Barter Trade in Ghana

• Barter trade is the exchange of goods and services with other goods and services without the exchange of money. This exchange is negotiated and is reciprocal between the two parties. Once the two parties agree to trade, the goods and services are exchanged immediately.
• In some cases, barter trade is used as a means of trading goods and services to keep a country that is ailing economically running.
• Note that the terms of the barter trade must always be agreed on before the exchange takes place.

Below are some facts about barter trade in Ghana.

1. Ghana has had barter trade agreements over the years, with several East European countries, Cuba and China.
2. In the past, Ghana has paid for imports of goods and services from these countries with cocoa.

Ghana – China Barter Trade

• In late 2019, China and Ghana signed a US$ 2 billion barter deal, in which China agreed to provide Ghana with infrastructure (roads and bridges) and development grants, in exchange for the proceeds for the sale of bauxite ore. The infrastructure was to be provided by China’s Sinohydro Corporation Ltd.
• Bauxite is mined in the Atewa Forest Reserve, close to the source of three major rivers in the region. It is found in the topsoil and is extracted using the strip mining method. Bauxite is used in the production of aluminum, which is in turn used to make aircraft parts, kitchen utensils, etc.
• Both countries stood to gain from this deal. China would get access to all the proceeds of the Bauxite that Ghana produces, in return for a foreign currency-free way to fund Ghana’s infrastructural projects.

Ghana – Cuba Barter Trade

• Ghana was the first country in Africa to re-establish diplomatic ties and the first country to start trading with Cuba.
• Cuba started barter trade with Ghana in 1985 and then revised the trade protocols in 1987 and 1988. Since then, these trade protocols have been revised several times.
• Cuba offers technical training in Ghana for Ghanaian students in the fields of engineering, architecture, and medicine. In addition, several Ghanaian students go to Cuba every year to study medicine and other science-related courses.
• Ghana has in turn partnered with Cuba to set up a first-class tourist resort at Ada and the Ghana-Cuba construction company, among other ventures.

The summary above gives some insight into barter trade in Ghana. With time, Ghana’s successful barter trade record with Cuba and China will catch the attention of other countries that would want to engage in the same kind of trade.