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Ghana at a Glance
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Historical Background
Until its independence from British colonial rule on 6 March, 1957, Ghana was called the "Gold Coast", a name given it by early Portuguese explorers who first set foot on the shores of the country in 1471. The name aptly described the country's wealth in gold and natural resources, which include to the present day:
During various periods from the time the Portuguese discovered gold in 1471 to independence in 1957, the monarchs of several European kingdoms, notably Denmark, England, Holland, Prussia and Sweden sent hordes of explorers and merchants to the country for its abundant wealth, both natural and human. They battled for supremacy and control over the land, and built forts and castles which also served as trading posts. Vestiges of the extent of European colonial presence and concentration of activity in the country are evidenced by the fact that 29 of the 32 European colonial forts and castles dotted along the coast of West Africa are in Ghana. LocationGhana is located on the west coast of Africa, about 750 km north of the equator on the Gulf of Guinea, between the latitudes of 4°-11°5' north. The capital, Accra, is on the Greenwich Meridian (zero line of longitude). The country has a total land area of 238,533 sq. km and is bounded on the north by Burkina Faso, on the west by Côte d’Ivoire, on the east by Togo and on the south by the Gulf of Guinea. The land area stretches for 672km north-south and 536km east-west.LandThe coastal area of Ghana consist of plains and numerous lagoons near the estuaries of rivers. The land is relatively flat and the altitude is generally below 500m, with more than half of the country below 200m. The Volta River basin dominates the country’s river system and includes the 400km Lake Volta (the largest artificial lake in the world), formed behind the Akosombo Hydro-Electric Dam. In the north, the predominant vegetation is savannah and shrub, while the south has an extensive rain forest.ClimateGhana has a tropical climate, characterised most of the year by moderate temperatures generally 21-32°C (70-90°F), constant breeze and sunshine. There are two rainy seasons, from March to July and from September to October, separated by a short cool dry season in August and a relatively long dry season in the south from mid-October to March. Annual rainfall in the south averages 2,030 mm but varies greatly throughout the country, with the heaviest rainfall in the western region and the lowest in the north.PopulationThe population of Ghana is 18,845,265 (Source: Ghana Statistical Service, January 2002). The country, with ten regions, has on average a population density of about 78.9 persons per square kilometre, with an annual growth rate of 2.6 per cent.Most of the population is concentrated in the southern part of the country, with the highest densities occurring in urban areas and cocoa-producing areas. Population by Region and Sex
Source: Ghana Statistical Service, January 2002 LanguagesGhana’s principal ethnic groups are the Akan (Twi and Fante speaking), the Guans, Ewes, Dagombas, Gas, Gonjas, Dagaabas, Walas and Fafras. There are 56 Ghanaian dialects of which Akwapim Twi, Asante Twi, Fante, Dangbe, Ewe, Kasem, Gonja, Dagare, Ga Dagbani and Nzema are the major languages. The official language of the country is English. French and Hausa are two major foreign languages spoken in the country.ReligionThere is complete freedom of religion in Ghana. Religious affiliation - Pentecostal / Charismatic (24.1%), Protestant (18.6%), Islam (15.6%), Catholic (15.3%), other Christian (11%), Traditional Religion (8.5%), no religion (6.2%) and other religion (0.7%).EducationGhana has a tradition of educational excellence, as the success of Ghanaian professionals, scientists, technicians and teachers throughout the world testifies.The educational system was originally based on the English grammar school system. But this decade has seen radical changes focusing on the scientific, technical, vocational, managerial and entrepreneurial skills to meet Ghana’s development needs. Proper attention is now also devoted to Ghanaian and African history, art, literature, languages and traditional skills and customs. The public universities are: the University of Ghana, the University of Cape Coast, the University of Science and Technology at Kumasi and the new University of Development Studies at Tamale, as well as the University College of Education at Winneba. There are also private universities, numerous polytechnics and