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Africa opportunities   why invest in ghana Africa opportunities why invest in ghana Document Transcript

  • 1/20/14 ABOUT US Africa Opportunities | Our Partners OUR SERVICES PROFILE OF GHANA WHY INVEST IN GHANA AREAS TO INVEST CONTACT US Monday, January 20, 2014 Why invest in Ghana? Advantages for Locating in Ghana Reputable surveys rate Ghana as one of the most attractive locations for doing business in Africa. However, in view of the Government’s policy to make Ghana the Gateway to West Africa, serious efforts are still being made to make the business environment more friendly thereby reducing occupancy costs for commercial and industrial properties and the general cost of doing business in Ghana. Ghana offers many attractions to the foreign investor: A stable political environment A sound macroeconomic policy 100% foreign ownership permitted On-going Privatisation of programme A large Economic Community of West African States (ECOWAS) market (250 million people). Good and ever improving physical infrastructure Availability of skilled and trainable labour. Competitive labour cost. Quota-Free access to USA & European Union markets. Proximity to European Union (6 hrs flight time) and USA markets (9 hrs direct flight time). Fast developing financial infrastructure High degree of personal safety Warm and friendly people Fairly high quality of life. Infrastructure Introduction Due to the key successes achieved under the implementation of the Ghana Poverty Reduction Strategy I (GPRS I), especially in the areas of reducing poverty from 39% to 28.5% during the period 2003 to 2005, and the attainment of relative economic stability in the economy, a successor national development policy framework, GPRS II, has been formulated to be carried out between 2006 to 2009 to focus on policies and programmes that will bring about growth of the economy and support wealth creation and poverty reduction. In the specific context of improving the level of infrastructure in the country, the goal is to facilitate both intra regional trade and to open up rural areas for investment, productivity enhancement and job creation, introduce/deepen competition and create an enabling environment for the private sector to spearhead the country’s development in the following areas: • Information and communication technology • Energy • Transportataion • Accomodation • Education • Health • Tourism Information and communication technology It has been argued that the development of information and communication technology (ICT) provides leapfrogging opportunities for developing countries. Ghana has not been left out in this revolution. According to the Data Development Group of the World Bank, ICT infrastructure in Ghana is progressing better than other low-income countries and above the 1.1% average for Sub-Saharan Africa. allafricaopportunities.com/en/about3.php 1/6
  • 1/20/14 Africa Opportunities | Our Partners The Government of Ghana has, since February 2004, enacted an ICT development policy with 14 priority areas. The thrust of the policy is to primarily concentrate on promoting ICT physical infrastructure development, which will in turn facilitate the development of the private sector. It is heartening to note that in 2009 Ghana was ranked as the most preferred business destination in subSaharan Africa for Business Process Outsourcing (BPO) business in the AT Kearney Global Services Location Index. The ranking which is based on a country’s ability to handle business is done under three main criteria: financial attractiveness; people skills and availability; and business environment. Additionally the 2009 “Outsourcing to Africa Report” for the relative ranking of 15 country locations also recognized Ghana as ready and upcoming in infrastructure status for outsourcing with positive People Driver indicators as well. Infrastructure: The Kofi Annan ICT Centre of Excellence, a joint Ghana/India project has been commissioned with a responsibility to produce the human resource capacity needed for the emerging ICT industry in Ghana and the sub-region. The Multi-Media Centre is also to serve as an incubator where new private companies in the industry can be nurtured and relocated to the Technology Parks Business Centre, which is to be set up at Free Zone enclave at Tema. These notwithstanding, various investments in ICT infrastructure by existing Internet Service Providers and telecommunication companies are helping to improve communication service delivery in the country. Others too are launching systems that aim at enhancing the provision of high-speed access to the internet and multimedia capabilities. Recently, the