Mahama Calls for Stronger Ghana-Zambia Economic Ties to Unlock Untapped Trade Potential

Introduction

In a compelling address at the Ghana-Zambia Business Dialogue in Lusaka, former Ghanaian President John Dramani Mahama has called for a transformative shift in the relationship between Ghana and Zambia—urging both nations to move beyond decades of political solidarity and forge robust commercial and investment partnerships. This appeal comes at a critical time when Africa faces global trade fragmentation and rising protectionism, making intra-African cooperation more vital than ever.

Key Points

Background

Ghana and Zambia share a profound historical bond, rooted in their joint struggles for independence and mutual commitment to democracy, peace, and political stability. Both nations have long stood as champions of pan-Africanism and African self-determination, walking “parallel paths” in their pursuit of freedom and prosperity. However, despite this strong foundation of solidarity, trade and investment flows between the two countries remain disappointingly low relative to their potential.

The Ghana-Zambia Business Dialogue represents a strategic effort to address this gap, bringing together business leaders, policymakers, and stakeholders to explore opportunities for collaboration. Against the backdrop of global economic uncertainty and protectionist trends, this dialogue is positioned as a critical platform to translate political goodwill into tangible commercial outcomes.

Analysis

The Gap Between Political Solidarity and Economic Partnership

While Ghana and Zambia have enjoyed decades of political friendship and mutual support, this relationship has not translated into significant trade volumes or investment flows. Mahama’s call to action highlights a common challenge across Africa: the disconnect between diplomatic relations and economic integration. This gap represents both a challenge and an opportunity—one that requires deliberate policy interventions and business engagement to bridge.

The AfCFTA as a Catalyst for Change

The African Continental Free Trade Area (AfCFTA) is central to Mahama’s vision for enhanced Ghana-Zambia cooperation. By reducing trade barriers and harmonizing regulations across the continent, the AfCFTA offers a historic opportunity to deepen intra-African trade, build regional value chains, and strengthen collective economic resilience. For Ghana and Zambia, leveraging the AfCFTA could unlock new markets, attract investment, and diversify their economies.

Infrastructure and Connectivity as Enablers

Mahama welcomed recent agreements signed during his state visit, including visa-free travel and a bilateral air services agreement. These measures are designed to enhance people-to-people connectivity, reduce transaction costs, and facilitate the movement of goods and services. Improved air links and visa facilitation are critical enablers of trade, making it easier for businesses to operate across borders and for tourists and investors to explore opportunities in both countries.

The Role of the Ghana-Zambia Business Council

The newly established Ghana-Zambia Business Council is positioned as a key institutional mechanism to drive economic cooperation. Mahama urged both countries’ trade ministries to act swiftly in operationalizing the trade and investment cooperation framework and supporting the council’s work. This body will be instrumental in identifying priority sectors, resolving trade barriers, and fostering a conducive environment for business.

Practical Advice

For Policymakers

– **Accelerate AfCFTA Implementation:** Both Ghana and Zambia should prioritize the full implementation of AfCFTA protocols, including tariff reductions and trade facilitation measures, to unlock the benefits of continental integration.

– **Support the Business Council:** Provide the Ghana-Zambia Business Council with the necessary resources, mandate, and political backing to effectively promote trade and investment.

– **Simplify Regulatory Processes:** Streamline customs procedures, reduce non-tariff barriers, and harmonize standards to make cross-border trade easier and more efficient.

For Businesses

– **Explore Untapped Sectors:** Identify and invest in sectors with high growth potential, such as agriculture, manufacturing, technology, and renewable energy, where both countries have complementary strengths.

– **Leverage New Connectivity:** Take advantage of improved air links and visa-free travel to explore new markets, attend trade fairs, and establish business partnerships.

– **Engage with the Business Council:** Participate actively in the Ghana-Zambia Business Council’s initiatives to stay informed about opportunities and policy developments.

For Investors

– **Assess Risk and Opportunity:** Conduct thorough due diligence on regulatory environments, market demand, and political stability in both countries.

– **Consider Joint Ventures:** Partner with local firms to navigate regulatory landscapes and build trust with stakeholders.

– **Monitor AfCFTA Developments:** Stay abreast of AfCFTA implementation progress, as it will open up new opportunities for regional expansion.

FAQ

Conclusion

Former President Mahama’s call for stronger Ghana-Zambia economic ties marks a pivotal moment in the evolution of their bilateral relationship. By shifting from political solidarity to active economic partnership, both nations stand to unlock significant trade and investment potential. The African Continental Free Trade Area, coupled with new bilateral agreements and the establishment of the Ghana-Zambia Business Council, provides a robust framework for this transformation. As Africa faces global economic headwinds, such initiatives are essential for building resilient, integrated, and prosperous economies. The onus is now on policymakers, businesses, and investors to seize these opportunities and translate goodwill into shared prosperity.