2This publication is for informational purposes only andis meant to be purely educaitonal. While our objective isto provide useful, general information, KPMG and otherparticipants to this publicaiton make no representationnsor assurances as to the accuracy, completeness, ortimeliness of the information.The information is providedwithout warranty of any kind, express or implied. Thispublicaiton does not constitute an offer, solicitation,or recommendation for the sale or purchase of anysecurity, product, or service. information, opinions andviews contained in this publication should not be treatedas investment, tax or legal advice. Before making anydecision or taking any action, you should consult aprofessional advisor who has been informed of all factsrelevant to your particular circumstancesDISCLAIMER
3PrefaceWe are pleased to present you with our publication Doing Business in Ghana which presents a succinct guideDoing Business in Ghana which presents a succinct guideDoing Business in Ghanafor investors coming into the country, and a glimpse of Ghana for the local entrepreneur and our internationalclients.As an investor, you are interested in clear and concise information. You have in this document currentinformation that will be of interest to anyone who wants to invest in a growing economy, like ours. In thisguide, the potential investor is given specifics about Ghana’s infrastructure, political and economic climate,potential areas of interest for investors, business start-ups in Ghana, including helpful information ranging fromprocedures to follow to permits that are required, as well as information on ways to obtain them. There is alsoan important section on the Ghana tax system which includes many tax incentives the Government of Ghanaextends to investors.We hope you enjoy reading our guide and find it most useful . If you have any questions please contact us firstname.lastname@example.org. We also encourage you to visit our website: www.kpmg.com.gh where you will find all thisinformation and much more.KPMG13 Yiyiwa DriveAbelenkpeP.O. Box GP 242AccraJuly 2012
4SourcesAfrica Research BulletinAfrican Development BankAngloGold Ashanti Annual ReportBank of Ghana – Central BankBloombergBusiness and Financial TimesBusiness Monitor InternationalCentral Intelligence Agency – The World Fact BookDaily GraphicEngineering and Mining JournalEuropean CommissionFirst Group Website 2012 Trading EconomicsGhana Business NewsGhana Investment Promotion CentreGhana National Communications AuthorityGhana News AgencyGhana Revenue AuthorityGhana Stock ExchangeGhana Tourist BoardGhana WebGovernment of Ghana WebsiteIMF World Economic Outlook DatabaseInternational Monetary FundInternational Telecommunication UnionReutersStandard & Poor’sThe EconomistThe Ghanaian TimesThe Wall Street JournalUNCTAD World Investment ReportUS Department of StateUS Geological SurveyUSAIDWikipediaWorld Bank Website
5ContentsAbout Ghana 2Location 2Climate 2Vegetation 2Drainage 2Population 3Ethnic Groups 3Education 3Government 3Judiciary 4Membership with other organizations 5The Economy 6The Macroeconomic Environment 6Employment 7Foreign Direct Investment 8Inflation and Interest Rates 9Infrastructure 9Transport 9Energy 10Mobile Telephones 10Television and Radio Stations 10Markets for Investors 11Export Earnings 11Export Partners 12Imports 12International Reserves 12Sector Information 13Agriculture, Agro-processing, Forestry and Fishing 13Banking and Finance 15Minimum Capital Requirement 16National Switch 16Bills of Exchange Act 17National Biometric Switch 17Automatic Clearing House 17Central Securities Depository 17Ghana Interbank Payment and Settlement System 17Credit Reporting Act 18Other Key Issues 18Capital Markets 18Demutualization 18Automation 18Energy Sector 19Power Generation 20Hydropower 20Renewables 20Thermal Power 21Osagyefo Power Barge 22Private Sector Initiatives in the Energy Sector 22Upstream Oil and Gas Prospects 22Downstream Developments 23Institutional Development: Establishment of Petroleum Regulatory Authority 23Investments In The Energy Sector 23Information Communication andTechnology 24
6Sector Overview 24The Market 24Market Trends 25Investment Opportunities 25Real Estate Development 26Industry Structure 26Residential Properties 27Affordable Housing Project 27Commercial Properties 27Industrial Properties 28Recreational Properties 28Construction Finance 28Home Purchase Finance (Mortgage Market) 28Tourism 28Festivals 29Forts and Castles 29Museums and other Attractions 29Beaches and Lake Resorts 29Water Falls 30National Parks and Gardens 30Other Tourist Attractions 31Lodges and Hotels 31Potentials of theTen (10) Regions 32The Ashanti Region 32The Eastern Region 32The Brong Ahafo Region 32The Central Region 33The Greater Accra Region 33The Northern Region 34The Upper East Region 35The Upper West Region 35The Volta Region 36The Western Region 36Investment and Legal Framework 37Why Do Business in Ghana ? 37Starting a Business in Ghana- Process, Time and Cost 37Domestic Laws 37Investment Legislation 38Investment Procedures 38Registrar General’s Department 38Ghana Investment Promotion Centre (GIPC) 38Ghana Immigration Service 39Ghana Revenue Authority (GRA) 39Environmental Protection Agency (EPA)Free Zones Act 39Petroleum Commission 40Ghana National Petroleum Corporation (GNPC) 40Investment Procedure 41Expatriates 41Ghana’sTax System 43CorporateTax 43Withholding tax 43Capital GainsTax 43Value AddedTax /National Health Insurance Levy 43
8Ghana in BriefOfficial name: Republic of GhanaCapital: AccraForm of government: Multi party democracyHead of State and government: Prof. John Evans Atta MillsLocation: West Africa with Gulf of Guinea coastline of 539kmArea total: 239,460 sq km; land: 230,940 sq km; water: 8,520 sq kmNatural resources: Gold, timber, industrial diamonds, bauxite, manganese,fish, rubber, hydropower, petroleum, silver, salt, lime-stonePopulation (2010 Provisional Census Results) 24.6 million; Religions: Christian 68.8% (Pentecostal/Charismatic 24.1%, Protestant 18.6%, Catholic 15.1%,other 11%), Muslim 15.9%, traditional 8.5%, other 0.7%,none 6.1% (2000 census)Official language: EnglishClimate: Tropical: Warm and comparatively dry along southeast coast; hotand humid in southwest; hot and dry in northTerrain: Mostly low plains with dissected plateau in south-centralareaGDP (Projected - 2011 Budget Statement): 12.3%Exchange Rate: US$1: GH¢1.96Time Zone: GMT:
10Ghana lies at the heart of aregion which has been leadingsub-Saharan African culture sincethe first millennium BC in metal-working, mining, sculpture andagriculture. In 1951, the Gold Coastbecame the first British colony inAfrica to achieve self-government.and upon attaining politicalindependence in 1957, it becameknown as Ghana.LocationModern Ghana takes its name from the ancient kingdomof Ghana which was situated some 800 km, (500 miles)to the north of present-day Accra, which flourished upto the eleventh century AD. Ghana lies on Latitude 5degrees, 36 minutes north and Longitude 0 degrees, 10minutes east. To the west of Ghana lies Côte d’Ivoire, tothe east Togo, to the north Burkina Faso and to the southis the Gulf of Guinea. The Greenwich Meridian passesthrough Tema near Accra making Ghana geographicallythe closest to the center of the world, that is, the no-tional point of intersection between the equator andlongitude zero degree (0 degree) which is located in theAtlantic Ocean at about 614km from Accra.ClimateThe climate is mainly tropical. There are two mainseasons; the wet and the dry seasons. Northern Ghanaexperiences its rainy season from March to Novemberwhile the south, including the capital Accra, experiencesthe season from April to mid-November.VegetationGhana has tropical vegetation of dense tropical rain forestin the southern middle belt. The vegetal cover is ever-in the southern middle belt. The vegetal cover is ever-in the southern middle belt. The vegetal cover is evergreen forest with semi deciduous forest at the northernand southern fringes. Towards the north is savannahgrassland and towards the coast is the coastal savannah.There are a few mountains and several hills rising to aheight of 900 meters and above. Mount Afadzato is thehighest mountain and lies 1,500 meters above sea level.DrainageThe country is drained by a large number of streams andrivers. The Volta and its tributaries drain more than two-thirds of the country. All the major rivers in the countryflow into the Gulf of Guinea directly or as tributaries toother major rivers. The Akosombo Dam, which was builton the Volta River in 1965, provides hydro-electricity forGhana and some of its neighboring countries.The Volta Lake formed after damming the river is naviga-ble for a distance of about 400 km and motorized vesselsnow ply its waters carrying passengers and goods fromthe south of the country to the north and vice versa.There are several rivers in the country and the mostimportant is the Volta dammed at Akosombo, Akuse andBui (situated on the Black Volta) for hydro-electric powergeneration plants.Other rivers are the Pra, Ankobra and Tano. Among thesmaller rivers are the Densu and Ayensu which provideWinneba and parts of the capital, Accra, with pipe-borne water. The largest natural lake in the country isBosomtwi with a total area of 48 square kilometres andreaches depths of 72 meters in some parts.PopulationGhana has a population of about 24.65 million peopleand is one of the most populous countries in WestAfrica, second only to Nigeria. Since achieving politicalindependence in 1957, its population has nearly tripled insize, from about 6 million to 24.6 million in 2010, and isexpected to increase to 27 million by 2020.The past rapid growth of Ghana’s population is an out-come of high fertility, which until recently remained fairlyconstant, and declining mortality. This combination ofhigh fertility and declining mortality is also the cause forthe young age structure of the Ghanaian population with43 percent under 15 years of age and over 65 years.However, Ghana’s age structure is changing, a conse-quence of falling fertility.It is estimated that the declining proportion of childrenand the increasing share of the working age group,between now and 2020 the number of children under 15(now nearly eight million) will remain virtually constantwhile the 15 to 64 year age group will nearly double to 18million. It is estimated that there will also be a substantialincrease in the elderly population (65 and over), to overone million, but their share of the total population will stillbe small.
