Economy
From The Report: Ghana 2022
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In the years preceding the pandemic, Ghana recorded robust GDP growth, which jumped from 2.1% in 2015 to a high of 8.1% in 2017 at constant 2013 prices. Responsibility for the economy ultimately belongs to the government, and the country’s economic health in the coming years depends greatly on its ability to implement further fiscal consolidation. While Ghana weathered the Covid-19 pandemic better than many of its regional and income-level peers, this did not come without a cost. For instance, labour earnings fell during 2020-21 as many businesses closed. However, recent developments, such as campaigns to secure more foreign direct investment, bode well for the longer-term economic growth of Ghana.

This chapter contains interviews with Yofi Grant, CEO, Ghana Investment Promotion Centre; Humphrey Ayim-Darke, President, Association of Ghana Industries; and Michael Oquaye Jr, CEO, Ghana Free Zones Authority.

Articles from this Chapter

Overview

Next chapter: The 2021 budget began the process of fiscal consolidation following heavier spending during the first two years of the Covid-19 pandemic
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As Africa’s largest miner of gold, the world’s second-largest producer of cocoa and one of the continent’s most promising hydrocarbons players, Ghana has seen healthy growth in recent years. The country weathered the Covid-19 pandemic better than many of its regional and income-level peers, and is forecast to record significant GDP growth in 2022, in part because Ghana’s political stability continues to make it a safe haven for foreign investment. The pandemic did not come without a cost,…

Interview

Inclusive expansion: Yofi Grant, CEO, Ghana Investment Promotion Centre, on facilitating inflows and sustainable, equitable development
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Interview: Yofi Grant How have government spending and investment trends changed during the Covid-19 pandemic? YOFI GRANT: Countries around the world implemented support and recovery packages in response to the pandemic that were aimed at bolstering industry and the wider economy, while also fostering business continuity. There was a tendency for countries to look inwards to see how they could best mobilise capital during the health crisis, and Ghana acted in a similar manner. The government had…

Interview

Next level: Humphrey Ayim-Darke, President, Association of Ghana Industries (AGI), on opportunities for collaboration in industry
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Interview: Humphrey Ayim-Darke How can the private sector and the government support the development of small and medium-sized enterprises (SMEs)? HUMPHREY AYIM-DARKE: Players in the public and private sectors have worked in recent years to support SMEs, a trend that intensified during the Covid-19 pandemic. The Ghana Enterprises Agency, for instance, has been doing a good job in shaping business methodology, financing, marketing and other activities. However, there is room for the private sector…

Analysis

Growth funding: Development plans focus on increased participation of the private sector to attract foreign investment and create new businesses
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For many years Ghana has been one of Africa’s top investment destinations, ranking fifth on the continent for foreign direct investment (FDI) inflows between 2011 and 2020, according to World Bank data. The organisation’s figures show the country receiving $32.5bn in FDI over the period, the second most in West Africa after Nigeria, with $45.1bn. The Covid-19 pandemic, however, saw FDI flows fall worldwide, with Africa as a whole down 16% in 2020. Ghana was no exception: FDI declined from 4.4%…

Interview

Adding value: Michael Oquaye Jr, CEO, Ghana Free Zones Authority, on leveraging industrialisation and reduced trade barriers
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Interview: Michael Oquaye Jr What key reforms need to be implemented to meet the full potential of the African Continental Free Trade Area (AfCFTA)? MICHAEL OQUAYE: The implementation of the AfCFTA agreement is crucial to the continent’s economic development. Launching commercial exchanges is an important step towards the economic integration of what will be the world’s largest economic zone, with 1.2bn consumers in 2021 and nearly 2.5bn by 2050. Opening these markets will facilitate strategic…

Analysis

Stronger together: The world moves towards renewed global cooperation in health, finances and infrastructure
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The onset of the Covid-19 pandemic in early 2020 had a dramatic effect on global connectivity. The implementation of border restrictions greatly disrupted the provision of goods and made cross-border travel extremely difficult. To adapt to these challenges, many governments, businesses and institutions moved towards a strategy of regionalisation. For example, in April 2020 the foreign ministers of the Association of South-east Asian Nations’ 10 member states endorsed several collective initiatives…