Cracking Makola's Gate: A Legal Education Revolution

By Justice OFFEI Jr

As per the IMF, enhancing institutional governance—like reinforcing the rule of law and regulatory standards—can enhance GDP growth by roughly0.5 to 2.3 percentage points for each unit rise in governance effectiveness, according to a cross-national analysis of reform effects.

The World Bank also highlights that transparent and efficient judicial systems are crucial for encouraging private sector investment and lowering poverty—emphasizing that improved governance results in greater economic benefits and more balanced growth.

By increasing the number of highly skilled legal practitioners and boosting the capabilities of institutions, Ghana has the potential to boost economic development, boost business trust, and reinforce the rule of law, which is essential for long-term GDP growth.

Demands to reform Ghana's legal education system are not recent. The initial major initiative dates to the early 2000s, when public dissatisfaction with restricted access to the Ghana School of Law started to grow.

For many years, important stakeholders such as the General Legal Council, legal scholars, students, civil society organizations, and Members of Parliament have expressed worries regarding the narrowness and inflexibility of Ghana's legal education system.

The 2011 Report from the Legal Education Committee and the 2018 Parliamentary Petition initiated by frustrated LLB graduates represented key turning points. These initiatives led to increased public involvement following viral demonstrations in 2019 and 2021, during which numerous eligible law students were barred from entering despite having passed the entrance examinations.

In 2022, the General Legal Council addressed the issue by examining its admission standards and started exploring decentralized approaches. During the same year, the Ministry of Justice and the Office of the Attorney General launched discussions with interested parties to develop a detailed Legal Education Reform Bill, setting the stage for the 2025 Legal Education Reform Bill.

This legislation has received strong political support: as majority chief whip, Rockson-Nelson Dafeamekpor stated openly, “We have been fighting this battle since around 2018… this bill will remove the obstacles” and create “as many legal professionals as needed” through exams held twice a year.

Former Attorney-General Betty Mould-Iddrisu—Ghana's first woman in that role—supported decentralization, mentioning in 2023 that the colonial-era control over legal education should be replaced with contemporary changes. As current Attorney-General Godfred Dame oversaw parliamentary drafting, Deputy AG Justice Srem Sai indicated the bill would separate the General Legal Council’s temporary educational function into distinct organizations.

Experienced law teacher and former GSL Director Kwaku Ansa-Asare, although careful in his approach, highlighted that the reform should combine both academic and hands-on training—rather than simply increasing access. Even Supreme Court Justice Nene Amegatcher supported the initiative, confirming the importance of strict accreditation by both the National Accreditation Board and GLC—representing the most significant transformation in legal education since Ghana gained independence.

At the core of the reform lies a dual goal: to make professional legal training more accessible and to enhance the quality of legal education to meet international benchmarks. These changes hold the power to transform Ghana's economy and its legal framework.

A more transparent and performance-driven legal education system will increase the number of competent attorneys, reinforce the effectiveness of the justice system, and boost public trust in legal organizations.

Gradually, this will decrease legal backlogs, encourage contract enforcement, and enhance the resolution of business conflicts—key elements for drawing in foreign direct investment and supporting the expansion of small and medium enterprises. As the legal sector expands, its impact on GDP—currently underestimated—will increase due to better formalization, job creation, and adherence to regulations across various industries.

Ghana's present system allows approximately 28–29 percent of LLB graduates to enter professional legal training annually. This limitation, maintained by the Ghana School of Law's exclusive control, has been widely regarded as restrictive.

On the other hand, countries such as Nigeria achieved an 84% bar pass rate in April 2025. Kenya's pass rate is still low at 18–22%, although certain universities like Mount Kenya University have reported success rates reaching up to 96%. In the United States, between 80–90% of law graduates ultimately pass the bar exam, while in the United Kingdom, the Solicitors Qualifying Examination (SQE) has pass rates of 50–60% for the first stage and 61% for the second. Ghana's access rate is one of the most limited in Africa and is considerably lower than global standards.

The Legal Education Reform Bill presents a courageous approach. It suggests decentralizing professional legal training by allowing recognized public and private universities—like the University of Ghana, KNUST, GIMPA, and others—to provide bar-track programs under the supervision of the General Legal Council.

The existing single annual bar exam will be changed to a twice-yearly test, providing more chances for eligible graduates to move forward. Crucially, these modifications will not affect the standard of quality. The legislation requires robust quality control measures, such as institutional approval, routine inspections, and centralized exams to maintain uniformity and honesty among training institutions.

What distinguishes this reform is its close adherence to global standard practices. The U.S. approach enables law graduates to sit for the bar exam in various jurisdictions. The U.K.'s SQE provides a uniform evaluation across educational institutions. The reform bill also highlights practical legal education—incorporating abilities such as courtroom argumentation, legal writing, and conflict resolution into university programs. This kind of training has become common in U.S. and U.K. law schools and is crucial for equipping law graduates with the skills needed for contemporary legal work.

Comparative Analysis:

\xa0	Ghana (Current)	Reform Proposal	Global Comparison
Professional Intake	28–29percent of LLB graduates	Multiple law schools facilitating decentralized admission	Nigeria: 84 percent; Kenya: 18 to 22 percent; U.S.: 80 to 90 percent; U.K.: 50 to 60 percent
Exam Frequency	Annual Bar Exams	Biannual GLC-regulated bar exams	U.S.: Several sessions; U.K.: Organized SQE periods
Institutional Control	Only Ghana School of Law	Universities recognized to offer educational programs	USA/UK: Several accredited legal institutions
Quality Assurance	GSL & GLC oversight	GLC + university accreditation	ABA (USA), SRA (U.K.) regulatory frameworks
Skills Training	Largely theoretical	Practical elements (workshops, legal writing, alternative dispute resolution)	U.S./U.K.: Required clinics and hands-on evaluations

In addition to impacting the legal field, this reform will have wide-reaching consequences throughout the country. Easier access to legal education leads to a more diverse and representative legal system, enhancing advocacy in communities that are frequently overlooked. Improved legal capabilities assist state institutions in handling land conflicts, criminal justice matters, family law issues, and administrative cases—thereby easing the pressure on an already overburdened court system.

From an economic perspective, the reform aligns with Ghana's ambition to establish itself as a center for legal services and dispute resolution in West Africa. With the enhancement and expansion of legal education, Ghana has the potential to draw in international collaborations, law firms, and arbitration organizations. These entities create high-quality employment opportunities, strengthen governance, and boost efficiency within the service industry. Therefore, legal reform is not just a separate objective—it serves as a catalyst for constitutional governance, economic change, and increased public confidence.

With both leading political parties supporting the bill and increasing public backing, the Legal Education Reform Bill goes beyond a mere institutional transformation. It embodies a national goal of fairness, merit-based principles, and high standards. Nevertheless, implementation needs to be well-planned. Several universities are lacking the necessary infrastructure for top-tier legal clinics, and coordination between the General Legal Council and the Ghana Tertiary Education Commission must be improved to prevent duplication. A step-by-step approach, including pilot initiatives, monitoring of results, and investment in digital legal education resources, will be crucial for achieving success.

Ghana is currently at a crucial point in the history of legal education. Following years of discussion, demonstrations, and campaigning, the obstacles at Makola might finally be removed. This change is not about reducing standards—it's about increasing the level of excellence. With careful execution and ongoing political commitment, Ghana has the potential to reshape legal education, support its upcoming generation of legal professionals, and create a justice system that is equitable, available, and admired internationally.

>>>the author works as a Policy Analyst

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External Sector Surge: A Pivotal Moment for Government, Industry, and Households

By Surv. Prof. Forster SARPONG

During the first quarter of 2025, Ghana reached a significant and uncommon economic achievement, attaining a net lending status to other countries, as stated in the Bank of Ghana's May 2025 Monetary Policy Report.