11Ethnic GroupsGhana is home to more than 100 different ethnic groups.The official language is English; however, most Ghanaiansalso speak at least one local language.The ethnic groups in Ghana are the Akan (the Fante,Akyem, Ashanti, Kwahu, Akuapem, Nzema, Bono,Akwamu, Ahanta and others) 49.3 %; Mole-Dagbani15.2%; Ewe 11.7 %; Ga-Dangme ( Ga and Dangme)7.3%; Guan 4%; Gurma 3.6%; Gurunsi 2.6%; Mande-Busanga1%; other tribes 1.4%; other (Hausa, Zabarema,Fulani) 1.8% (2000 census). The religious distribution isas follows: Christian 68.8% (Pentecostal/Charismatic24.1%, Protestant 18.6%, Catholic 15.1%, other 11%),Muslim 15.9%, traditional 8.5%, and other 0.7%, none6.1% (2000 census).EducationGhana has approximately 18,530 primary schools,8,850 junior secondary schools, 900 senior secondaryschools, 28 training colleges, 20 technical institutions,four diploma-awarding institutions, six public universitiesand over forty private universities. Most Ghanaianshave relatively easy access to primary and secondaryeducation. Ghana’s spending on education has variedbetween 28 and 40 percent of its annual budget in thepast decade. All teaching is done in English, Ghana’sofficial language.Ghana has a six-year primary education systembeginning at the age of six. Under the educationalreforms implemented in 1987, after the six year primaryeducation, the students pass on to a three-year juniorsecondary system, all making up the basic educationand this is followed by a three year senior high schoolsystem.At the end of the third year of Junior High School, (JHS),there is a Basic Education Certificate Examination(BECE). Those continuing must complete the three-year Senior High School (SHS) program and take theWest African Senior Secondary Cerificate Examination(WASSCE) to enter university.GovernmentThe system of government practiced in Ghana isparliamentary democracy with separation of powersamong the Executive, the Legislature and the Judiciaryguaranteed under the constitution. The press enjoys agreat deal of freedom which has nurtured it into one ofthe most vibrant in Africa. The 1992 constitution provideschecks and balances which limit the powers of each ofthe Legislature, the Executive and the Judiciary.The constitution also provides a Council of State, madeup of experienced elders with proven character, toadvise the President on national issues. The constitutionhas also established a number of autonomousinstitutions such as the Commission for Human Rightsand Administrative Justice (CHRAJ), the ElectoralCommission (EC) and Economic and Orgranized Crimeoffice (EOCO). These institutions are there to facilitategood governance.The Government is elected by universal suffrage. Therehave been five democratically elected presidents andparliaments since 1992 and the next presidential andparliamentary elections are due in December 2012.Ghana has 10 Administrative regions and 169 districtassemblies. Decentralization of governmental powers tothe District Assemblies has been vigorously pursued forsome time now and the process still continues.Ghana is considered a beacon of hope for black Africa asit continues to champion the course of good governanceas well as pursuing sound economic management.JudiciaryThe legal system is based on the English common law,and customary law of Ghana. The court system is madeup of the Supreme Court of Ghana, Court of Appeal, andthe High Court of Justice which constitute the superiorcourts. Below these are the Circuit Courts, DistrictCourts, and family tribunals which constitute the lowercourts. The traditional rulers also settle disputes amongtheir subjects but such decisions do not constitute judg-ment of a court of competent jurisdiction. The 1992 Con-stitution which is the basic law of the land guarantees anindependent judiciary. The tribunals which use to be partof the court system are being phased out.Membership with other organizationsGhana is a member of the South Atlantic Peace Coopera-tion zone, The Commonwealth of Nations, the EconomicCommunity of West African States, the African Union,and an Associate Member of La Francophonie.In 2000, Ghana was one of the 189 countries that signedup to the 2015 Millennium Development Goals Declara-tion by the United Nations. Ghana has made substantialprogress towards reaching a number of these goals suchas eradicating extreme poverty, achieving universal pri-mary education and reducing maternal mortality.
13Late in 2010, Ghana wasupgraded to a lower middleincome economy status.With vast reserves of naturalresources, Ghana has twice theper capita output of the poorercountries in West Africa and is oneof the world’s top gold and cocoaproducers. Other exports such aspetroleum oil, timber, electricity,diamond, bauxite, manganeseand individual remittances aremajor sources of foreign exchangeearnings. World Bank projectionsindicate that Ghana, which beganexporting oil in 2011, will have thefastest growth rate on the continentestimated at 13.4% in 2011 and10.4% in 2012 (World Bank GlobalEconomic prospects 2011).Agriculture has long been an important sector of theeconomy, employing about 50% of the labor force andcontributing around 43% of GDP in 2007. Cocoa is themajor export crop, followed by timber and non-traditionalproducts such as horticulture, fish/seafoods and pine-apple.Cocoa, timber and other tree crops are grown in thesouthern forest belt of the Ashanti, Brong-Ahafo, Easternand Western regions. Most of the cocoa crop is exportedas beans, although there are some cocoa-processingplants, and more are under construction.The Ghanaian economy revolves around the services sec-tor, which accounted for approximately 50% of GDP in2010 and employs majority of Ghanaians.Ghana’s labour force in 2010 was estimated at 10.5million people. The economy continues to rely heavilyon agriculture which accounts for 30.2% of GDP andprovides employment for 56% of the work force mainlysmall landholders.The Macroeconomic EnvironmentGhana’s macroeconomic performance has been positivein recent times. This level of performance has beenstimulated by the prevalence of relative peace coupledwith private sector competitiveness; human resourcedevelopment; good governance and civic responsibility.The sound macro-economic management along with highprices for gold and cocoa helped sustain GDP growth in2008 and 2009.For 2010, GDP growth was 4.1%, and the economycontinues on its path of recovery, mainly backed bygovernment’s expenditure in infrastructure and FDIs.The Government Statistician put provisional per capitaGDP for 2010 at GH¢1,872.07 ($1,318.36) compared withGH¢1,069.89 ($753) under the old series, moving thecountry into the lower middle income bracket. The newseries places Ghana as the third largest in ranking of GDPper person in the ECOWAS sub-region behind Cape Verdeand Nigeria, and 21st in Africa.On sectoral performance, the share of the agriculturalsector in GDP under the new series saw agriculture,the dominant sector, now making up to 30.2% of theeconomy, lagging behind the services sector, whichaccounts for 51%. The industrial sector accounts for18.6%. (Source: GNA 5 November 2010).The economy is seeing significant progress whichis underlined by the relative political stability andmacroeconomic reforms. The improvement in theeconomy has brought about an influx of foreigninvestments of various forms as well as a gradualincrease in middle-class professionals.Summary of macroeconomicindicatorsEmploymentAccording to the latest population census (2010) Ghana’spopulation is estimated at 24.65 million. Constituted inthis is an economically active population of about 10.33million. (Source: IMF, World Economic Outlook Database).The current minimum wage stands at GH¢ 4.48 per dayand took effect from 9 February 2012.Government has embarked on a wage policy reform by
14Summary of MacroEconomic Factors2006 2007 2008 2009 2010Gross Domestic Product(GDP)GDP at constant prices(GH¢) 18,705 19,91321,59222,59824,094GDP at current prices(GH¢) 18,705 23,15430,17936,86744,799GDP real growth 6.5 8.4 4.7 6.6Sectoral GrowthsServices (%) 7.7 8 6.8 8.2Agriculture (%) -1.7 7.4 7.6 4.8Industry (%) 6.1 15.1 4.5 6Population (million) 22.4 22.9 23.3 23.8 24.6which all civil and public servants were expected to havebe fully migrated by the end of June 2011 to the SingleSpine Pay Policy. However, the process is still ongoingand a number of civil servants are yet to be migrated onto the scheme. The single spine pay policy, implementedby the Fair Wages and Salaries Commission, is a unifiedsalary structure that places all public sector employeeson one vertical structure, making sure that, jobs withinthe same job value range are placed within the same payrange. It is hoped that the policy would help to makethe public services pay competitive for the attraction andretention of highly-skilled labor force.Ghana has a strong and vibrant labor movement that isvery effective in articulating the demands of workers.The various sectors of the economy are representedby sector labor unions that are affiliated to the nationalumbrella labor union called the Trades Union Congress(TUC). It is the TUC that negotiates with the Ghanagovernment and employers association over wages onbehalf of the workers.Foreign Direct InvestmentAccording to UNCTAD (World Investment Report 26 July2011), Ghana was the 7th largest recipient of foreigndirect investments (FDIs) in Africa at the end of 2010.Investors brought into the country, an amount of $2.5billion, representing about 5% of total FDI inflows todeveloping countries.In the first quarter of 2012, the Ghana InvestmentPromotion Centre recorded a total of 95 new projectswith a total estimated value of US$1.18 billion. Theestimated value represents an increase of 67.98%compared to the value recorded in the same quarter of2011.The FDI component of the estimated value of the newlyregistered projects was US$979.85 million. This is asignificant increase of about 178% over the recorded FDIvalue in the corresponding quarter of 2011. The USA withan FDI value of US$407.21 million ranks first and Chinaremains the top source of FDI to Ghana in terms of thenumber of projects (Ghana Investment Promotion PressRelease 10 May 2012)2number of projects (Ghana Investment Promotion Press2number of projects (Ghana Investment Promotion Press.Inflation and Interest RatesInflation has been on a downward trend since it peakedat 20.7% in June 2009. This fall in inflation, according tothe Monetary Policy Committee of the Bank of Ghana,has been driven by both non-food and food inflation.Inflation as at May 2012 was 9.3%. A single digit inflationrate of 9.44 %was achieved at the end of August 2010,which led to a corresponding drop in the prime rate bythe Bank of Ghana to 13.5%. By February 2011, inflationwhich was at 8.58% in December of 2010 has fallenfurther to 8.39% as of July 2011.The cedi has slipped against the dollar by 19% and hasbeen fluctuating against major currencies since thebeginning of 2012. It is currently experiencing somedepreciation against major trading currencies, and the1.The United States as one of Ghana’s major trading partners has an active American Chamberof Commerce in Accra.
