Ghana has a population of over 51 million people concentrated in major cities like Accra and Kumasi. Its economy has grown in recent years due to increased oil production, but it still faces challenges like high unemployment and a reliance on commodities. Ghana has a growing services industry including outsourcing and sees potential in gold mining. While the political system is stable, national issues like poverty, healthcare and education require ongoing attention to support further economic development.

1. GHANA
Ranya Shams
Kenza Chater
Jana Huwait
Razan Kattan
Alanoud Al-Mutlak

2. Introduction

3. Socio-Economic
Analysis

4. • Major cities population: Accra and
Kumasi.
• Population density: 115 peoplekm2

5. • Population: 51% females. 49%
males.
• Population growth rate: 2.19%
• Median age: 20.7 years.
• Official language: English
• Religions: Christian, Islam

6. • Fertility rate: 4.12 childrenwoman
• Birth rate: 31.7/1000 population
• Death rate: 7.53/1000 population
• Child labor (ages 5-14): 8.2%
• High degree of risk of infectious
diseases.

8. • Increase of skilled labor’s
migration due to unemployment.
• Growth of domestic educated
labor force.
• Enrollment in graduate and
postgraduate programs.
• Hospitals and other institutions of
higher learning are struggling hard
to retain staff.

9. Economic
Analysis

10. Economic Freedom
• Ghana’s economic freedom score is 64.2.
• Its overall score is 2.9 points better than
last year, reflecting notable improvements
in the control of government spending,
freedom from corruption, and business
freedom.
• Ghana is ranked 5th out of 46 countries in
the Sub-Saharan Africa region, and its
overall score has risen above the world
average.

11. GDP
Gross domestic product (GDP) growth
decelerated from 14.4% in 2011 to 7.1% in
2012. The economic growth peak in 2011
was due to the start-up of oil production in
the last quarter of 2010. The growth
performance in 2012 was achieved despite
lower cocoa and oil production.

13. GNI per capita (current
LCU)• The value for GNI per capita (current LCU) in
Ghana was 2,297.75 as of 2011. As the graph below
shows, over the past 51 years this indicator reached
a maximum value of 2,297.75 in 2011 and a
minimum value of 0.01 in 1960.
• Source: World Bank national accounts data, and
OECD National Accounts data files.

14. • Ghana has been classified as a low
middle-income country by the World Bank
since 2010. Ghana continues to be
challenged by slow progress on reduction
of under-5 mortality, improvement of
maternal health and environmental
sustainability.
Income
Distribution

15. • The World Bank provides data for Ghana from
1992 to 2014.The minimum was in 2006 of 3.6 %
and a maximum of 11% in 2014.
Unemployment
Rate
0
2
4
6
8
10
12
1992 2000 2006 2014
Unemployment Rate
Unemployment Rate

16. Financial Analysis

17. Financial Situation
Ghana’s currency : cedi GH₵; code :GHS

18. Exchange Rate
Currency Pairs Code Buying Selling
U.S Dollar USDGHS 2.7937 2.7963
Pound Sterling GBPGHS 4.7127 4.7182
Swiss Franc CHFGHS 3.1772 3.1798
Australian Dollar AUDGHS 2.5873 2.5917
Canadian Dollar CADGHS 2.5477 2.5501
Danish Kroner DKKGHS 0.5189 0.5194
Japanese Yen JPYGHS 0.0273 0.0274
New Zealand
Dollar
NZDGHS 2.4162 2.4204
Norwegian Kroner NOKGHS 0.4702 0.4705
Swedish Kroner SEKGHS 0.4289 0.4292
S/African Rand ZARGHS 0.2670 0.2672
Euro EURGHS 3.8737 3.8772
Chinese Reminbi CNYGHS 0.4464 0.4467
It can be attractive for a foreigner to invest due the cheaper
value of currency that would decrease costs.

19. Interest rate
• Ghana’s interest rate is currently 18%. ( somehow its high
compared to other countries).
• Effect of the raise of interest rate on the businesses.

20. Ghana's inflation rate
• Ghana’s inflation rate reached 14.5 during march 2014.
• It’s the highest inflation rate since February 2014 .
• It caused an increase in the prices of fuel , kerosene ,
transportation and dairy cost , which will affect the businesses
by …

21. GHANA CORPORATE
TAX RATE

22. Ghana Taxes Rate
Taxes are paid on goods and services( indirect)
and income tax (direct )
Current corporate tax is 22.9%
Ghana corporate tax rate VS other countries (
US)(40%).
Effects
Taxes paid out of capital.
The more money they pay in taxes,
the less money they have to hire more
employees and grow the business.
Taxes also cut into profits and the
company’s stock value.

23. Ghana’s International
Debt

24. International Debt
What is an international debt ?
• The External Debt (Total) of Ghana is 12.7 ( billions of
$) with a global rank of 94.
• “External debt sustainability analysis" in an attempt to
determine the suitability of a country for investment .
This analysis takes into account monetary and fiscal
policies; micro- and macroeconomic situations; and
various scenarios that consider possible instabilities
and adverse events.
• Ghana's external debt have lead into economic
growth in the past several years.