This represented a shift away from years of continuous deficits and external weaknesses. A combined surplus of $2.2 billion in the current and capital accounts, along with a net purchase of financial assets amounting to $2.1 billion, not only showed increasing investor trust and trade vitality but also positioned Ghana as a rising economic power in the region.

Yet beneath the macroeconomic optimism lies a more profound narrative, one that affects every aspect of the national environment: from government initiatives and structural changes to the executive suites of Corporate Ghana, the hallways of the public service, and the dining rooms of everyday families. This article examines how Ghana's improved external balances are more than just statistics, they represent a sign of revitalization, endurance, and preparedness.

1. Government Efforts: Policy Reliability and Financial Flexibility

The net lending position enhances the Government of Ghana's standing in both domestic and global contexts. Initially, it strengthens Ghana’s credit rating, which leads to lower sovereign risk premiums and decreases the cost of borrowing in international financial markets. Given that the most recent Eurobond was issued in 2021 with a high interest rate of 8.875%, this enhanced external performance paves the way for more cost-effective financing in the future.

Within the country, the surplus offers more financial flexibility. The government's Medium-Term Revenue Strategy (2024–2027), which depends on increasing non-tax revenues and reducing inefficient spending, now has a safety net to protect investments in the social sector. Initiatives such as Agenda 111 (health infrastructure) and the YouStart program (youth entrepreneurship) may now be sped up as macroeconomic reserves grow.

Additionally, following the International Monetary Fund (IMF) approving Ghana's second review under the $3 billion Extended Credit Facility (ECF) in April 2025, the BoG's external sector report presents a strong argument for ongoing assistance and potential adjustments to the disbursement schedule.

1. Ghana's Renewal Plan: Building the Basis for Deep Economic Change

The "Ghana Reset Agenda," introduced in 2023 to address the economic challenges caused by the pandemic and subsequent IMF reforms, seeks to fundamentally shift the economy toward export-driven growth, digital advancement, and industrial development. A $2.2 billion surplus in the current and capital accounts, driven by increased exports of cocoa, gold, and crude oil, along with inflows from remittances, indicates that the initiative is starting to show results.

Significant contributors include:

1. Gold Exports:

Ghana continued to hold its rank as the leading gold producer in Africa, with exports reaching $2.9 billion in the first quarter of 2025 (Minerals Commission Report, April 2025).

1. Non-Traditional Exports:

Including shea butter, horticultural items, and processed foods, these increased by 18% compared to the previous year, indicating progress under the National Export Development Strategy.

1. Remittance Inflows:

A 12% rise in funds sent by the diaspora (from $1.06 billion in Q1 2024 to $1.19 billion in Q1 2025) reflects renewed international trust and a strong diaspora financial sector.

This enhanced external image provides the Reset Agenda with the financial credibility and story-driven momentum required to move from handling crises to promoting growth and transformation.

1. Growth in the Public Sector: Efficiency, Funding, and Digital Development

The government sector, historically weighed down by salary expenses and inefficiencies, has the potential to gain significantly from enhanced performance in the external sector. As risks related to external funding decrease, the Public Investment Programme (PIP) can be broadened to encompass infrastructure upgrades, digital transformation, and strengthening the capabilities of the public sector.

This may speed up the execution of:

1. gov Platform Improvements – aiding in electronic revenue collection, which increased by GH₵1.4 billion in Q1 2025 (GRA Quarterly Report).
2. Digital Public Service Provision – allowing Ministries, Departments, and Agencies (MDAs) to implement cloud technology and biometric solutions with improved financial backing.
3. Transport and Utility Modernization – due to enhanced access to preferential loans and bilateral agreements, such as the Ghana-Germany Green Transition Agreement concluded in March 2025.

Macro stability also enables the government to tackle unpaid wages, implement evaluations based on performance, and streamline staffing to enhance service provision in education, healthcare, and local administration.

1. Corporate Ghana and Small and Medium Enterprises: A Breathing Room for Expansion

For Corporate Ghana, especially Small and Medium Enterprises (SMEs), the effects of this external sector growth are dual: consistency and cost-effectiveness.

1. Exchange Rate Stability:

The cedi increased by 3.4% compared to the dollar from January to April 2025, helping to stabilize input expenses for companies that rely on imports.

1. Lower Interest Rates:

As inflation decreases (from 23.5% in January 2025 to 18.7% in May 2025) and external balances improve, the Bank of Ghana has the flexibility to reduce the Monetary Policy Rate, which is now at 27.5%, possibly leading to lower commercial loan rates.

1. Access to Capital:

The net acquisition of financial assets indicates increased capital inflows into the private sector. So far, banks like CalBank and Fidelity Bank have already introduced new export credit lines and SME financing programs in April 2025.

This enhanced environment allows businesses to allocate resources towards technology, employee development, and manufacturing capabilities, particularly in key areas such as agribusiness, fintech, and light industry.

1. Households in Ghana: Aid, Security, and Revitalized Trust

For the typical Ghanaian family, economic progress might seem far removed, but its impact is tangible and can be quantified:

1. Lower Inflationary Pressures: As food price inflation declines (from 28.3% in December 2024 to 17.6% in May 2025), families are able to make spending decisions with greater confidence.
2. Job Availability: Industrial consistency and increased government funding lead to employment opportunities in construction, transportation, and service sectors. The YouStart initiative and the Ghana Enterprises Agency (GEA) have recently stated that more than 15,000 new micro, small, and medium-sized enterprise positions were established in the first quarter of 2025.
3. Cedi Value: A stronger cedi helps lower imported inflation, enhancing buying capacity. For example, the cost of imported rice dropped from GH₵680 per 50kg bag in January 2025 to GH₵590 in May 2025.

In addition, individuals receiving remittances, who make up almost 20% of Ghanaian families, now benefit from improved transfer rates and greater assistance with education, healthcare, and housing.

Final Thoughts: From Excess to Environmental Responsibility

Ghana's net lending position globally in the first quarter of 2025 is more than just a numerical detail; it serves as an indicator of economic strength and revival. However, the challenge lies in maintaining these achievements through financial responsibility, export competitiveness, and equitable growth.

The chance is evident and translates macro-level success into tangible sectoral change, driving governmental reform, enabling businesses, reinforcing public services, and enhancing household welfare.

With Ghana redefining its path through the Reset Agenda, this advancement in the external sector should act as a base for economic respect, national self-belief, and long-term growth. The moment is right, not only to acknowledge a surplus, but to use it as a stepping stone with intention.

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India and Spain Share Strong Economic Ties: Senior Official Says

Barcelona [Spain], July 18 (ANI): India andSpainmaintain a robust economic and commercial connection, with bilateral trade reaching approximately USD 10 billion, statedRaghvendra Kumar Singh, Principal Secretary to Madhya Pradesh Chief Minister Mohan Yadav, during a speech in Barcelona on Thursday.

"India and Spainmaintain a strong and prosperous economic and commercial relationship. The overall trade betweenSpainand India is approximately 10 billion dollars. There are 280 Spanish firms active in India and 90 Indian companies functioning inSpain," Singh said.

Emphasizing the possible effects of the continuing India-EU FreeTradeSingh mentioned, "We have numerous opportunities... through the India-EU trade relationship, which is expected to be finalized, I hope, by the end of this year, creating new prospects for Spanish businesses in India and Indian enterprises in"Spain."