152. In the area of investment, Britain remains the main source of FDI inflows (excluding mining) in terms of value of investment, accounting for about 37% of total FDI to Ghana between 1994 and2009, followed by the United States, the United Arab Emirates, Nigeria, Malaysia and China in that order. China, however, leads in the number of registered projects with 415 projects mainly inmanufacturing and general trade. India comes next with 388 projects, mainly in the area of manufacturing, followed by Lebanon with 291 projects.Ghana’s economic co-operation with the East, particularly China, has grown remarkably in recent times. Over the past decade aid inflows to Ghana from China have increased considerably. Thelargest single aid inflow has been in the energy sector and involved USD 562 million for the construction of the Bui hydroelectric dam. Other significant aid from China includes a USD 99 millioninterest-free loan for the construction of landing sites for fishing communities and a USD 30 million concessional loan for the first phase of a national fiber optic and e-government project extendedin 2007 and 2008.India is one of the top five foreign direct investors in Ghana. In 2010 Indian investments in Ghana included over 46 projects with an estimated total value of USD 277 million. Indian investmentsare found mostly in the agricultural and manufacturing sectors of the economy. In addition, within the health sector, Ghanaian pharmaceutical companies manufacture drugs in collaboration withIndian firms. In 2010 the Indian Bank of Baroda opened a branch in Ghana. Ghana’s information and communications technology (ICT) sector also has a significant Indian presence. The Electronicand Computer Software Export Promotion Council of India regularly invites Ghanaians to its exhibitions in India to share ideas on new technologies. Furthermore, under its Technical and EconomicCooperation (ITEC) program, India awards annual scholarships to Ghanaians for both graduate and post-graduate programs in ICT.exchange rate is GH¢1.96: US$1. Expectations are thatthe local currency will appreciate against the majorforeign currencies and this would improve foreignexchange risk for companies in Ghana.InfrastructureTransportRoad transport is by far the dominant carrier of freightand passengers in Ghana’s land transport system. Itcarries over 95% of all passenger and freight traffic. Mostcommunities, including the rural areas are accessibleby road transport. The roads are classified under threecategories: trunk roads, urban roads, and feeder roads.The Ghana Highway Authority, established in 1974 istasked with developing and maintaining the country’strunk road network totaling 13,367 km, which makesup 33% of Ghana’s total road network of 40,186 km.The railway connects Accra, Kumasi, and Takoradi, andthe major mining areas, to the sea ports. The railwaynetwork also provides passenger services from theinterior of Ghana to the main sea ports at Tema (nearAccra) and Takoradi. There is a commuter line which linksAccra and Tema.The main waterways include the Volta, Ankobra, and TanoRivers, which provide 168 kilometers (104 miles) of year-round navigation, and Lake Volta, which provides 1,125kilometers (699 miles) of arterial and feeder waterways.The two seaports of Ghana at Tema and Takoradihandle most of the country’s imports and exports. Theturnaround time for ships at Ghanaian ports is now one ofthe quickest in West Africa and the tonnage managed hasalso increased significantly.There are six airports in Accra, Kumasi, Takoradi, Sunyani,Tamale, and Wa. The international airport, Kotoka is inAccra. A number of major international airlines thatfly there regularly include British Airways, Delta, KLM,Brussels Airways, Lufthansa, Alitalia, South African,Air Namibia, Air Maroc, and Egypt Air Emirates. Threeairlines, Citylink, Starbow and Antrak connect Accra toTamale, Kumasi and Takoradi.EnergyHydroelectricity is the primary source of Ghana’s power.It is generated at the Akosombo and Kpong power plants.The $700-million, Bui hydroelectric project located on theBlack Volta would have a generation capacity of 400 MWwhen completed. There are thermal facilities located atTema and Takoradi. In addition to increasing the domesticelectricity supply, power generated from Bui could beexported to Burkina Faso, Mali and Cote d’Ivoire inaddition to current exports of power to Benin and Togo.The Electricity Company of Ghana (ECG) is responsiblefor electricity distribution to the Ashanti, Western,Central, Eastern, Greater Accra and Volta regions. TheVolta River Authority (VRA) is responsible for generationand for the distribution of electricity in the Brong Ahafo,Northern, Upper East and Upper West regions. Whenthe West Africa Gas Pipeline (WAGP) is completed, VRAplans to convert oil-fired facilities at Takoradi and Tema tonatural gas.MobileTelephonesMobile telephony is one of the fastest growing industriesin Ghana. There are six current operational serviceproviders which include MTN (Scancom), Tigo (Millicom),Airtel (Bharti Airtel), Vodafone,Expresso and Globacom.There are over 12 million mobile phone subscribers.The introduction of 3 Generation services has led to anincrease in the range of services provided by cellularoperators.Television and Radio StationsThere are 143 FM radio stations and 10 televisionbroadcast stations. There are also cable TV channels.
17The domestic market inGhana is relatively smallbut is growing. There is aregional market provided by the15 members of the EconomicCommunity of West African States(ECOWAS) though integration ofthe individual countries is yet to beachieved. The free trade amongthe ECOWAS member countriescreates an opportunity for anexpanded market for players in thesub-region.The government, sponsored bythe World Bank is also strivingto make Ghana the gateway toWest Africa by positioning thecountry as a hub for import, export,storage, assembly, distribution, andmanufacturing, transshipment ofgoods, services and passengers.The key institutions in Ghana that play various roles infacilitating the activities of investors include the following:The Ghana Immigration Service (GIS)• The Ghana Ports and Harbors Authority (GHAPOHA)• Ghana Investment and Promotion Council (GIPC)• Free Trade Zones Board• Ghana Revenue Authority(GRA)• Ghana is not eligible under the European Union’sEverything but Arms Initiative as it is not a LeastDeveloped Country. However, it is an ACP country andenjoys the preferences the European Union affordsother ACP countries (this is now being revised under anEconomic Partnership Agreement). It also qualifies underthe generalized system of preferences which gives itpreferential access not only to the European Union butto other rich markets as well.Export EarningsGhana earned $3.8 billion from merchandize exports, perthe preliminary estimates of total exports for the firstthree months of 2012. The earnings represent a year-on-year growth of 22.8 percent and the growth in exportearnings was driven by gold, cocoa beans and crude oil.Exports of gold amounted to $1.5 billion, cocoa beans$939.8 million and crude oil $689.6 million. Other ex-$939.8 million and crude oil $689.6 million. Other ex-$939.8 million and crude oil $689.6 million. Other exports, including non-traditional exports, amounted to$675.2 million during this period.Giving a breakdown, the Bank of Ghana comments thattotal non-oil imports amounted to $3.6 billion of whichcapital imports was $781.2 million, intermediate imports$1.7 billion, consumption imports $775.8 million and oth-ers US$251.8 million.However, the Bank reports that total merchandiseimports provisionally amounted to $4 billion in the firstquarter of 2012, representing a year-on-year growth of19.8 per cent. Oil imports, including crude, gas and re-fined products amounted to $457.2 million compared with$692.2 million for the same period of 2011.Export PartnersGhana exports were worth 3,339 million USD in the thirdquarter of 2011. Historically, from 2003 until 2011, Ghana’sexports averaged 1,272.8700 million USD reaching an alltime high of 3,345.0000 million USD in June of 2011 anda record low of 265.1000 million USD in March of 2003.Ghana’s main exports are gold, petroleum, cocoa beansand timber products. Others include tuna, aluminum,manganese ore, diamonds and horticulture. It’s mainexports partners are the Netherlands, Burkina Faso,South Africa and United Kingdom (First Group Website.2012 Trading Economics).ImportsGhana imports were worth 4,046 million USD in the thirdquarter of 2011. Historically, from 2003 until 2011, Ghana’simports averaged 1,937.70 million USD reaching an alltime high of 4,120.00 million USD in June of 2011 anda record low of 692.80 million USD in March of 2003.Ghana imports are mostly industrial supplies, capitaland consumer goods and foodstuffs. Our main importpartners are China, United States, Belgium, UnitedKingdom, South Africa and France.International ReservesThe Gross International Reserves of Bank of Ghana (BoG)declined to $4.3 billion as at June 2012 from $5.4 bil-lion in December 2011. This is equivalent to 2.5 months
18imports cover of goods and services.For the first quarter of 2012, the Balance of Paymentsrecorded a deficit of $1.3 billion, compared to a deficit ofonly $154.2 million in the same period of 2011. Provisionaldata from Bank of Ghana for the first five months of 2012showed that total revenue and grants recorded a year-on-year growth of 34.5 per cent, amounting to GH¢5.1billion.Total tax revenue was GH¢4.4 billion, 46.3 per centhigher than the out-turn of GH¢3.0 billion recorded duringthe corresponding period in 2011. Total merchandize ex-the corresponding period in 2011. Total merchandize ex-the corresponding period in 2011. Total merchandize exports were $6.6 billion over the first five months of 2012,representing a year-on-year growth of 24.6 per cent.There were higher receipts from gold, cocoa beans andcrude oil exports as commodity prices increased duringthe period.Export receipts from gold amounted to $2.7 billion,cocoa beans were $1.6 billion, while crude oil was $1.2billion during the period. Other exports, including non-traditional products, amounted to $768.2 million. Totalmerchandize imports were $7.5 billion during the fivemonths, indicating a growth of 27.9 per cent on a year-on-year basis. (Bank of Ghana).
