It came to light last week during a seminar on export financing that Ghana has only three trade representatives in over hundred missions abroad. The three capitals where Ghana has trade representatives are Geneva, London and Washington. A new trade representative is now being considered for Brussels. The issue of promoting Ghana?s goods abroad came up for discussion when Mr. Kwesi Hagan, Director of Policy Planning of the Ministry of Trade delivered a paper on ?Export Development: The way Forward.? The seminar was organized by the Institute of Financial and Economic Journalists (IFEJ) and sponsored by Merchant Bank Ghana Ltd.
Asked why Ghana chose to keep only three trade representatives abroad Hagan could only force a smile. While he was unwilling to offer any reasons some participants suggested that perhaps the ?No money syndrome?, could be the possible reason. The participants wondered why for the past twenty years the government found money for presidential investment promotion trips, when such resources could have been channeled into sending more trade representatives abroad. The intervention by the participants drew laughter, but beyond the laughter is an oversight that is hampering the country?s trade development and with it the loss of millions of dollars.
Elsewhere, the situation is different. Hong Kong, whose economic model Ghana is trying to copy has 56 trade offices (apart from the embassies) in the world, with 12 in the United States alone. Hong Kong has eight such offices in Germany. The result is that Hong Kong, which is not blessed with many natural resources, exports more items than Ghana with all her abundant natural resources. At independence Hong Kong which was at par with Ghana, now boasts of a per capita of US$27, 000. Ghana?s is US$390.
In another presentation, Mr. Asiedu Appiah, of the Export Finance Company advised the government to take a cue form the German government, which recently insured Made- in-Germany goods sold in Ghana. Appiah explained that the decision to guarantee the German goods was prudent government decision to encourage German exporters to reach to the rest of the world. ?We should also do the same for Made-in-Ghana goods in countries like Mali, Liberia, Sierra-Leone and Burkina Faso?, suggested Appiah.
The under representation of trade officials at the country?s missions is perhaps, the sad reflection of Ghana?s increasing trade deficits. Figures from the Ministry of Trade show that in 2000 exports amounted to US$2,239 million compared to imports of US$ 2, 759 million showing a trade deficit of US$823 million. For 2001 exports registered US$1,893 million compared to imports of US$2,652 million showing a deficit of US$759 million. For 2002 exports are expected to yield US$2,037 million as against imports of US$2,856 million, which will lead to a deficit of US$821 million.
To get the export sector out of the woods, all the resource persons pushed for the government to appoint a trade agent in say London who will operate a refrigerated warehouse to store perishable exports like pineapples, oranges, bananas etc.
