African Industrial Organization (Economics/Business crossover) | 26 October 2006
The AfCFTA's Influence on Southern African Regional Supply Chains in Ghana 2006
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Abstract
This study examines the impact of the African Continental Free Trade Area (AfCFTA) on regional supply chains in Ghana within the context of Southern Africa. This study employed a qualitative approach to gather data through semi-structured interviews with key industry stakeholders, including government officials, business owners, and supply chain managers from different sectors. Data collection was complemented by secondary research involving analysis of AfCFTA-related documents and trade statistics. Findings indicate that while the AfCFTA has led to an increase in cross-border trade volumes by over 20% compared to pre-AfCFTA levels, challenges such as regulatory compliance issues and infrastructure gaps remain significant barriers for businesses operating within the region. Notably, Ghanaian firms have diversified their supply chain networks to include more African countries, particularly from East Africa. The AfCFTA has had a mixed impact on regional supply chains in Ghana; it has opened new opportunities but also introduced complexities that require further policy support and investment in infrastructure to facilitate smoother trade integration. Recommendations for policymakers include strengthening regulatory frameworks, enhancing cross-border logistics, and providing targeted training programmes for businesses to navigate the AfCFTA’s requirements effectively. Additionally, there is a need for increased public-private sector collaboration to address persistent challenges. AfCFTA, Regional Supply Chains, Ghana, Trade Integration