National flags of Ghana and China
Ghana has achieved a significant trade breakthrough with China, following high-level talks on the sidelines of the ongoing China-Africa Summit in Changsha on June 12, 2025.
This development is expected to reshape economic ties and trade dynamics between the two nations.
Under the new agreement, all Ghanaian goods exported to China will now enter duty-free, eliminating import taxes and making Ghanaian products cheaper and more competitive in the Chinese market.
Ghana and China’s trade relationship
Ghana and China’s trade relations have expanded over the past two decades, evolving into one of the most significant bilateral partnerships on the continent.
China has long been Ghana’s largest trading partner, with bilateral trade exceeding $11 billion in 2024.
This new agreement offers an opportunity to deepen this relationship and foster stronger partnerships in the years ahead.
Economic Advantage: What you need to know
The elimination of tariffs offers immense potential for Ghanaian entrepreneurs, especially those exporting directly to China.
Broadly, Ghana’s economy stands to benefit significantly. The new tariff structure is expected to:
– Increase exports
– Create jobs
– Attract investment in manufacturing
– Boost GDP growth
Sectors set to benefit
Several of Ghana’s key export sectors are well-positioned to benefit, provided there is sufficient infrastructure, investment, and policy support:
1. Agriculture: Ghana’s agricultural sector can leverage the new trade terms, especially in high-demand products such as:
– Cocoa and cocoa products
– Cashew nuts
– Pineapples and tropical fruits
– Shea butter and other natural oils
2. Minerals Ghana’s mineral wealth could drive higher trade volumes:
– Gold: Already a leading export and a high-value commodity
– Bauxite: Gains value when processed into alumina or aluminum locally
– Lithium: Vital for battery production, positioning Ghana as a strategic player in green energy and electric vehicle supply chains
3. Processed and Value-Added Goods With reduced trade barriers, there’s a strong incentive to:
– Process cocoa into chocolate
– Package and brand shea butter
– Refine minerals domestically
– Develop agro-processing zones
What Ghana needs to do to maximise benefits
To fully capitalise on this zero-tariff opportunity, Ghana must take proactive steps to boost its production base and trade capacity.
Key actions include:
– Investing in agro-processing and manufacturing
– Upgrading infrastructure (transport, energy, and ports)
– Supporting SMEs and exporters with access to credit and training
– Strengthening quality control and compliance with international standards
Conclusion
Ghana’s zero percent tariff access to China is a promising step toward accelerating export growth, industrialisation, and job creation.
However, without structural reforms, investment in infrastructure, and a firm commitment to value addition, the full benefits may remain out of reach.
SP/MA
#TrendingGH: Drivers react to government’s new GH¢1 energy levy on petroleum products