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Economy of Ghana

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Economy of Ghana
CurrencyCedi (GHS, GH₵)
Calendar year
Trade organisations
AU, AfCFTA, WTO, ECOWAS
Country group
Statistics
PopulationIncrease 33,346,450 (2023)[3]
GDP
  • Decrease $76.628 billion (nominal, 2023 est.)[4]
  • Increase $229.471 billion (PPP, 2023 est.)[5]
GDP rank
GDP growth
  • 1.62% (2023) [6]
  • 2.94% (2024f) [6]
  • 4.85% (2025f) [6]
GDP per capita
  • Increase $2,024 (nominal, 2023 est.)[7]
  • Increase $5,968 (PPP, 2021 est.)[7]
GDP per capita rank
GDP by sector
Decrease41.2% (2023 est.)[9]
Population below poverty line
43.5 medium (2016)[12]
Unemployment
Main industries
mining, lumbering, light manufacturing, aluminum smelting, food processing, cement, small commercial ship building, petroleum
External
ExportsIncrease $14.1 billion (2021 est.)[17]
Export goods
fuels including oil, gems, precious metals, cocoa, fruits, nuts, ores, slag, ash, animal/vegetable fats, oils, waxes, wood, rubber, rubber articles, meat/seafood preparations aluminum
Main export partners
ImportsIncrease $11.07 billion (December 2022 est.)[19]
Import goods
refined petroleum, cars, rice, delivery trucks, coated-flat rolled iron, other foodstuffs
Main import partners
FDI stock
  • Increase $19.85 billion (31 December 2013 est.)[8]
  • Increase Abroad: $16.62 billion (31 December 2013 est.)[8]
Increase $318.2billion (2022 est.)[20]
Negative increase $22.14 billion (31 December 2017 est.)[8]
Public finances
Positive decrease 59.3% of GDP (2023 est.)[21]
2.0% (of GDP) (2022 est.)}[20]
Revenues9.544 billion (2017 est.)[8]
Expenses24.5% of GDP (2023 est.)[22]
Increase $5.216 billion ( April 2023 est.)
All values, unless otherwise stated, are in US dollars.

The economy of Ghana has a diverse and rich resource base, including the manufacturing and exportation of digital technology goods, automotive and ship construction and exportation, and the exportation of diverse and rich resources such as hydrocarbons and industrial minerals.

The Ghanaian domestic economy in 2012 revolved around services, which accounted for 50% of GDP and employed 28% of the work force. Besides the industrialization associated with minerals and oil, industrial development in Ghana remains basic, often associated with plastics (such as chairs, plastic bags, razors, and pens).[26] 53.6% of Ghana's workforce were employed in agriculture in 2013.[27][28][outdated statistic]

Ghana embarked on a currency re-denomination exercise, from the Cedi (₵) to the new currency, the Ghana Cedi (GH₵) in July 2007. The transfer rate is 1 Ghana Cedi for every 10,000 Cedis.

Ghana is Africa's largest gold producer, after overtaking South Africa in 2019,[29] and the second-largest cocoa producer (after Ivory Coast).[30] It is also rich in diamonds, manganese or manganese ore, bauxite, and oil. Most of its debt was canceled in 2005, but government spending was later allowed to balloon. Coupled with a plunge in oil prices, this led to an economic crisis that forced the government to negotiate a $920 million extended credit facility from the International Monetary Fund (IMF) in April 2015.[31]

Taxation

[edit]

Value-added tax is a consumption tax administered in Ghana. The tax regime that started in 1998 had a single rate but since September 2007 entered into a multiple rate regime. In 1998, the rate of tax was 10% and amended in 2000 to 12.5%. The top income tax and corporate tax rates are 25%. Other taxes included with value-added tax (VAT), are the national health insurance levy, and a capital gains tax. The overall tax burden was 12.1% of Ghana's total domestic income in 2013. Ghana's national budget was the equivalent of 39.8% of GDP in 2013.[32] Ghana is implementing the rent tax in 2021.

