Accra, Africa, Agriculture, Business, European Union, Export, Ghana, Government, Haruna Iddrisu, Invesments, Kasoa, Uncategorized, United States, US, USA

Ghana: Non-traditional Exports hits $3.3bn

Reflex Eco Group – Africa News

Antony Sedzro (Ghanaian journalist)

sedtony@yahoo.com

This Blog is sponsored by http://www.reflexecogroup.com

Ghana expects to make more than $3.3 billion as earnings from non-traditional exports for this year.

The projected income is an improvement on last year’s earnings of $2.3 billion.

The Ghana Export Promotion Authority (GEPA) which supervises non-traditional exports says it has so far earned 12% more than what it had during the same period last year.

Chief Executive, Gideon Boye Quarcoo, told local media that the projected improvements from non-traditional export has also been influenced by progress made in the global economic recovery.

He said a dip in Tuna exports last year resulted in last year’s figures, noting that “when you have less coming from tuna which is a big winner your numbers go down”.

He indicated also that the availability of funds from banks and other funding institutions has brought about added value from local products enabling it to earn more in exports.

 

Mr. Quarcoo also adds that they are on track to hit their 5 billion dollar target in the next four years because the service sector has been booming.

In June this year, Mr. Haruna Iddrisu, Ghana’s Minister of Trade and Industry announced that the total value of non-traditional exports was expected to increase to $5 billion between mid-year 2015 to end of 2016. Mr. Iddrisu was speaking at the inauguration of a nine-member Board for the re-launched Ayensu Starch Company Limited in Kasoa, in the country’s Central Region. The Starch Factory produces cassava on a large scale for domestic and export markets.

Consequently, Government would aggressively support agricultural production, growth of horticultural and other vegetable crops as well as shore up small out-grower farming schemes countrywide to meet the target, he added.

The Minister expressed optimism that the target would be achieved, adding that, stronger collaboration between the Ministry of Trade and the Ministry of Food and Agriculture is expected to guarantee the desired goal of increasing export to improve the country’s terms and balance of trade.

He said Ghana was under obligation to improve her export standards to meet the European Union requirements, particularly in the area of cocoa. Cocoa is the main ingredient for making chocolate.

Meanwhile, statistics for the first eight months of 2013 have shown major shifts in the structure of Ghana’s export revenue base.

Whereas gold still remains Ghana’s highest export earner despite this year’s price slump – from a high, early this year, of US$1,600 to US$1,300 currently – on the global market, cocoa has slid from being Ghana’s traditional second, or sometimes even highest export earner to the fourth position due to production problems and a fall in price.

Crude oil, which the country started producing less than three years ago, has become Ghana’s second highest export earner – a spot it has occupied since 2012. Non-traditional exports (NTEs), however has this year overtaken cocoa as Ghana’s third highest export earner.

In 2012, gold was Ghana’s highest export earner netting US$5,643 billion. Crude oil was next in line with export earnings of US$2,976 billion. Cocoa followed closely at US$2,828 while NTEs earned Ghana US$2,362.

Earnings from gold declined by 12.6% to US$3.4 billion in the first eight months of this year as compared to the same period last year while cocoa exports also fell by 21.4% to US$1.4.

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