20Agriculture, Agro-processing, Forestryand FishingMinistry of Food and AgricultureP.O. Box M37MinistriesAccraTel: +233 302 687223Email: email@example.comWebsite: www.mofa.gov.ghGhana Investment Promotion CentrePost: P. O. Box M193, Accra-GhanaTel: +233 302 665 125-9Fax: +233 302 663 801/663655Email: firstname.lastname@example.orgAs Ghana’s most important economic sector employingmore than half the population, agriculture in Ghana is anunexploited investment opportunity. The major strengthsof this sector include a diversity of commodities, well-endowed drainage basin, a well-established agriculturalresearch system and relative proximity to the Europeanmarket. Ghana has a big share of the African quota of theEU market in fruits and vegetables export.Ghana has a total land area of 23.9 million hectareswith 57 percent suitable for agricultural purposes.Agriculture’s contribution to GDP over the years hasshown a steady reduction and the growth rate of thesector does not show any clear trend (GIPC). However,there are indications that Ghana has the potential foragricultural business to develop into a multi-billion dollarindustry. Cocoa is the main export crop and demand forthe crop is growing as China now imports 80-90 percentof Ghana’s total cocoa production. Ghana is the secondlargest exporter of cocoa in the world. Agricultural crops,including yams, grains, cocoa, oil palms, kola nuts, andtimber, form the base of Ghana’s economy. Leadingprocessed agricultural export products include processedtuna, cut fresh pineapples, other prepared fish andtomato paste.The country may be classified into three main agriculturezones. The forest vegetation zone: consists of partsof Western, Eastern, Ashanti, Brong-Ahafo and VoltaRegions. The northern savannah vegetation zone: theUpper East, Upper West and Northern Region; thecoastal savannah: includes the Central, Greater Accra andparts of Volta Region.The northern savannah zone is the largest agriculturezone. Most of the nation’s supply of rice, millet, sorghum,yam, tomatoes, cattle, sheep, goats and cotton aregrown in the region. In recent times, mango and ostrichcommercial farms are also gaining footholds in thenorthern zone.The coastal savannah is known for rice, maize, cassava,vegetables, sugar cane, mangoes and coconut, as wellas livestock. Sweet potato and soya bean crops thrive inthis area under irrigation. The lower part of this zone isdrained by River Volta. Together with other streams andlagoons, these water resources present opportunities forfish farming or aquacultureIn the forest zone where there is abundant rainfall, cocoa,coffee, oil palm, cashew, and rubber as well as plantain,banana and citrus crops are grown.Major stakeholders and government are looking for waysto partner with investors outside the country to improveagri-business through modern technology, to ensure foodsecurity in meeting international requirements. An addedadvantage is that over two thirds of the land in Ghana isfertile, and needs little or no fertilizers/chemical to growcrops in large quantities.Investment OpportunitiesProvision of agricultural inputs such as improved• seeds and agrochemicals including fertilizers,pesticides and herbicides. Veterinary drugs, vaccinesand chemicals; animal feed and feed ingredients arealso required.Opportunities exist in the processing of agricultural• products such as cereals (maize, rice, millet) starchycrops (yam, cassava. Sweet potato, plantain),legumes (carrots, cabbage, garden eggs, tomato),fruits (pineapple, pawpaw, banana, mango), industrialcrops (rubber, sugarcane, cotton, oil palm, coconut,cocoa, coffee), livestock (cattle, pigs, poultry, sheep)and fisheries (tuna, tilapia, catfish). Rearing of silkworm for the production of raw silk.Dairy products: processing of the products as well• as the supply of machinery to establish hatcheries forday-old chicks.Floriculture offers a lot of opportunities as Ghana’s• climate and topography make the country suitable forthe cultivation of a number of exotic flowers. Speciessuch as heliconia, caribea, celosia, curcuma, gladioli,hibiscus, roses, ornamental palms and ferns performwell under natural conditions. There is potential in the
21national, regional and European Union marketsProcessing of farm produce such as to add value,• reduce post-harvest losses, promote price stabilityand expand demand for local agricultural produce.For example, with the canning of tomatoes, andprocessing fruits into fruit juices.Developing irrigable land through irrigation is another• key area. While Ghana has a potential irrigable areaof 346,000 hectares, only 10,000 hectares have beendeveloped.Technological and support services also require• investment. Key areas are in the supply andinstallation of cold chain equipment, packaging andfactory building technologyIn the distribution field, companies are required• to provide post-production services in transport,packaging and cold vans.There are further opportunities in standards, training• and certification; capacity building for managementand market-oriented enterprises; market intelligenceresearch and in the development of agriculturalfinance and insurance.Investment opportunities exist in the production of• agricultural inputs such as fertilizers, pesticides andfungicides.Technology and services in the agricultural sector• which include irrigation, heavy equipment hiring (i.e.hiring of tractors, ploughs, harrows and combineharvesters etc) provide investment opportunities.Investment opportunity also exists in the storage• industry. Inadequate and inappropriate storagefacilities are constraints to agricultural productionthereby contributing to high post-harvest losses andlow returns for farmers and processors.Banking and FinanceBank of GhanaHead OfficeOne Thorpe RoadP.O. Box GP 2674AccraTel:+233-30-2666174 - 6+233-30-2666361 - 5+233-30-2666902 - 8+233-30-2666921 – 5Email:email@example.comIn line with the country’s goal of achieving middle incomestatus by 2015, Ghana has been undergoing a processof financial sector restructuring and transformation as anintegral part of its Vision 2015 strategy.Prior to 2003, the Bank of Ghana operated a three-pillar banking model with all banks licensed as eitherdevelopment, merchant and commercial banking. InFebruary 2003, the Bank of Ghana introduced UniversalBanking which allowed the banks to undertakecommercial, development, merchant or investmentbanking without requiring separate licenses. This hasleveled the playing field, and opened up the bankingsystem to competition, product innovation and entry.To operate under the Universal Banking License(UBL),existing banks must have a minimum net worth ofGH¢7.0 million (excluding statutory reserves), and newbanks should have a paid-up capital of GH¢7.0 million.Banks are required to hold 9% of the cedi and forexdeposit base with BOG on daily basis as primary reservesand 35% of their deposit base in cedi denominatedassets as secondary reserves.The Government of Ghana Index-Linked Bonds (GGILBs)was introduced in 2001, which as part of the reserverequirements converted Government of Ghana (GoG)short-term liabilities into long-term loans. BoG requiresbanks to hold 15% of their total deposits in GGILBs. TheGGILB is now being phased out by the new 2nd and 3rdyear fixed or floating bonds.Currently, there are 26 banks operating in the formalbanking sector. They are regulated by the Bank of Ghana,Ghana’s central bank.Liberalizing entry and encouraging foreign banks andinvestors in the financial services industry has increasedcompetition in the banking industry as well as theintroduction of strong business practices, technology,products, and risk management systems.The current licensing policy of the Bank of Ghana is tolimit entry of foreign banks to truly internationally activefinancial institutions.Minimum Capital RequirementThe Bank of Ghana has proposed an increase in theminimum capital requirements of banks from GH¢7.0million to GH¢60 million. The proposed minimum capitalrequirements for deposit taking non-banking financialinstitutions (NBFIs) and finance houses is an increasefrom GH¢1 million to between GH¢5-8 million.Banks and deposit taking NBIFs were expected to submit
22capitalization plans by the end of June 2008. Submissionof capitalization plans would guarantee continued accessto the settlement and primary dealership systems. AfterDecember 2008, participation in the settlement systemwill be restricted to institutions that have met the capitalrequirements.To ensure an orderly consolidation, the banking systemwould allow for lower tier banks after December 2008.Banks that do not meet the capital requirements willbelong to the lower tier. Banks and NBFIs grantedlicenses or provisional licenses within the last sixmonths to date are required to meet the new capitalrequirements within two years from the date ofoperation. New licenses for banks, deposit-taking NBFIsand Finance Houses would henceforth only be issued tobanks that meet the new minimum capital requirements.The Bank of Ghana intends to continue with its currentpolicy of issuing bank licenses only to internationallyactive banks.National SwitchThe Bank of Ghana has established a National Switch(e-ZWICH) to allow the establishment of a commonplatform for all payment transactions in the country.This would result in the integration of all existing bankswitches and allow banks that do not have switches(e.g. ARB Apex Bank) to join the common switch atsignificantly reduced costs. It would also allow theinteroperability of all ATMs and the settlement ofpayment transactions by customers of different banks atPoints of Sale (POS).The national Switch has the capability to dealwith transactions that take place online (in placeswith telecommunications) and offline (i.e. wheretelecommunications are not present, e.g. in some ruralareas). This is a major departure from existing systemsand has been made possible by the Universal ElectronicPayments (UEPS) technology.Bills of Exchange ActGhana is essentially a cash-based economy withembedded high transaction costs. In recognition ofthis, the Bank of Ghana is undertaking reforms in thelegal, institutional, and infrastructural framework ofthe payment system to make the Ghanaian financialsystem modern and competitive. A draft bill known asthe Bills and Cheques Bill is now before Parliament andis expected to replace the Bills of Exchange Act whenpassed. The draft bill provides for electronic presentmentof cheques and amends various sections of the Bills ofExchange Act to bring it in line with current businesstrends and practices.National Biometric SwitchThe Bank of Ghana has introducied a National BiometricSmartcard (The E-ZWICH card). This is expected toaddress the shortcomings of existing debit cards whichcater for only a small fraction of the population becauseof its features of accessibility; low transaction costs;limited infrastructure needs; personal safety; security;convenience; and simplicity.Automatic Clearing HouseThe Bank of Ghana is introducing Codeline ChequeTruncation to allow very fast cheque clearing as well asthe Automated Clearing House (ACH) for the clearingof electronic debits and credits. The process of directdebit does not exist presently in Ghana because of theabsence of an ACH.Central Securities DepositoryThe Bank of Ghana has established a Central SecuritiesDepository (CSD). The CSD makes it possible for recordsof ownership of individual securities to be maintainedcentrally as well as at the respective primary dealers.This should reduce the risks to investors that arise frompossible poor record-keeping or any dealer malfeasance.Ghana Interbank Payment and Settle-ment SystemThe Ghana Interbank Payments and Settlement System(GHIPSS) is a limited liability company set up tobring all the various aspects of the payments systeminfrastructure under a single entity. This is to allow moreefficient and coherent management and oversight. Thebusiness of GHIPSS includes the following:National Switch and Smart Card Services• Cheque Clearing• Codeline Cheque Truncation• Real Time Gross Settlement System (RTGS)• Central Securities Depository(CSD)• Automated Clearing House (ACH)• All banks are required to be members of GHIPSS eitherdirectly or through member banks. This means that allbanks have to be members of the national switch andsmartcard, ACH, RTGS, etc.
