Ghana is set to finalize a zero-tariff trade agreement with China by the end of October 2025. President John Dramani Mahama announced during the Presidential Investment Forum in Beijing. The deal is poised to deepen economic cooperation between Accra and Beijing, granting Ghanaian exports full duty-free access to the world’s second-largest economy, a move framed as both an economic lifeline and a test of Ghana’s ability to translate market access into real industrial gains.
The zero-tariff initiative stems from China’s December 2024 policy to expand market access for all least-developed countries with which it maintains diplomatic relations, covering 100 percent of their exportable goods. Ghana, which has seen steady growth in bilateral trade with China over the past decade, is among 33 African nations eligible under the program.
Speaking in Beijing, President Mahama hailed the forthcoming agreement as “a new era of opportunity” for Ghanaian exporters, agro-processors, and manufacturers. “Between 2020 and 2024, China’s exports to Ghana rose by nearly 46%, while Ghana’s exports to China increased by over 11%,” he said. “China’s decision to grant zero-tariff access to Ghanaian and African products signals confidence in our partnership. It opens vast new markets for Ghanaian producers and industrial players.”
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While the tone from Accra and Beijing is one of optimism, the numbers reveal both promise and complexity. China remains Ghana’s largest trading partner, accounting for roughly 18% of Ghana’s total imports and about 8% of its exports in 2024, according to data from Ghana’s Ministry of Trade and Industry. Yet the trade balance remains starkly uneven: Ghana imported approximately $6.8 billion worth of Chinese goods in 2024, mostly machinery, construction materials, and electronics, while exporting just $1.4 billion, primarily crude oil, cocoa, and manganese.
The zero-tariff framework, Mahama said, aims to correct this imbalance by enabling Ghanaian businesses to expand beyond raw commodity exports and move into value-added manufacturing and agro-processing. “We are working closely with our industrial partners to ensure that this opportunity strengthens domestic production and creates sustainable jobs,” the president noted. He confirmed that both sides had reached an agreement in principle, with plans to sign the formal documents before October’s end.
Ghana’s export diversification agenda, outlined under its Ghana Beyond Aid strategy and Industrial Transformation Agenda, aligns closely with the African Continental Free Trade Area (AfCFTA) framework, headquartered in Accra. The zero-tariff pact with China could provide Ghana with a competitive bridge between African and Asian markets, allowing producers of processed cocoa, textiles, fruits, and renewable energy components to tap into Chinese demand.
Trade experts, however, caution that removing tariffs alone does not guarantee export success. “The issue is not market access, it’s market readiness,” says a senior analyst at the Ghana Institute of Economic Affairs. “Ghanaian manufacturers face persistent challenges: inconsistent energy supply, high logistics costs, and limited scale in industrial capacity. Without structural reforms, zero-tariff access risks benefiting Chinese importers more than Ghanaian exporters.”
Since 2010, China has signed a series of zero-tariff arrangements with African countries under the Forum on China-Africa Cooperation (FOCAC) framework, yet Africa’s overall exports to China remain dominated by oil, copper, and agricultural commodities. Manufactured goods still account for less than 12% of Africa’s total exports to China. Ghana’s case illustrates the same pattern: while its exports have increased modestly, the bulk remains unprocessed raw materials.
Still, proponents argue that the new agreement could be catalytic if Ghana uses it strategically. The government’s One District, One Factory (1D1F) program and investments in industrial parks, such as the Dawa Industrial Zone, could position local producers to benefit from tariff-free access, especially in processed cocoa, aluminum, and textile manufacturing.
Moreover, Ghana’s growing renewable energy and electric mobility sectors could find niche opportunities in China’s vast green supply chains.
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The deal also plays into China’s broader geopolitical strategy. Beijing’s zero-tariff policy, analysts say, serves as both an economic incentive and a diplomatic instrument, strengthening ties with African partners amid shifting global trade dynamics.
For Ghana, whose economy is recovering from recent fiscal pressures and a currency depreciation of nearly 20% in 2024, the agreement offers both a symbolic and practical boost to investor confidence.
The trade liberalization comes with its own sustainability questions. Ghana’s manufacturing sector remains energy-intensive, and without green production incentives, increased output could conflict with the country’s commitment to achieving net zero emissions by 2070.
Trade economists stress that Ghana must balance growth with responsible industrialization, ensuring that new export opportunities do not come at the expense of environmental standards or local resource depletion.
For small and medium-sized enterprises (SMEs), the implications are equally profound. Access to the Chinese market could unlock demand for niche Ghanaian products such as organic cocoa derivatives, shea butter, ceramics, and processed foods. However, logistical constraints, particularly shipping costs, certification standards, and language barriers, remain significant hurdles.
As both nations prepare to sign the agreement, the mood in Accra is cautiously optimistic. For Ghana, the deal is an opportunity to transform its export base and reassert its role in South-South trade. For China, it reinforces its image as a partner in Africa’s development, though critics note that such partnerships must evolve beyond dependency.
If managed well, the zero-tariff pact could signal a new phase in Ghana’s industrial ascent, one defined not by raw exports, but by value addition, circular economy principles, and green trade. But as one trade economist succinctly puts it: “The promise of zero tariffs will only matter when Ghana can export something the world truly needs.”
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