President of the Affiliation of Ghana Industries (AGI) has referred to as for a united nationwide entrance in response to the ten% tariff imposed by america on Ghanaian exports.
Dr. Humphrey Ayim-Darke burdened that that is no time for remoted or reactionary choices however for “collective engagement” involving authorities, business, and regional companions.
Talking on Pleasure Information’ PM Specific Enterprise Version on Thursday, April 10, he acknowledged the necessity for Ghana to reply strategically, slightly than emotionally, to the unfolding growth, which threatens to undermine the nation’s already fragile export earnings and financial stability.
“We don’t should be issuing statements that may carry ripples into the system,” he cautioned. “It’s nonetheless an unfolding occasion—we’re learning it and the dynamism it comes with.”
Whereas a 90-day pause in implementing the brand new U.S. tariff regime has offered some respiratory room, the AGI president burdened that this window should be used properly.
“However for the 90-day pause, we might have been in the next anxiousness. However for now, we’re taking the chance to seek the advice of—partaking authorities and our counterparts.”
On this regard, he referred to as for a holistic nationwide method.
“It will likely be helpful if the nation does some type of collective engagement. We’d like collective engagement,” he stated, underscoring that the results of inaction or disjointed responses may ripple throughout sectors, from commerce to inflation to financial coverage.
Dr. Ayim-Darke didn’t mince phrases about what’s at stake.
“The Finance Minister is aware of that if he doesn’t get it proper, he’ll have a tricky time balancing his books, getting his income, getting home income, which is essentially primarily based upon imports,” he stated.
“Considerably, about 50% of home income comes from the ports, and these are largely imports, after which from exports as properly, that are from the cocoa.”
However the cocoa sector has already taken hits.
“Sadly, we all know we had a cocoa drop by advantage of the occasions of the galamsey and the cocoa export,” he stated.
“Depart that of the crude oil apart.”
Dr. Ayim-Darke warned that if the federal government fails to stabilise export markets like cocoa, the ripple results will contact each side of Ghana’s financial system.
“Are you apprehensive concerning the uncertainty and the impression on fiscal and income as properly? Oh sure, as a result of it has a ripple impact,” he stated.
“If you happen to’re not getting sufficient home construct, you slap extra financial insurance policies on us, and it’ll set off the coverage fee, lending charges. And the cycle continues—and it has a consequential impact on the U.S. greenback as properly, which is a medium of buying and selling.”
He additionally expressed concern about disparities in how Ghana and its West African neighbor, Côte d’Ivoire, are being handled beneath the U.S. tariff regime.
“That’s the reason we’re additionally involved concerning the disparity between the tariffs on Ghana and Ivory Coast,” he stated.
“We’re collectively looking for to harmonize our complete cocoa export and the advantages to the farmers. Now, inside 10, they’re being 14.”
This, he warned, may create long-term commerce distortions.
“So what would be the impression on our commerce? Once we assume that, oh, we have now a ten%—it’s good for us? Look, as soon as immediately you’re joyful, the following time, it can all meet up with you.”
Dr. Ayim-Darke additionally raised alarms concerning the oblique results of the tariffs, together with potential inflation in america and its knock-on impact on remittances to Ghana.
“Remittances have turn out to be a part of our inflows,” he famous.
“If the inflationary fee hits the U.S. by advantage of the tariffs on cocoa or chocolate or different merchandise, and the customers’ disposable earnings is decreased, how a lot remittances will come to your loved ones? And that can have an effect on authorities too.”
His conclusion was clear: Ghana can not afford to have a look at this disaster in isolation. “You can not have a look at this in isolation,” he warned.
“We must be involved with trying on the macro image and the micro image.”
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