23Credit Reporting ActThe Credit Reporting Act (Act 726) has been enacted in2007 to enhance credit risk management by the bankingsystem. The purpose of the Act is to provide a legal andregulatory framework for credit reporting in Ghana. As atthe end of 2009, two credit bureaus had been licensed tobegin operation.Other Key IssuesSeveral bills have already been passed or are in theprocess of being prepared. These include the Anti-Money Laundering Bill, the Credit Union Bill, theInsurance Bill, and a new Insolvency Bill (Bankruptcylaw). Work is also ongoing regarding the Borrowers andLenders bill and a new Non-Bank Financial Intermediaries(NBFI) bill which were expected to be passed in 2008.These reforms when implemented would represent amajor transformation of the financial services sector. ThePassage of the Banking Amendment Act, 2007 resultedin the issue of the first offshore banking license toBarclays Bank.Capital MarketsInvestor confidence in Ghana’s capital market has beenon the rise over the past decade. Currently, there areabout 27 listed companies, 10 brokerage firms, 5 mutualfunds and 1 unit trust company on the Ghana StockExchange (GSE). A level playing ground has been setby the Securities and Exchange Commission (SEC) toprotect the interest of investors and all other parties.DemutualizationThe objective to demutualize the Ghana Stock Exchange(GSE) stems from the current structural constraints thatare faced by the GSE as a non-profit organization.Demutualizing GSE is aimed at fostering greater diversityof ownership which will allow for an enhanced publicrepresentation in the governance of the Exchange as wellas remain competitive and responsive to the demands ofits market constituents.The strategic plan for the demutualization of theGSE was completed in 2009 and the final report wassubmitted to GSE for review and finalization.AutomationActivities towards automation commenced in 2007. Inthis light, the GSE Securities Depository CompanyLimited was incorporated and commenced operationin November 2008. About 37,000 accounts had beenopened in the depository as at the end of 2009 andmigration of shares is still ongoing.With the GSE now resourced, ATS, the ElectronicClearing/Settlement and the Depository system whichwent live in November 2008, dealers now have accessto trading from the Exchange’s Trading Floor; the officesof Dealers; and through a secured internet facility at anylocation.The automation of the trading platform has hugeprospect in enhancing the liquidity on the market as wellas improve trading on the Exchange. Also it is expectedthat the automation system will also enhance the bondmarket which is gradually gathering momentum as wellas GSE’s move to develop a program that will help lureSMEs to list on the Exchange.Energy SectorMInistry of EnergyP. O. Box T40Stadium Post OfficeAccra-GhanaEnergy CommissionLocationFREMA House Plot 40, Spintex Rd.P.M. B. Ministries, Accra - GhanaTelephone: (+233) 302 813 756/7E-mail: firstname.lastname@example.orgThe energy sector plays a pivotal role in the developmentagenda of the country. With the advent of the post-colonial era, the energy sector was envisioned to be amajor driving force in the transformation of the economyfrom one largely sustained on the wheels of subsistencefarming to one that is fully industrialized. This began withthe construction of the hydro-electric dam at Akosombo,a major initiative by the then CPP government whichopened up the economy and the energy sector inparticular to the exploitation of the power-generatingpotential of the country. Subsequently, other forms ofenergy have been tapped including renewable, nuclearenergy and fossil fuels.In this light, government’s overall goal for the sectorhas been to develop and sustain an efficient and viableenergy sector that provides secure, safe and reliablesupply of energy to meet Ghana’s development needsin a competitive manner. This is to assure a universalaccess and choice of modern energy forms to all
24Ghanaians without exception thereby contributingsignificantly to national revenue and economic growthby becoming a net exporter of oil and power by 2012 and2013 respectively.Thus, Ghana’s energy sector can be classified into powerand petroleum sub-sectors.Power GenerationTraditionally, wood fuel continues to provide a significantsource of energy to many households in Ghana,consisting of about 70% of Ghana’s energy consumption.This consumption level has engendered the creation ofsustainable energy development in the country throughproper management and the use of an alternative towood charcoal through the use of bamboo. However,Ghana’s power supply sources are mainly from hydro-electricity, thermal from light crude oil and a smallpercentage of photo-voltaic solar.The objective of the Government is to achieve a targetof 5,000 MW of installed power generation capacityby 2015. This level of capacity would enable Ghana tosupply adequate electric power to meet the growth innational electricity demand and also for export to ourneighboring countries.In this light, Government’s outlook for 2010 is focusedon upgrading the transmission and distribution systemswhile scaling up rural electrification to help ensureincreasing access to electricity by household and industry(2010 Budget Statement).HydropowerGhana has made significant strides in maximizingits hydropower potential which is pegged at about4,000 megawatts. Aside of the construction workson the 400 megawatts Bui Hydroelectric Project, theGovernment of Ghana has also signed a Memorandumof Understanding (MOU) with the Brazilian Governmentfor the development of Juale River and Pwalugu hydropower plants at the cost of US$555 million with agenerating capacity of 87MW and 48 MW respectively.The construction of the hydro-dams forms part of theplanned system generation expansion under the EnergyCommission’s Strategic National Energy Plan-SNEP-covering the period between 2006 and 2020. This alsoincludes the construction of the 93MW Hemanghydroelectric power dam which is expected to becompleted by 2015.Upon completion of all the power plants underconstruction, the country’s total installed powergeneration capacity would reach 3,500 megawatts by2013. Currently, electricity consumption in the countryis estimated at 7,095 billion kilowatt hours (kWh), whileproduction capacity is pegged at 6,489 billion kWh.The demand for power consumption in the country isexpected to grow at 7.6% over the next five years.The policy objectives of the expansion program are toensure security of electricity supply, minimum negativeenvironmental impacts in electricity supply and to ensureuniversal access to affordable electricity service.RenewablesGhana has a huge potential for electricity generation fromrenewable energy sources such as solar, wind, biomassand small hydro. To maximize this, steps are beingtaken by Government to provide the necessary legalbasis for the rapid development of renewable energyin the national energy mix by establishing a RenewableEnergy Law as part of meeting the objective of securityof supply of energy. Also, a combination of technicaland regulatory instruments will be enshrined in the lawto compel utility companies to procure a predeterminedpercentage of their electricity supplies from renewableenergy sources. To consolidate its search for strategicenergy solutions, government facilitated the preparationof a training manual for Solar PV testing, installation andmaintenance.To further build capacity, Government also facilitated thedevelopment of training and testing materials and testingfacilities in Tamale Polytechnic and Kwame NkrumahUniversity of Science and Technology (KNUST) for humanresource development in Solar PV.In addition, Government played a major role in thesigning of a protocol on off-grid solar electrificationfor security outposts, schools and health centers. Anoperational manual for providing matching grants tosupport renewable services by the private sector wasalso developed and Solar PV systems installed in 75 ruralhealth posts.Going forward, the Government of Ghana envisions tofurther promote renewable energy technologies (solar,wind and mini hydro), solar electrification project inschools, security service and health centers. In addition,Government will continue training on solar PV systemsas well as implement grid-connected solar PV and windsystems, rehabilitate grid-connected solar system anddevelop licensing and monitoring framework for theelectricity industry.
25Thermal PowerThe inclusion of thermal power in Ghana’s energy mix hasbeen further boosted with two new plants in Tema. The126 megawatts Tema Thermal 1 Power Project (TT1PP)is now fully operational after being commissioned in2009. Other ongoing activities include the installation of49.5 megawatts Tema Thermal 2 Power Project (TT2PP)which is 95% complete. This adds to TAPCO- Takoradi I(330MW) and TICO- Takoradi II (220KW).In January 2010, expansion works commenced on theTakoradi Thermal Power Plant at Aboadze in the ShamaDistrict of the Western Region. The 132-megawattcapacity combined cycle plant will consist of four gasturbines, four heat recovery steam generators and twosteam turbines. The gas turbines will run on light oil,diesel oil and natural gas.Also, a Memorandum of Understanding has beenconcluded with TAQA to carry out the expansion of theTakoradi International Company (TICO) power plant from220 MW simple- cycle plant to a combined-cycle plant of330 MW.The 80 megawatt Mines Reserve Power Plant, which wasconstructed at a cost of more than US$45 million in June2007, has been made available to the VRA to supplementany energy generation shortfalls in the country. This waspreviously used by four mining companies (NewmontGhana Limited, Goldfields Ghana, Anglogold-Ashanti, andGolden Star Resources) only in load-shedding situations.The 126MW Emergency Diesel Power Units which werepurchased by Government were largely unused owingto high cost of operation. Additionally, work is soon tocommence on the 132MW combined-cycle power projectwhich will be sited near the VRA Thermal Power Plant inAboadze.Osagyefo Power BargeThe refurbished Osagyefo Power Barge adds to energygeneration mix of the country. This was carried outby Balkan Energy Company LLC, a US-based EnergyCompany which partnered the Government of Ghana tooperationalize the Osagyefo power barge. Balkan Energyentered into a 20-year agreement with the governmentof Ghana to run the barge and it is expected that BalkanEnergy would convert the barge into a combined cyclepower plant with an incremental capacity of 60MW at acost of about $100 million. The company would also paythe Government of Ghana a yearly lease of $10 millionfrom the beginning of the 6th year to the 12th year. Theagreement will be reviewed every five years.This project aims to augment the Akosombo and KpongHydro-electric Power Plants as well as the AboadzePower Plant and a few others as a means to address thepower challenges of the country. The barge, which isexpected to generate 185 megawatts of power, is a dualfired unit which can operate on diesel as well as naturalgas.Private Sector Initiatives in the EnergySectorThe current regime of power production is receiving anactive involvement of Independent Power Producers(IPP). The Asogli Power Plant, for instance, which is a fullprivate sector financed power plant of 200 MW capacity,has been completed and awaiting the availability ofnatural gas to commence operation. On the expansionof Tema Thermal Power Plant, VRA has concluded anagreement with Tema Osonor Power Company, anIndependent Power Producer (IPP) to expand the plantby 126 MW and ultimately into a combined-cycle facilitywith a total capacity of about 330 MW.Beyond the existing plants, a total of 1,611.5 MW ofcapacity is currently under construction by Governmentand Independent Power Producers while other plans havebeen initiated to increase power generation capacity inthe country.Upstream Oil and Gas ProspectsGhana’s oil and gas prospects are significant. It isbelieved that Ghana’s oil and gas resources stretchesacross the country’s shoreline from the west (Cape ThreePoints) to the east (Keta). Similarly, the Voltain Basin,which covers over 40% of the country’s land mass,is believed to have oil and gas reserves. This VoltainBasin is yet to be fully explored and will be given priorityattention during the medium period.Recent appraisals completed on three of the discoveriesin the Jubilee Field, which is made up of two blocs,indicate that the field contains expected recoverablereserves of about 800 million barrels of light crude oil,with an upside potential of about 3 billion barrels.The Jubilee Field will be developed in phases withthe aim of ensuring that gas is not flared. The firstoil production was started in 2011 and is driven by aproduction philosophy of maximizing the value of theresource. Tullow oil an operator of the Jubilee Field
