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    Home » Impact on the role of Ghana within Africa under the AFCFTA

    Impact on the role of Ghana within Africa under the AFCFTA

    overthebordersBy overthebordersDecember 28, 2024 Visa Information & Updates No Comments6 Mins Read
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    On Wednesday, December 18, 2024, Ghana's President Nana Ad Dankwa Akaffo Ad approved and announced visa-free entries to Ghana for all African passport holders. By promoting the free movement of people on the African continent, this policy is closely in line with the African Union (AU) Agenda 2063, which envisions a unified and prosperous Africa. Among its flagship projects is the creation of a continental free trade area. This includes not only the free flow of goods and services, but also the mobility of people as a pillar of economic integration.

    The initiative is to put Ghana at the forefront of continental efforts and break through years of barriers to regional trade and development. In the context of the African Free Trade Area (AFCFTA), together with the Accra secretariat, this visa-free regime complements its comprehensive goal of promoting intra-African trade by addressing barriers to non-engagement and promoting investment, collaboration and cultural exchange.

    Context policy
    Visa restrictions have historically hindered the mobility of African citizens and limit opportunities for cross-border trade, employment and cultural exchange. According to the African Development Bank (AFDB) African Visa Openness Report, citizens of Africa require visas to enter more than 50% of the continent's countries, highlighting the significant obstacles to regional integration.

    Therefore, Ghana's visa-free travel policy is a bold step towards reverse this trend and creating borderless Africa. Ghana's leadership in pan-Africanism further contextualizes this initiative. From the Kwame Nkulma era to its role in Pan-Africanism, Ghana has consistently defended African unity. Currently, intra-African trade accounts for just 15% of total trade on the continent (as opposed to 68% in Europe), so the potential economic benefits of removing mobility barriers cannot be overstated.

    AFCFTA aims to create a single market of goods, services and capital by eliminating trade barriers. However, effective trade integration also requires the free movement of business people, resources and skilled labor. As a result, Ghana's visa-free policy directly supports this goal as it could potentially travel and operate freely by entrepreneurs, investors and traders.

    Legal and economic impacts
    From a legal perspective, Ghanaian policy is deeply rooted in a variety of legal frameworks and agreements aimed at promoting regional and economic integration. Most importantly, it coincides with the African Union protocols regarding the free movement, rights of residence, and rights of establishment (2018). The protocol aims to create a legal basis for the free movement of people within the African continent, allowing citizens to travel, reside and establish businesses across member countries without undue restrictions.

    However, as of December 2024, only four of the 55 African Union member states had ratified the protocol, reflecting the hesitation between the member states to implement policy provisions. Although the protocol has yet to achieve widespread ratification, Ghana's unilateral implementation demonstrates its commitment to the principles engraved in the document. The initiative also complements the AFCFTA legal framework, particularly the framework that addresses non-tariff barriers and trade facilitation measures. The AFCFTA focuses primarily on goods and services, but people's free movement is a key enabler of trade. AU's Agenda 2063 expressly acknowledges the need for a harmonized visa policy to complement trade agreements, under the goal of achieving borderless Africa.

    Economically, visa-free travel can stimulate trade and investment by reducing the costs and administrative hurdles associated with mobility. Entrepreneurs across the continent will be able to explore opportunities in Ghana, effectively promoting innovation, collaboration and competition. Furthermore, strengthening mobility could lead to Ghana acting as a hub for manufacturing, logistics and services, leading to the development of the local value chain.

    One immediate benefit is the potential increase in foreign direct investment (FDI). This policy reduces the administrative burden of foreign investors seeking to establish or expand operations in Ghana. The country's strategic location has already become an attractive investment destination, and this policy has made it even more competitive, especially among neighboring West African countries. Entrepreneurs and small and medium-sized enterprises (SMEs) who are essential to the African economic situation will also benefit from the ease of access to the Ghanaian market.

    The tourism sector is another area poised to make significant profits. According to the World Tourism Organization (UNWTO) tourism in Africa, it accounts for around 44% of all arrivals on the continent, so it is expected to boost the tourism sector, which has already attracted global attention through initiatives such as “Beyond the Return.”

    In trade, Ghana's visa-free policy could enhance the development of the local value chain. For example, traders from border countries such as Burkina Faso and Mali can transport goods from Ghana's ports more easily. This helps reduce logistic costs and improve supply chain efficiency.

    Ghana's opportunity
    By promoting greater mobility of human resources and investment, Ghana can consolidate its position as a leader in economic integration in Africa. The country's strategic position, political stability and role as host of the AFCFTA Secretariat have become an attractive destination for trade and investment. Visa-free policies could further enhance their appeal by creating a driving environment for business and innovation.

    Furthermore, this policy could strengthen Ghana's role as a trade and logistics hub. With improved access to African traders and investors, Ghana is well positioned to attract foreign direct investment (FDI) and become a central node in the regional supply chain. This could improve the competitiveness of Ghana's exports, particularly in agriculture, manufacturing and services.

    Challenges and risks

    Despite that promise, visa-free policies are not without challenges. Security concerns such as the possibility of cross-border crime must be addressed. Strengthening border control systems and increasing cooperation with neighboring countries is important to mitigate these risks.
    Management is another potential obstacle. Ghana's immigration system needs to efficiently handle increased travel volumes. This may require investments in technology and HR. Furthermore, policy success depends on mutual actions by other African countries. Without widespread adoption, the benefits of visa-free travel may remain limited.

    Recommendations and conclusions
    To ensure a visa-free travel policy in Ghana, a series of complementary steps must be adopted to achieve its full potential:

    Upgrade your border management system for greater security and efficiency. Invest in infrastructure to support the growing travel and trade. We are working with other African countries to promote mutual visa-free agreements. Coordinate AU's free mobility protocol and AFCFTA objectives and national policies.

    In conclusion, the visa-free travel policy for African passport holders in Ghana is a transformational initiative that has a major impact on regional integration and economic growth in Africa. By removing barriers to mobility, the policy supports the AFCFTA objectives and positions Ghana as a leader in its journey to unity and prosperity in Africa. Strategic implementation and regional cooperation will allow Ghana to leverage this initiative to drive development and deepen integration into the continental economy.

    (1) African Union, Agenda 2063: Africa Wanted by Africa (2016).

    (2) African Development Bank, Africa Visa Openness Report 2023 (AFDB, 2023).

    (3) See articles 12, 13, 14, 16, and 17 of the Convention Establishing the African Union Protocol on the Free Movement, Residence and Right to Establish Persons (2018).

    (4) African Union, Agenda 2063: The Africa We Want (2015).

    (5) World Tourism Organization (UNWTO), Africa Tourism Report 2023 (UNWTO, 2023).

    by: Amofa Darlington



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