Non-tariff barriers (NTBs) increase the cost of cross-border trade in West Africa by an estimated 15 to 20 percent. Ghana’s Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, made this statement.
These hidden charges significantly impact businesses and consumers across the region. They create a major hurdle for effective regional trade. The Minister described NTBs as the “most stubborn obstacle” to economic integration efforts.
This issue fits into a broader challenge for Ghana and other Economic Community of West African States (ECOWAS) members. These countries are striving to enhance intra-regional trade. They also seek to maximize opportunities presented by the African Continental Free Trade Area (AfCFTA). Efficient trade flows are crucial for economic growth and stability in the sub-region. Previously, Ghana has seen ratings maintained by Moody’s and petroleum consumption forecasts rise, indicating a dynamic economic landscape.
Minister Ofosu-Adjare delivered her remarks at the 5th Joint Meeting of ECOWAS Ministers of Trade and Industry in Accra. She highlighted the difficulty in identifying and addressing NTBs. “Non-tariff barriers remain the most stubborn obstacle in all of this, adding an estimated 15 to 20 percent to the cost of cross-border trading in West Africa,” she stated. She noted that tariff barriers, such as import duties, are visible and predictable. Businesses can easily factor a 5% tariff into their production costs. However, the “faceless” nature of NTBs makes them much harder to resolve. These unpredictable costs directly harm traders and extend through the entire supply chain. “The premium is paid by our traders and absorbed by businesses and passed on to consumers,” she stressed.
Addressing these non-tariff barriers is crucial for West Africa’s economic future. Decision-makers and markets will watch for concrete strategies from ECOWAS members to reduce these trading costs. Success in tackling NTBs could significantly lower prices for consumers. It could also boost the competitiveness of West African goods regionally and internationally. Furthermore, it will unlock the full potential of the AfCFTA, driving greater economic prosperity across the continent.
Ghana’s central bank and real estate brokers are also pushing for stronger due diligence in property transactions. This shows a broader push for transparency and efficiency across various economic sectors. The efforts to resolve trade bottlenecks are part of a larger plan to strengthen industrialisation and economic cooperation.