Promoting Madhya PradeshAs an investment location, Singh mentioned that the centrally situated state offers significant potential across various industries.Madhya Pradeshis located in the center of India. It is known as the Central Provinces. In the past, it was called the Central Provinces. It is the second largest state in terms of area, fifth largest in terms of population, and has a population of 88 million. The population is 88 million. It has a much larger population thanSpain," he said.

"We are home to 2 million young people aged between 15 and 29. We rank as the second-largest producer of food grains in India and are the leading exporter of wheat in the country," he added.

Singh also highlighted the state's environmental advantages and experienced labor force. "We are likely the cleanest state in the whole country of India. We have 32 percent of forest coverage inMadhya Pradesh, which is approximately 12 percent of the total national forest area in India. When you wish to make an investment,Madhya Pradeshcan serve as a perfect location because we offer you chances across various sectors, and we do not restrict ourselves to just a few areas, allowing you to invest in numerous fields.

He added, "Our working population constitutes 47 percent, with 200,000 graduates entering the job market annually. We experience a very low dropout rate. We offer an excellent work-life balance and a high standard of living."

Highlighting the state's industrial setup, Singh stated, "We possess a large number of skilled workers, and a plentiful water supply for industries—over 1,000 million cubic meters at highly reasonable rates. We are a state with excess power generation, producing 31 gigawatts of electricity, with more than 20 percent coming from renewable sources—approximately 6 gigawatts at present."

He stated, "However, the Honorable Prime Minister has committed to generating 550 gigawatts of power by 2030,Madhya Pradeshhas also made a commitment that, starting from 6 gigawatts now, we aim to reach 33 gigawatts of renewable energy by 2030."

Continuing with this wider perspective on sustainable development, Chief MinisterMohan Yadav, during his trip toSpain, visited Mercabarna -- one of Europe's largest integrated wholesale food markets -- to examine models that could aid in the development of Mega Food Parks, agricultural export zones, and multi-modal logistics infrastructure inMadhya Pradesh.

In a post on X, MP CM Yadav mentioned that he participated in a conversation focused onMadhya PradeshTheir initiatives to develop integrated logistics facilities, agricultural export areas, and large food parks.

On the third day of theSpain visit under Madhya PradeshGlobal Dialogue 2025, Mercamadrid, one of Europe's biggest combined wholesale food markets, was inspected, along with conversations with its representatives. The talks centered aroundMadhya PradeshHis plan for establishing Mega Food Parks, agricultural export zones, and multi-modal logistics infrastructure. The smooth functioning of Mercamadrid is expected to become a historic example of cooperation for the state's agricultural industry," he mentioned in a post on X.

Yadav also highlighted the importance of a government-backed environment to shield farmers from falling prices during periods of high output, while also pointing out the opportunity for value-added processing to increase farmers' earnings and enhance export possibilities.

We are currently at Mercabarna inSpainA 250-acre campus where farmers not only vend their crops but also get assistance in handling excess harvests. We are optimistic that, as the irrigated area inMadhya PradeshAs production increases and farmers observe high crop outputs, we can implement a comparable framework. In this scenario, we have started ongoing initiatives to establish a favorable environment — a government-backed system that links different communities. When there is a surplus in supply, market prices usually decrease. To shield farmers from these price declines, we require systems that facilitate processing and enhance value where it is most essential," the MP CM stated.

Putting such a model into practiceMadhya Pradeshmight be a turning point — benefiting both farmers and the state's economy — creating strong business prospects inside India and in global markets," he added.

The MP Chief Minister will be remaining inSpainuntil July 19 as part of his trip. (ANI)

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Will AfCFTA Save Africa Amid Rising Tariff Conflicts?

By Vivian Kai LOKKO

The worldwide economy is preparing for additional upheavals as the United States escalates its protectionist approach. On Saturday, July 12, 2025, Washington introduced significant new tariffs—30percent charges on products from the European Union and Mexico, set to take effect in August. This comes after a series of comparable actions aimed at 23 other nations, such as Canada, Brazil, Vietnam, and Japan, with tax rates varying between 20percent and 50percent, along with an earlier declaration of 10percent for African countries.

Only in the EU, where one-fifth of its exports are directed towards the U.S., the consequences are immense. Although talks are still taking place with the aim of achieving deals before the August deadline, the ambiguity is already causing significant disruption in global markets. U.S. President Donald Trump's tough approach to trade, revived in April through warnings of mutual tariffs, has led to financial market instability, undermined investor trust, and introduced substantial uncertainty into corporate strategies around the world.

The unexpected and unanticipated rise in tariffs is not only putting pressure on diplomatic relationships but also increasing concerns about increased prices, loss of employment, and lasting harm to international trade. As the leading economies of the world prepare for the consequences, a key question arises for Africa: Will the African Continental Free Trade Area (AfCFTA) serve as its defense—or a chance that will be overlooked?

AfCFTA – Africa's Journey Toward Wealth and Growth

The AfCFTA goes beyond a mere policy deal—it represents Africa's largest economic integration effort so far. Aimed at establishing a single market for products and services throughout the continent, the AfCFTA offers potential for boosting industrial development, generating employment, and fostering long-term economic growth. Since its trade component officially began on January 1, 2021, the project has achieved significant achievements—yet the path to complete execution continues to be challenging and evolving. Among its key successes are;

• Signature & Ratification:By December 2022, 54 of the 55 African Union member nations had signed the AfCFTA, while 47 had officially approved the deal. Eritrea is still the sole nation that has not signed.
• Rules of Origin:Approximately 92.3% of tariff lines have completed discussions on Origin Rules—essential for identifying which products are eligible for preferential trade under AfCFTA.
• Guided Trade Initiative (GTI):Launched in October 2022, the GTI supports the seamless movement of products across borders and has expanded from 7 to 39 member states—effectively implementing the AfCFTA.
• Trade Growth:As per the African Trade Report 2025 from the African Export-Import Bank (Afreximbank), trade within Africa increased by 12.4 percent in 2024, reaching a total of US$220.3 billion—showing a significant recovery from the 5.9 percent decline observed in 2023—highlighting the agreement's strength despite global challenges.

Although there have been progressions, the AfCFTA is currently encountering its most significant challenge: dealing with the unstable conditions of increasing global trade conflicts. The declaration from the United States to apply a general 10% tax on imports from several African nations, including Ghana, in April 2025, caused widespread concern throughout the continent, as countries such as South Africa and Lesotho are set to experience further increases of 50%.

For Ghana, the increases might put crucial industries such as cocoa, textiles, and agriculture at risk. This not only jeopardizes export revenues but also weakens industrial competitiveness.

The consequences go further. Many African countries depend significantly on exporting raw resources. Changes in global demand or fluctuations in prices may disrupt their economic stability. Increasing trade conflicts create uncertainties that discourage foreign investment—especially in developing markets such as Africa.

African producers rely on imported equipment and materials, and new tariffs might increase manufacturing expenses, reduce profit margins, and affect consumer spending ability. In other words, the trade conflict highlights Africa's susceptibility to outside influences—and strengthens the argument for enhancing regional integration through the AfCFTA.

Why the AfCFTA is More Important Than Ever

Amid rising protectionist trends, AfCFTA provides Africa with a strategic defense and a strong platform for growth. By reducing internal tariffs and aligning trade regulations, it strengthens the continent's economic independence and shields it from global instability.

Gradual elimination of internal trade tariffs will also enhance the competitiveness of African products across borders. Streamlining regulations, minimizing bureaucratic procedures, and tackling customs inefficiencies will lower trade expenses. Although the AfCFTA has shown significant progress, it still faces substantial challenges—many of which stem from political reluctance and structural weaknesses.

As Mavis Owusu-Gyamfi, the CEO of the African Centre for Economic Transformation (ACET), highlighted at the 2025 Citi Business Forum, the main challenge is not an absence of funding but a shortage of political determination. “We sign the agreement,” she stated, “but when it's time to put it into action, we struggle.”