25. Balance of Payment

26. Balance of Payment
• Deficit in current account: the country's total imports of
goods, services and transfers is greater than the total
export of goods, services and transfers indicating that,
Ghana is a net debtor to the rest of the world.
• Total exports declined, non-oil imports went down while
oil imports increased.
• The net inflows into the capital and financial account
improved.
• These developments resulted in an improved balance of
payments deficit of US$136.3 million in the first quarter
of 2013, compared with a deficit of US$1.3 billion in the
same period of 2012.

27. Balance of Payment
• Ghana cedi cumulatively depreciated by 2.3 percent
against the US dollar. During the first quarter of 2013,
however, the real exchange rate appreciated by 5.9
percent.
• On the external front, the trade deficit has widened
further on the back of a significant deterioration in terms
of trade. This was on account of low international
commodity prices which have fed through to lower
exports receipts, despite imports remaining broadly flat.
• The combination of these factors have resulted in
heightened exchange rate pressures in the foreign
exchange market, although at a measured pace, relative
to 2012.

28. Competitive
Analysis

29. • Ghana is the world’s third largest producer and the
second largest exporter of cocoa beans.
• The recent success in sustaining a continuous path
of economic growth and poverty reduction in Ghana
has been partly ascribed to the recovery of the
cocoa sector.
Cocoa

31. • U.S.-Ghana Trade Facts: Ghana is currently our
91st largest goods trading partner during 2013.
• Exports: Ghana was the United States' 75th largest goods
export market in 2013.
• The top export categories in 2013 were: Vehicles
Machinery, Mineral Fuel (oil), Meat and Cereals (rice).
• Imports: Ghana was the United States' 100th largest
supplier of goods imports in 2013.
• The five largest import categories in 2013 were: Cocoa,
Mineral Fuel, Wood, Rubber, and Vegetables.

32. • Ghana is known as the gold coast due to the huge
amount of gold found there.
• Ghana is the 2nd largest gold producer in Africa
and the 8th largest globally. the country earned
nearly $1.5 billion through export of gold.
Gold

33. • Ghana is one of the fastest developing
nations for Business Process Outsourcing
today.
• Ranking 13th in the top outsourcing countries
in 2010.
• Reasons why some countries are attracted
to Ghana: stable democratic environment,
low-cost labor, and zero taxes.
Outsourcing

34. Socio-Cultural
Analysis

35. Business Etiquette and Protocol
Greeting and Meeting:
Handshakes
• To rush a greeting is extremely rude.
• Eye contact.
• Titles are important.
Male over 30 ( Pah-Pah)
Women over 30 ( Mah-mee)
people over 50 (Nah-nah )
• Business cards

36. • Initial meetings

37. Gifts :
• Gifts should not be expensive
• If invited to dinner at a Ghanaian’s home

38. Ghana National Cloth – Kente

39. KenteSamples and
Patterns
Colors and
Meaning
Yellow: Holy and Precious
Pink: Calmness and Sweetness
Red: Strong political and spiritual
feelings.
Blue: Peace, harmony, good
fortune, and love.
Green: Growth and good
health
White: Purity and healing.
Black: Strong spiritual energy.

40. Ghana (
Ethnic
groups )
1- Adangbe
2- Akan ( Ashanti)
3- Akwamu
4- Dagomba
5- Ewe
6- Frafra
7- Ga
8- Guan

41. Religions of
Ghana

42. Ghanian Languages

43. Traditional Food and Drinks
Fufu Kenkey

44. Money and paying for things
- Friendly bargaining
- Never get angry
- Price are 30% to 50% higher.
- Bargaining price 50% lower

45. Legal

46. • Same obligations.
• A foreign company must register
with the Registrar General within
one month.
• Doing business through a branch
or a subsidiary company.
• Mandatory payment of tax from the
income.

47. • Certain types of enterprises are operating
in Ghana.
• The foreign investment with a Ghanaian
partner is at least USD 10,000 or USD
50,000 if it’s a wholly owned.
• A trading enterprise for only buying and
selling, the foreign investment must be at
least USD 300,000
• At least ten Ghanaians a business must
employ.
• No minimum capital requirement applies.

48. • Minimum standards for wages and
working conditions. It’s fixed at
3.73 Cedis per day.
• The average annual salary is at
397 Cedis.
• By law, the maximum workweek is
45 hours.
• A business visa is required to work
in Ghana, and permits to stay for

49. Legal Quotas and
Barriers
• Government will make selective commitments
for liberalization and ensuring legal provisions
and protect consumers from unfair practices.
• Incentives to exports and increase prices of
imports inventories.
• Technical Barriers.
• The region remains weakly integrated, with
continuing tariff barriers (for example where
restrictive rules of origin cannot be met) and
substantial non-tariff barriers

50. Political

51. • Unitary state
• Presidential
system
• Constitutional
republic
Dr. John Dramani Mahama, President

52. Political Situation
• Ghana ranked fifth in political stability
Changes of this nature will affect firms
significantly and may increase their costs.
However, additional rights could also result
in improved motivation and this may help
compensate for higher costs. Businesses
will look carefully at all political changes to
assess the impact that they will have on
them and their competitors.

53. National issues
• Healthcare & Health
Infrastructure

54. National Issues
• Extreme poverty and hunger, as well as
education

55. National Issues
Ghana’s national issues will somehow discourage
foreign investors due to :
Lack of skilled employees.
Hard to attract expatiates employees
A disagreeable work atmosphere
But it can have an advantage of :
Low wages and salaries .

56. Recommendations and
Conclusion