THE ECONOMY OF GHANA AND INVESTMENT OPPORTUNITIES 2019
The economy of Ghana is fast growing with fiscal policy measures, industrialization policy, private business partnerships and direct foreign investment, coupled with quality free education system to the senior high level and increase government and private tertiary education programs and policies.
Corruption which stands as an enemy to national development has been tackled with measures put by government by setting up of special prosecutor office, an independent body that has the constitutional mandate to prosecute corrupt officials in public administrations without respect to party colors.
Again measures on public procurement have been strengthened in public institutions to make it transparent, accountable and competitive.
RECOGNITION BY INTERNATIONAL BODIES ON GHANA’S ECONOMY
- Ghana is rated by Fitch, as the country with the lowest import duty in vehicles in sub-Sahara Africa following duty reduction. – Ghana is projected to be the fastest – growing economy in the world in 2019 by IMF. – ICAO scores Ghana highest in Aviation safety in Africa, with a score of 89.89% being above the African average of 52% and global average of 66.5% – IMF repose fresh confidence in Ghana’s economic outlook noting current outlook is the best in the last 5 years. – Ghana’s euro bond issue oversubscribed by 7 times signaling huge investors’ confidence in Ghana’s economic prospects. – Sazuki, Toyota Tsusho and CFAO has with the confidence in Ghana, announce joint venture to produce vehicles in Ghana. – Ghana is the leading recipient of Foreign Direct investment in West Africa. – Increased confidence in the economy as Business confidence index increase to 97.3% from 95.1% – Corruption fight has led to improvement in Ghana’s ranking on Transparency international’s corruption perception index (CPI)
GHANA’S ECONOMY SUCCESS POLICY (few highlights)
- Ghana has introduce a paperless ports system, that has reduces business cost from $252.00 to $63, representing 75% reduction. – In 2018, the provisional data for the first three quarters indicates a strong real GDP growth of 6.0% higher than the annual target of 5.6%. Real GDP growth for 2019 is forecast at 7.6%. Ghana’s recent GDP growth has placed it amongst the highest in the world.
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- Ghana’s economy for the first time in more than a decade recorded a surplus in trade balance in 2017 which is expected to remain in surplus. – Fastest reduction in Bank of Ghana’s policy rate in 20 years as policy rate drops from 25.5% to 16% in 2 years. – The Food and Drug Authority (FDA) continues to blaze the trail in Africa as the laboratory with the largest scope of 40 accredited tests the 150 17025 : 2005 and from 2017, upwards have successfully been accredited additional tests for the past years.
INVESTMENT OPPORTUNITIES OPEN BY GOVERNMENT OF GHANA FOR INTERNATIONAL INVESTORS.
Below are information on ideas and projects viable for investment, partnerships and funding:
A) GHANA’S FREE ZONE AUTHORITY (GFZA) Ghana Free Zone Authority has outdoor 4 processing zones for export of the Ghana Free Zone Boards 1. Tema export processing zone (covers 480 hectares of land) 2. Sekondi export processing zone (covers 880 hectares of land) earmarked for heavy industries and oil & gas related activities, close to Ghana’s close to Ghana’s second largest sea port. 3. Shama land Bank – (Covers 32,000 acres of sea front land) 4. Ashanti Technology Park (Covers 1,099 acres of land). Positioned for partnership with investors interested in developing the Ashanti Technology Park, especially earmarked for industries in ICT / Cyber village, cocoa processing, light industrial manufacturers.
Statistics of the Free Zone Enterprises; 31% fully owned by Ghanaians 30% fully owned by Ghanaians 39% joint ventures
CALL FOR INVESTORS (PROJECT SUMMARY) The Ghana free zone authority has open up for investor across the globe to take the opportunity of measures on industrialization in the field of; oil and gas, heavy industries, light industries, ICT/ cyber village, cocoa processing, hospitality development among others.
B) MINISTRY OF ROADS & HIGHWAYS: Government is embarking on industrialization for growth and export and has therefore taken keen consideration to road network development. Therefore the ministry of Roads and Highways is seeking partnership from Private Sector investors for local infrastructure development as means of
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complementing the speedy delivery of road infrastructure for national development.