Throughout the continent, fragile logistics systems, poorly developed transportation infrastructure, and varying trade regulations still hinder the smooth movement of products. The goal of aligning regulations across 54 different economies is a huge challenge—one that is delayed by ongoing customs inefficiencies, excessive bureaucratic procedures, and administrative lags.

Persistent regional conflicts and unstable governance further hinder trade routes, erode investor trust, and diminish the confidence essential for comprehensive continental integration. Nevertheless, amid this challenging environment, there is a potential opportunity. The global tariff conflict, although disruptive, presents Africa with an opportunity to reassess, reconfigure, and advance.

Opportunities amid global disruption

The AfCFTA presents Africa with a unique and significant chance—not merely to endure, but to grow effectively. The continent's increasing importance in global politics is clear, as countries such as India, China, and Russia step up their involvement throughout Africa.

Africa's commerce with China has reached a new peak of $134 billion in the initial five months of 2025, whereas India's trade stood at $97.85 billion during the 2022/23 period.

Indian Prime Minister Narendra Modi, during his recent trip to Ghana on July 3, 2025, highlighted Africa's importance in defining the Global South and emphasized India's growing economic and commercial connections. India has become Ghana's fourth-largest supplier of imports, with trade reaching almost US$3 billion in the 2023/24 period.

In a similar manner, China—Ghana's leading import partner, which accounted for GHC 33.9 billion in imports in 2023—has increased its involvement, highlighted by the establishment of the China-Ghana Mining Association. These changes represent a significant opportunity for Africa to take a stronger stance through the AfCFTA.

By showcasing a cohesive stance, AfCFTA allows Africa to communicate with a single voice in international trade discussions, enhancing its ability to seek more equitable conditions and establish stronger alliances. The continent's large market, home to over 1.3 billion people, offers companies significant opportunities to expand beyond individual countries, opening up new economic areas across Africa.

As global companies look for more secure and varied locations for their supply chains, Africa's growing integration makes it a promising option for foreign investment. This change has the potential to boost local industries, helping the continent move from relying on raw material exports to focusing on manufacturing and industrial development.

Furthermore, a robust internal market diminishes Africa's susceptibility to external shocks, shielding its economies from the consequences of geopolitical conflicts. In a world fragmented by trade disagreements, Africa's neutral position provides a distinctive diplomatic advantage—creating an opportunity to secure improved infrastructure and development agreements from competing global powers.

As former Ghanaian Trade Minister Dr. Ekwow Spio-Garbrah recently stated: "For 34 years, we've had a shared goal that hasn't been achieved yet. A united Africa is our greatest opportunity for economic independence." The AfCFTA, if fully implemented, could represent that much-anticipated progress.

The road ahead

The AfCFTA is more than just a reaction to outside challenges—it represents Africa's comprehensive plan for sustained development. While the global community becomes more inward-focused, Africa needs to look within. By speeding up the adoption of AfCFTA, developing trade infrastructure, and fostering political support, Africa can thrive not in spite of the global trade conflict—but as a result of it. In an era of unpredictability, AfCFTA continues to be Africa's most direct route to economic strength and independently driven growth.

>>>the author serves as Head of News at Citi FM and Channel One TV. She also has expertise in business, finance, and economic reporting.

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IBES II Data Collection Launches in 2025

Dr. Alhassan Iddrisu (M), along with officials, attended the 2025 IBES II Data Collection launch

The Ghana Statistical Service (GSS) has formally concluded the training session for field officers and initiated the 2025 Integrated Business Establishment Survey (IBES II) data collection process, which is a detailed survey designed to gather information from more than 44,000 businesses nationwide.

The survey plays a vital role in national planning, assessing and updating the Gross Domestic Product (GDP), and gaining insight into production and business trends.

Data gathering started on July 10, 2025, and will keep going until all the establishments in the sample have been contacted. The final data is anticipated to be accessible by December 2025.

Speaking at the event, the Government Statistician of Ghana, GSS, Dr. Alhassan Iddrisu, highlighted that the survey is the 5^thunparalleled in the nation's history, following earlier iterations held in 1962, 1987, 2003, and 2015.

He mentioned that roughly 2,600 field officers have received training to gather information, which will contribute to national planning and decision-making processes.

He stated that the data gathered will contribute to creating improved business conditions and more effective policies, thereby assisting businesses and the country.

He emphasized that the survey goes beyond merely gathering information; it is about influencing how Ghana perceives itself and guiding choices throughout the development process.

"The information will act as a strong resource for companies, government officials, and interested parties to support well-considered choices," he stated.

Action Request for Field Officers

Dr. Iddrisu called on the field staff during the IBES II Data collection launch to maintain the highest levels of honesty, hard work, and professionalism throughout the data gathering process, by ensuring the accuracy and dependability of the data collected, safeguarding confidentiality and data security, showing respect and politeness to participants, and following ethical guidelines and procedures.

Additionally, he highlighted that the effectiveness of the survey is contingent upon the officers' discipline, meticulousness, and ethical conduct. Field personnel are required to maintain a sense of professionalism, adhere to their training, and uphold their commitment to confidentiality.

Additionally, Dr. Alhassan Iddrisu has urged the business community to work alongside field officers and supply the required information to ensure the survey's success, noting that, "the survey's success relies on the involvement and support of all parties concerned, including companies and individuals."

Media Support

Dr. Iddrisu, representing the Ghana Statistical Service, called on the media to take a vital part in backing the 2025 Integrated Business Establishment Survey (IBES II) by sharing the narrative, promoting awareness that data gathering is a valuable investment, clarifying the procedure, addressing false information, and maintaining public attention on the initiative.

He believes the media plays a crucial role in the development process, and their backing will be vital for the survey's success.

"Through collaboration, the GSS and the media can assist in highlighting the significance of data gathering and its function in guiding choices and fostering growth in Ghana," the Statistician stated.

Head of the Directorate for Business, Trade, and Industry, Dr. Owusu Kagya, provided an overview and summary of the main Guidance for IBES II Data Collection.

As per his statement, data quality monitors will be essential in verifying data, monitoring advancements, and enhancing precision and thoroughness. "IT personnel will be tasked with implementing data protection protocols, ensuring appropriate encryption, and conducting routine backups to protect the gathered information," he mentioned.

"Teams are required to achieve daily goals, consistently update progress charts, and inform immediately of any delays," he added.

The leader, therefore, urged all officers to pledge themselves to excellence and provide a survey that adheres to the most rigorous levels of precision and expertise, offering essential information for the country's growth.

By Janet Odei Amponsah

The post 2025 IBES II Data Gathering in Progress appeared first on DailyGuide Network.

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Taiwan's 2025 GDP Forecast: 3.05% Growth Despite Export Downturn

Taipei [Taiwan], July 18 (ANI): TaiwanIts economy is predicted to increase by 3.05 percent in 2025, backed by robustexportpositive momentum during the first half of the year, which is anticipated to slow down in the second half, as reported by the Chung-Hua Institution for Economic ResearchCIER), reported Focus Taiwan.

According to the report, CIER projected GDPgrowth is expected to slow to approximately 1.08 percent in the second half of 2025, compared to an estimated 5.17 percent rise in the first half.

The anticipated slowdownis linked to the lasting effects of Trump-era tariff policies and a high base effect from early 2025.

As per the news website,CIERstated that the first-half growth surpassed forecasts because international buyers increased their orders to evade US tariffs.

TaiwanThe technology industry also saw advantages from robust demand, especially fueled by AI-related developments.exports, the platform reported.

