…As Manufacturers Face Chinese Import Pressure
Prosper AGBENYEGA
Ghana’s planned entry into BRICS as a partner country is raising fresh questions about the future of trade with China, the competitiveness of local industries and the potential economic consequences of strained relations with the United States.
The move, approved by Cabinet according to Foreign Affairs Minister Samuel Okudzeto Ablakwa, could create new opportunities for Ghanaian businesses to access alternative markets, financing and payment channels. However, it has also renewed scrutiny of the country’s tariff concessions to Chinese products and the potential risks to domestic manufacturers.
At the centre of the debate is how Ghana can deepen economic relations with China without undermining local production or exposing its exporters to possible trade retaliation from Washington.
US President Donald Trump has threatened a 100 per cent tariff on BRICS countries if they pursue efforts to replace the US dollar as the dominant global reserve currency. He has also threatened an additional 10 per cent tariff on countries aligning themselves with what he describes as the bloc’s “anti-American policies”.
Although the threats have raised concerns about the potential cost of closer BRICS ties, partner-country status does not automatically trigger either measure.
Mr Ablakwa has maintained that Ghana’s foreign policy will remain non-aligned and guided by national interests, signalling the government’s intention to pursue economic partnerships without abandoning its established diplomatic position.
Cedi-to-yuan payments could reshape import trade
Beyond diplomacy, developments in Ghana’s banking sector suggest that closer economic ties with China could have direct implications for businesses importing goods from the Asian country.
Stanbic Bank Ghana is piloting a payment arrangement that allows eligible Ghanaian importers to pay Chinese suppliers from their cedi accounts while the suppliers receive payments in Chinese yuan.
GCB Bank is also preparing a similar service.
The arrangements could make transactions between Ghanaian importers and Chinese suppliers more convenient by reducing the need for businesses to source US dollars directly for eligible payments.
For import-dependent businesses, the ability to settle transactions through local-currency-based arrangements could ease some payment challenges and potentially reduce certain transaction costs.
However, the overall benefit will depend on the exchange rates applied, transaction fees, settlement arrangements and the extent to which participating businesses can access the services.
The development could also strengthen the commercial use of the yuan in Ghana-China trade, although it does not, by itself, eliminate exchange-rate risks or guarantee cheaper imports.
Questions over Ghana’s tariff concessions
The prospect of deeper trade with China has also brought renewed attention to Ghana’s tariff policy and the protection available to local manufacturers.
In October 2025, Finance Ministry Technical Advisor Fredrick Amissah disclosed that Ghana had offered zero tariffs on fewer than 150 Chinese products.
“I can tell you on authority that we have less than 150 products that we have offered to zero the, I mean, zero tariffs,” he said.
China’s ambassador subsequently maintained that Beijing’s zero-tariff offer did not require Ghana to make reciprocal concessions.
The differing statements have left questions about the precise scope and status of Ghana’s offer, including which products are covered, the applicable conditions and whether any reciprocal commitments exist.
For businesses, the distinction is significant because changes in import duties can influence production costs, retail prices and the ability of locally manufactured goods to compete with foreign alternatives.
Lower tariffs on machinery, industrial equipment and raw materials could help Ghanaian manufacturers reduce their operating costs, invest in production and improve efficiency.
But removing or reducing tariffs on finished goods that directly compete with locally manufactured products could expose domestic businesses to stronger price competition, particularly where imported products benefit from economies of scale or lower production costs.
Balancing cheaper imports with industrial growth
The government faces a delicate policy choice: how to use closer relations with China to support economic growth while ensuring that Ghanaian businesses are not disadvantaged by trade arrangements.
Importers and consumers could benefit from more efficient payments and potentially cheaper goods. Manufacturers, however, will be concerned about whether tariff concessions could weaken demand for locally produced alternatives.
The impact will depend largely on the categories of products covered by any concessions, the extent of tariff reductions and the capacity of domestic industries to compete.
A carefully targeted approach could prioritise machinery, technology and production inputs that strengthen local industry while assessing the implications of concessions on finished goods that Ghanaian companies already manufacture.
Greater clarity from the government on the products covered by its zero-tariff offer would also help businesses assess the commercial implications and plan their investments.
US relations remain an economic consideration
Ghana’s proposed BRICS partnership also presents a broader trade-policy challenge because the United States remains an important potential market and economic partner.
Any trade measures imposed by Washington could affect the competitiveness of Ghanaian exports, depending on the products covered and the terms of the measures.
The immediate risk, however, should not be confused with an automatic consequence of partner-country status. The US tariff threats cited in the debate are conditional, and their application to Ghana would depend on the specific policy decisions taken by Washington.
For Ghana, the challenge is to expand its economic options without creating unnecessary uncertainty for exporters, importers and investors.
Ultimately, the commercial value of the BRICS move will be judged not simply by diplomatic recognition or stronger relations with China, but by whether it improves access to markets, reduces the cost of doing business and supports domestic production.
As the government advances its foreign-policy objectives, businesses will be watching closely for clarity on tariff concessions, the practical benefits of cedi-to-yuan payment arrangements and the safeguards available to Ghanaian manufacturers competing in an increasingly open market.
