In a significant move towards enhancing bilateral relations, Ghana and South Africa are witnessing remarkable economic cooperation, with bilateral trade surpassing one billion US dollars. This development, highlighted by Thando Dalamba, the Acting South African High Commissioner to Ghana, points toward a growing partnership fueled by private sector activities, robust institutional frameworks, and active diaspora participation.
Dalamba noted that the relationship between these two nations is underpinned by 24 cooperation agreements and Memoranda of Understanding, established over the past two decades. These agreements facilitate trade, investment, and skills development across various sectors, marking a concerted effort to strengthen ties and promote mutual growth. He emphasized the pivotal role of the African diaspora business community, which acts as a vital force in accelerating commercial integration on the continent.
Trade figures tell an impressive story. Bilateral trade leaped from 14 billion South African rand in 2020 to an impressive 18 billion rand by 2024, which equates to roughly one billion US dollars. This upward trajectory reflects heightened activity in critical sectors such as mining services, retail, telecommunications, and hospitality, with numerous South African companies establishing a firm presence in Ghana.
Investment from South African businesses in Ghana has surged, with over 1.2 billion US dollars funneled into 161 projects across the country. Dalamba underscored that these investments are not just numbers; they translate into job creation and bolster industrial development as Ghana embarks on a crucial economic reform agenda. The investment pipeline remains active, with companies keenly exploring opportunities in energy, manufacturing, agro-processing, and logistics sectors.
The introduction of a reciprocal visa waiver in November 2023 has been a game-changer, resulting in a staggering 240 percent increase in business travel from Ghana to South Africa. Improved mobility significantly reduces transaction costs, accelerates negotiations, and facilitates a more organized engagement between businesses in both countries. This new ease of travel marks a pivotal step in fostering stronger commercial ties.
Another landmark development is South Africa’s participation in the African Continental Free Trade Area (AfCFTA) Guided Trade Initiative, which commenced in January 2024. This initiative has seen goods being transported from Durban to Kenya and Ghana, setting the stage for both countries to become frontrunners in developing continental value chains and strengthening intra-African trade. Dalamba pointed out that this initiative is anticipated to bolster regional manufacturing linkages, ultimately reducing reliance on imports from outside the continent.
Shifting focus to the diaspora, Nadia Okudzeto, Head of the Diaspora Desk at the Ghana Investment Promotion Centre (GIPC), shared insights into the evolving role of the diaspora in Ghana’s economy. Unlike before, when remittances were the primary focus, the diaspora now actively engages in sustained commercial participation. Ghana has established a comprehensive diaspora affairs framework, which includes a national policy and a fully functional diaspora desk at the GIPC to encourage investment and engagement.
Moreover, the GIPC has unveiled the Investment Opportunity Marketing Project, aimed at highlighting specific investment prospects nationwide. For the first time, the Centre is tracking diaspora investment data, a crucial move for understanding investor flows and designing tailored support for diaspora-led enterprises. Okudzeto expressed a keen interest in fostering peer-learning models between Ghana and South Africa to enhance collaboration and facilitate trade and investment driven by the diaspora community.
Dalamba called upon government entities, private sector stakeholders, and diaspora communities to intensify their collective efforts in unlocking new markets and expanding investment opportunities. He highlighted that sustained partnerships are crucial for driving regional growth, strengthening value chains, and positioning African economies favorably on the global stage.
