According to a report by Stanbic Bank, an Africa-focused financial services organization, many Ghanaian importers have turned to China due to the high quality and fair prices of Chinese goods.
The Africa Trade Barometer 2023 report, released on Wednesday, found that China is now the primary source of inputs for the group of importers surveyed in Ghana.
“Imports from China make up 31 percent of the average importer’s gross imports, which is consistent with data at the aggregate country level. China is Ghana’s top import partner, accounting for 17 percent of Ghana’s total imports,” said the report, the third in the series.
The report found that the most important factors driving Ghanaian importers to source goods from China are the relatively lower cost of products, the perception that Chinese products are of high quality, and the capacity of Chinese manufacturers to provide inputs at a large scale.
Despite the fact that some European countries also serve as important sources of imports into Ghana, the importers surveyed believed that imports from China would increase on average by about 47 percent over the current volume in the next two years.
The report also pointed out that China is one of the top export destinations for Ghanaian products, primarily raw materials.
“China, Switzerland, India, and South Africa are the top five destinations for Ghanaian exports. Most of Ghana’s exports to these markets are primary products such as gold and oil, sold by a few large corporations that make up the bulk of exports at the national level,” said the report.
The Africa Trade Barometer surveyed 2,500 businesses in 10 countries, namely Angola, Ghana, Kenya, Mozambique, Namibia, Nigeria, South Africa, Tanzania, Uganda and Zambia.
In summary:
- Ghanaian importers are increasingly turning to China for imports due to the high quality and affordability of Chinese products.
- China is now the primary source of inputs for the group of importers surveyed in Ghana.
- The most important factors driving Ghanaian importers to source goods from China are the relatively lower cost of products, the perception that Chinese products are of high quality, and the capacity of Chinese manufacturers to provide inputs at a large scale.
- Ghanaian importers believe that imports from China will increase on average by about 47 percent over the current volume in the next two years.
- China is also one of the top export destinations for Ghanaian products, primarily raw materials.