Government signed an agreement with Microsoft Corporation under which the largest ICT Company in the world would provide resources to improve ICT education in Ghana. Vodafone Ghana recently launched the fastest internet cafe in Africa with over 40 megabytes per second. The Vodafone internet café and retail store, with its WiFi area can seat up to 100 customers in air conditioned comfort plus the outdoor seating area. Top of the line graphic card and multimedia kits are also installed for those that love online gaming. The new Vodafone Internet Cafes & Retail stores are located in Cantonments, Accra North, Accra Central, Accra Mall, Tema, Kumasi, Koforidua, Ho, Tamale and Takoradi . The effect of all these has been the modest growth in ICT activities in Ghana. A host of foreign companies has been attracted to Ghana. Some of these are Affiliated Computer Services, Data Management International Inc., Rising Data Solutions, Global Response, Busy Internet, AQ Solutions and Supra Telecom. Indications are that a lot more are in the pipeline. Telephony: The telecommunications sector in Ghana has been liberalized and reformed. The monopoly of the former Post and Telecommunications Corporation was abolished with the enactment of the National Communications Authority Act, 1996 (Act 524), which established the National Communications Authority (NCA) as a sector regulator. The object of the National Communications Authority is to regulate the provision of communications services in Ghana. The market continues to grow aggressively in all segments, particularly, in the telephony space. Over the last 5 years and 8 years respectively, the market uptake has been growing at a compound average growth rate of 62.3% and 58.3% respectively. With respect to the market, telephone penetration at the end of 2008 was 52.4% composed of 99% mobile and 1% fixed. As at the end of 2008, the total number of fixed and mobile lines was 11,714,330 with fixed lines amounting to about 143,900 and the mobile lines making up the rest. Vodafon Ghana is the main fixed line operator with a huge market share of 97.98%. Westel which is now Zain had fewer subscribers covering the Accra- Tema Metropolis and a market share of 2.02%. There are six (6) cellular network operators. MTN (Ghana) Limited remains the market leader with a share of 55.56%. Tigo followed in the second position with a share of 24.96%. Vodafon Ghana is in the third position with a share of 13.76%. Kasapa, the only CDMA network in the country is in the fourth position with a share of 3.41%, Zain is in the fifth position with a share of 2.31% and Globacom are yet to start operations. Internet Services: Internet usage has caught up rapidly with Ghanaians over the last six to ten years. Growth has been particularly allafricaopportunities.com/en/about3.php 2/6
  • 1/20/14 Africa Opportunities | Our Partners Internet usage has caught up rapidly with Ghanaians over the last six to ten years. Growth has been particularly strong in the private sector for whom the internet has become an important tool for business. Below is a list of communication service providers in Ghana at the moment. National Network Operators Wireless Telephony Operators Internet Service providers 3 4 114 Paging Services Providers 10 Public Data Service Providers 57 VSAT Data Network Operators Free on Air Television Stations 96 23 Privately-Owned Radio (FM) Stations 146 Pay Per View Cable/Satellite (Accra) 16 Pay Per View Subscription 7 Satellite Re-broadcasting TV 1 Source: National Communication Authority Energy The energy sector is the lifeline in the development of any nation. This belief informed the decision to undertake the construction of the first hydroelectric (Akosombo) dam in 1965, which continues to be an important investment in Ghana’s economic history. Over the years with the increased demand by power users for greater security and reliability other sources of power – thermal, solar and lately windmills, as well as imports – have been added to the generation mix. The thrust of Government policy in the energy sector and Ghana’s oil find in commercial quantities is to push for a significant increase in its energy resources to become a net exporter of both power and fuel within the next five years. The production of Ghana’s oil will start in the fouth quarter of 2010. The Ministry of Energy has the responsibility for developing and implementing energy sector policy in Ghana. As part of its oversight responsibility, the Ministry also operates the nation’s strategic reserve of petroleum products through the publicly owned Bulk Oil Storage and Transportation Company (BOST). The sector is composed of two main sectors, namely