With the African Growth and Opportunity Act facing renewal negotiations, Ghana’s central bank governor has called for a fundamental restructuring of U.S.-Africa economic relations.
Bank of Ghana Governor Dr. Johnson Pandit Asiama argued that the two-decade-old trade preference program requires modernization to reflect Africa’s evolving economic landscape.
Speaking at a Washington forum hosted by the Ghanaian Embassy and EBII Group, Asiama challenged what he described as an outdated model of commodity extraction. “Africa must no longer be seen as a warehouse of raw materials,” he told assembled policymakers and business leaders. His remarks highlighted Ghana’s own trade imbalance with the U.S., where $1.6 billion in crude oil, cocoa and timber exports last year contrasted with $874 million in manufactured imports.
The governor proposed three key modifications to AGOA ahead of its 2025 renewal deadline: technology transfer incentives through American-African joint ventures, reduced compliance burdens for small exporters, and expanded digital trade provisions. These changes, he suggested, could help transition the relationship from donor-recipient dynamics to mutual investment partnerships.
The appeal comes during a period of global trade realignment, with Western nations seeking to diversify supply chains away from China while African leaders push for greater industrial participation. Development finance institutions like the U.S. International Development Finance Corporation could play a pivotal role in this transition, Asiama noted, by facilitating capital flows into African value-added production.
Recent trade data underscores the urgency of reform. While AGOA helped boost African exports to $24 billion in 2023, mineral fuels and precious stones accounted for nearly 70% of shipments. This commodity dependence leaves participating economies vulnerable to price fluctuations, a weakness Ghana’s governor emphasized by noting that without industrial development, even trade surpluses offer limited economic security.
The Biden administration has signaled openness to AGOA revisions, with U.S. Trade Representative Katherine Tai recently acknowledging the need for “a more reciprocal framework.” However, congressional approval remains uncertain amid growing protectionist sentiment. As negotiations intensify, African leaders appear determined to leverage their growing consumer markets and critical mineral reserves to demand more equitable terms.
What began as a unilateral American trade preference could evolve into a testing ground for North-South economic cooperation in an increasingly multipolar world. The coming months will reveal whether both sides can bridge the gap between rhetorical commitments to partnership and substantive changes to the trade architecture.