Manufacturing

[edit]
Main articles: Manufacturing in Ghana and Companies of Ghana

Ghana's industrial base is relatively advanced. Import-substitution industries include electronics manufacturing. Rlg Communications is the first indigenous African company to assemble laptops, desktops, and mobile phones, and is West Africa's biggest information and communications technology (ICT) and mobile phone manufacturing company.[33]

Ghana began its automotive industry with the construction of a prototype robust SUV, named the SMATI Turtle 1, intended for use in the rough African terrain. It was designed and manufactured by the Artisans of Suame Magazine Industrial Development Organization. Urban electric cars have been manufactured in Ghana since 2014.[34][35]

As of 2012 there were four major companies in the textiles sector: Akosombo Textiles Limited, Tex Style Ghana Limited, Printex Ghana, and Ghana Textile Manufacturing Company.[36]

Ghana National Petroleum Corporation and Ghana Oil Company deal with crude oil and gas exploration, exploitation, and refining.[37]

Telecommunications

[edit]
Main article: Telecommunications in Ghana

At the end of January 2022, total number of voice subscription in Ghana stood at 41,380,751.This represents a percentage increase of 1.28% over December 2019 figures of 40,857,007. The total penetration rate stands at 136.79%. Competition among mobile-phone companies in Ghana is an important part of the telecommunications industry growth, Current market leader MTN with voice subscription of 23,150,485 representing 55.95% of the market is followed by Vodafone with voice subscription of 9,075,795 representing 21.93% market share, AirtelTigo voice subscription stands at 8,428,322 representing 20.69%, Glo's current voice subscription stands at 726,149 which represent a market share of 1.75%.[38][39][40]

The mass media of Ghana is among the most liberal in Africa, with Ghana ranking as the third-freest in Africa and 30th-most free in the world on the worldwide press freedom index. Chapter 12 of the Constitution of Ghana guarantees freedom of the Ghanaian press and the independence of the mass media, and Chapter 2 prohibits censorship.[41] Ghanaian press freedom was restored in 1992.[41]

Ghana was one of the first countries in Africa to achieve the connection to the World Wide Web.[42] In 2010, there were 165 licensed internet service providers in Ghana and they were running 29 of the fiber optic, and authorized networks VSAT operators were 176, of which 57 functioned, and 99 internet operators were authorized to the public, and private data and packet-switched network operators were 25.[43]

Data

[edit]
Change in per capita GDP of Ghana, 1870–2018. Figures are inflation-adjusted to 2011 International dollars
Share of population in extreme poverty over time, 1981 to 2019

The following table shows the main economic indicators in 1980–2023. Inflation below 5% is in green.[44]