petroleum and power. The Petroleum sector is made up of two sub-sectors – the downstream activities (i.e. finished products production, distribution) and upstream activities (i.e. exploration, development, production of oil and gas). In the downstream segment, the Tema Oil Refinery, which operates Ghana’s only petroleum refinery with a processing capacity of about 45,000 barrels of crude oil per stream day produces gasoline, kerosene, diesel oil, pre-mix fuel, aviation fuel and liquefied petroleum gas (LPG), among others. Tema Lube Oil Company produces assorted lubricants and special oils on behalf of the 17 licensed Oil Marketing Companies (OMCs). In the upstream sub-sector, the Ghana National Petroleum Corporation (GNPC) is the key institution that is collaborating with private investors to prospect for crude oil and gas within Ghana’s territorial boundaries. The Power sub-sector is run by three utilities: the Volta River Authority (VRA), Ghana Grid Company Limited and Electricity Company of Ghana Limited (ECG). The total installed generating capacity of electric power in Ghana is about 1,778MW comprising 1,198MW of hydro generation (Akosombo and Kpong stations), 550MW from Takoradi Thermal Power Station and 30MW diesel plant from Tema. Currently, Ghana is expecting 1,261.5MW additional energy production from the following sources by 2015: • VRA (TT1PP-THERMAL) 126MW • TEMA (TT2PP-THERMAL) 49.5MW • KPONE ASOGLI (THERMAL) 560MW • OSAGYEFO BARGE 125MW • BUI (HYDRO) 400MW The Ministry also has oversight responsibility over the Energy commission, which is a sector institution responsible for regulating, developing and managing the utilization of energy resources such as electricity, natural gas and petroleum products. The commission is also responsible, in particular, for preparing indicative plans for the development of the energy sector, licensing of public utilities for transmission, wholesale supply, distribution and sale of electricity and natural gas and enforcing performance standards of the utilities. The Public Utilities Regulatory Commission (PURC) is a statutorily independent body responsible for regulating and the overseeing provision of electrical and water utility services to consumers. Its functions include protecting the interests of providers and consumers, approval of rate, monitoring performance, standards and promoting competition among service providers. allafricaopportunities.com/en/about3.php 3/6 View slide
  • 1/20/14 Africa Opportunities | Our Partners Transportataion The provision of infrastructure and operations in all modes of transport in Ghana are dominated by the state. Except in the case of road transport, the public sector has been heavily involved in operations in all modes and has monopoly over rail and inland water transport. Road: Road transport is very important to the Ghanaian economy. It is estimated that road transport accounts for 98% of freight ton-miles and about 97% of passenger miles in the country. Road transport in Ghana may be categorized into 4 main segments, namely urban, express services, ruralurban and rural. The demand for urban passenger transport is mainly by residents commuting to work, school, and other economic, social and leisure activities. Most urban transportation in Ghana is by road and provided by private transport including taxis, mini-buses and state/private-supported bus services. By road transport buses are the main mode of transport accounting for about 60% of passenger movement. Taxis account for only 14.5% with the remaining accounted for by private cars. One important trend in road transport (especially inter-city) is that there has been a shift from mini-buses towards medium and large cars with capacities of 30-70 seats. There has been a growing preference for good buses as the sector continues to offer more options to passenger in tons of quality of vehicles used. According to the Ministry of Roads and Transport, Ghana’s road transport infrastructure is made up of 63,122km of road network linking the entire country as at the end of 2006. The network consisted of 12,786km of trunk roads, 40,671km of Feeder roads and 9,764km of urban roads. On the whole, traffic densities are low, except in the large cities of Accra and Kumasi, where peak hour densities are relatively high. The intention is to have many of the existing highways tolled and private-sector participation in road construction and ownership. Railways: A triangular rail network (of 950km) links the three cities of Kumasi in the heart of the country, Takoradi in the west and Accra-Tema in the east. The network connects the main agricultural and mining regions to the ports of Tema and Takoradi. It