AFCFTA: Investment case for Ghana

Ghana is in high spirits after being chosen as the home for the Secretariat of the African Continental Free Trade Area (AfCFTA) agreement, with the country set to donate $10 million for the operationalization of the Secretariat. Yofi Grant, CEO of the Ghana Investment Promotion Council, expressed his gratitude for the selection during an interview with CNBC Africa. Grant highlighted the significance of this decision, emphasizing Ghana's historical role in spearheading African political relations as the first sub-Saharan African country to gain independence over 60 years ago. According to Grant, the selection positions Ghana as a leader in driving the economic and financial renaissance of Africa. Grant underscored the importance of the AfCFTA in boosting intra-Africa trade, which currently stands at less than 15%, significantly lower than trade within other regions such as the EU. He described the AfCFTA as a major development for Africa, offering substantial investment opportunities across the continent and paving the way for industrialization and job creation. Ghana is already taking steps to align itself with this vision, focusing on improving its education system to prepare its workforce for better quality jobs and industrialization. With Ghana set to host the AfCFTA Secretariat, the country is gearing up to lead the agenda towards creating a vibrant market for African products. Grant emphasized Ghana's commitment to adding value to its resources and shifting towards value-added exports, as opposed to merely exporting raw materials. President Nana Akufo-Addo's vision of 'Ghana beyond Aid' underscores the country's determination to leverage its own strengths and resources for development, aiming to reduce dependency on aid. Looking ahead to the expected boost in Foreign Direct Investment (FDI) when the AfCFTA comes into effect in July 2020, Grant believes that Ghana will become even more attractive to investors. He highlighted the potential for partnerships and investments that align with the Sustainable Development Goals (SDGs) and prioritize job creation for Ghanaians. Grant sees the AfCFTA as a game-changer for Africa, propelling the continent towards becoming the world's largest single market and attracting a new wave of investors. Despite the promising prospects, Grant acknowledged that challenges around rules of origin and monetary compliance will need to be addressed. However, he remains optimistic about Africa's ability to overcome these hurdles by working together and learning from past experiences, such as the European Union's development. Grant emphasized the need for African countries to start the process and work through challenges collaboratively to reap the benefits of increased trade and economic growth. As Ghana eagerly anticipates the opportunities that hosting the AfCFTA Secretariat will bring, the country is positioning itself as a key player in driving Africa's economic transformation and fostering stronger intra-Africa trade relations. The decision to host the Secretariat marks a significant milestone for Ghana, reinforcing its commitment to spearheading the continent's journey towards greater economic integration and prosperity.