The trade agreement between Ghana and the United States seemed to have produced fruitful results in 2022. Indeed, Ghana’s trade with the United States hit a record high of $1.8 billion last year, with Ghana exporting more to the United States than it imported. This impressive result is based on the U.S.-Ghana commodities exchange, which hits an unprecedented $3.7 billion in 2022. Ghana’s exports to the United States came in at approximately $2.6 billion. This is, indeed, a significant increase from the previous record of $1.4 billion in trade surplus in 2021.
Ghana Trade Balance of Goods, 2012-2022
Source: Statista
The United States injected over $150 million in bilateral aid for Ghana’s development, spanning human rights, agriculture, education, and security initiatives. The United States earmarks $300 million to bolster Ghana’s digital economy, including significant investments in data centers, according to Business Insider Africa.
There are a number of factors that have contributed to this increase in trade between Ghana and the US. One factor is the growing demand for Ghanaian cocoa beans in the US. Ghana is the world's second-largest producer of cocoa beans, and the US is the world's largest importer of cocoa beans. In 2022, Ghana exported $1.2 billion worth of cocoa beans to the US, up from $900 million in 2021.
Another factor that has contributed to the increase in trade between Ghana and the US is the growing investment by American companies in Ghana. In recent years, there has been a significant increase in the number of American companies investing in Ghana, particularly in the mining, energy, and manufacturing sectors. In 2022, American companies invested $2.5 billion in Ghana, up from $1.5 billion in 2021.
Let us also not forget the role of the African Growth and Opportunity Act (AGOA) played in this trade agreement. AGOA is a trade agreement between the US and several African countries that provides duty-free access to the US market for certain goods produced in those countries. Ghana is a beneficiary of AGOA, which has helped to boost trade between the two countries.
Furthermore, the United States and Ghana have a strong relationship, and there is a commitment to further cooperation on trade and investment. This commitment has been demonstrated by the signing of a number of agreements in recent years, such as the Trade and Investment Framework Agreement (TIFA) and the Bilateral Investment Treaty (BIT).
Over 100 U.S. corporations and brands have been operating in Ghana, investing locally, and employing Ghanaians. Energy, mining, agro-processing, healthcare, ICT, consumer products, and food packaging are the main areas of U.S. investment in Ghana.
The increase in trade between Ghana and the US is a positive development for both countries. It is helping to boost Ghana's economy and create jobs, while also providing the US with access to important commodities like cocoa beans. The trade surplus is also helping to reduce Ghana's balance of payments deficit.
It is expected that trade between Ghana and the US will continue to grow in the coming years. The two countries have a number of complementary economies, and there is a strong commitment to further cooperation on trade and investment.