Ghana: Exports under AGOA hit US$748m in 2017

Ghana: Exports under AGOA hit US$748m in 2017

Renewed confidence in the African Growth and Opportunity Act (AGOA) has resulted in an upward trend, with the country’s trade under the programme registering a total of US$748million last year, according to the Ghana National Chamber of Commerce and Industry (GNCCI).

The surge in performance reflects the collective efforts by government and other stakeholders including the chamber in strengthening the country’s exports.

After reaching its peak in 2011 with exports earnings of US$779 million and subsequent decline in 2012, when it recorded US$292 million.

Ghana’s performance under AGOA has been sustained by its broadly diversified exports to the US in the areas of textiles and apparel, energy-related products, agricultural products, footwear, and minerals and metals.

The African Growth and Opportunity Act (AGOA) is a non-reciprocal trade preference programme that provides duty-free and quota-free treatment for exports of over 6,400 products into the US market from eligible Sub-Saharan African countries.

The goal is to encourage export-led growth, economic development and improve U.S. economic relations with Africa. Since its enactment in 18 May 2000 by President George Bush, the Act has gone through many amendments to enable AGOA beneficiaries take advantage of it.

As part of the efforts to increase the awareness and build the capacity of exporters and potential exporters, the chamber entered into a letter of collaboration in 2015 with the USAID West Africa Trade Hub.

The AGOA Trade Resource Centre (ATRC) was established at the Chamber to engage the private sector for regional and global assistance via trade intelligence, export development, business promotion, and trade facilitation.

A number of sensitization and capacity building workshops have been organised in Accra, Kumasi and Takoradi to enable business men and women utilize AGOA. Some of the topics treated in these workshops included US customs and regulations on AGOA, productivity, exports financing-risk and access to finance, financing export contracts and payment, packaging and food technology.

After completion of its initial 15 years period of validity, AGOA was extended until 2025 on 29 June 2015 by President Barack Obama. This extension covers the Third Country Fabric provision, also until 2025. This 10-year renewal period provides an opportunity for eligible Sub-Saharan African countries including Ghana to increase their exports into the United States market.

AGOA has provided Sub-Saharan African countries the opportunity to grow their export earnings. Aggregate exports to US by AGOA beneficiaries (AGOA plus non-AGOA goods) have increased from US$21.7 billion in 2000 reaching its peak at US$82.2 billion in 2008.

The following years have recorded declining exports ending 2017 at US$24.9billion. Major contributing countries to AGOA include South Africa, Nigeria, Angola, La Côte d’Ivoire, Madagascar, Ghana, and Kenya with major non-oil export products being agricultural, minerals and metals.

Out of the total export products from AGOA countries, over 90% of textiles and apparel, footwear, and transportation equipment utilises AGOA.

GNCCI’s participation in AGOA Expo & Trade Fair 

In recognition of the Chamber’s active role through the Ghana ATRC, the Ghana National Chamber of Commerce & Industry has been invited to participate in the AGOA Expo & Trade Fair, 2018 from 25th to 30th September, 2018 in the cities of New Rochelle and New York.

The President, Nana Dr. Appiagyei Dankawoso I, will be leading the delegation comprising business visitors and trade exhibitors and present investment and business opportunities under AGOA in Ghana.

The AGOA Expo is a cultural and business platform aimed at celebrating US-African cooperation, strengthening bilateral trade relations, promoting AGOA key export products and investment opportunities.

There would be a number of activities including, but not limited to the following: African Beverages and Food Show; African Apparel, Textiles and Footwear Exhibition; AGOA Apparel Fashion Week; Exhibition of Leather and African Cosmetics; African Music and Urban Dances; and AGOA Festival Workshops and Networking.

The participants for this event are the United States, AGOA eligible countries including Ghana, and a country playing the role of the Third Country Fabric Provider for the apparel and textile products.


View related news articles

'Funding challenges undermine SMEs’ growth in Africa'

Analysts who spoke at a recent webinar organised by the American Business Council in Nigeria, in collaboration with US Chamber of Commerce, Amcham Ghana and Amcham South Africa on the US-Africa relations, have identified lack of adequate funding as a major challenge to the growth of Small and Medium Enterprises (SMEs) in Africa. The analysts were of the view that SMEs across Africa are faced with serious funding challenges, despite their...