26projected prodcution of 120 barrels per day will bereached in early 2013. Up till May 2012, the field hadproduced 33 million barrels of oil.The discoveries have elicited great interests in Ghana’s oiland Gas prospects. Currently, there are eleven PetroleumAgreements operating in the country at different stagesof exploration or development. Several other prospectiveoil companies have expressed interest to explore Ghana’ssedimentary basins.Government intends to accelerate the process ofacquisition of blocks in the Ghana sedimentary basins inorder to fully and speedily delineate the country’s oil andgas potential.Downstream DevelopmentsIt is the Government of Ghana’s intention to ensureincreased local refining capacity to meet both domesticdemand and exports. Currently, about 60% of domesticdemand can be met by the Tema Oil Refinery (TOR). Tobring refining capacity to acceptable levels, there is theneed to expand the capacity of TOR and also improveits operations. About US$300 million is needed to beinvested in TOR to increase its capacity by about 100,000barrels per stream day from its current level of 45,000BSPD.About US$683.5 million is to be injected into theoperations of the Bulk Oil Storage and TransportationCompany Limited (BOST), in the medium term periodup to 2015, to improve bulk transportation of petroleumproducts especially to the northern parts of the country.Government intends to encourage the Oil MarketingCompanies (OMCs) to increase the number of petroleumproducts service stations to ensure improved accessto petroleum products in the country. The currentadministration of Premix fuel is being reviewed.Government will continue to encourage the developmentof bio-fuels, as an alternative transportation fuel.Institutional Development:Establishment of PetroleumRegulatory AuthorityThe draft Bill to regulate the upstream petroleum industryis being reviewed with the view to reducing redundanciesand further giving effect to the intention to consolidatethe activities of the numerous regulatory agenciesexisting in the energy sector. It is believed that a smallernumber of regulatory agencies is needed to managethe sector in order to ensure efficient and coordinatedoperation and enforcement of regulations.Investments in the Energy SectorIt is estimated that, about US$9.0 Billion is required inthe next five years to finance the numerous initiatives inthe energy sector, including oil and gas activities whichalone require over US$5.5 Billion. While Government willcontinue to inject funding into the sector, when available,a major policy shift is to encourage the energy sectorinstitutions to raise a substantial portion of their capitalinvestment requirements on their own without recourseto Government. Government has therefore requested thesector agencies, particularly VRA, Ghana Grid Company(GRIDCO), Electricity Company of Ghana (ECG) and TemaOil Refinery, to raise financing from commercial loansand other private sector financing arrangements and alsovia the Ghana Stock Exchange.Information Communication andTechnology (ICT)Sector OverviewThe ICT Industry comprises telecommunicationsoperators, internet service providers, VSAT dataoperators, software manufacturers, broadcastinstitutions, ICT education providers, internet cafés,etc. Generally, the Ministry of Communications andthe National Communications Authority (NCA) overseeactivities in the sector which have established thenecessary legal and regulatory framework whichguarantees the safety of investments in the ICT industry.Accra lies at the heart of the ICT industry as it hoststhe headquarters and branches of the ICT companiesassociated infrastructure and support companies.Ghana has been recognized as an attractive destinationfor Business Processing Outsourcing (BPO) and wasranked the No. 1 destination in Sub-Saharan Africa (aheadof Mauritius and Senegal) and No. 15 globally out of50 countries by the 2009 A.T. Kearney Global ServicesLocation Index (GSLI).The infrastructural base of the sector includes licensedgateway operators, SAT-3 Access, Private Licensed VSATSystems, Fixed Wired Line Networks, Wireless MobileOperators, Public telephones systems, Telecentres,Dedicated Transmission Networks, Public DistributionNetworks (cable, TV, DSL, etc), Internet ServiceProviders, Internet Backbone Connectivity throughout
27the Country and Public Access Point and BroadcastingSystems. As an initiative to support emergingtechnologies, the Ministry of Communications is alsofacilitating the establishment of Science and TechnologyParks.The MarketAs at December 2011, the telecommunications sub-sector had 2 fixed line operators plus 6 mobile cellularoperators authorized to operate. Out of 165 InternetServices Providers (ISPs) authorized, 29 were inoperation. The Sector also witnessed 13 DTH satelliteService providers, 176 Data Operators, 99 Public/Corporate Data operators, 140 FM stations and 32 TVStations having authorizations to operate with 8, 29,25, 84 and 13 of them respectively actually being inoperation.No. of authorized operatorsSource: GIPCMarketTrendsGhana is set to be a major player in the African ICT sectorin the next five years, according to a survey conductedby the Africa Business Panel. The survey ranks Ghana atnumber 4 on the continent after South Africa, Nigeria andKenya.The market continues to grow aggressively in allsegments, particularly in the telephony sector withmobile penetration rate increasing rapidly. Internet usagehas also increased though connectivity is expensive.Investment OpportunitiesThere are considerable investment opportunities inthe ICT sector. The sector requires service providers inconnecting international voice calls to the local publicnetwork. Internet Service Providers are also required tooffer internet access to the public especially the ruralareas at less cost and broadcasting operators to establishRadio and Television broadcasting in the country.There is also a lack of ICT facilities and Infrastructure ona broad scale across the nation. Investments are neededin the provision of software for the country, extension ofthe broadband network to reach the whole country andto provide computer access to rural students.Technological and other support related services such asthe supply of quality telecommunications equipment, ICTEquipment and Office and Network Equipment presentopportunities to an investor. There are also opportunitiesin the following areas:Education in the area of software development,• networking, VSAT, telecommunication and ITEngineeringProvision of Business Solutions (software and• networking services)Business Processing Outsourcing• Supply of High-Tech Telecommunication Equipment• Back Office Operations ( especially for the Financial• Institutions)Provision of Broadband Facilities and Services• Internet Service Provision Service• Transaction Processing• Manufacturing, assembling and supply of computers• and accessoriesVSAT services• E-commerce and Legal Database Services• Logistics Management Services and Medical• Transcription ServicesReal Estate DevelopmentReal Estate and ConstructionMinistry of Water Resources, Works and HousingP. O. Box M43, MinistriesAccra, GhanaTel.: +233 302 673701Fax: +233 302 673882Email: email@example.comWebsite: www.water-mwrwh.comGhana Real Estate Developers AssociationPost: P. O. Box TF 113Trade Fair SiteAccra - GhanaTel.: +233 302 782 531, +233 24 4318288,Email: firstname.lastname@example.orgWebsite: www.gredaghana.orgThe Ghanaian real estate market has seen significant
28expansion due to the rapid growth of the Ghanaianeconomy and the influx of foreign investors into thecountry. Demand for various types of properties is onthe increase and there are high prospects for companiesalready operating in the industry as well as those seekingto enter the industry. Immense opportunities exist inthe construction of residential houses, industrial andcommercial houses as well as shopping centers, hotelsand hostels for tertiary institutions.Industry StructureThe real estate industry consists of residential,commercial, industrial and recreational properties.Commercial properties include hotels, office buildings,conference facilities, and retail space. The industry iscurrently dominated by residential and commercialproperties with the residential property market beingthe most active. The industrial property market issignificantly smaller in size than the commercial propetymarket, while recreational properties are the smallestsegment. The residential and commercial markets aredominated by private companies, which control over 90%of property holdings.Residential PropertiesFormal housing supply has traditionally been the role ofthe Government of Ghana through major competitiveproviders like State Housing Corporation (SHC), TemaDevelopment Corporation (TDC) and Social Security andNational Insurance Trust (SSNIT). SHC and SSNIT haveconcentrated on providing blocks of flats in regionalcapitals such as Accra, Cape Coast and Takoradi. TDCis basically involved in site servicing and facilitatingresidential development.In seeking to boost housing supply, the Governmentof Ghana is pursuing various programs such as theaffordable housing program initiated in 2005, to build over100,000 thousand units of affordable housing throughPrivate, Public Partnerships (PPP) across the country.Government’s efforts are being complemented byindividual households and real estate developers that areproviding residential housing to meet the high demand.The government has also entered into a public-privatepartnership arrangement with HFC Bank Limited toconstruct 200,000 low-income housing units nation-wideover the next five years.Affordable Housing ProjectThe demand for housing units is mostly concentratedwithin the Accra-Tema metropolis. The developmentof new housing estates is being spearheaded by theGhana Real Estate Developers Association (GREDA),an umbrella organization of loosely associated privatereal estate developers. The top five GREDA companiesthat account for roughly 75% of the group’s residentialproperty development are Regimanuel Gray, ParakuoEstates, NTHC Properties Ltd, ACP Estates Ltd, andManet Housing Company Ltd.The priority of the government in the housing sector isthe provision of affordable houses for the middle andlower income earners who form a greater percentageof those in need of houses. This policy is evidenced bythe 2011 National Budget which abolished the five (5)years tax exemption hitherto granted to those in the realestate development and now limiting it to only thosewho partner with the Ministry of Works and Housing toprovide affordable houses.Commercial PropertiesDemand for commercial properties in Ghana hasincreased substantially over the past decade due to thegrowing presence of foreign and multinational companiesseeking investment opportunities in the country.Estate developers are actively building multi-purposecommercial properties to meet the ever-growing demand.Many owners of residential property in prime areas ofAccra are converting or remodeling their properties intonew commercial developments. Prime commercial areasand streets in Accra are Accra Central Business District,Airport Commercial Area, Asylum Down, Osu, KwameNkrumah Avenue, Kojo-Thompson Road, IndependenceAvenue, Spintex Road, Liberation Road, Ring RoadCentral, and Cantonments Road (Oxford Street). Thereis also demand for property in Takoradi in the WesternRegion as interested stakeholders in the oil industry seekaccommodation for residential and office purposes.Industrial PropertiesThe development of the industrial property marketin Ghana has been slow as there is a decline inmanufacturing and an increase in importation of finishedproducts into the country. The industrial property marketconsists mainly of factories and warehouses for rent orsale and is restricted to the North and South Industrialareas in Kaneshie, Spintex Industrial area, and TemaIndustrial area.
