Ghana–China Trade: Dedicated Zero-Tariff Fund Proposed to Boost Ghanaian Exporters

Stakeholders from government,  financial institutions, regulatory agencies, the private sector and academia have proposed the establishment of a dedicated Ghana–China Zero-Tariff Fund to address  financing constraints that could limit the ability of Ghanaian  businesses to take advantage of China’s zero-tariff policy.

The proposal emerged at the Ghana–China Zero Tariff Policy Roundtable in Accra, convened by the China Europe International Business School (CEIBS Africa) and the Africa–China Centre for Policy and Advisory (ACCPA). The high-level Roundtable brought together Ghanaian and Chinese stakeholders to examine practical barriers to translating expanded market access into increased exports.

During the Roundtable’s interactive Zero Tariff Policy Lab, participants identified access to finance as a critical constraint, particularly for SMEs seeking to increase production, aggregate supply, invest in processing and respond to potential orders from the Chinese market.

Participants consequently proposed a dedicated financing mechanism to support businesses seeking to export under the zero-tariff framework. The discussions also called on financial institutions to look beyond conventional lending and develop products specifically suited to the emerging Ghana–China trade opportunity.

Financing the entire export chain

The discussions suggested that the financing challenge extends beyond providing loans to individual exporters.

Using the cashew value chain as an example, participants noted that firms seeking to increase exports would require financing to aggregate produce from farmers and expand production. Contract farming finance was proposed as one mechanism through which businesses could support outgrowers and secure more reliable supplies.

Participants also highlighted warehouse financing, fintech-enabled financing and equipment leasing as possible instruments for addressing constraints at different stages of the value chain.

The role of development finance institutions also featured prominently, with participants questioning how institutions such as Ghana EXIM Bank and Development Bank Ghana could be more effectively deployed to support export-oriented businesses.

Source: citinewsroom.com