Non-traditional Exports Make Inroads

Exports of non-traditional products from Ghana increased at the end of the third quarter of 2011, on account of increased penetration into the West African market.

This brought the Ghana Export Promotion Authority (GEPA) closer to its target of achieving US$1.8 billion by the close of 2011.

Provisional data at the GEPA, indicated that out of a total exports of US$1.733.46 billion at the end of the September 2011, the ECOWAS market absorbed 24.22 per cent, with exports to Togo, Burkina Faso and Nigeria experiencing remarkable increase over their 2010 figures.

Exports to the Togo market increased by 207.48 per cent in September 2011 over the same period in 2010. This represents a total of 6.64 per cent, while exports to Nigeria and Burkina Faso increased by 71.19 per cent and 32.74 per cent respectively and together contributed 11.06 per cent to total NTE exports.

According to the authority, exports of processed and semi-processed products accounted for US$1.478.05 billion or 85.27 per cent of NTEs, agricultural produce contributed US$253.13 million or 14.60 per cent, while handcraft accounted for 0.13 per cent of total NTEs, amounting to US$2.28 million.

The Chief Executive Officer of the GEPA, Dr Kwadwo Owusu Agyeman, told the GRAPHIC BUSINESS in an interview that about 470 different products were exported in the period under review among which were cocoa paste, cashew nuts, cocoa butter, canned tuna, plastic articles and aluminium plates, sheets and coils, which happened to be high job creation areas.

Non-traditional exports are not only crucial in increasing the country’s export receipts, but they generate more jobs for both the skilled and unskilled labour force.

The Ministry of Trade and Industry has therefore tasked the GEPA to work hard to increase receipts from NTEs to US$5 billion by 2015.

“Besides the stable macroeconomic environment underpinned by a stable currency and reduction in inflation, the authority has been very aggressive in our promotional activities, especially in the West African sub-region,” Dr Agyeman told the GRAPHIC BUSINESS.

He added: “the aggressive implementation of appropriate export development and promotion programmes by GEPA and the expansion of credit facilities from the Export Development and Investment Fund (EDIF) to exporters contributed greatly in the export earnings of the non-traditional commodities.”

He said renewed attendance to trade fairs, particularly in the West African sub-region was paying off, as Ghanaian companies were gradually clinching good deals to supply to neighbouring countries.

The GEPA CEO strongly believes that the economy would enjoy a much stable outlook and create more jobs when non-traditional exports are supported to grow in volume and value.