The UAE's business community — especially re-exporters of essential commodities, electronics and IT products, mobile telephones, automobile spare parts, garments and machinery — can count on a possible boom in re-exports due to a growing demand for these products in West Africa, said Ghanaian trade officials.
West Africa is traditionally dependent on imports from Europe and North America.
However, thousands of West African traders, mostly from Nigeria and Ghana, have been using Dubai for some time as a source market for essential commodities.
Formal bilateral trade between Dubai and Ghana, currently at Dh17 million, is still very low, as a result of the trading community's heavy dependence on informal trade.
The Ghana National Chamber of Commerce and Industry (GNCCI) hopes to sign a Memorandum of Understanding (MoU) with the Dubai Chamber of Commerce and Industry (DCCI), to facilitate formal trade between the two countries, said a senior GNCCI official.
The organisation plans to make initial contacts in the coming months with DCCI, which could soon result in the signing of an MoU.
With Emirates' four-weekly direct flights to Lagos and Accra – the two major West African economic gateways – Dubai is expected to fast overtake many European and North African cities as the region's source market, officials predicted.
According to GNCCI, Ghana has over 80,000 registered trading companies, of which about 55,000 are active and engaged in informal trade.
With the possible economic integration of the region in the future through the Economic Commission of the West African States (ECOWAS), UAE-based re-exporters could easily benefit from a market of 250 million people — a population whose purchasing power is increasing day by day.
The region's state-controlled economies are undergoing a process of liberalisation as well as integration with the neighbouring economies.
Growth in demand for commodities and services is fast outpacing the growth in supply, which underlines the opportunities lying ahead, said officials.
Salathiel Doe Amegavie, chief executive of GNCCI, said: "West Africa has a strong economic relation with Europe and North America — our two traditional markets.
However, many businessmen have been looking for suitable options for more convenient gateways.
"Over the last few years, many West African traders have been exploring Dubai as a source market for essential commodities. They find Dubai most convenient due to the city being an economic hub, and they can buy the necessary items on a single trip."
Ghana's annual foreign trade, currently at over $4 billion, is dominated by imports, estimated to be over $2 billion. However, the actual value of imports is much higher, due to the existence of a vast informal trade regime.
"Changing the informal trade to formal remains a challenge for the government and the private sector," he said.
Ghana's import volume is expected to increase as the economy is expanding and employment growing.
The cities are embracing an increased number of consumers. The same scenario is prevalent throughout West Africa. According to the Ghana Union of Trade Associations (GUTA), the number of players in the country's formal and informal trade would exceed about 500,000, represented by 21 trade bodies.
Paa Kofi Ansong, chairman of Ghana Spare Parts Dealers' Association and a spokesperson for GUTA, said Ghana's spare parts market is dependent on imports from Dubai.
"Dubai is gradually becoming the top source for spare parts for our traders. Currently, a good number of them travel to Dubai and procure goods from wholesale markets. They bring the goods with them mostly by paying upfront.
"Formal trade will grow once they cement relationships with their partners in the Gulf.
"That is when import through letter of credits will rise. With direct air connectivity, two-way trade can only grow," he said.
Ghana's auto spare market is dominated by 2,000 companies, in addition to over 3,000 unauthorised traders who, besides Ghana, also meet the demand of neighbouring Togo, Benin, Burkina Faso and the Ivory Coast.