has mainly served the purpose of hauling minerals, cocoa and timber. Considerable passenger traffic is also carried on the network. There are firm plans by the Government to develop the rail network more extensively to handle up to handle up to 60% of solid and liquid bulk cargo haulage between the ports and the interior and /or the landlocked neighbouring countries to the north of Ghana and elsewhere. The government has set out seeking the necessary investment to restore the network, improve speed and axle load capacity and replace worn-out rolling stock. Plans are far advanced to privatize the State-owned Ghana Railways Corporation (GRC) through concession and to provide much greater capacity for rail haulage of containers and petroleum products. Government also has plans of linking the suburbs of Accra to the central business area by rail and also link the north to the south to serve the landlocked countries north of Ghana. Air Travel: The country is at the hub of an extensive international (and national) airline network that connects Ghana to Africa and the rest of the world. Most major international carriers fly regularly to Kotoka International Airport (KIA) in Accra, the main entry point to Ghana by air. This is the result of Ghana’s open skies policy, which frees an air space regulator from the constraints on capacity, frequency, route, structure and other air operational restrictions. In effect, the policy allows the Ghana Civil Aviation Authority (GCAA) to operate with minimal restrictions from aviation authorities, except in cases of safety and standards and/or dominant position to distort market conditions. Ghana is working to position herself as the gateway to West Africa. KIA remains the leading and preferred airport in the sub-region, having attained Category One status by the US Federal Aviation Administration (FAA) audit as part of their International Aviation Safety Audit (IASA) programme. As at now, Ghana is one of four countries in sub-Saharan Africa in this category. The others are Egypt, South Africa and Morocco. It handles the highest volume of cargo in the sub-region and has all the requisite safety facilities, recommended practices and security standards. A rehabilitation programme embarked upon since 1996 has brought about an expansion and refurbishment allafricaopportunities.com/en/about3.php 4/6 View slide
  • 1/20/14 Africa Opportunities | Our Partners A rehabilitation programme embarked upon since 1996 has brought about an expansion and refurbishment and upgrading of facilities at the international terminal building, as well as the domestic terminal. These terminals now have significantly increased traveler and cargo capacity. The airport’s runway has been extended to cater for all types of aircraft allowing direct flights from Ghana at maximum take-off weight without the need for technical stops en-route. Another important part of the airport development programme is the Airport City Project. This involves an enclave adjoining the airport, which has been created, serviced and leased to private companies and entrepreneurs who are constructing hotels, shopping malls, entertainment centers, etc to complement the operations of GCAA. Below is a list of airlines operating in Ghana: • ALITALIA • BRITISH AIRWAYS • EGYPT AIR • EMIRATES AIRLINES • ETHIOPIAN AIRLINES • GHANA INTERNATIONAL AIRLINES • KLM • LUFTHANSA • SOUTH AFRICAN AIRWAYS • MIDDLE EAST AIRLINES • UNMIL • AFRIQIYAH • CEIDA INTERCONTINENTAL • AIR BURKINA • KENYA AIRWAYS • BELVIEW • VIRGIN ATLANTIC • DELTA AIRLINES • UNITED AIRLINES • AERO CONTRACTORS • AIR NAMIBIA • ROYAL AIR MAROC • AIR NIGERIA Harbours: Ghana has two (2) commercial ports at Tema, in the east and Takoradi in the west. An inland port is under construction at Boankra, near Kumasi The port of Tema covers 166 hectares of water area enclosed by 2 breakwaters. Ther are 2 quays housing 12 multi-purpose berths. Quay 1 houses berth 6-12, while Quay 2 houses berths 1-5. These berths are operated as common-user and a wide range of cargo including dry bulks, steel products, bagged cargo, newspapers, vehicles and containers. There is a terminal for handling crude and other liquid petroleum products. The oil berth can accommodate tanker of up to 244 metres in length with a maximum draught of 9.7 metres. Recent years have seen a rapid increase in cargo through Tema and owing to trans-shipment and transit traffic to land-locked Burkina Faso, Mali and Niger. Indications are that traffic will continue to grow in the foreseeable future. The Takoradi port, a much smaller one, was commissioned in 1928, but underwent major rehabilitation in the 1990s. It is slated for another massive refurbishment