, Godfred Bokpin, has cautioned that Ghana’s growing trade relations with China could have dire long-term consequences if not managed strategically.){kind=link}
Economist and Professor of Finance at the University of Ghana Business School (UGBS), Godfred Bokpin, has cautioned that Ghana’s growing trade relations with China could have dire long-term consequences if not managed strategically.
Reacting to China’s zero-tariff policy for African countries, which featured prominently during President John Dramani Mahama’s recent bilateral talks with Chinese President Xi Jinping in Beijing, Prof. Bokpin warned that Ghana risks becoming a dumping ground for cheap Chinese goods rather than a hub for production and value addition.
Prof. Bokpin said Ghana must approach such trade arrangements with caution and a clear economic strategy to protect its domestic industries.
“Precisely,” he replied when asked whether Ghana is at risk of shifting from a production hub to a dumping ground.
The renowned economist cited the collapse of Ghana’s textile industry as a cautionary example of what happens when markets are opened too widely without adequate safeguards.
“If you do the analysis and even take our textile industry, in fact, it was more because we opened our economies to China and the rest of them that led to the collapse of the textile industry,” he explained. “Already, Chinese goods are all over the place. What do we want next? For them to fry kelewele on the street?”
During the bilateral talks, President Xi Jinping reaffirmed China’s commitment to supporting Ghana’s economic transformation agenda, pledging assistance to help the country leverage its natural resources for sustainable growth. He also reiterated China’s willingness to extend zero-tariff benefits to Ghanaian exports under its broader African trade initiative.
While the policy presents a potential opportunity for Ghanaian exporters, Prof. Bokpin stressed that without a robust national industrial strategy and effective trade regulations, the influx of low-cost imports could further weaken local industries.
“The question is, should it get worse than what we have right now?” he asked, hinting that Ghana’s markets are already saturated with imported goods, often at the expense of local production and job creation.