작성일자: 2013.1.12

작성자: 아크라 무역관 Mr. Kenneth (ken.kotra@yahoo.com)

 

 

 

 

 

 

1. Ghana and Business Conditions

 

Ghana is located on the Africa continent(Western Africa, bordering the Gulf of Guinea, between Cote d'Ivoire and Togo - geographical coordinates of the country: 8 00 N, 2 00 W). According to the latest census, the population of Ghana is 24,339,838 inhabitants. These are people, who lived in cities and who have citizenship of Ghana. The area of Ghana is 239,460 square kilometers.

 

Facts & Figures Ghana

Capital (and largest city)	Accra 5°33′N 0°15′W
Official language(s)	English
Government	Unitary presidential constitutional republic
President	John Dramani Mahama
Vice President	Kwesi Amissah-Arthur
Independence from United Kingdom	6th March, 1957
Area Total	238,535㎢ (81st) 92,098 sq mi
Water (%)	3.5
Population (2010 estimate)	24,339,838
Density	101.5/k㎢ (103rd)  258.8/sq mi
GDP (PPP)	2013 estimate
Total	US$ 89.509 billion
Per capita	US$ 3,501
HDI (2013)	0.558 medium · 135th
Currency	Ghana cedi (GH₵) (GHS)
Time zone	GMT (UTC0)

 

□ Ghana – A Developing Country

 

 ○ Ghana progressed from 41st to 30th position out of 179 countries and 3rd in Africa on press freedom according to the ‘Reporters Without Borders’ 2013 Press Freedom Index report. The 2011 report of the World Wide Governance Indicators places Ghana between the 50th and 75th percentile on political stability, government effectiveness, and regulatory quality, rule of law, control of corruption and voice and accountability. This performance reflects the positive effects of an improving environment for democratic governance, coupled with a gradual improvement in the effectiveness of public institutions and persistent economic growth, resulting in Ghana attaining a lower middle income status.

 

 ○ The country’s economy is growing ahead of the average for the Africa region, with gross domestic product(GDP) growth at 8% in 2010, 14.4% in 2011, and is expected to be around 7% for 2012, prompted by strong cocoa production, construction and transport, continued increased gold output and the commercialization of oil. Inflation eased to 8.8% in December on the back of declining food price inflation, but producer price inflation is at 17%.

 

□ Economy Overview

 

 ○ Ghana is a Middle Income Economy and is ranked as a Lower–Middle Income Economy by the World Bank and is an Emerging Economy.

     The Ghana Stock Exchange(GSE) is the third largest stock exchange in Africa after the Johannesburg Stock Exchange(JSE) and the Nigerian Stock Exchange(NSE).

     The Ghana economy is resource rich and diverse with the exports of industrial minerals, cocoa, petroleum and natural gas, and industries such as electricity generation, information and communications technology, retailing and tourism being sources of foreign exchange. The Akosombo Dam, which was built on the Volta River in 1965 by provides hydro-electricity for Ghana.

     The Ghana economy is the 9th largest economy on the African continent with more than twice the per capita output of all the countries in West Africa excluding Nigeria, and Ghana has the 85th largest economy in the world by Nominal GDP. Known for its gold, Ghana is the 10th largest producer of gold in the world. Ghana is also the 2nd largest producer of cocoa in the world, and other exports such as crude oil, natural gas, timber, electricity, diamond, bauxite,  and manganese are major sources of foreign exchange, but despite possessing a great abundance of industrial minerals and natural resources, Ghana is yet to reach newly industrialised country status after 56 years of independence.

 

□ Oil And Gas Reserves in Ghana

 

 ○ The country's Jubilee Oilfield which is reported to contain up to 3 billion barrels(480,000,000㎥) of sweet crude oil was discovered in 2007, among the many other oilfields in Ghana. Oil and gas exploration in Ghana is ongoing, and the amount of both crude oil and natural gas continues to increase. The expected tremendous inflow of capital from crude oil and natural gas production into the Ghana economy began from the first quarter of 2011 when the country started producing crude oil and natural gas in commercial quantities. The crude oil accounted for 6% of the revenue for 2011.

