2nd largest economy in West Africa
o Ghana has an active retail market and healthy consumption levels. Fitch reports, household spending is expected to increase from US$55bn in 2021 to USD81bn in 2025.
o AfCFTA presents an opportunity for intra-regional growth by leveraging access to common markets and knowledge transfer through labour mobility, thereby attracting foreign direct investments into the region.
o The AfCFTA secretariat is located in Ghana.
o Ghana was the largest (No.1) producer of gold in Africa and 6th largest in the world in 2021. o 13,000 metric tonnes of manganese reserve. o 16.86 million tonnes of high-grade trihydrate bauxite mined since 1997.
o Newly discovered deposits of lithium in 2021 amounting to 30.1million tonnes, setting Ghana up to become West Africa’s first lithium producer.
Rich in natural resources o International arrivals of tourist increased from 932,579 in 2016 to 1,130,307 in 2019, however 2020 saw a reduction to 355,108 due to lockdown measures in response to Covid -19.
o As at September 2021, international tourist arrivals increased by 18% while domestic tourists grew by 58%. Preferred tourism destination o Ghana is blessed with a very youthful population, about 67% of the population is within the ages of 15 to 64 years.
o Government initiative such as free basic and secondary has ensured a 69.8% literacy rate for citizens who are 6 years and older as at 2021.
Youthful population Stable political environment o Ghana is ranked the second most peaceful country in Africa and the 38th most peaceful country in the world as per the 2021 Global Peace Index.
o Due to provisions made in the constitution of Ghana (article 20) and Free Zones Act (Act 504) there is a reduced threat of nationalism of private businesses.
o Government has initiated a plethora of incentives to ensure a conducive and enabling business environment. o Government incentives include tax holidays, rebates, provision of industrial parks, provision of finance through partnering agencies and interest subsidies.
o Ghana has double taxation agreements with the United Kingdom, South Africa and other EU countries. Investor-friendly government initiatives o Foreign Direct Investment (FDI) has averaged $2.72b from 2017 to 2021, suggesting stability in the inflow of capital with investment focus in oil and gas, mining (including gold and manganese), and agriculture (cocoa).
o Ghana attracted US$2.65bn in FDI inflows in 2020, one of the highest amount in West Africa. Top investment destination o Ghana is endowed with vast arable lands rich in agriculture.
o In 2020, Ghana was the 2nd largest producer of cocoa in the world, the 4th largest producer of cassava in the world. o Ghana is blessed with fertile land for the production of maize, tomato, rice among many other food crops.
Source: Ghana Investment promotion centre report, November 2022