Year GDP
(in billion US$ PPP) 		GDP per capita
(in US$ PPP) 		GDP
(in billion US$ nominal) 		GDP growth
(real) 		Inflation rate
(in Percent) 		Government debt
(in % of GDP)
1980 12.8 1,202 37.4 Increase0.4% Negative increase50.0% n/a
1981 Increase13.5 Increase1,236 Increase60.7 Decrease−3.5% Negative increase116.5% n/a
1982 Decrease13.2 Decrease1,175 Increase70.4 Decrease−6.9% Negative increase22.5% n/a
1983 Decrease12.8 Decrease1,118 Decrease47.3 Decrease−4.8% Negative increase122.2% n/a
1984 Increase14.6 Increase1,185 Decrease17.1 Increase9.0% Negative increase40.0% n/a
1985 Increase16.0 Increase1,272 Decrease15.3 Increase5.1% Negative increase10.3% n/a
1986 Increase17.3 Increase1,347 Decrease14.1 Increase5.2% Negative increase24.5% n/a
1987 Increase18.9 Increase1,439 Decrease11.8 Increase4.8% Negative increase39.8% n/a
1988 Increase20.9 Increase1,550 Increase12.5 Increase5.6% Negative increase31.4% n/a
1989 Increase22.7 Increase1,646 Increase12.7 Increase5.1% Negative increase25.2% n/a
1990 Increase24.4 Increase1,728 Increase14.7 Increase3.3% Negative increase37.2% 19.2%
1991 Increase26.4 Increase1,828 Increase16.5 Increase5.3% Negative increase18.1% Positive decrease18.7%
1992 Increase28.2 Increase1,907 Decrease16.3 Increase3.9% Negative increase10.0% Negative increase23.1%
1993 Increase30.3 Increase1,997 Decrease13.3 Increase3.7% Negative increase24.9% Negative increase37.2%
1994 Increase32.0 Increase2,061 Decrease12.3 Increase3.6% Negative increase24.9% Negative increase55.2%
1995 Increase34.0 Increase2,140 Increase14.6 Increase4.2% Negative increase59.3% Positive decrease51.0%
1996 Increase36.3 Increase2,228 Increase15.5 Increase4.6% Negative increase44.5% Positive decrease46.0%
1997 Increase39.0 Increase2,339 Increase15.8 Increase5.8% Negative increase24.8% Negative increase48.7%
1998 Increase41.5 Increase2,424 Increase17.2 Increase5.0% Negative increase19.2% Positive decrease40.6%
1999 Increase44.0 Increase2,506 Increase17.8 Increase4.5% Negative increase12.5% Negative increase55.7%
2000 Increase46.6 Decrease2,464 Decrease11.5 Increase3.6% Negative increase25.1% Negative increase80.2%
2001 Increase49.5 Increase2,550 Increase12.2 Increase3.8% Negative increase32.9% Positive decrease61.9%
2002 Increase52.6 Increase2,644 Increase14.2 Increase4.6% Negative increase14.8% Positive decrease58.0%
2003 Increase56.3 Increase2,766 Increase17.5 Increase5.1% Negative increase26.6% Positive decrease52.8%
2004 Increase61.0 Increase2,923 Increase20.3 Increase5.4% Negative increase12.7% Positive decrease41.1%
2005 Increase66.8 Increase3,126 Increase24.6 Increase6.2% Negative increase15.1% Positive decrease34.0%
2006 Increase72.9 Increase3,331 Increase28.9 Increase5.8% Negative increase11.7% Positive decrease18.5%
2007 Increase77.9 Increase3,480 Increase34.0 Increase4.1% Negative increase10.7% Negative increase22.5%
2008 Increase86.5 Increase3,779 Increase38.7 Increase9.2% Negative increase16.5% Negative increase24.6%
2009 Increase92.0 Increase3,931 Increase34.6 Increase4.8% Negative increase13.1% Negative increase26.9%
2010 Increase100.4 Increase4,071 Increase43.3 Increase7.9% Negative increase6.7% Negative increase34.5%
2011 Increase116.8 Increase4,623 Increase53.8 Increase14.0% Negative increase7.7% Positive decrease31.3%
2012 Increase133.3 Increase5,152 Increase56.9 Increase9.3% Negative increase7.1% Negative increase35.4%
2013 Increase140.9 Increase5,321 Increase63.7 Increase7.3% Negative increase11.7% Negative increase42.9%
2014 Increase151.6 Increase5,595 Decrease54.3 Increase2.9% Negative increase15.5% Negative increase50.1%
2015 Decrease145.0 Decrease5,233 Decrease49.4 Increase2.1% Negative increase17.2% Negative increase53.9%
2016 Decrease142.3 Decrease5,021 Increase56.1 Increase3.4% Negative increase17.5% Negative increase55.9%
2017 Increase149.0 Increase5,148 Increase60.4 Increase8.1% Negative increase12.4% Negative increase57.0%
2018 Increase162.0 Increase5,482 Increase67.3 Increase6.2% Negative increase9.3% Negative increase62.0%
2019 Increase175.7 Increase5,823 Increase68.4 Increase6.5% Negative increase7.1% Positive decrease58.3%
2020 Increase178.9 Decrease5,812 Increase70.0 Increase0.5% Negative increase9.9% Negative increase72.3%
2021 Increase196.4 Increase6,256 Increase79.6 Increase5.1% Negative increase10.0% Negative increase79.1%
2022 Increase216.6 Increase6,752 Decrease72.1 Increase3.1% Negative increase31.9% Negative increase92.4%
2023 Increase227.2 Increase6,905 Increase76.6 Increase1.2% Negative increase42.2% Positive decrease84.9%

Imports and Exports

[edit]

Ghana's top export products in 2016 were crude petroleum ($2.66B), gold ($2.39B), cocoa beans ($2.27B), cocoa paste ($382M) and cocoa butter ($252M). Ghana's top export destinations in 2016 were Switzerland ($1.73B), China ($1.06B), France ($939M), India ($789M) and the Netherlands ($778M).[45]

