The Ghana Union of Traders’ Associations (GUTA) has cautioned that Ghana may not fully benefit from China’s zero-tariff policy unless the government provides urgent support to local manufacturers to increase production and compete effectively on the international market .
Speaking at a High-Level Ghana-China Zero-Tariff Policy Roundtable, GUTA President Clement Boateng said access to the Chinese market alone would not be enough to enable Ghanaian businesses to take full advantage of the policy .
📜 Background: China’s Zero-Tariff Policy
The zero-tariff policy, effective May 1, 2026, permits duty-free entry of all products from 53 African countries into China, making it the first major economy to grant such treatment continent-wide .
Chinese Ambassador to Ghana, Cong Song, said the initiative is part of China’s efforts to expand high-level opening-up and deepen economic cooperation with Africa under the Forum on China-Africa Cooperation (FOCAC) .
The policy is expected to significantly reduce the cost of exporting Ghanaian goods, including cocoa products, cashew, shea butter, textiles and handicrafts, to China and improve their competitiveness on the Chinese market .
“For example, Ghanaian cocoa previously had tariffs ranging from eight to 22 per cent, but after the implementation of the zero-tariff treatment, cocoa and other products can now enter China tariff-free,” Ambassador Song explained .
⚠️ Historical Lessons: Missed Opportunities
Mr. Boateng noted that Ghana had benefited from similar duty-free opportunities in the past but failed to take full advantage of them .
He cited the African Growth and Opportunity Act (AGOA) with the United States and the Economic Partnership Agreement (EPA) with the European Union as examples .
“We have other zero or quota-free tariffs that we have already been enjoying. You can talk of the AGOA, that is the Africa Growth Opportunity Act being offered to us by the US government. You can also talk of the EPA, that is the Economic Partnership Agreement being offered to us by the European Union. Have we taken advantage of those tariff-free and quota-free arrangements? I would say no,” he stated .
Mr. Boateng attributed the limited benefits to long-standing challenges that continue to constrain Ghana’s export competitiveness .
💰 Financing Constraints: A Major Barrier
The GUTA President identified access to long-term financing as one of the major challenges facing Ghanaian manufacturers .
He explained that setting up a factory and commencing production could take several months, while many banks offered loans with relatively short repayment periods .
“If you even want to set up a factory, you need about six to one year to set up a factory before you go into testing of the machines, and then you go into production,” he said .
“We need long-term funding, and because our banks are not prepared to do that, our manufacturers are found wanting,” he added .
🏭 Infrastructure and Standards Challenges
Mr. Boateng also identified high utility costs, poor packaging, and difficulties in meeting international standards as other challenges affecting Ghanaian products on the global market .
He said utility tariffs remain a major constraint to the competitiveness of Ghanaian manufacturers, alongside challenges with packaging, finishing and compliance with standards required in export markets .
🎯 GUTA’s Call to Government
Mr. Boateng called on the government to support local manufacturers to increase production and take advantage of the Chinese market .
“The onus lies on us to be able to position ourselves, and by positioning ourselves, I am urging the government to come to the aid of these manufacturers so that they will be able to take advantage of this zero-tariff policy,” he stated .
He added that Ghana should focus on products that could be produced locally using available raw materials .
GUTA is therefore calling on government to intervene with affordable financing, competitive utility tariffs, and targeted support to help manufacturers scale up production for export .
🏆 Evidence of Potential
Mr. Boateng cited a local tile manufacturer exporting to European markets as proof that Ghanaian companies can compete internationally when they have the necessary resources and capacity .
“If government will assist these companies in terms of funding, in terms of giving them well-deserved tariffs of utilities, then I think we can take advantage and try as much as possible to move into the productive sector and make those exports into the Chinese area,” he said .
🤝 Trade Diplomacy Context
The GUTA call comes amid active government engagement with China on trade matters .
Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has met with Chinese Ambassador Cong Song to discuss the implementation of the zero-tariff agreement and has indicated her intention to travel to China to attract at least 20 investors into Ghana .
The Minister also urged Chinese companies to consider sourcing more products from Ghana to help reduce the trade deficit .
📈 Economic Context
China remains Ghana’s largest trading partner in Africa and a major source of foreign investment, with bilateral trade reaching a record US$14.1 billion in 2025, representing a 19.3 per cent year-on-year growth .
🏁 Conclusion
GUTA says China’s zero-tariff policy presents a major opportunity for Ghana to expand exports . However, the association warns that without deliberate government action to address financing, utility costs and standards compliance, the policy could become yet another missed opportunity for Ghana’s manufacturing sector .