The Trump administration first introduced significant tariffs on April 2, featuring a 32 percent tax onTaiwanThese goods, prior to being suspended for 90 days beginning April 9, were intended to aid in trade negotiations.

CIER estimated Taiwan's exportgrowth is expected to slow down to 6.71 percent in the third quarter and drop further to 2.55 percent in the fourth quarter, marking a significant decrease from 20.29 percent in the first quarter and 27.12 percent in the second quarter.

For the entire year of 2025,Taiwan's exportThe organization stated that exports are projected to rise by 13.74 percent, while imports are anticipated to go up by 15.28 percent.

CIERPresident Lien Hsien-ming pointed out that although there are tariff obstacles,TaiwanIts power in artificial intelligence development is expected to maintain growth momentum through the second half of the year.

Lien also warned that the Trump administration could levy duties ranging from 15 to 20 percent onTaiwanThese goods due to strong business connections. He cautioned that increased tariffs could lead to higher inflation in the U.S. by increasing the cost of imports.

Private investment growth is projected to slow down each quarter during 2025, decreasing from 20.77 percent in the first quarter to 3.96 percent in the second, 2.31 percent in the third, and 1.69 percent in the final quarter.

CIERprojects private investments to increase by 7.03 percent this year, with fixed capital formation expected to rise by 6.60 percent to support the overall growthGDP growth.

Private spending is expected to rise by 1.57 percent in 2025, influenced by a strong base from the prior year.

While a stronger TaiwanThe dollar is anticipated to ease import price pressures, while recent natural disasters have increased food costs, and labor shortages have led to higher expenses in the service industry.

CIER expects TaiwanThe consumer price index is expected to increase by 1.89 percent in 2025, staying under the central bank's 2 percent warning level.

As the American currency declines in value,CIER forecasts the TaiwanThe dollar is expected to average NT$30.32 against the U.S. dollar in 2025, rising by 5.92 percent from 2024.

Looking ahead, CIER projects TaiwanThe economy is expected to expand by 2.48 percent in 2026, as per the projections mentioned in the report by Focus.Taiwan. (ANI)

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Currency Value Rise: Trends, Causes, and Impacts on Business, Banking, and Consumers

By \xa0National Banking College

Fluctuations in exchange rates play a vital role in maintaining macroeconomic stability in Ghana. In the past, the Ghanaian cedi has experienced continuous decline because of issues like long-term trade deficits, financial instability, rising inflation, and unfavorable international economic situations.

For instance, the cedi declined by almost 24% in 2024, ranking it as the fourth weakest currency in West Africa that year, as stated in the World Bank Africa Pulse Report (April 2025).

Nevertheless, 2025 has seen a significant recovery. The cedi emerged as the top-performing currency globally in the second quarter of 2025, rising by roughly 30–40% from April to June 2025, recovering from a low of GHS 15.56/USD in early April to approximately GHS 10.28/USD by June (Reuters, 2025, S&P Global, June 2025).

Grasping the reasons for the cedi's recent strengthening and its wider macroeconomic effects is crucial for businesses, financial organizations, government officials, and individuals. Although a stronger cedi may lower import costs, alleviate inflation (which dropped to 18.4% in May 2025, the lowest since 2021), and boost real earnings, it can also:

• Erode export competitiveness,
• Reduced amount of money sent back in local currency,
• And impact bank balance sheets, particularly those with exposure to foreign currency positions.

This piece offers an in-depth look at the recent rise in the value of the cedi. It explores the factors behind this movement, emphasizes effects on different sectors, and presents important policy suggestions to help stakeholders react appropriately and maintain stability in a changing currency scenario.

Currency Exchange Patterns in Ghana

Fluctuations in exchange rates continue to serve as a key measure of Ghana's macroeconomic stability, affecting inflation, international trade, and investment patterns. From December 2022 to June 2025, the Ghanaian cedi faced considerable instability compared to the US dollar, British pound, and euro, indicating both external influences and domestic policy actions.

By the end of 2022, the cedi began to show signs of recovery after a challenging final quarter. The official interbank exchange rates stood at GHS 10.03 per US dollar, GHS 12.24 per pound, and GHS 10.62 per euro in December 2022. These rates indicated a slight improvement from earlier months, mainly due to actions taken by the Bank of Ghana and a seasonal increase in foreign currency availability.

In early 2023, the cedi saw additional improvements. By January, the currency slightly increased to GHS 9.91 per USD, while staying stable at GHS 12.13 per GBP and GHS 10.70 per EUR. However, this pattern changed gradually starting in February. Throughout 2023 and into early 2024, the cedi encountered renewed challenges, caused by delays in donor funding, increased import demand, and global monetary tightening. By March 2024, interbank rates had declined to roughly GHS 12.67 per USD, GHS 16.11 per GBP, and GHS 13.78 per EUR.

The most notable period of devaluation for the cedi took place from April to October 2024. In this phase, the exchange rate reached a high of GHS 15.99 per dollar, GHS 20.86 per pound, and GHS 17.42 per euro, indicating the severity of the pressure on all three major currencies. The greatest declines were seen against the pound, due to its strength compared to the dollar and euro, as well as Ghana's trade and remittance links with the UK.

Indications of recovery started to appear in November 2024. By December, the cedi showed a slight increase, reaching GHS 14.78 per USD, GHS 18.69 per GBP, and GHS 15.47 per EUR. This improvement gained momentum during the first half of 2025, particularly in the second quarter. From April to June, the cedi saw a significant rise, dropping from GHS 15.22 to 10.28 against the dollar, and from GHS 19.98 to 13.96 against the pound. A comparable pattern was noted against the euro, as the exchange rate increased from GHS 17.09 to 11.86 during the same time frame.

These variations demonstrate the cedi's responsiveness to both local and global factors. A comparative analysis of monthly exchange rate changes among the three currencies is shown in Figure 1, emphasizing the alternating phases of decline and increase over the 31 months.

Figure 1: Fluctuations in Currency Exchange Rates in Ghana

Source: https://www.bog.gov.gh/economic-data/exchange-rate/

Comparison of Regional Currency Performance Against USD

Provided by SyndiGate Media Inc. (Syndigate.info).

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Editorial: Tackling Ongoing Energy and Cocoa Challenges

Ghanaian officials are being called upon to firmly tackle ongoing issues in the energy and cocoa industries as part of initiatives to maintain the nation's continuous financial policy adjustments under the US$3 billion IMF assistance program.

This announcement follows the IMF's Executive Board approving the fourth review of its Extended Credit Facility (ECF), releasing an additional payment of US$367 million.

The economy experienced higher-than-anticipated growth in 2024 and the beginning of 2025, driven by strong performance in mining, agriculture, ICT, and manufacturing. Nevertheless, the main program's effectiveness declined towards the end of the previous year because of fiscal overspending before the election and postponements in structural reforms.

Early data indicated a significant increase in unpaid government debts before the December 2024 general elections, as inflation exceeded IMF projections. The indicator ended the year at 23.8 percent – 80 basis points higher than the prior period and more than twice the Bank of Ghana's desired maximum threshold.

Despite the obstacle, the new administration has implemented what the IMF referred to as "courageous corrective measures." Bo Li, Deputy Managing Director of the IMF, noted that officials are firmly dedicated to reinstating financial discipline and tackling the structural issues that caused the setbacks.

"Strongly tackling issues within the energy industry and associated unpaid bills is essential for limiting financial dangers," he said.

There is no doubt that the energy sector remains a major strain on public funds. State-run electricity companies are experiencing increasing unpaid bills because of problems with collecting revenue, old debts, and delays in adjusting tariffs to reflect actual costs.