Ghana's top import categories in 2016 were refined petroleum ($2.18B), crude petroleum ($546M), gold ($428M), rice ($328M) and packaged medicaments ($297M). The nations with the highest value of imports to Ghana in 2016 were China ($4.1B), the Netherlands ($1.58B), the United States ($1.1B), Nigeria ($920M) and India ($668M).[45]

Private banking

[edit]
See also: Banks in Ghana

The financial services in Ghana have seen a lot of reforms in the past years. The Banking (Amendment) Act 2007 included the awarding of a general banking license to qualified banks, which allows only indigenous Ghana offshore banks to operate in country Ghana. Indigenous Ghana private bank Capital Bank was the first to be awarded the general banking license in Ghana as well as indigenous Ghana private banks UniBank, National Investment Bank and Prudential Bank Limited. It has therefore become possible for Ghanaian non-resident individuals or residents and foreign companies or indigenous Ghana companies to open indigenous Ghana offshore bank accounts in Ghana.[32] Indigenous Ghana retail and savings banks include Agricultural Development Bank of Ghana, CAL Bank, GCB Bank Ltd, Home Finance Company and UT Bank as well as indigenous Ghana savings and loan institutions ABii National and Savings and Loans Company.[32]

Stock exchange

[edit]
Main article: Ghana Stock Exchange

The Stock Exchange of Ghana is one of the largest in Africa, with a market capitalization of GH¢57.2 billion or CN¥180.4 billion in 2012. South Africa's JSE Limited is the largest.[46]

Energy

[edit]
Main article: Electricity sector in Ghana
Ghana hydropower and solar energy electricity generation industries, and the oil and gas industry

As of 2018, Ghana consumed some 10 MMtoe of primary energy, made mostly of biomass (40%), oil and diesel (40%), followed by hydropower (10%) and natural gas (10%).[47]

Oil & Gas

[edit]

Ghana discovered significant reserves of oil and natural gas offshore throughout the 2000s and 2010s. The country officially became an oil & gas producer in 2010 with the commissioning of the Jubilee field by Tullow Oil and currently produces from three major offshore hubs: Jubilee, TEN, and OCTP. In 2021, its production stood at some 150,000 barrels of oil per day (bopd).[48] Since production began in 2010 Ghana has rose to be the 34th largest national producer of oil.[49]

In 2021 Ghana exported more than 71mil barrels of oil.[50] China was the largest importer of Ghana oil, receiving over 41% of exports with South Africa, the second largest importer, taking 13.9%.[50]

Solar energy

[edit]

Ghana has aggressively begun the construction of solar plants across its sun-rich land in an aim to become the first country to get 6% of its energy from solar energy generation. Since construction began in the early 2010s electricity generation from solar has gone from zero KWh in 2014 to over 60 GWh in 2020, accounting for .46% of Ghana's electricity consumption.[51]

Wind energy

[edit]
Wind turbines on a wind farm

Ghana has Class 4–6 wind resources and high-wind locations, such as Nkwanta, the Accra Plains, and Kwahu and Gambaga mountains. The maximum energy that could be tapped from Ghana's available wind resource for electricity is estimated to be about 500–600 GWh/year.[52] To give perspective: in 2011, per the same Energy Commission, the largest Akosombo hydroelectric dam in Ghana alone produced 6,495 GWh of electric power and, counting all Ghana's geothermal energy production in addition, the total energy generated was 11,200 GWh in that year.[52] These assessments do not take into consideration further limiting factors such as land-use restrictions, the existing grid (or how far the wind resource may be from the grid) and accessibility.[52]

Bio-energy

[edit]
Hybrid sorghum plantation field

Ghana has put in place mechanisms to attract investments into its biomass and bio-energy sectors to stimulate rural development, create jobs and save foreign exchange.[53] Main investments in the bio-energy subsector existed in the areas of production, are transportation, storage, distribution, sale, marketing and exportation.[53]

The goal of Ghana regarding bio-energy, as articulated by its energy sector policy, is to modernize and examine the benefits of bio-energy on a sustainable basis.[53] Biomass is Ghana's dominant energy resource in terms of endowment and consumption, with the two primary bio-fuels consumed being ethanol and biodiesel.[53] To that effect, the Ghana ministry of Energy in 2010 developed its energy sector strategy and development plan.[53] Highlights of the strategy include sustaining the supply and efficient use of wood fuels while ensuring that their utilization does not lead to deforestation.[53]