 

 ○ Ghana is believed to have up to 5 billion barrels(790,000,000㎥) of oil in reserves, which is the sixth largest in Africa and the 25th largest proven reserves in the world and Ghana has up to 4 trilion cubic feet of natural gas in reserves.

 

Doing Business Report

Ghana Ranking

	Rank
Ease of Doing Business	64
Starting a Business	12
Registering Property	5
Protecting Investors	6
Paying Taxes	32

Source: World bank

 

 

2. Geography and Business Prospects

 

 

□ Geography

 

 ○ Ghana is a country located on the Gulf of Guinea, only a few degrees north of the Equator, therefore giving it a warm climate. The country spans an area of 238,500㎢(92,085 sq mi). It is surrounded by Togo to the east, Côte d'Ivoire to the west, Burkina Faso to the north and the Gulf of Guinea(Atlantic Ocean) to the south.

 

 ○ Ghana lies between latitudes 4° and 12°N, and longitudes 4°W and 2°E. The Prime Meridian passes through the country, specifically through the industrial city of Tema. Ghana is geographically closer to the "centre" of the world than any other country even though the notional centre, (0°, 0°) is located in the Atlantic Ocean approximately 614km(382 mi) south of Accra, Ghana, in the Gulf of Guinea.

 

 ○ The country encompasses flat plains, low hills and a few rivers. Ghana can be divided into four different geographical regions. The coastline is mostly a low, sandy shore backed by plains and scrub and intersected by several rivers and streams while the northern part of the country features high plains. Southwest and south central Ghana is made up of a forested plateau region consisting of the Ashanti uplands and the Kwahu Plateau; the hilly Akwapim-Togo ranges are found along the country's eastern border.

 

 ○ The Volta Basin also takes up most of central Ghana. Ghana's highest point is Mount Afadjato which is 885m(2,904 ft) and is found in the Akwapim-Togo Ranges. The climate is tropical. The eastern coastal belt is warm and comparatively dry, the southwest corner is hot and humid, and the north is hot and dry. Lake Volta, the world's largest artificial lake, extends through large portions of eastern Ghana and many tributary rivers such as the Oti and Afram rivers flow into it. The northernmost part of Ghana is Pulmakong and the southernmost part is Cape three points near Axim. Ghana lies between latitudes 4° and 12°N

 

 ○ There are two main seasons in Ghana: the wet and the dry seasons. Northern Ghana experiences its rainy season from March to November while the south, including the capital Accra, experiences the season from April to mid-November.

 

 ○ Southern Ghana contains evergreen and semi-deciduous forests consisting of trees such as mahogany, odum and ebony. It also contains much of Ghana's oil palms and mangroves. Shea trees, baobabs and acacias are usually found in the Volta region and the northern part of the country.

 

□ General Business Prospectst

 

 ○ The domestic market in Ghana is relatively small but is growing. There is a regional market provided by the 15 members of the Economic Community of West African States(ECOWAS) though integration of the individual countries is yet to be achieved. The free trade among the ECOWAS member countries creates an opportunity for an expanded market for players in the sub-region. The government, sponsored by the World Bank is also striving to make Ghana the gateway to West Africa by positioning the country as a hub for import, export, storage, assembly, distribution, and manufacturing, transshipment of goods, services and passengers.

