The Indian High Commissioner to Ghana, Sugandh Rajaram, has urged Indian businesses to seize the opportunity the Ghanaian market offers in order to position themselves for the African Continental Free Trade Area (AfCFTA).
The decision to choose Ghana as host of the AfCFTA secretariat increased the nation’s chances for its economy and businesses in a number of ways – given its stability, democratic reputation and wealth of investment opportunities, the nation is the finest place to invest in Africa.
At the Power Energy Ghana Exhibition opening, the High Commissioner said: “I’d like to extend an invitation for everyone to move beyond trading and into local manufacturing, as the AfCFTA will make your business prospects available not only to the Ghanaian market but also the entire regional market for Africa”.
With the ultimate goal of uniting African nations to establish a single market, the AfCFTA is expected to do away with tariffs on 90 percent of the items produced on the continent as well as other non-tariff restrictions.
In order to construct the greatest trading bloc in the world, it will link 1.3 billion people in the 55 African countries which collectively have a market worth over US$3trillion. The AfCFTA will elevate an estimated 30 million people out of extreme poverty and increase intra-African commerce by 52 percent. It will also increase exports from Africa by US$560billion.
“Companies in this expo could consider expanding operations of their enterprises in Ghana after this event; which would put them at a significant advantage, given the enormous possibility brought on by AfCFTA,” he said.
“I’m looking forward to seeing how we can deepen our business and economic relations,” he added.
According to Debmalya Banerjee, Regional Director of the Indian Chamber of Commerce, in an interview with the B&FT, Indian companies would first start investing in the nation through commerce, followed by the construction of factories. However, this will depend on the nation’s macroeconomic conditions.
“Investment can only begin after one or two years, once enterprises have had time to learn about the Ghanaian market. Of course, we’ll consider the macroeconomic aspects affecting the nation. Currently, trade is where Indian companies will need to increase their confidence in doing business with their Ghanaian counterparts, which should be frictionless in nature.
“This would result in a significant number of Indians opening factories in Ghana and the creation of jobs. Businesses will undoubtedly make investments and create factories, but the journey must begin with exploration and commerc – which is what we have done today,” the official said.
Power Energy Ghana Exhibition
The Power Energy Ghana Exhibition – a complete international exhibition of the power energy electrical sector – is expected to bring together manufacturers, exporters, wholesalers, dealers and distributors of power electrical energy equipment, gadgets and products, including transformers, wires, solar panels, battery inverters and generators, to everything in the electrical industry of the West African region in Ghana.
This will host close to 100 exhibitors in the expo from India, Turkey, Nigeria, Italy, UAE, UK, France, Ghana and other countries, and 4,000+ visitors from Ghana and West Africa.