30 July 2021

Ghana Apparel Training Centre launched to develop garment industry

In efforts to support Ghana’s garment manufacturing industry, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, together with its partners – Ethical Apparel Africa (EAA), Gerber, Groz Beckert, Freudenberg and Accra Technical Training College (ATTC), have officially launched the Ghana Apparel Training & Service Centre, in Accra. The launch forms part of a public-private partnership between the German Federal...

27 November 2020

US-Ghana trade deepens as 2019 local AGOA Expo ends

The Ghana Chamber of Commerce and Industry (GNCCI) has ended its Africa Growth Opportunity Act (AGOA) trade Expo with a high-powered business to business meeting which saw over 50 African American businesses strike business deals with Ghanaian businesses partaking of the event.  President of the Chamber, Dr Nana Appiagyei Dankawoso 1 was confident “the engagement will expand business opportunities in Ghana in 2020”. “This B2B...

11 December 2019

US delegation reaffirms commitment to Ghana’s apparel manufacturing industry

The United States of America has reaffirmed its commitment to supporting Ghana’s apparel manufacturing industry. This follows a visit of a high-level U.S Congressional Delegation including its Speaker, Nancy Pelosi, to Ghana’s largest apparel manufacturer in West Africa, Dignity Do the Right Thing (DTRT) located in Adabraka, Accra. Speaking to JoyBusiness at the visit to the DTRT Factory, the Managing Director of the manufacturing firm,...

30 July 2019

Ghana Chamber to build capacity of businesses to utilise opportunities in AGOA

The Ghana National Chamber of Commerce and Industry and its partners are working together to increase Ghana's utilisation of African Growth and Opportunity Act (AGOA). AGOA accords sub Saharan African countries the opportunity to export over 6,500 products on a duty-free and quota-free basis. Over the years, Ghana had not been able to derive much benefit from AGOA, hence the need to encourage them to form partnerships to make strides, Nana...

24 October 2018

US steps up its game in Africa, a continent open for business

“The U.S. needs to step up its game in Africa,” said U.S. Secretary of Commerce Wilbur Ross in Accra, Ghana, Thursday in an expected and welcome assessment.  The secretary was in Ghana to close out the four-country mission of the President’s Advisory Council on Doing Business in Africa (PAC-DBIA), originally established by executive order under President Obama in August of 2014, “to...

07 July 2018

US Secretary of Commerce Wilbur Ross, announces $1 billion in deals during Africa mission

U.S. Secretary of Commerce Wilbur Ross and a delegation from the President’s Advisory Council on Doing Business in Africa (PAC-DBIA) announced over $1 billion in private-sector deals during their mission to four sub-Saharan nations. PAC-DBIA members expect to quickly conclude more than $2 billion in additional deals in the coming days.   The four-nation visit, which included stops in Ethiopia, Kenya, and Côte D’Ivoire,...

06 July 2018

Ghana: Textile and garments committee inaugurated

The reconstituted National Technical Committee for Textiles  and Garments was on Friday inaugurated to ensure that Ghana meets the requirements for the production of textiles and garments for the local and the international markets. The committee, which has been expanded in size from 12 experts to 22, would be responsible for the development and implementation of standards for the textiles and garments industry. It is determined to...

22 May 2018

Position yourselves to take advantage of opportunities under AGOA - Ghana Minister

Minister of Trade and Industry, Alan Kyerematen has appealed for an effective coordination between U.S. development agencies and organizations with regards to what they are willing to offer for the growth and implementation of the African Growth and Opportunity Act (AGOA). According to him, although AGOA seeks to expand trade investment between the U.S.A. and sub-Saharan Africa, U.S. organisations must come clear on their resources in...

02 May 2018

Ghana taking greater advantage of AGOA — Ambassador Robert Jackson

Ghana is taking greater advantage of the African Growth and Opportunity Act (AGOA), the outgoing American Ambassador to Ghana, Mr Robert Jackson, has said. “Ghanaian non-oil exports to the United States (US) doubled in 2017. We saw continued growth in apparel, as well as new products such as frozen orange juice and dried mango. Ghana’s apparel exports increased from approximately $500,000 in 2010 to $8.5 million in 2017. That number is...

20 March 2018