The power sector is estimated to have accumulated debts of US$3.1 billion as of March 2025, with an estimated US$3.7 billion required to fully clear all outstanding arrears. Indeed, analysts think the situation presents a direct threat to the fiscal consolidation goals set out in the rescue program.

Likewise, the cocoa industry is facing challenges even though the price of the commodity has reached record levels. Global cocoa prices saw extreme fluctuations, reaching a high of more than US$10,700 per tonne in the first quarter of 2025 because of significant supply issues resulting from adverse weather conditions and disease outbreaks in Ghana and Côte d’Ivoire.

This represented a 60-year peak, fueled by concerns over an increasing global cocoa shortage. Nevertheless, prices are starting to decrease slowly – dropping to approximately US$8,400 per tonne. Elements like old trees, disease occurrences, smuggling into nearby nations, and worldwide price fluctuations have limited income from one of Ghana's major export products.

Nevertheless, although authorities are making every effort to restore macroeconomic stability, the IMF's statement of concern and caution directed at the government regarding its management of the cedi's stability deserves consideration.

The Institute for Economic and Research Policy Promotion (IERPP) agrees with the IMF's stance and additionally shows support for it.

During its fourth review under the Extended Credit Facility Agreement with Ghana, the IMF's Executive Board raised worries regarding the government's practice of injecting foreign exchange to prop up the cedi against major currencies, rather than letting market forces dictate the local currency's strength.

Even though the Bank of Ghana needs to keep a sufficiently strict monetary policy until inflation reaches its goal, it should lessen its involvement in the foreign exchange market and permit more exchange rate flexibility.

In a statement signed by its Executive Director, Prof. Isaac Boadi – who also serves as Dean of the Faculty of Accounting and Finance at UPSA – the IERP mentioned that it provided a comparable warning to the government, but its recommendations were ignored.

The IERPP noted that although this could make the currency appear stable in the short run, it misleads market conditions. Indeed, the IERPP criticizes the BoG for conducting its market activities in an arbitrary and unclear way.

A constructive exchange between the central bank and research institutions such as the IERPP regarding economic policy is essential; this lack of communication, we believe, is concerning—particularly since the IERPP claims that the BoG and the government clearly ignore both IMF and IERPP recommendations.

It would be beneficial if the central bank issued a statement to tackle these valid worries, as such actions frequently result in ambiguity and guesswork. We ought to let the currency rate be determined by real market conditions.

Provided by SyndiGate Media Inc.Syndigate.info).

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AGOA's Decline: Reimagining AfCFTA as Africa's Growth Catalyst

By Kwame Asante (Director of Executive, Structured Solutions Development, Cash, Standard Chartered Bank)

The African Growth and Opportunity Act (AGOA), a significant U.S. trade program introduced in 2000, is now encountering an uncertain path as renewal talks are delayed in Washington. Should it not be extended, this would signify the conclusion of a 20-year preferential trade arrangement that has influenced economic ties between Africa and the U.S., especially within industries like textiles, farming, and light industry.

The greatest effect would be experienced by countries such as Kenya, South Africa, Ghana, and Nigeria, which have utilized AGOA to expand their exports and draw in investments.

The AGOA offers duty-free entry into the U.S. market for more than 6,500 items from 35 qualifying sub-Saharan African nations. It has encouraged export-driven growth, employment opportunities, and industrial development, particularly within labor-heavy sectors.

Upcoming Turbulence: What's on the Line

In Kenya, the clothing industry has received the main advantage from AGOA, with more than 90% of fabric exports heading to the United States. The initiative provides around 58,000 direct employment opportunities, mostly occupied by women in export processing zones. Without AGOA, these companies are at risk due to increasing tariffs and reduced competitiveness.

South Africa, home to one of Africa's most varied economies, has leveraged AGOA benefits to boost exports of agricultural products like citrus fruits and wine, along with vehicles and manufacturing items. Losing AGOA would reduce export revenues, limit employment opportunities, and interfere with supply networks that aid the larger Southern African Development Community (SADC) region.

Ghana and Nigeria have also utilized AGOA to boost non-traditional exports. Ghana's clothing exports and agricultural products like yams, pineapples, and cocoa-related items have secured a steady market through the program. Nigeria, which previously depended heavily on oil exports under AGOA, has made progress in developing its light manufacturing and food processing industries. These achievements are now in jeopardy.

In addition to the figures, ending AGOA would mark a step back in Africa's efforts to develop its industries, generate employment, and achieve inclusive economic growth. It would also hinder progress in establishing robust supply chains throughout the continent.

AfCFTA: A Key Shift for Strength

The African Continental Free Trade Area (AfCFTA) presents a different approach, moving the focus from external preferences towards creating a strong, unified African market. By bringing together 54 nations with a total population of 1.4 billion and a GDP of $3.4 trillion, AfCFTA seeks to increase trade within Africa, which currently stands below 17%, in contrast to over 60% in Europe and Asia.

At its foundation, AfCFTA aims to strengthen regional value chains. Instead of exporting raw resources, African nations can work together to create final products, boost industrial strength, and increase job opportunities. Important industries like textiles, processed foods, automotive parts, and medicines, which once gained advantages from AGOA, can now be focused on meeting rising demand within Africa.

Furthermore, AfCFTA offers a structure for Africa to engage with international partners from a stronger stance. It highlights the continent's goal to shape its trade policies around common prosperity, self-reliance, and coordinated strategies.

Progress and Priorities

The AfCFTA rollout has achieved considerable progress:

• All 54 nations belonging to the African Union have signed the accord, with 49 having approved it.
• The Guided Trade Initiative, introduced in 2022, is facilitating commerce in accordance with AfCFTA regulations, showing encouraging initial outcomes.
• Four key industries — Agro-processing, Pharmaceuticals, Automotives, and Transportation & Logistics — have been identified for regional value chain development.
• Agreements concerning Products and Services, Investment, Competition Rules, Intellectual Property, and online trade have been discussed and approved.
• Tariff schedules and origin rules now apply to 92% of goods exchanged. Textile and automotive regulations are almost finalized.
• The Pan-African Payment and Settlement System (PAPSS) is now active, linking more than 20 central banks and 160 commercial banks to facilitate transactions in local currencies.
• Seven countries now allow African citizens to enter without a visa, while 24 provide electronic visas.
• An AfCFTA Adjustment Fund, which includes a Base Fund (for technical support), General Fund (for trade infrastructure), and Credit Fund (for enhancing the capabilities of SMEs and the private sector), has been introduced to assist nations in transitioning and investing in trade-supporting systems.

These advancements go beyond mere policy successes, marking essential progress toward a new regional economic system.

To quicken progress, officials should concentrate on:

• Completing the alignment of customs procedures, digital trade frameworks, and product regulations.
• Funding developments including ports, transportation routes, and distribution centers.
• Allowing small and medium-sized enterprises, which constitute more than 80% of African businesses, to enter formal markets, obtain financial support, and meet certification requirements through the AfCFTA.

Implications for African Businesses

The AfCFTA offers a significant chance for businesses to thrive. It provides entry into a market that is becoming more open across 54 nations, presenting larger opportunities and fresh consumer groups. Lower tariffs, easier origin rules, and improved transportation networks make trading between countries more practical and less hazardous.

To benefit, companies must:

• Sign up with the national AfCFTA secretariats.
• Adhere to the certification and origin regulations.
• Place themselves in a favorable position to engage with local supply networks.

Pioneers, especially within manufacturing, transportation, and agricultural processing, are positioned to achieve a competitive edge as the trade environment evolves.

How We Can Help

With a 150-year history on the continent, Standard Chartered is actively helping clients manage and gain advantages from AfCFTA. We offer:

• Availability of funding and online commerce and cash systems.
• Policy recommendations and strategic guidance on AfCFTA; and
• Services designed to assist companies in expanding across regions.