29Recreational PropertiesRecreational developments are built by privateentrepreneurs interested in running the complexthemselves. The Government of Ghana also ownscultural properties in all the regions to promote tourism.Predominant amongst these properties are the Accra ArtCentre and the Centers for National Culture.Construction FinanceWith the stable economic environment, there is noweasy access to debt finance for construction in Ghana.Financial institutions involved in construction financehave no standardized lending conditions for applicants.Each development is considered on its own merit anddepending on the risks associated with the project, theinstitution grants the terms of lending. Barclays BankGhana, National Investment Bank, Bank of Africa andHFC Bank are some of the banks offering constructionfinance in Ghana.Home Purchase Finance (MortgageMarket)The stable macroeconomic environment in Ghanahas resulted in the gradually growth in the mortgagemarket in the country. Funds are now available atcompetitive cost and pricing, enabling people to afforddecent housing. Most prominent mortgage lenders inthe country include HFC Bank and Ghana Home Loans,although other universal banks like Fidelity Bank, BarclaysBank, UBA and Ecobank are also offering such products.TourismGhana Tourism AuthorityHead OfficeNo. 2 2nd AvenueSouth RidgeP.O. Box GP3106AccraTel: +233 302 682601/682607/682608Fax: +233 302 682510Ghana is fast becoming a leading destination for touristsin Africa and tourism is rated as one of the highestforeign exchange earners in the country. Efforts areunder way by the government through the Ministry ofTourism and the Ghana Tourist Board to develop andsupport the effective management of the industry tobecome a major source of foreign exchange and revenuefor the development of the country.The country boasts of historical sites, including fortsand castles, cultural monuments, craft villages, beautifulnature parks and gardens, and sandy beaches that makeit a unique destination for the international tourists toAfrica. Ghana’s greatest asset is its people who arerenowned the world over for their warmth, cheerfulness,and hospitality.FestivalsEach year, festivals and durbars are held in various partsof Ghana, to celebrate the heritage and culture of thepeople. Several rites and rituals are performed andmost of the celebrations are attended by entire villagesand are strictly observed by the traditional elders of therespective ethic groups. Some major festivals includeAkwasidae by the Ashantis, Homowo by the Gas,Hogbetsotso by the Ewes, Damba by the Northernersand Aboakyir by the people of Winneba.Forts and CastlesForts and castles dotted along Ghana’s coastlines werebuilt and occupied at different times by the traders fromEurope, Portugal, Spain, Denmark, Sweden, Holland,Germany and date back to the 15th Century. Most of thecastles and forts have been restored and are open to thepublic. The major ones include Cape Coast and ElminaCastles in the Central Region, Christianborg and FortCastle in Accra.Museums and other AttractionsGhana is home to various art and craft centers andmuseums. Among the attractions are the NationalMuseum which has a display of exhibits that reflect theheritage of the country, the National Theatre with itsdistinct modern architecture, the Independence Square,the Kwame Nkrumah Mausoleum which is the finalresting place of the first president of Ghana, Dr. KwameNkrumah, the Accra International Conference Centre,Ghana Academy of Arts and Science and the NationalArchives of Ghana.Beaches and Lake ResortsGhana faces the Atlantic Ocean and has hundreds ofkilometers of fascinating beaches in the Greater Accra,Central, Volta and Western Regions. Most beaches inthe country are open to the general public and with theirtropical climate and beautiful environmental conditions,
30they are ideal for tourists to relax. Major beachdestinations include Labadi Beach, Coco Beach and theKokrobite Beach, in Accra; Winneba Beach, Elmina Beach,Anomabo Beach and Gumoa Fetteh Beach in the Centralregion, Busua Pleasure beach, Princess town Beachand Miami Beach in the Western region; Keta Beachin the Volta region and Ada Beach in the Greater Accraregion. Some of the popular beach resorts in Ghana areCoconut Grove Beach Resort, Biriwa Beach resort, NextDoor Beach Resort, White Sands Beach Resort, Tills No 1Beach resort and Ada Manta Paradise Beach resort.National Parks and GardensGhana boasts of a number of national parks and gardenswhich are a store of spectacular wildlife and exotic plantlife. The most visited ones which include The KakumNational Park in Cape Coast has a canopy walkway forobtaining a delightful view of the surrounding tropicalrainforest, elephants, monkeys and other tropicalspecies. The Aburi Gardens on the Akwapim ridge in theEastern region is a peaceful and fascinating place witha diverse range of plant species. The Mole NationalPark at Damongo in the Northern Region providesan adventurous environment for visitors. It is hometo a large number of different elephants, antelopes,waterbucks, hartebeests, buffalo, amphibians, reptilesand bird species, Digya National Park on the centralshores of the Volta Lake, is largely savannah woodlandand it is home to mammals including elephant, buffalo,water buck, hartebeest, bush pig, baboons, crocodilesand five other species of monkeys.OtherTourist AttractionsOther popular tourist attractions include Boabeng-FiemaMonkey Sanctuary in the Brong Ahafo region withmore than 500 mona and 200 geoffrey’s pied columbusmonkeys which live with the people of the area, TafiMonkey Sanctuary, in the Volta region, where the tropicalforest is home to endangered, playful mona and patasmonkeys.One of the frequently visited tourist attractions in Ghanais the Larabanga Mosque in Tamale. It is believed tobe one of the oldest mosques in West Africa and is theoldest mosque in Ghana.Lodges and HotelsGhana has several forms of accommodation, rangingfrom five star hotels to homestays. These are of goodquality and can be located in all capitals, districts andtowns in the country. Five star, four star and three starhotels can be located in the Airport area, Osu, RomanRidge, Labadi and Central Accra. Accommodationfacilites of international standards can be found at popularbeach destinations such as Ada Foah, Gomoa Fetteh,Elmina, Axim and Busua.Water FallsGhana has scenic waterfalls in attractive rural and forestsettings along the coastal regions of the country. Thesewaterfalls are covered by green vegetation and providescenes of the beauty of nature. Some of the waterfallshave cages forming at their sides whiles other fallsconsist of series of falls and provide ideal ground forpicnics. There are also seasonal waterfalls at Alamboand Likpe Todome in the Volta region. Some popularwaterfalls in Ghana and their location are listed below:Name of Waterfall LocationTagbo Falls Volta RegionTsatsadu Falls Volta RegionBoti Falls Eastern RegionBegoro Waterfalls Eastern RegionFuller Falls Brong Ahafo RegionKintampo Waterfalls Brong Ahafo RegionTsenku Waterfalls Eastern RegionWli Falls Volta RegionPopular waterfalls in Ghana and their location
32The Ashanti RegionThe dominant economic activity in the region isagriculture. Other activities undertaken include mining,timber processing and industry. Cocoa is the mostimportant export crop grown in the region and cottonproduction is concentrated in the savanna and transitionalzones mainly around Ejura, Nsuta, Kwamang andAfrancho. Bast fibre is produced in significant quantitiesat Mampong, Ejura, Kofiase, Adidwan, Aframso andAmanten. Oil palm is grown all over the southern sectorof the forest zone with concentrations in the Amansie,Asante-Akim, Adansi and Ejisu - Juaben districts. Foodcrops grown include maize, plantain, cocoyam, cassava,yam, groundnuts and vegetables.Gold, which is the next major foreign exchange earnerafter cocoa, is mined at Obuasi which is the largestand richest gold mine in the country. Although it hasbeen mined for several years, it is still believed to havelarge reserves. Other deposits are found at Konongo-Benemase, Attonsu, Kwakwakwa. Ntronang, Bilpraw andAkrokerri- Mampamhwe. There are deposits of bauxiteat Nyinahin and diamonds and clay in various parts of theregion.The Eastern RegionThe dominant economic activity in this region isagriculture. Other activities undertaken include pettytrading, inland fishing and mining. Crop and livestockproduction are the main activities found in most ruralcommunities of the region. There are also commercialfarms producing pineapples, colanut, cocoa, coffee andoil palm for large-scale for export. Towns and villagesdotted along the Volta Lake undertake canoe fishing for aliving.Industrial establishments are located in various townsin the region. The factories produce pharmaceuticalproducts, lumber, poultry feeds, alcoholic beverages,furniture, textiles and other hardwares.Diamond is mined at Akwatia in the Birim South district.Diamond mining at Akwatia attracted many settlers toOda, Akwatia and the surrounding villages, a situation,which has contributed to the rapid development of thearea. The consolidated Diamond Mines at Akwatia hasbecome a tourist attraction.The Brong Ahafo RegionAgriculture is the main economic activity in the region.The region has a total cultivable land area of 30,400square kilometers out of which 3,706 square kilometersis planted with cocoa. About 71% of the region’spopulation is concentrated in farming. Crops growninclude plantain, oil palm, maize and oranges.Industrialization is expanding with the extension of hydro-electric power to the region. Presently, notable industriesinclude: Mim Timber Company and Scanstyle Limitedboth based at Mim, which produce semi-processed woodproducts for export; Wenchi Tomato Factory; a stonequarry at Buoku; brick and tile factories at Adantia andTanoso; and numerous sawmills scattered all over theregionThe Central RegionThe economy of the Central Region rests largely on asmall-holder, more or less traditional agriculture, inlandand small-scale fisheries and related activities along thecoast.The United Nations Development Program’s (UNDP)assistance was sought to accelerate the developmentof the region and this led to a proposal for Tourism (aslead sector), urban & rural environment and enterprisedevelopment.The tourism development component involvesinvestments in various areas of tourism developmentincluding conservation of the region’s vast culturaland historical assets and sites, i.e. conservation andrehabilitation of forts, castles and monuments, theestablishment of a unique game park at Kakum and AssinAttandanso that will conserve the tropical rain forestenvironment and rare wildlife conservation for tourismand travel industry development.The development program includes the rehabilitation ofElmina / Mumford Jetty and boat sanctuary, improvedfacilities for fish handling, curing and processing, amarine stock research centre at the University of CapeCoast (UCC) and the construction of ice-making andfreezing facilities. Promotion of fishing and export ofexotic fish products and pilot scheme for shrimp, lobsterand squid farming are also aspects of the UNESCOassisted development scheme.Other projects include expansion of tree crop farming(fruits for export and to support tourism industry, agro-forestry), creation of farmers services companies andsmall-holder salt production scheme.The urban/rural renewal component covers improvements