The plan would support private sector investments in the cultivation of bio-fuel feedstock, the extraction of bio-oil, and refining it into secondary products, thereby creating financial and tax incentives. The Ghana Renewal Energy Act provides the necessary fiscal incentives for renewable energy development by the private sector, and also details the control and management of bio-fuel and wood fuel projects in Ghana.[53] The Ghana National Petroleum Authority (NPA) was tasked by the Renewable Energy Act 2011 to price Ghana's bio-fuel blend in accordance with the prescribed petroleum pricing formula.[53]

The combined effects of climate change and global economic turbulence had triggered a sense of urgency among Ghanaian policymakers, industry and development practitioners to find sustainable and viable solutions in the area of bio-fuels.[53]

Brazil, which makes ethanol from maize and sugarcane, is currently the world's largest bio-fuel market.[53]

Energy consumption

[edit]

Electricity generation is one of the key factors in achieving the development of the Ghanaian national economy, with aggressive and rapid industrialization; Ghana's national electric energy consumption was 265 kilowatts per capita in 2009.[54][55] Shortages of electricity have led to dumsor (blackouts),[56] increasing the interest in renewables.[57]

Hydrocarbon and mining

[edit]
Main articles: Petroleum industry in Ghana and Mining in Ghana
Ghanaian mineral resources: bauxite, diamond, timber and manganese
Ghana's increasing oil exports as a percentage of all exports.

Ghana has 5 billion barrels (790×10^6 m3) to 7 billion barrels (1.1×10^9 m3) of petroleum in reserves. A large oilfield which contains up to 3 billion barrels (480×10^6 m3) of sweet crude oil was discovered in 2007.[58] Since these discoveries Ghana increased production steadily, the nations current peak is 200,000 barrels per day in 2019. Current production in 2021 stands at 179,900 barrels per day.[49]

Ghana has vast natural gas reserves, which is used by many foreign multinational companies operating in Ghana.[59] The hydrocarbon industry has had major implications for regional and urban development in Ghana and these are likely to substantially increase in the years to come[60]

Mining has gained importance in the Ghanaian economy since the turn of the 21st century, with a growth of around 30% in 2007.[61] The main mining extractions are bauxite,[62] gold (Ghana is one of the largest gold producers in the world),[63] and the phosphates.[64]

Tourism

[edit]
Main article: Tourism in Ghana
Tourism destinations in Ghana[65]

The Ministry of Tourism has placed great emphasis upon further tourism support and development. Tourism contributed to 4.9% of GDP in 2009, attracting around 500,000 visitors. Tourist destinations include Ghana's many castles and forts, national parks, beaches, nature reserves, landscapes and World Heritage buildings and sites.[66][67]

In 2011, Forbes magazine ranked Ghana eleventh-friendliest country in the world. The assertion was based on a survey of a cross-section of travelers in 2010. Of all the countries on the African continent that were included in the survey, Ghana ranked highest.[68]

To enter Ghana, it is necessary to have a visa authorized by the Government of Ghana, except for certain entrepreneurs on business trips.[69]

Agriculture

[edit]
Main article: Agriculture in Ghana

In 2013 agriculture employed 53.6% of Ghana's total labor force.[27][28] Agribusiness accounts for a small fraction of the gross domestic product.[70] The main harvested crops are corn, plantain, rice, millet, sorghum, cassava and yam.[71] Unlike the agricultural livestock, forestry and fishing sectors, the crop sector is key to the Ghanaian agricultural industry.[72]

Ghana produced in 2018:

  • 20.8 million tons of cassava (4th largest producer in the world, second only to Nigeria, Thailand and Congo);
  • 7.8 million tonnes of yam (2nd largest producer in the world, second only to Nigeria);
  • 4.1 million tons of plantain (2nd largest producer in the world, just behind Congo);
  • 2.6 million tons of palm oil (8th largest producer in the world);
  • 2.3 million tons of maize;
  • 1.4 million tons of taro (4th largest producer in the world, second only to Nigeria, China and Cameroon);
  • 947 thousand tons of cocoa (2nd largest producer in the world, second only to Ivory Coast);
  • 769 thousand tons of rice;
  • 753 thousand tons of orange (19th largest producer in the world);
  • 713 thousand tons of pineapple (11th largest producer in the world);
  • 521 thousand tons of peanut;