specialised institutions. The tertiary education system is being enlarged and its facilities improved, with substantial funds being allocated every year to the provision of academic and residential infrastructure, journals, computers and other equipment. HealthGhana has a good health service system throughout the country. All regional capitals and most districts have hospitals, polyclinics and clinics. Two (2) teaching hospitals in Accra and Kumasi have facilities for treating special cases. Additionally, a number of religious organisations and private medical practitioners operate hospitals and clinics all over the country. Herbal medicine and psychic healing are also generally practised, and there is a special government Herbal Medicine Hospital and Research Centre at Akwapim-Mampong.Foreign PolicyGhana's foreign policy objectives continue to be directed towards the promotion and protection of the interests of Ghana, establishment of a just and equitable international economic policy and social order. The rest are the promotion of respect for international law and treaty obligations and settlement of international disputes by peaceful means as well as adherence to the principles enshrined in the Charter of the United Nations, the African Union, the Commonwealth, the ECOWAS Treaty and other organisations of which Ghana is a member.InfrastructureRoadsThere are approximately 30,000 km of classified roads in Ghana, 15,000 km of these are trunk roads, the remainder being feeder roads. There are also around 6000 km of unclassified tracks. Of the total road network approximately 6000 km are paved. There is a good road-network between Accra and the main towns.RailwaysThere are approximately 1000 km of railways in Ghana, which connect the main centres of Accra, Kumasi and Takoradi.AirportsKotoka (Accra) is the main international airport. There are also airports at Takoradi, Kumasi, Sunyani and Tamale.Ports and HarboursGhana’s two main ports are Tema (near Accra) and Takoradi, these are both relatively modern. Rail links exist from both these ports to Kumasi.Inland WaterwaysThe Volta Lake stretches 400 km inland from the Akosombo Dam. Lake transport is fairly modest.Finance
CurrencyThe unit of currency is the Cedi (¢), which is divided into 100 pesewas. The Cedi is pegged to the US dollar at an adjustable rate.Sources of Finance in GhanaThere are a number of financial institutions in Ghana. These include the Central Bank (Bank of Ghana), Commercial Banks, Development Banks, Rural Banks and non-bank institutions.The Central BankBank of GhanaCommercial BanksGhana Commercial Bank, Standard Chartered Bank (Gh) Ltd., Barclays Bank (Gh) Ltd., Social Security Bank, Metropolitan Allied Commercial Bank and the Trust Bank.Development BanksNational Investment Bank, Agricultural Development Bank, International Commercial Bank, and the Trust Bank.Merchant BanksMerchant Bank of Ghana Ltd., Ecobank Ghana Ltd., Continental Acceptances Ltd. and First Atlantic Merchant Bank.Foreign Direct Investment/PrivatisationStatistics at the Centre indicate rewarding and encouraging investment results, which confirm the anticipated trend of increasing investments even in the face of an election year.As at the end of year 2004, projects with foreign participation registered by the Centre totaled 183 with a total value of US$186.26 million. 48 projects were registered in the first quarter, 37 in the second, 47 in the third and 51 in the fourth quarter. The number of projects registered during the year shows a 20% increase over the projects registered over the same period in 2003. More importantly, the projects show a positive and increasing pattern from 2002 during which year performance went down due to the combined effects of September 11, 2001 US terror attacks and corporate melt downs. Out of these 183 registered projects, 78 (42.6%) are wholly (100%) foreign owned, while the remaining 105 projects (57.4%) are joint venture enterprises between Ghanaians and foreign entrepreneurs. As at the end of 2004, projects and Liaison offices registered by the GIPC since 2001 totaled 771. The Agricultural sector tops the list with 50 projects, Building and Construction 40, Export Trade 22, General Trade 89, Manufacturing 181, Service 183 and Tourism 79 projects. The remaining 27 are liaison offices. Equity Capital TransferredThe actual equity capital transferred into the country during the fourth quarter was US$6.28 million which is higher than the corresponding figures of US$5.37million and US$4.29 transferred during the third and second quarters respectively but slightly lower than the first quarter’s transfer of