Editorial by Ghanaian Times: Have a second look at US$25.3 billion NTE target

The Ghana Export Promotion Authority (GEPA) is praising the country’s performance in non-traditional exports (NTEs) and related earnings.

NTEs refer to products that are new or exotic to Ghana (that is, products not traditionally produced in Ghana) and products that have been traditionally produced for local consumption but are now being exported to foreign markets.

The NTE sector in the country is categorised into three main divisions, namely agriculture, processed/semi-processed, and industrial art & craft sub-sectors.

Thus, cashew nuts, fish, and handicrafts, for example, are exported from the country to the international market.

It is on record that Ghana has become an attractive destination for investments in the West African sub-region because of its democracy and political stability for over 30 years now.

This is good news and one to enhance the country’s forward march, as some state institutions that care about this state of affairs are leveraging the situation for the benefit of the country.

For instance, the GEPA has adopted the National Export Strategy to develop the potential of the NTE sector to make the maximum contribution to GDP growth and national development, consolidate and enhance Ghana’s middle-income status, and create job opportunities.

Contribution to GDP growth clearly relates to earnings from NTEs, and currently, the country has set a target of US$25.3 billion by 2029 and is doing all it can to achieve it.

Even though the Ghanaian Times does not intend to fault any state institutions that are stakeholders in this move, the paper thinks that unless something unexpected is done, that target would be far from its achievement.

This position is based on the reality on the ground, considering some earnings figures over some years.

Yesterday, the GEPA announced an 11.75 percent increase in 2023 NTE earnings, totaling US$3,944,146,717.

Even though the 2022 figure was not given, if it is assumed that 11.75 percent is over that figure, then the 2022 figure is US$3.529 billion.

For 2021, NTEs yielded US$3.330 billion, whereas the 2020 earnings amounted to US$2.846 billion, reflecting a decline in the 2019 figure of US$2.899 billion.

As things stand now, the 2023 figure of US$3,944,146,717 is the highest so far.

If we look at the percentage increases in recent years (2019–2023), which even come as higher figures, we can say the average increase over these years is about US$288 million.

Even if this average figure is rounded off to US$300 million and quadrupled in each year from 2024 to 2029, the mathematics is US$1.2 billion annually for six years, which amounts to US$7.2 billion.

When this figure is added to the US$3.944 billion earned in 2023, the total will be US$11.144, using the hypothetical scenario created here.

In the face of this, the Ghanaian Times thinks the US$25.3 billion NTE earning target by 2029 is highly unrealistic and so must be reviewed.

However, the GEPA is encouraged to put more fire into all its plans towards improving the NTE sector to rake in more earnings for the country.