In addition to smaller productions of other agricultural products, like sweet potato (151 thousand tons), natural rubber (23 thousand tons) and tobacco (2.3 thousand tons).[73]

Ghana: Vision 2020 and industrialization

[edit]

With the economic program "Ghana: Vision 2020", Ghana intends to achieve its goals of accelerated economic growth and improved quality of life for all its citizens, by reducing poverty through private investment, rapid and aggressive industrialization, and direct and aggressive poverty-alleviation efforts.[74] These plans were released in the 1995 government report, Ghana: Vision 2020.[74] Nationalization of state-owned enterprises continues, with about two thirds of 300 parastatal enterprises owned by the government of Ghana.[74] Other reforms adopted under the government's structural adjustment program include increasing exchange rate controls and increasing autarky and increasing restrictions on imports.[74]

The Ghana: Vision 2020 forecast assumes political stability; successful economic stabilization; the implementation of Ghana: Vision 2020 policy agenda on private sector growth; and aggressive public spending on social services, infrastructure and industrialization. It projection states that Ghana's goals of reaching high-income economy status and newly industrialized country status will be easily realized between 2020 and 2039.[74][75]

2013 exports to[76][77] 2013 imports from[76][77]
Country Percentage Country Percentage
Sunyani Cocoa House and Theobroma cacao; Ghana is projected to become the largest producer of cocoa in the world.[75][78][79]
Ghana gold bars; Ghana is the 7th-largest producer of gold in the world.[80]
 South Africa 46.89%  China 12.46%
 Netherlands 12.32%  Nigeria 11.76%
 India 5.49%  United States 8.86%
 United Kingdom 3.57%  Belgium 5.15%
 Malaysia 3.32%  India 4.35%
  Switzerland 2.76%  United Kingdom 3.93%
Others 25.65% Others 53.49%

Economic transparency

[edit]
Further information: Corruption in Ghana
The distribution of wealth ownership in Ghanaian society in 2013. A majority of wealth is held by 20% of the population.

The judicial system of Ghana deals with corruption, economic malpractice and lack of economic transparency.[32] Despite significant economic progress, obstacles do remain. Particular institutions need reform, and property rights need improvement. The overall investment regime lacks market transparency. Tackling these issues will be necessary if Ghana's rapid economic growth is to be maintained.[32]

According to Transparency International's 2022 Corruption Perception Index, Ghana was ranked 72nd out of 180 countries, with a score of 43 on a scale where a 0–9 score means highly corrupt, and a 90–100 score means very clean. This was based on perceived levels of public sector corruption.[81] John Addo Kufuor, son of former President John Agyekum Kufuor and Kojo Annan, son of former Secretary-General of the United Nations Kofi Annan, have been named in association with the Panama Papers.[82]

Health and biotechnology

[edit]

The Centre for Scientific Research into Plant Medicine is an agency of the Ministry of Health that was set up in the 1970s for research and development and as a practical resource (product production & distribution/provision) primarily in areas of biotechnology related to medicinal plants. This includes both herbal medicine and work on more advanced applications. It also has a secondary role as an educational resource for foreign students in health, biotechnology and related fields.

Cybernetics and cyberwarfare

[edit]
See also: Sakawa

The use of computer technology for teaching and learning began to receive government of Ghana's attention from the late 1990s.[83] The information and communications technology in education policy of Ghana requires the use of information and communications technology for teaching and learning at all levels of education.[83] The Ministry of Education supports institutions in teaching of information and communications technology literacy.[83] The majority of secondary, and some basic schools of Ghana have computer laboratories.[83]

Ghana's intention to become the information technology hub of West Africa has led the government of Ghana to enact cyber crime legislation and enhance cyber security practices.[84] Acting on that goal, in 2008 Ghana passed the Electronic Communications Act and the Electronic Transactions Act, which established the legal framework for governing information technology.[84] In November 2011, the Deputy Minister for Communications and Technology announced the development of a national cyber security strategy, aimed at combating cyber crime and securing critical infrastructure.[84]

