Why Ghana’s 10% Import Tariff Could Spark an Industrial Renaissance

A senior Ghanaian banker sees the recently imposed 10% import tariff not as a burden, but as a strategic inflection point for the country’s long-dormant industrial sector. By making foreign goods slightly less competitive, the tariff creates breathing room for local manufacturers to scale production, attract investment, and build self-reliance. As global supply chains shift and economic nationalism gains momentum worldwide, Ghana could leverage this policy as a catalyst to reduce dependency on imports, create jobs, and reposition itself as a regional production hub—if the government aligns it with a robust industrial policy and SME support.

While many have been bemoaning the 10% tariff imposed on Ghana’s exports to the US, a leading Ghanaian banker is seeing the move as a huge opportunity for Ghana’s manufacturing sector.

The Executive Director of Wholesale Banking at Access Bank, James Adentwi Bruce says there is more opportunity and a unique silver lining for the country, indicating there is a very minimal risk compared to the opportunity.

Speaking at a Trade Forum in Accra, James Bruce offered a different and refreshing perspective on the tariff imposition and how its variations are beneficial to the country.

Asia’s High Tariff a Win for Ghana

Per the reciprocal tariffs, one of the regions mostly hit by the sweeping tariffs is countries in East Asia. Countries in the region were hit with tariffs ranging from 50% to 60%. With such a high tariff, considering the 10% of Ghana, the Access Bank executive says the disparity could shift global trade in favor of Ghana.

“Let’s look at it from both the risk and opportunity points of view,” Bruce said. “If you are a Far East Asian country and you produce textiles for the United States, the tariffs for your goods are between 50% to 60%, with China being the highest. Tariff for Ghana is just 10%.”

He explains it’s a simple but powerful arithmetic. With the U.S. expected to slap a universal 10% import tariff, Ghana stands to gain by becoming a far cheaper production base for exporting goods to the American market, especially for companies in the Far East who were slapped with over 50%.

Using the textile and apparel industry as a case study, he noted that “it will be cheaper for investments to move from Asia to Ghana to produce T-shirts, clothes, shoes, everything, for it to be exported to the U.S. at just 10%. That is an opportunity.”

AGOA: Another Advantage

James Bruce further recounted that Ghana already enjoys some trade benefits under the African Growth and Opportunity Act (AGOA). AGOA allows duty-free access for many goods into the U.S. market.

Despite the new 10% tariff, Bruce points out that Ghana remains far more competitive than Asian exporters facing much higher duties.

“Under AGOA, our textiles already went in duty-free. Now it’ll be 10%—but compared to 50 or 60% from Asia, we’re still ahead,” he explained.

Bruce is optimistic that this situation is a great opportunity for the country’s manufacturing sector, which could finally kickstart Ghana’s ambition to become a light manufacturing hub for global exports.

Taking the Opportunity: The Role of Government, Banks, and Businesses

Despite huge opportunity, the Executive Director of Wholesale Banking at Access Bank says it is a disguised one that won’t materialize on its own. Bruce cautioned that for Ghana to take full advantage, there must be strong synergy between the government, financial institutions, and private enterprise.

“The key thing is that the private sector works with the government, together with regulation and financial institutions. Then we can take advantage,” he said.

He lauded some initiatives of the government, which he believes could help attract these East Asia companies to Ghana. “We’re already hearing the right signals, talk of reducing our import bill for chicken, talk of building up coders and software developers. So yes, the direction is right.”

The Way Forward

To him, there should be a refocus from the very minimal challenges to the huge opportunity. “Do we export enough for America to slap tariffs on us? Not necessarily. Traditionally, we’ve not been a significant trade partner to them, apart from chocolate and gold. So, the risk is there, but not significant enough to shut the economy.”

James Bruce says Ghana must position itself to grab the opportunity these reciprocal tariffs present, indicating that with the right policies, investments, and partnerships, Ghana could reposition itself from a raw material exporter to a global manufacturing hub.

Last Updated on May 6, 2025 by samboad