GUTA calls for long-term financing to unlock China's zero-tariff opportunity

Ghana may not benefit significantly from China’s zero-tariff policy unless the government supports local manufacturers to increase production and compete effectively on the international market, the Ghana Union of Traders’ Associations (GUTA) has cautioned.

GUTA President Clement Boateng said access to the Chinese market alone would not be enough to enable Ghanaian businesses to take full advantage of the policy.

He said Ghanaian businesses need affordable, long-term financing, lower utility costs, and support to meet international product standards.

Speaking at a High-Level Ghana-China Zero-Tariff Policy Roundtable, Clement Boateng said Ghana had benefited from similar duty-free opportunities in the past but failed to take full advantage of them.

He cited the African Growth and Opportunity Act (AGOA) with the United States and the Economic Partnership Agreement (EPA) with the European Union as examples.

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“Have we taken advantage of those tariff-free and quota-free arrangements? I would say no,” he said.

The GUTA president

noted that one of the major challenges facing manufacturers was access to long-term financing.

He explained that setting up a factory and commencing production could take several months, while many banks offered loans with relatively short repayment periods.

“We need long-term funding, and because our banks are not prepared to do that, our manufacturers are found wanting,” he said.

Boateng also identified high utility costs, poor packaging, and difficulties in meeting international standards as some of the challenges affecting Ghanaian products on the global market.

He therefore called on the government to support local manufacturers to increase production and take advantage of the Chinese market.

“The onus lies on us to be able to position ourselves, and by positioning ourselves, I am urging the government to come to the aid of these manufacturers so that they will be able to take advantage of this zero-tariff policy,” he stated.

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He added that Ghana should focus on products that could be produced locally using available raw materials.

According to GUTA, China’s zero-tariff policy presents a major export opportunity for Ghana, but the country must first strengthen local production to fully benefit from it.

DR/MA

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