The influx of capital and burst of growth that followed Ghana’s discovery of oil in 2007 led to a construction boom in 2011-12. Sourcing materials, however, has been problematic and in 2012 the World Bank reported that Ghana needs to spend $26bn on infrastructure, including basic road, housing and utilities upgrades, to support economic growth. As Ghana continues to channel new-found oil revenues…
Ghana’s pursuit of middle-income status, bolstered by developments in the oil and gas sector, has put a corresponding strain on its transport networks, particularly at ports and airports. The government has committed to expanding facilities at airports to better meet the demands of a rising number of flights and an increasing amount of passengers. The first step of the proposed improvement works…
With the economy growing at record rates, the authorities are working to keep pace with rising demand for water, power and sanitation. Compared to many neighbouring countries, Ghana’s utilities are in healthy standing, though the sector has not been without problems. The country’s water and sanitation systems are in need of improvement; only 64% of the population had access to clean water and 15%…
Often referred to as the backbone of Ghana’s economy, agriculture has traditionally been the largest sector and the biggest employer in the country, bolstered by diverse commodities and strong ties to European markets. However, agriculture’s economic contribution has dwindled as the sector has shown low growth in recent years. Its contribution to GDP fell in 2012, totalling 22.7% of GDP, compared…
Since the discovery of offshore oil in 2007, Ghana has been adapting to the new reality of its hydrocarbons economy. In 2012 production at the Jubilee field increased 15% year-on-year to reach 27.4m barrels of crude oil, the entirety of which was exported for nearly $3bn. Oil production from the Jubilee field will likely plateau at around 140,000 bpd from 2013 to 2023. Gas production is also expected…
While insurance penetration is still modest by emerging market standards, headline indicators are improving significantly. Over the past five years, revenue from insurance premiums has averaged 32% growth, with the life segment seeing 38.1% expansion over this same period. Microinsurance is expected to be a major growth driver given the cost-sensitivity of policies. As of 2010, between 160,000 and…
While Ghana benefits from a roster of financial actors, the country’s capital markets are modest compared to continental exchanges in Cairo, Johannesburg, Lagos and Casablanca. The Ghana Stock Exchange (GSE) has just 36 equities and one exchange-traded fund listed on its equities exchange alongside a bond market dominated by government securities. In recent years the requirements for listing have…
The domestic financial sector has been fairly dynamic recently, with a number of mergers and new players arriving on the scene. However, approximately 70% of the population remains unbanked, and increasing access to financing is a government priority, especially for small and medium-sized enterprises. Given the large informal market, the size of the unbanked population and the challenge of integrating…
Outperformance remains the key feature of Ghana’s economy, seven years after the discovery of oil prompted new optimism in the country, which was then celebrating the golden jubilee of its independence. In real terms, GDP grew by 7.9% in 2012. This follows revised GDP growth of 15% in 2011, which was largely driven by the start of commercial oil production at the Jubilee field. Ghana is also the…
Bordered by Burkina Faso to the north, Côte d’Ivoire to the west, Togo to the east and the Atlantic Ocean to the south, Ghana’s total land area is only slightly smaller than that of the UK at 227,540 sq km. With Accra as its capital, the country is divided into 10 administrative regions, which are further divided into a total of 216 districts. Over the past three decades Ghana’s population has…
