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THE GHANA ECONOMY
Ghanaian Economy
Ghana, rich in agricultural resources, timber, gold and other valuable minerals, abundant with educated, skilled and enterprising people, blessed with a stable form of government and dedicated to the principles of free enterprise, has long been seen as one of Africa’s most promising countries.
The main exports - gold, cocoa, diamonds, timber, manganese and bauxite - known as “traditional” items, are now increasingly supplemented by processed and semi-processed industrial and agricultural products with tourism as the third largest foreign currency earner after cocoa and gold.
The economy of the country is based on two distinct sectors:
- A large, traditional Sector (principally agricultural and informal activities)
- A relatively small, labour intensive industrial and service sector
The economy has traditionally depended on exports of primary products, with about 60 per cent of the labour force employed in agriculture. Agriculture contributes about 46 per cent to the GDP and is characterised by small-scale operations, principally staple food crops and cocoa productions. The services sector is the second largest employer (about 25 per cent of the labour force), accounting for over 40 per cent of real GDP from trade and public sector services, while the industrial sector accounts for 14 per cent of GDP and employment.
Over the years, a series of comprehensive macroeconomic and structural adjustment reforms aimed at reversing the economic decline were undertaken. The reform programme included restructuring of institutions, diversifying the economy, balancing the national budget, liberalising trade and currency and attracting direct private investments.
Advantages for Relocating In Ghana
- A stable political environment, with established democratic institutions and systems to ensure good governance.
- Abundant, adaptable, easily trainable and cost-effective labour force.
- Excellent sea and air connections with Europe and the USA.
- A strategic and central location within the West Africa sub-region providing access to a total market of around 250 million people.
- A dynamic private sector willing to collaborate with foreign partners.
- A high degree of personal safety.
Investment Opportunities
- Resource-based activities in agri-business, agro-processing, i.e. fish, fruit, vegetable, wood products, minerals processing, - gold, diamond and salt, export manufacturing and tourism.
- Real Estate Development.
- General infrastructure: Agriculture and industrial estates, toll roads and highways, railways and ports, sea and air services.
- Development and operation of export processing zones.
Incentives
All sectors are open to foreign investment and 100% foreign ownership:
- Corporate Tax - 8% on export income from the non-traditional export sector, 25% for Hotels and 35% for all other sectors.
- Location incentives: Tax rebates for manufacturing in certain locations.
- Tax Holidays: ranging from 3 to 10 years for sectors such as agricultural processing, real estate and rural banking.
- Other tax concessions such as accelerated depreciation for plant and building expenditure, 5 years Loss Carry-Over in all sectors, and fully deductible Capital Expenditure for R&D.
- Custom Duties: 100% exemption for plant, machinery, equipment and parts thereof.
Guarantees
- MIGA membership and Bilateral Promotion and Protection agreements protect your investment.
- GIPC Act 1994 (Act 478) guarantees 100% transfer of profits, dividends, fees etc.
- Immigrant quotas are automatic depending on paid-up capital.