     The key market factors, which are driving this impressive growth, and creating opportunities are:

  - Expanding stock market

  - A sound macroeconomic environment

  - 100% foreign ownership is permitted

  - Export-free zones where goods traded with other

  - countries are exempt from customs duties and laws

  - Fast developing financial infrastructure

  - On-going infrastructure development

  - Immediate access to all markets of the Economic Community of West African States(ECOWAS)

 

 

3. Central Bank Of Ghana

 

□ Central Bank of Ghana

 

One Thorpe Road - Tel: +233 30-2666174 - 6 Fax: +233-30-2662996 P. O. Box GP 2674, Accra, Ghana Governor: Henry Akpenamawu Kofi Wampah, Since April 04, 2013

 

 ○ The Central Bank of Ghana traces its roots to the Bank of the Gold Coast(BCG), where it was nurtured. As soon as local politicians and economists saw political independence in sight in the mid 1950's the agitation for a central bank was revived. It was argued that a central bank was one institution which would give true meaning to political independence. It may be recalled that way back in 1947 some leading politicians had called for the establishment of a national bank with central bank functions to act as banker to government and to cater for the indigenous sector of the economy.

 

 ○ Proposals of the advocates for a central bank were accepted and in early 1955 another Select Committee was set up by the Government to take a new look at the Trevor Report and prepare the grounds for the establishment of a central bank in Ghana. Fortunately, the BGC had already set the stage for central banking: all that was needed was specially trained personnel in central banking and suitable accommodation for the bank to take off.
By the end of 1956, all was set for the establishment of the Bank of Ghana. A new and modern five-storey building had been put up on the High Street, adjacent to the Accra Metropolitan Assembly(AMA) to house both the Bank of Ghana and the Ghana Commercial Bank(GCB).

 

 

4. Ghanaian Currency, Ghana Cedis

 

 

□ Ghana Cedis The Bank Note

 

 ○ Prior to independence, the issue of currency was the responsibility of the West African Currency Board(WACB). The West African pound, shillings and pence, constituted currency issued by the Board and was in circulation in Ghana until July 1958.

     After Independence, the new monetary authority, the Bank of Ghana, issued its own currency in the form of Ghana pounds, shillings and pence on 14th July, 1958. With that issue, the Bank of Ghana formally took over the issue of currency notes and coins from the WACB.

     The second issue of currency was in early 1965, when Ghana decided to leave the British colonial monetary system and adopt the widely accepted decimal system. Accordingly, Cedi notes and Pesewa coins were introduced on the 19th July, 1965 to replace the Ghana pounds, shillings and pence. The cedi was equivalent to eight shillings and four pence(8s 4d) and bore the portrait of the then President, Dr. Kwame Nkrumah. The name “cedi” was derived from the word “sedie” meaning cowrie, a shell money which gained popularity and wider circulation in the later part of the 19th Century. The “Pesewa” represented the smallest denomination (quantity) of the gold-dust currency regime. The name was chosen to replace the British Colonial penny.

     After the overthrow of the CPP government, the military government decided to replace the existing currency, which bore Nkrumah’s portrait, with one without his portrait. The New Cedi(N¢), as it was called, was introduced on 17th February, 1967 to replace the 1965 cedi at a rate of ¢ 1.20=N¢ 1.00. The N¢ notes remained in circulation until March 1973 when it became simply known as the cedi.

     On 9th March, 1979, the Government announced the introduction of new cedi notes to replace the old ones at a discount of 30% for amounts up to ¢5,000 and 50% for amounts in excess of ¢5,000. The old cedis were therefore, demonetized. New denominations issued included ¢1, ¢2, ¢5, ¢10, ¢20 and ¢50.

     From 1965 to present, various cedi and pesewa denominations, ranging from ¢1 to ¢5,000 for notes and ½ P to ¢500 for coins, were put into circulation. Currency issued in 1965 comprised ¢1, ¢5, ¢10, ¢50, ¢100, ¢1,000, 5P, 10P, and 20P. Between 1972 and 1994, additional seven different note denominations and eight coin denominations were introduced. These ranged between ¢2 to ¢5,000 for notes and ¢100p to 50,000p(¢500) for coins (see attached table) since 2002, two more notes ¢10000 and ¢20000 have been added to notes in circulation.

 

Ghana Pesewas Coins