US$6.32million.Total actual initial equity capital attracted during the year under review was US$22.23million. This compares very favourably with the US$12.9 million and US$12.94 million attracted during the years 2001 and 2002 respectively but lower than the figure of US$39.12 million attracted in year 2003. The exceptionally high figure for year 2003 as explained in the third quarter report, was due to an equity investment of US$21.03 million made by Societe’ Generale in Social Security Bank (SSB).Total Estimated Cost of ProjectsThe total cost of the 183 projects registered during the year, 2004 has been estimated at US$186.28 million, which shows a dramatic increase over the US$118.38million for year 2003 and US$65.13 million for year 2002.The minimum expected equity capital transfer over the period under review is estimated at US$34.51 million and this would raise the actual equity capital so far transferred at the time of registration since 2001 to US$87.19 million. Sector PerformanceThe Manufacturing and Services sectors continued to be the leading sectors attracting FDI. This is in consonance with the World Investment Reports for years 2003 and 2004 published by UNCTAD, which showed a global shift of FDI to the service industry.For the year 2004, the Manufacturing sector registered 52 projects valued at US$28.25 million while the Service sector registered 48 projects involving an estimated capital outlay of US$78.24million,the 24 projects in the Tourism sector is valued at USD41.11 million, the Building and Construction sector had 11 projects valued at USD 14.99 million, Export Trade sector registered 6 projects at a cost of USD0.38million, while the 9 projects in the Agricultural sector is estimated to cost USD 5.76million and the 33 projects registered in the General Trade sector is estimated to cost USD17.55. General CommentsFor the past four years, Britain, India, China, Germany and the USA have continued to be the main sources of FDI inflow into Ghana.India for the period under review, has overtaken Britain for the top spot of the country with most registered projects. India has registered 183 projects, Britain 177, China 161, Lebanon 135,the USA 126 and Germany 104. Nigeria and South Africa continue to be the leading African countries investing in the country. 53 and 33 projects registered originate from Nigeria and South Africa respectively. Other developing countries, that are making significant inroads, are Malaysia (12) and La Cote D’Ivoire (11). As at the end of year 2004, India had registered 70 projects in the Manufacturing Sector, followed by China with 50 projects. Lebanon is in third position with 49 projects. In the service sector Great Britain had the highest number of registered projects (69) followed by the USA with 54 projects. Germany is third with 37 projects. There has been a steady growth in FDI inflow into the country since 2002. This is evidenced by the number of registered projects over the same period. For 2004,183 projects were registered as against, 152 in 2003 and 138 in 2002. Regional Distribution of ProjectsLooking at the pattern of regional distribution of the projects, one gets the impression that the locational incentives introduced in the 2004 budget has not had any significant impact yet. It should however be borne in mind that this has been an election year during which most potential investors would usually adopt a rather cautious stance.The concentration of most of the projects continues to be in the Greater Accra Region with 78.88% of all registered projects. 6.98% are in Ashanti, Western Region has 4.75%, Central has 3.30%, Eastern 2.84%, with the remaining five regions sharing 3.31% of the projects. It is hoped that the investors would take advantage of the locational tax incentives to bring about a more even distribution of projects to the benefit of the less endowed regions. Employment GenerationAbout 13,545 jobs are expected to be generated from the 183 projects registered between January and December 2004.The number is made up of 12,804 Ghanaians (94.53%)and 741 foreigners (5.47%). In line with the growth in the service sector, 5667 people would be employed in that sector. This is made of 5508 Ghanaians and 159 expatriates. The manufacturing sector is also expected to employ as many as 2794 people. The remaining sectors are expected to employ, 1456 for the Building and Construction sector, 1438 for Agriculture sector, 976 for Tourism, 1078 for General Trade and 127 for the Export sector. Facts & FiguresRepublic of Ghana
(Sources: Bank of Ghana, Ministry of Finance) |
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