Call for investors (road project summary) The Ministry of roads therefore calls for investors to fund major roads from 10km upwards depending on investors’ financial capacity and interest. Readiness to welcome investors to Ghana for contractual negotiations and arrangements by the government is prepared.
C) MINISTRY OF TRADE & INDUSTRY The government of Ghana has introduced an industrial reform policy dubbed “One District, One Factory (1D1F)”. This policy is to make every District in Ghana have a factory or manufacturing firm to tap the resource of that Districts / communities for development and job creation. Currently 181 firms have signed on the 1D1F and 79 factories established.
Call for Investors Opportunities are available for investors in every District for setting up industry. Ghana is blessed with every natural resource and therefore opens for investors to identify their interest of manufacturing goods to be supported with land, farmland, minerals, forest among others for development.
D) MINISTRY OF FOOD AND AGRICULTURE This ministry has introduced major agricultural reform policies that has provided excess farm produce for export in neighboring countries. Those policies are: – Planting for Food and Jobs (PFJ): With this policy the government has provided fertilizer subsidy and seedlings free for farmers for farming which has increased bumper harvest. – Planting for Export and Rural Development (PERD). After successful implementation of the plaiting for food and jobs which has saved the country a lot of millions to import food to subsidize our low production, it has become necessary for the ministry to launch the PERD as means of increasing production of commercial cash crops such as pineapples, pawpaw, oranges, cocoa, cashew among others for export.
Call for investors With the vast available natural fertile soil the country boost of and coupled with the above policies instituted, government is open for international investors’ to take opportunity to cultivate the lands for production for export. This is therefore an investment opportunity under agriculture for investors with interest on agric business.
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E) MINISTRY OF WORKS AND HOUSING • The government has made her intention of reducing the inadequate housing units the country is facing. Therefore to help curb this menace, the government is calling for investors to develop 200,000 housing unit across the country. Currently a Malaysian investor has taken this opportunity to invest 100,000 housing unit across the country.
Call for investors With remaining 100,000 housing unit, government is still looking for private investors’ partnership to develop.
• CONSTRUCTION OF WORLD CLASS SEWAGE SYSTEM, MODERN COURT STRUCTURES AND ACCOMMODATION FOR THE JUDICIARY. Call for investors – Again the government is to calling for private investors to fund the construction of world class sewage system in the country. – Moreover, government is awaiting investors for the construction of court structures and judicial accommodation across the country.
F) ENERGY MINISTRY With over 60years of reliance on Hydro electric Power, the government is committed to introduce solar energy to help subsidize on reliance on Hydro power. The government therefore expects that, by the year 2030, 200MGW solar power project to be constructed across the country. The ministry of energy is leading by the installation of 65 kilowatt solar rooftop system at its premises.
Call for investors The government can achieve this 200MGW of solar power with the assistance and partnership from private investors. Therefore private investors interested in solar project are with great opportunity to fund this solar project, depending on their financial capacity which MGW of solar they can invest or fund.
G) OIL & GAS SECTOR With about 6 blocks of oil discovered currently in addition to on-going oil production, the government open bid for investors. Block 4 received no bidding. Call for investors on oil and gas This makes it very open for any investor to take the investment opportunity in the block 4 oil find.
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Another oil investment opportunity has emerged as 6 oil exploration block discovered at voltaian basin is open for biding next year. H) CONSTRUCTION OF MARKETS & LORRY PARKS Government has made necessary arrangements with the various municipalities to open up their needed projects for investment. This has come to necessity as many markets and lorry stations have become open for investment. Call for investors Investors after construction of the lorry parks and market centers has 30 – 50 years to manage t5he facility by renting the facility and taking levies and taxes on the use of the facility to recoup investment for the agreed period.
G) WASTE MANAGEMENT As urbanization springs up across cities, waste becomes critical issue to manage. CALL FOR INVESTORS Government therefore has opened up for private investors to partner for the country’s waste management. Another investment opportunity.
INVESTMENT PROJECTS AND CALLS FOR INVESTORS ARE HIGHLIGHTED UNDER EVERY MINISTRY STATED ABOVE. ANY FURTHER CLARIFICATION ON ANY INTERESTED PROJECT CAN BE CONTACTED.