under the Ghana Gateway Project in the near future. Currently, it handles about 60% of Ghana’s total exports, which mainly includes minerals (manganese, bauxite and gold), timber and cocoa. A new centrally located “ inland port” is being constructed at Boankra near Kumasi in the heart of the country. This is expected to be an important staging post for goods in transit to and from the landlocked countries lying north of Ghana. This will be a multi-modal facility handling both road and rail traffic. When the facility enters service, cargo owners to the northern part of Ghana will be able to use Boankra as their trans-shipment instead of Tema and Takoradi. Due to Ghana’s oil find there is a short term development project to take place at the Takoradi port. The project which is estimated to cost about USD 50 million would involve dredging of the area to 7.0 m, land reclamation, relocation of the cocoa sheds outside the port, construction of about 500m quay walls, 650m oil berth with 10m allafricaopportunities.com/en/about3.php 5/6
  • 1/20/14 Africa Opportunities | Our Partners relocation of the cocoa sheds outside the port, construction of about 500m quay walls, 650m oil berth with 10m draft, water hydrant for the supply of fresh water to vessels, office accommodation, oil storage tanks for bunkering, storage facility of oil production materials in a free zone and cargo handling equipment. Based on cargo forecast up to year 2028 a master plan has been developed for the long term. The estimated cost of project is USD 650 million and it will see facilities like breakwater extension, paved operating areas, conveyers for clinker, bauxite and manganese, railroad, paved roads, container yard and cargo handling equipment being added to the port. Fishing Harbours: In the eastern part of Tema is one of Ghana’s main fishing harbours. Another one is at Sekondi and other minor ones are located at Elmina, Mumford and other fishing communities along the coast. The Tema Fishing harbour is divided into 3 zones – the inner outer fishing harbour has a protective water area of 15 hectares, a maximum draught of 5.2 metres and an average draught of 4.0 metres at low water level. Facilities include: • Lay-by jetting: 155 metres long with berthing for over 50 wooden vessels • Mooring for 20 steel vessels • Net repairing wharf (100 metres long) • Two (2) fishing handling sheds • Fish market hall Dry dock: The port of Tema is also a leading center of ship repairs on the west coast of Africa. Convening nearly 49 acres, the shipyard is a convenient hub for dry-docking and repairs of all kinds of ships ranging form large sea going vessels to coasters and fishing boats. It has facilities for ship repair, dry-docking, steel fabrication, general engineering, met lock repairs and non-destructive testing. Water Transport: The Volta Lake was created in the early 1960’s by building a dam at Akosombo and flooding the long valley of the River Volta. It is the largest man-made lake in the world stretching 415km form Akosombo 101km north of Accra, to Buipe in northern Ghana, about 200km from Ghana’s border with Burkina Faso. As a waterway, the Volta Lake plays a key role in the “Ghana Corridor” programme by providing a useful and low cost alternative to road and rail transport between the north and the south. Ghana is in an advantageous position, by virtue of her seaports and inland lake transport system, to service the maritime needs of landlocked countries to the north of Ghana. A company, Volta Lake Transport Company (VLTC) uses a fleet of pusher tugs and assorted barges to provide regular north-south services for general cargo and liquid bulks, and tramping service for local traders. VLTC carries 88,000 tones of cargo annually. Northbound, one of the most important cargoes is diesel oil, which is piped to Akosombo from the Tema Oil Refinery and taken on to final destination (Buipe) by barge. Other cargos include alumina, sulphate, cement, fertilizer, stores and oil products, all of which are conveyed to Akosombo by truck. Southbound, the barges carry a range of agricultural produce including cassava chips, cotton lint, cottonseed and sheanuts. All these items are trucked south (from Akosombo) to Accra and Tema, from where cottonseeds and sheanuts are exported. VLTC also operates a 300-passenger capacity vessel between Akosombo and Yeji in Northern Ghana (293km). This vessel is designed to carry cargo as well as passengers. Email: info@allafricaopportunities.com | Telephone: (233) 27 7778710, (233) 28 253516, (233) 24 4072485, (233) 20 8071734 Copyright © 2011 | allafricaopportunities.com/en/about3.php Disclaimer | Privacy Policy | Site Developed By XLIT 6/6