Our objective is to link clients with emerging growth areas, facilitate the movement of capital, and promote equitable trade throughout Africa.

Final Thoughts: Africa at a Critical Turning Point

The possible termination of AGOA signifies a crucial turning point in the economic ties between Africa and the U.S. However, instead of perceiving it as a disadvantage, it should be regarded as an opportunity for autonomy. The AfCFTA offers a framework to shape a new story, focused on growth driven by African initiatives, trade within the continent, and the development of regional value chains and integration.

The necessary policies and tools have been established. The goal is evident. What is left is unified action. Government officials, companies, and development allies need to collaborate to ensure AfCFTA becomes more than a trade deal, but a powerful driver of growth across the continent.

Africa is entering a new era of trade, this time according to its own conditions.

Provided by SyndiGate Media Inc.Syndigate.info).

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The BRICS Dilemma: Growing Power, Slow Gains

Despite internal conflicts and a lack of strong leadership affecting the events, this week'sBrics summit in Brazilconveyed a clear message: the world's developing economies are determined to define their own future, aiming for agreement where there was previously only Western control.

In a joint statement released on Sunday, leaders of Brics nations expressed concerns about the risks to the global economy from the "unselective" application of tariffs and the "increase in trade-limiting measures" — subtle hints at the US President.Donald Trump'unique approach to trade policy - while also criticizing the latestU.S. and Israeli military attacks on Iran.

The group of 10 members - featuring founding countries like China, Russia, and India, along with recent additions such as Iran, Egypt, and Indonesia - currently encompasses almost half of the global population and contributes approximately 40 percent of the world's economic output.

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Developed two decades ago as a platform for quickly growing economies, Brics has transformed into what many now see as a Chinese-dominated alternative to the Western system.

The examination is whether the classification aligns on significantly more than it diverges.

Sarang Shidore, director of the Quincy Institute's Global South program

Experts highlight Sunday's joint statement as proof that Brics may still evolve into "a competing framework to a US-dominated global system," while warning that the alliance's increasing variety poses its biggest obstacle.

"The test lies in whether the grouping agrees on significantly more than it disagrees regarding the items on its agenda," said Sarang Shidore, director of the Global South programme at the Quincy Institute, a Washington-based think tank. He noted that Brazil has demonstrated considerable diplomatic ability in facilitating agreement on both the bloc's condemnation of attacks onIranand the summit's concluding statement, despite the internal disagreements that came with Brics' swift growth.

One of the bloc's most sensitive agreements came in its demand for a peaceful two-state resolution to the Israel-Palestine dispute. Although Iran has consistently argued thatIsraelshould be destroyed, an Iranian diplomatic source cited by Agence France-Presse stated that Tehran's "concerns" had been communicated to Brazil, although it did not go as far as rejecting the joint statement.

To be regarded with seriousness, Brics needs to go beyond words, enhance its internal unity, and produce "measurable external influence," as stated by Mihaela Papa, a senior research scientist at the MIT Centre for International Studies.

"Some leaders chose not to participate or were hesitant to join the summit," she said during an interview with This Week in Asia, pointing out ongoing disagreements regarding reforms to the UN Security Council and the lack of consistent support among nations during emergencies.

Nevertheless, Papa acknowledges the bloc for fostering agreement on development finance, global health, climate change, and artificial intelligence: "issues where the Trump administration's involvement in multilateral efforts has decreased."

"If Brics demonstrates greater commitment, its reputation will increase," she stated.

'A Russo-Chinese duopoly'?

Chinese President Xi Jinpingwas notably absent from this year's Brics summit - the first time he has missed since coming into power over a decade ago - with PremierLi Qiang attending instead.

Russian President Vladimir Putin, being sought by the International Criminal Court for the 2022 incidentinvasion of Ukraine, was also notably missing. As a party to the Rome Statute, host country Brazil would have been required to execute an arrest.

Although there are these gaps and varying perspectives, the impact of Brics remains widespread.

"Brics is becoming the most significant link for an alternative framework to the US-dominated system — not anti-American, but still involved in areas where the US is increasingly absent," Shidore stated, highlighting development finance, protecting the multilateral trading system, and increasing access to health and climate solutions.

However, the group's tangible accomplishments are limited, primarily focused on theNew Development Bank, which supports infrastructure and sustainable development throughout the Global South. "A group as varied (as Brics) will require more time and a clearer focus to enhance its provision of solutions in a world that is becoming more divided," Shidore remarked.

The establishment of a Brics "guarantee fund" aimed at reducing financing expenses and drawing additional private investment into important development initiatives—rumored to be under consideration—would highlight "the kind of prompt, solution-oriented action that many emerging economies increasingly perceive as lacking in G7 or NATO processes," noted Jamil Ghani, a doctoral student at Singapore's S. Rajaratnam School of International Studies, whose areas of research include foreign policy.

However, demands for more inclusive governance continue. Brazil has encouraged the New Development Bank to expand its rotating leadership beyond the five original Brics members— a step that Jamil stated would "help eliminate the image of a Russo-Chinese partnership and make Brics more appealing to Asean countries."

As long as Brics continues to push for moving away from the dollar, it will stay on his (Trump's) list of concerns.

Mihaela Papa, an expert in international relations

The United States is also increasing the pressure. Earlier this week, Trump warned thatany country implementing "anti-American strategies"engaging with Brics would encounter a 10 percent tax on exports to the United States — the initial instance where an American president has directly highlighted Brics as a collective. "As long as Brics continues its efforts to reduce reliance on the dollar, it will stay in his focus," Papa mentioned, alluding to the group's goal of shielding its economies from Western sanctions and trade conflicts.

Ghani mentioned that Trump's warning probably would push new Brics members like Indonesia, Egypt, and the UAE to consider the advantages of expanding their economic portfolios versus the potential dangers to their access to the US market.

He forecasts that the outcome will likely be a collection of subgroups within Brics - progressing at varying rates on topics like e-customs, local-currency transactions, and AI regulations - instead of a single, cohesive approach.

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This piece was first published in the South China Morning Post (www.scmp.com), a top news outlet covering China and Asia.

Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.

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Chinese Entrepreneurs in the U.S. Discover the American Dream's Harsh Reality

With the US using tariffs to try to bring manufacturers back, an unpredictable trade policy, a contentious immigration enforcement strategy, and declining consumer demand have dimmed the appeal of the American dream for some Chinese investors currently in the country.

On Monday, President Donald Trump delayed the launch of a new set of his so-called mutual tariffs – which were initially scheduled for July 9 – moving the implementation date to August 1. His recent actions includetariffs as high as 40 percent on goods coming from 14 nations- several of which are closely allied with China in trade, such as Japan, South Korea, Laos, and Kazakhstan.

From the beginning of his tenure, Trump has used tariffs as a central tool to revitalize American manufacturing, increase jobs for blue-collar workers, and reduce the trade deficit. However, this approach is causing difficulties for investors like Peter Wang, who established a mobile-phone-repair factory in Dallas, Texas, in 2002.

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"Trump's tariffs have definitely attracted more American customers to us - but they still want the speed and low costs associated with Asian factories, and that's simply not feasible in the US," said Wang, whose plant employs over 200 workers and is currently operating at a break-even point.

When American customers wish to test new products, Chinese manufacturers can quickly adapt - they are flexible, involved, and willing to make it happen," he said. "In the US, an entire production line can come to a halt simply because the system isn't properly configured.

Trump aims to repatriate manufacturing, yet his advisors appear unaware of the actual workings of the supply chain.

