billion in 2022 with Africa and North America being the only continents where the value of exports exceeded imports.
Similarly, the number of countries that Ghana imported from was higher than the number it exported to. The report indicates that Ghana remains predominantly dependent on exports of primary products, primarily gold, crude petroleum, and cocoa. Two commodities (gold and crude petroleum) constitute over two-thirds of all exports.
The reliance on a limited number of trading partners is illustrated by four countries (Switzerland, China, Canada, South Africa) making up over half of all exports, and six countries (China, the United Kingdom, the Netherlands, the United States of America, India, Switzerland) contributing to over half of all imports.
Four commodities (gold bullion, crude petroleum, cocoa beans, cocoa paste) constitute about three-quarters of all exports.
In contrast, Ghana has a more diversified trade pattern for imports, with 219 different commodities making up three-quarters of all imports.
The findings also pointed to the country’s vulnerabilities for specific commodities, such as mineral fuels and oils and vegetable products that have one main trading partner. Gold, the major export commodity, is predominantly exported to only three countries, the report lamented.
The report further highlighted Ghana’s international trade vulnerability, which has the potential to constrain the strengthening of the Ghanaian economy.
The findings could be used to guide the formulation of policies to create opportunities for trade to drive economic growth and poverty reduction through import substitution, export promotion, and diversification, Government Statistician, Professor Samuel Kobina Annim said.
Conclusion
The report provides insights into the performance, competitiveness, and trends of Ghana’s international trade. The findings contribute to understanding and analysing Ghana’s trade dynamics, facilitating evidence-based decision making and finally supporting economic development.
Overall, the value of imports exceeded that of exports by GH₵4.5 billion in 2022 with Africa and North America being the only continents where the value of exports exceeded imports.
Similarly, the number of countries that Ghana imported from was higher than the number it exported to. The report indicates that Ghana remains predominantly dependent on exports of primary products, primarily gold, crude petroleum, and cocoa.
Two commodities (gold and crude petroleum) constitute over two-thirds of all exports. The reliance on a limited number of trading partners is illustrated by four countries (Switzerland, China, Canada, South Africa) making up over half of all exports, and six countries (China, the United Kingdom, the Netherlands, the United States of America, India, Switzerland) contributing to over half of all imports.
Four commodities (gold bullion, crude petroleum, cocoa beans, cocoa paste) constitute about three-quarters of all exports.
In contrast, Ghana has a more diversified trade pattern for imports, with 219 different commodities making up three-quarters of all imports.
The findings also pointed to vulnerabilities for specific commodities, such as mineral fuels and oils and vegetable products that have one main trading partner. Gold, the major export commodity, is predominantly exported to only three countries.
The report highlighted Ghana’s international trade vulnerability, which has the potential to constrain the strengthening of the Ghanaian economy. Click here for the report
