Audio By Carbonatix
The CEO of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu Aboagye, says the African Continental Free Trade Area (AfCFTA) will remain an empty dream if African countries continue to trade in raw materials without adding value.
Speaking on JoyNews’ PM Express on October 15, he argued that the essence of AfCFTA is to promote trade in goods and services produced within Africa, but this goal is being undermined by the continent’s weak industrial base.
“If you are trading, you are trading either a product or a service. Only a few countries in Africa produce the things we need because we import finished goods and export raw materials,” he said.
“You cannot export cassava to any of our countries around; they don’t need it either. But if you are adding value, that is when African countries will need our products.”
Mr Badu Aboagye stressed that Africa’s export profile makes the free trade pact ineffective.
“AfCFTA is challenged with the products and services we have, because everything we have is in its raw form,” he said.
His comments follow China’s zero-tariff agreement with Ghana and other African countries—a deal he believes highlights the continent’s vulnerability.
“If you don’t export cocoa to China, you either export to other countries, because the cocoa will be here and nothing will happen to it. We cannot add value to it,” he lamented.
He said African nations have little choice in international trade because they export low-value raw goods and import high-value finished products.
“If you say you’re angry and don’t agree with this arrangement, what are you going to do—chew the cocoa raw?” he asked.
“The value of unprocessed goods is very low, so we don’t have an option.”
According to him, even in cases where African countries can choose where to import from, Chinese products remain dominant due to their competitive pricing.
“Chinese products are very competitive in terms of price and cost per unit,” he noted.
“Your people also would want to import because of the price levels. Looking at their purchasing power, they will prefer the low-price products.”
Mr. Badu Aboagye said the imbalance is worsened by Africa’s failure to industrialise.
“We are pushed in such a way that we don’t have an option, because the goods we have to export, we have not added value to them,” he said.
“Countries that import from Ghana are not taking our cocoa or gold. They are importing some of our finished products—like pharmaceuticals and rubber-related goods—from us. Those are the things they need.”
He added that African countries export raw rubber to China instead of processing it for regional markets.
“If we had added value to the raw rubber, we could have exported to many countries around us. That’s where we make money,” he emphasised.
Mr Badu Aboagye cautioned that trade agreements are often structured to benefit external partners.
“If anybody wants to enter into any trade agreement with you, don’t think they love you,” he said.
“Many come to Ghana to export their products, not to partner with us in manufacturing. Only a few are looking at how they can produce with us.”
He warned that this import-heavy model is eroding Africa’s productive base and worsening unemployment.
“When you do not produce, you kill the productive sector and destroy jobs,” he said.
“We have resigned ourselves to importing everything. We’ve been talking about the structure of our economy for years—but it’s still broken.”
Mr Badu Aboagye concluded that unless African countries invest in value addition and industrial production, AfCFTA will remain a paper promise, unable to transform the continent’s economies.
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