Peter Wang, Texas

The U.S. customs and tax systems do not provide any viable solutions. If I have to incur such high expenses, why would I consider moving production to the U.S.?" he stated, adding that he continues to obtain raw materials from Asia, albeit at a higher cost. "Trump aims to bring manufacturing back, but his advisors appear not to grasp how the supply chain truly functions.

Trump has positioned bringing manufacturing back as a core element of his economic strategy since his initial term, and this year's global tariff initiative has further advanced that goal.

Nevertheless, not all individuals perceive it as a complete loss, highlighting the increased prospects they recognize for local suppliers in the downstream sector.

"Materials sourced from Asia are becoming more expensive, leading more local businesses to opt for domestic suppliers — which is actually helping many smaller American suppliers further down the supply chain," Wang stated.

As per the US Bureau of Economic Analysis, manufacturing contributed $2.9 trillion to the economy in the first quarter of 2025, representing a 0.6 percent rise compared to the same period in the previous year, highlighting its significant role in the economy after finance, business services, and government.

US manufacturing activity indicated a recovery in the previous month, as the Institute for Supply Management's Purchasing Managers' Index increased to 49.0 in June compared to 48.5 in May.

Certainly, Trump implemented corporate tax reductions - but his approaches are extremely erratic

Mr Zheng, investor

Evan Gu, a mattress producer, moved his modest factory from Guangdong province to the San Francisco Bay Area in 2018 in order to escape tariffs implemented during Trump's initial term. He allocated $200,000, and the relocation was completed within two months.

Although existing tariffs have not affected Gu's supply chain or his 12 employees, he notices a different form of pressure emerging.

"From what I've heard from my customers and others, many of them report that their buying power has decreased by 30 to 40 percent, and it seems like no one is willing to spend money anymore, as they are facing much higher prices due to the tariff increase," Gu said.

Mr. Zheng, a Chinese investor who established an automotive components factory in Texas in 2023, believed he was following the guidelines—doing precisely what the US encouraged by bringing manufacturing back to the country. However, even this has not protected him from increasing scrutiny.

When Trump initially introduced the 25 percent tariff in 2019, we thought about relocating from the Yangtze River Delta, but the pandemic put our plans on hold," he stated, speaking under the condition of anonymity. "Later, in 2024, just after the factory was finished, Biden announced a new set of tariffs.

And now, the immigration policies during Trump's second term have made things even more challenging, Zheng stated.

Mexicans put in a lot of effort but are compensated well below the local minimum wage," he stated. "And now, they must also be concerned about ... the large-scale deportation wave.

Indeed, Trump implemented corporate tax reductions – but his policies are extremely unpredictable. We invest two weeks in training an individual, and just as they become productive, immigration intervenes and removes them. How can we make long-term plans under such circumstances?

(Texas) is hoping that residents will take initiative and establish factories. However, most Americans are not showing interest.

Evan Hu, manufacturer constructor in America

The U.S. Bureau of Labor Statistics stated in May that approximately 414,000 positions in manufacturing were available, marking a small increase from 392,000 in April, as persistent labor shortages continue within the industrial sector.

Evan Hu, a factory developer based in Texas, mentioned that his business was once thriving — but that has changed. Since last year, he has been receiving questions from Chinese companies operating in areas like semiconductors, electric vehicles, and solar energy, all interested in starting operations in the state.

Four factories are currently operational under his leadership, with three additional ones in progress. However, he mentioned that increasing policy challenges are beginning to slow the momentum.

Last year, Chinese investors were waiting in line to inquire about establishing factories," Hu said. "But since Texas passed thatland-restriction law(last month), interest plummeted in the second quarter.

The legislation was enacted on June 20, introducing significant limitations on property ownership by individuals and organizations from specified nations, such as China, Iran, North Korea, and Russia. The law becomes active on September 1, prohibiting Chinese investors from purchasing land or long-term assets within the state.

The government is counting on residents to establish factories," Hu stated. "However, most Americans aren't showing interest - building factories is extremely expensive here, and they're not keen on taking such a significant risk.

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This piece was first published in the South China Morning Post (www.scmp.com), a top news outlet covering China and Asia.

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How Tanzania Can Forge Homegrown Dollar Billionaires

Dar es Salaam. Tanzania is being encouraged to implement deliberate economic policies aimed at creating dollar billionaires and enhancing its global economic influence. According to a new wealth report, the country currently has only one dollar billionaire and a limited number of high-net-worth individuals. The Africa Wealth Report 2023 indicates that Tanzania has 2,400 individuals with a net worth exceeding $1 million. Out of these, only six have assets above $100 million, while the country has just one billionaire despite being the second-largest economy in East Africa. Also read: 435 Tanzanians join the billionaires' club - The Citizen Tanzania While the number of millionaires has risen by 20 percent over the past decade, economists believe this figure could be much higher if the country had strategic policies to support fast-growing local investors capable of expanding into international markets. "The government could significantly boost some of our wealthy entrepreneurs by matching or even partially matching their capital. That alone could reduce our reliance on imports," said Dar es Salaam-based entrepreneur Amina Salum. Experts cite the United States and China as examples of countries that have used state support to create global economic powerhouses. In 2024 alone, the US government allocated over $180 billion in subsidies to domestic companies. Firms such as Boeing, Intel, Amazon and Tesla have benefited from subsidies, tax exemptions and government-backed loans to support research, manufacturing and exports. Such policies have enabled the US to remain a global tech leader, create millions of jobs and use multinational corporations as ambassadors of national influence. China, through institutions like the China Development Bank, has extended low-interest loans and subsidies to companies such as CCCC and China Railway Engineering Corporation, enabling them to execute infrastructure projects across Africa and Asia. Backed by their government, these companies have expanded aggressively, securing contracts in many countries, strengthening China’s global economic influence. Level playing field no longer enough Tanzania has long promoted a “level playing field” approach for all businesses. But analysts say this neutral policy risks holding back local firms with the potential to create wealth and export influence. "Tanzania needs a strategy to support businesses that have proven capacity to create jobs, grow exports and increase tax revenues," said Prof Abel Kinyondo, an economist at the University of Dar es Salaam. He said targeted support could include direct financial subsidies, time-limited tax relief to reduce operating costs and credit guarantees to help companies access large-scale capital. "Strategic preferential treatment works. Ethiopia is already applying it in aviation. Their national airline is now among the best in Africa because it enjoys specific government support," he said. Prof Kinyondo emphasized the need for strong oversight and transparency, saying only experienced, high-performing entrepreneurs should be considered for such support. Another economist, Prof Dickson Pastory of the College of Business Education, said empowering local investors can also enhance national security by reducing dependency on external suppliers for essential goods. "For crucial sectors, supporting domestic production guarantees supply. It also improves Tanzania’s competitiveness in the global economy," he said. While financial subsidies may be challenging for developing countries, Prof Pastory said tax exemptions could achieve similar results. "Reducing tax burdens allows businesses to expand and create more jobs, ultimately boosting national GDP," he noted. BoT support mechanisms already in place The Bank of Tanzania (BoT) has on several occasions expressed willingness to support local businesses through the Export Credit Guarantee Scheme (ECGS) and the SME Credit Guarantee Scheme (SME-CGS). These aim to help private-sector players with bankable projects access financing even when they lack sufficient collateral. In June 2023, at the height of the dollar shortage, BoT governor Emmanuel Tutuba said the central bank had taken steps to encourage domestic production and promote import substitution. He said the BoT board had visited several strategic sites to assess opportunities to boost exports and foreign exchange earnings. "We wanted to know what investors need to scale up production and exports, especially in terms of financial support." Provided by SyndiGate Media Inc. (Syndigate.info).

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