Economy
From The Report: Ghana 2020
View in Online Reader

Ghana’s economy is one of the fastest growing in Africa, and its recently established oil and gas industry has made it a target for foreign investment. However, while prospects for continued expansion are good, the state faces a stubborn fiscal deficit and the longer-term challenge of reducing the nation’s reliance on a small number of exports. Fiscal and economic reform, therefore, remain top of the agenda in the election year of 2020. Ghana is Africa’s biggest producer of gold and second-biggest producer of cocoa. Since the 2007 discovery of significant oil reserves, hydrocarbons exports have been added to the roster. A reliance on export commodities, however, means that the economy has in the past been vulnerable to crop failures and falling prices. This chapter also contains an interview with Yofi Grant, CEO, Ghana Investment Promotion Centre; and Yaw Adu Gyamfi, President, Association of Ghana Industries.

Articles from this Chapter

Overview

Building stability: Strong growth rates in services and industry channel investment as the government aims for fiscal discipline
OBG
plus

Ghana’s economy is one of the fastest growing in Africa, and its recently established oil and gas industry has made it a target for foreign investment. However, while prospects for continued expansion are good, the state faces a stubborn fiscal deficit and the longer-term challenge of reducing the nation’s reliance on a small number of exports. Fiscal and economic reform, therefore, remain top of the agenda in the election year of 2020. Economic Snapshot Ghana has long been one of Africa’s…

Interview

Bolstering links: Yofi Grant, CEO, Ghana Investment Promotion Centre (GIPC), on attracting investment and ensuring its impact
OBG
plus

Interview:Yofi Grant How do you ensure that foreign direct investment (FDI) inflows have an impact on the real economy? YOFI GRANT: A benefit of FDI is the creation of jobs through the establishment of businesses. Information submitted by the GIPC’s registered companies indicates that $19.64bn of FDI was recorded between 2014 and 2019, with an estimated 19,070 jobs created. The GIPC ensures FDI has an impact through targeted promotion and facilitation into priority areas, such as agriculture,…

Analysis

Fiscal sustainability: Successes help the debt situation but fiscal performance remains in the spotlight
OBG
plus

As a presidential and parliamentary election year, 2020 represents a key test of the government’s commitment to fiscal responsibility. The current government came to power on a platform of economic competence, promising to break the cycle of spending and debt crises that has challenged the nation’s economic progress for decades. In this regard it has already achieved a measure of success. In 2019 the government received praise from some of its most prominent national development partners…

Interview

Positive support: Yaw Adu Gyamfi, President, Association of Ghana Industries, on local manufacturing and the impact of continental free trade
OBG
plus

Interview:Yaw Adu Gyamfi To what extent will the African Continental Free Trade Agreement (AfCFTA) impact the industry? YAW ADU GYAMFI: The AfCFTA presents both potential advantages and challenges, but on balance it will have a positive impact on Ghanaian industry. The larger market will bring investment to the continent and facilitate trade. While Ghana is one of the stronger economies in West Africa, other countries beyond the region are much more competitive, such as Morocco, Kenya, South…

Analysis

Better together: Authorities plan for the introduction of a new regional currency
OBG
plus

When the country’s central bank, the Bank of Ghana (BoG), was first granted the independence to set interest rates in 2002, it faced a turbulent economic scenario, in which the level of inflation had pushed past the 60% mark. Since that time the authority has wielded its rate-setting power to control inflation in the interests of society and the economy, each year establishing a target corridor that it deems to be suitable for this purpose. The seven members of its Monetary Policy Committee…

Overview

Ghana CEO Survey:
OBG
plus

With GDP expansion forecast at 7.5% in 2019 and monetary and fiscal restructuring under way, the Ghanaian authorities are pushing ahead with a number of programmes to boost the performance of key sectors and promote diversification. The business community, in turn, remains largely optimistic about near-term prospects. In OBG’s third Ghana CEO Survey, 71% of participants had positive or very positive expectations of local business conditions in the coming 12 months, though many also underscore the pressing challenges yet to be addressed, including the infrastructure deficit and access to credit. For more information on the OBG CEO Survey,…