33to coastal and tourism towns and general rehabilitationof basic services including waste management. Thoseunder enterprise development component involvesupport for the region’s Intermediate Technology TransferUnit (ITTU) to support the expansion of the informalsector’s chain of micro-entrepreneurs, small-scale saltand allied chemical production, Kaolin and allied products,small-scale gold mining and the establishment of palmoil/kernel refinery.Consequent to the approval of these proposals, theGovernment and the UNDP have signed the projectsdocument and implementation of the development planwill soon take off.The Greater Accra RegionThe location of Accra and Tema in the region has madeGreater Accra the industrial center of the country. Theregion boasts of more than 200 major manufacturingindustrial establishments employing some 22,060persons. Most of these establishments including an oilrefinery are located in Accra and Tema. For this reason,the region consumes about 46.5% out of the totalelectricity generated in the whole country. Accra andTema also are the largest market area for the country’smanufactured products.The location of the country’s largest port at Tema,the relatively well developed infrastructure and goodindustrial atmosphere within Accra and Tema haveundoubtedly helped to increase the growth of industrialestablishments in the region.Fishing plays a major part in the region’s economy. Thereare about 30,000 fishermen in the region a third of thetotal number of fishermen in the country. Among themain fishing villages are Ada, Loi , Pute, Azianya, Accra,Teshie, Nungua, Tema, Kpone, Prampram, Bortianor,Ningo and Ahwiam. The commonest fish in the regionare trigger, sole spade, cassava, burrito, sardine andseabream.Fishing is controlled by the small-scale canoe fishermen,notwithstanding the construction of the fishingharbor in Tema and the emergence of such big fishingestablishments as Mankoadze, State Fishing Corporation,Ocean Fisheries, Kaleawo Enterprize and Afko Fisheries.Farming is a major economic activity of the rural areasof the region. Apart from the small-scale farms held byindividual families, there are some 20 commercial cropfarms and 25 livestock farms. The main crops grown inthe region are cassava, maize, groundnuts, vegetables,beans, cowpeas, coconut, pineapples, onions andshallots.The region is among the few in the country wherelivestock is reared because the vegetation is mainlygrassland and less infested by tsetse flies. Cattle is,therefore, reared in settlements around Agortor, Dawa,Afienya, Moble, Gbecheli, Katamanso, etc, in the centralpart of the region. There are, however, a few commercialranches like the Bank of Ghana Cattle Ranch at Shai Hillsand Sam & Sam Farms. The breed mostly reared is WestAfrican short-horn type which is small, hardy, resistant toticks and drought, but takes six years to reach maturity.The rest of the livestock farming are mostly poultry,sheep and goats.The Northern RegionFarming is the main occupation of about 70% of thepeople in the region. Among the crops grown are maize,rice, sorghum, yams, tomatoes and cotton and treecrops such as sheanut, and kapok. Rice is cultivatedmainly in Walewale, Tamale, Damongo, Salaga andYendi. Groundnut is cultivated extensively aroundTamale, Bimbilla, Yendi and Walewale. Guinea corn isalso grown extensively in the region. The cultivation ofrice and groundnut is mostly done on commercial basis.Livestock rearing in the region forms an important part ofthe economic activity of the area. Industry is agro-basedin the form of processing agricultural produce such asgroundnuts into edible oil and sheanut into shea-butter.Several rice mills operate in the area. Non-agro industriesare minimal in the region, mainly due to the poor mineralresource base of the area.Feasibility studies indicate the availability of highquality limestone deposits at Bog-Da near Gambagaand Buipe which can be used in the manufacture ofPortland cement. Sheini in the Zabzugu-Tatale Districtis also noted to have iron ore deposits. There are alsosubstantial deposits of clay at Kukuo, Yong, Nabari,Kpaligu and Bewna. Bricks made from this clay are saidto be suitable for the climatic conditions of the north.Places of interest abound in the Northern Region and soare many customary and cultural practices. The RegionalCentre for National Culture at Tamale and its craft shops,as well as the weaving industry at Jekarayili are someof the attractions for tourists. Handicrafts are a popularoccupation of the people. Weaving, carving, tanning andpottery are still done using age-old traditional methods.The waterfalls of Dung and Nankpanduri are year-longattractions while the Greenwich Meridian runs through
34Yendi. The Mole –Game Reserve and the LarbangaMosque are some of the tourist attractions in the region.The Upper East RegionThe region is predominantly agricultural with about70% of the economically active population engagedin livestock rearing, farming or fishing. Food cropscultivated are rice, millet, sorghum and groundnuts.Areas with the greatest potential for agriculturaldevelopment are the Gbedemblisi and Wiesi valleys.The valleys are the “rice bowl” of the region with highpotential also for the cultivation of cotton, groundnutsand legumes.The region has two big irrigation projects located atTono and Vea with developed areas covering 2,490hectares and 850 hectares respectively. Crops growninclude paddy rice, tomatoes, onions, millet, groundnuts,sorghum and maize. There are other 172 dams anddugouts scattered over the region.Having predominantly savanna vegetation, the regionpossesses the basic natural requirements for livestockand poultry production. The region produces about 25%of the nation’s cattle herd and a sizeable percentage ofsheep and goats.The three major manufacturing establishments in theregion are the Tomato Canning Factory at Pwalugu, theMeat Processing Factory at Zuarungu and the Rice Mill inBolgatanga. There is also a stone quarry at Pwalugu anda granite and marble factory at Tongo. On a smaller scale,the inhabitants undertake smock weaving, leatherwork,pottery, and sheabutter and groundnut oil extraction.The Upper West RegionOver 80 % of the population is engaged in subsistenceagriculture with staples such as guinea-corn, millet, rice,yams, beans, groundnuts, and cowpea.At present, about 80% of total production is consumedlocally while guinea-corn and beans are exported toother parts of the country. Cotton and sheanut mainlyproduced by the peasant farmers constitute the majorcash crops of the region. The Upper West Region aloneproduces 40% of the nation’s total cotton output whilstin the sheanut industry; this region and the NorthernRegion are the major producers of shea butter with over22 purchasing centers. The savannah vegetation whichis congenial to animal husbandry places the region in agood position to produce cattle, goats, sheep and poultry.There are a number of local industries such as pottery,shea butter processing, groundnut oil extraction, soap-making, cloth and smock weaving.The Volta RegionThe economy of the region depends on agriculture whichprovides employment for over 60% of the inhabitants.The major food crops are cassava, maize, rice and yam.The region leads in the production of cassava and is thethird largest producer of maize, next to Brong-Ahafoand Ashanti. It is second to the Northern Region in yamproduction, while remaining unrivalled in the productionof shallots.Commercial crops are cocoa, coffee, cotton, sugar-cane,citrus fruits and pineapple. The region contributes 13%of Ghana’s marine catch and 75 % of fresh water catch.Special catches for which the region is famous areanchovies, shrimps and oysters.The Western RegionAbout 51.1% of the population in the region is engagedin the agricultural sector where the soil types are suitablefor a wide range of crops notably cocoa, coffee, rubber,oil palm, citrus, coconut, rice, cocoyam, plantain, cassavaand vegetables. The region is the leading producer ofcocoa in the country. Another agricultural activity in theregion is fishing, with an average annual total catch ofabout 49 metric tons. Locating the oil rig off Cape ThreePoints and the embargo on fishing within the confines ofthe rig may have adverse effects on the fishing industry.The concentration of high forest in the region is the basisfor the corresponding high production of timber andtimber products. Indeed, the region is the leader in thetimber industry, producing about 42% of Ghana’s annualoutput.The region is one of the three most industrialized, theother two being Greater Accra and Ashanti. The industrialcapacity of the region is due to the two strong industrialcenters, namely Sekondi-Takoradi and the mining areasaround Tarkwa and Prestea.The major industrial establishments, with only a fewexceptions process agricultural, forest and mineralproducts. Most of the industries derive a greater part ofthe raw materials from the region, with a small portioncoming from outside.Prominent among the lines of production of theindustries are cocoa and tobacco products, edible and
35industrial palm oil, paper products, rubber tire andtubes, cement, flour, aluminum products, furniture andcorrugated iron sheets.The recent discovery of oil off the coast of Ghana hasmade Takoradi the fastest growing city in Ghana.
37Why Do Business in Ghana?The government is committed to implementing policiesthat reduce the general cost of doing business in Ghanaand to promote investor confidence in the country. Witha stable multi-party government that is committed tomarket liberalization, Ghana has been ranked as one ofthe most attractive locations for doing business in Africa.Other factors that make Ghana a competitive investmentdestination include:A sound macroeconomic environment• Immediate access to all markets of the Economic• Community of West African States (ECOWAS)100% foreign ownership is permitted• On-going privatization in key economic sectors• On-going infrastructure development• Expanding stock market• Competitive labor force• Availability of skilled and trainable labor• Quota-Free access to USA & European Union• markets.Export-free zones where goods traded with other• countries are exempt from customs duties and lawsFast developing financial infrastructure• High degree of personal safety and• Warm and friendly people• Starting a Business in Ghana- Process,Time and CostDomestic LawsLaws governing the establishment of business in Ghanaare in accordance with the provisions made in thefollowing legal legislation:The Companies Code, 1963 (Act 179)• The Partnership Act, 1962 (Act 152)• The Business Name Act, 1962 (Act 151)• The investor, whether a Ghanaian or a foreigner, whowants to establish a resident business entity has toregister with the Registrar General’s Department(RGD)under one of the Acts named above except where theentity is to operate in the country as a representativeof non –resident business entity. In that case it doesnot go through the process of incorporation under Act179 but simply submits the required documents to theRegistrar who registers them in the register of ExternalCompanies.Investment LegislationThe legal framework for investment in Ghana is regulatedby different agencies in the economy. These are:Registrar General’s Department• Ghana Investment Promotion Council (GIPC)• Ghana Immigration Service (GIS)• Ghana Revenue Authority(GRA)• Environmental Protection Agency (EPA)• Ghana Free Zones Board• Petroleum Commission• Investment ProceduresThe first step for an investor wishing to invest in Ghanais to register with the Registrar General’s Department.The department charges a fee of 0.5% of the company’sstated capital. The official processing time lies betweenthree to five days, after which the company will receivethe certificate of incorporation and certificate tocommence business.After incorporation, companies that are partly or fullyowned by foreigners have to register with the GIPC.Registration is completed after companies have metthe minimum equity requirements depending on theirstructure.The required equity can be brought into Ghana either inmoney or kind (goods, plant and machinery, vehicles orother tangible assets). Money can be brought in cash ortransferred into the account of the incorporated companyat a Ghanaian commercial bank. The bank must confirmthe transfer to the Bank of Ghana, which subsequentlyinforms the GIPC. Documents relating to equity in kindsuch as bill of lading, invoices and others which areconfirmed by the Customs Division of GRA must bepresented to GIPC.Registrar General’s DepartmentThe Registrar General’s Department is the organizationthat registers all companies, societies and institutionsin Ghana and issues certificates of incorporationand commencement of business to newly formedcompanies.Ghana Investment Promotion Centre(GIPC)Ghana Investment Promotion Centre was set up toinitiate and maintain a favorable environment for bothGhanaian and foreign investment in Ghana. The GIPCwas established under the GIPC Act as the governmentagency responsible for overseeing investments in allsectors of the economy except mining, petroleum,free zones and portfolio investments. Investments inthe mining and petroleum sectors are licensed by the