The International Monetary Fund (IMF) Country Representative Albert Touna Mama, has warned that Ghana could face revenue shortfall if it starts the implementation of the African Continental Free Trade Agreement this year.
The IMF maintains that although the agreement will boost trade on the continent, it will affect earnings and employment opportunities in some sectors of the economy.
The Agreement will among other requirements enable countries that are signatory to the agreement to access a market of 1.2 billion people with a combined GDP of 2.5 trillion dollars.
The benefit notwithstanding, the IMF has warned that Ghana would lose revenue due to requirements to reduce and scrap some tariffs.
The effect of this, will include the influx of foreign goods on the Ghanaian market with a trickle-down effect on local manufacturers.
The Fund believes that although the Continental Free Trade agreement will boost trade significantly, the move will benefit some industries and hurt others, therefore policy makers must consider structural reforms to improve agricultural productivity and strengthen the competitive advantage of the other economies.