In June 2012, the National Information Technology Agency announced a national computer emergency response team "strategy" designed to co-ordinate government response to cyber-attacks, both internal and external.[84] The agency also established computer emergency response teams for each municipal, metropolitan, and district assembly to improve co-ordination and information-sharing on cyberspace threats.[84] Ghana is ranked 2nd in Africa and 7th globally in cyber warfare, cyber-terrorism, cyber crime, and internet crime.[85] In 2018, the National Cyber Security Centre was founded. It is the national agency responsible for cybersecurity.[86] In November 2020, Parliament passed the Cybersecurity Act 2020. The Minister for Communications, Ursula Owusu-Ekuful, indicated that, "a successful economy is hinged on a secured, safe and resilient national digital ecosystem. Cyber-security is, therefore, very critical to the economic development of the country and essential to the protection of the rights of individuals within the national digital ecosystem".[87]

Real estate

[edit]
A villa in East Ridge

The real estate and housing market has become an important and strategic economic sector, particularly in the urban centres of south Ghana such as Accra, Kumasi, Sekondi-Takoradi and Tema.[88][89][90] However, many of its citizens particularly those in Accra cannot afford the housing prices which is a trait of most major cities globally particularly in the West. Kumasi is growing at a faster rate than Accra, and there is less competition in its real estate market.[88] The gross rental income tax of Ghana is withheld at 10%, capital gains are taxed at 15% with a 5% gift tax imposed on the transfer of properties and Ghana's real estate market is divided into 3 areas: public sector real estate development, emerging private sector real estate development, and private individuals.[88][89] The activities of these 3 groups are facilitated by the Ghanaian banks and the primary mortgage market which has demonstrated enormous growth potential.[89] Recent developments have given birth to a boom in the construction sector, including the housing and public housing sector generating and injecting billions of dollars annually into the Ghanaian economy.[88][89] The real estate market investment perspective and attraction comes from Ghana's tropical location and robust political stability.[88][89] An increasing number of the Ghanaian populace are investing in properties, and the Ghana government is empowering the private sector in the real estate direction.[88][89]

Trade and exports

[edit]

In July 2013, International Enterprise Singapore a global office in Accra to develop trade and investment on logistics, oil and gas, aviation, transportation and consumer sectors.[91] Singapore and Ghana also signed four bilateral agreements to promote public sector and private sector collaboration, as Ghana aims to predominantly shift its economic trade partnership to East Asia and Southeast Asia.[91] The economic centre is IE Singapore's second office in Africa.[91] Ghana's labour force in 2008 totalled 11.5 million Ghanaian citizens.[92][93] Tema Harbour is Africa's largest manmade harbour, and Takoradi Harbour along with Tema harbour handle goods and exports. They are also traffic junctions where goods are transhipped; the Tema harbour handles the majority of the nation's export cargo and most of the country's chief exports is shipped from Takoradi harbour.[94][95] The Takoradi harbour and Tema harbour are operated by the state-owned Ghana Ports and Harbours Authority.[94][95]

Challenges

[edit]
Bank of Ghana

Over the years, the country has encountered various economic challenges especially in its bid to become financially sustainable. One of the most prominent has been high public debt.[96][97][98][99] In January 2023, the Bank of Ghana reported that the country's level of debt was up to the tune of GH¢575.7 billion at the end of November 2022.[100]

Child labor

[edit]
This section is an excerpt from Child labour in Africa § Ghana.[edit]

The 2010 United States Department of Labor estimated over 2.7 million child laborers in Ghana, or about 43% of all children aged 5–14. 78.7% of these children work in agriculture, 17.6% in fishing and transportation services, and 3.7% in industry, which includes manufacturing work and mining. In Ghana 64% of children seek work for financial reasons, making it the leading driver for child labor in the region.[101] Most children working in rural areas are working on family farms and often combine schooling with their work. In Urban areas, such as Accra and Ashanti children are often not enrolled in school and are often engaged in artisanal fishing and domestic services.[102] Child porters, locally called kayaye, work in urban areas and some of them are as young as 6 years.

A young 'kayaye' girl engaged in selling palmwineGhana.

Agriculture, fishing and artisan mining were the largest employers.[103]

In southern Volta region, children work in religious servitude for a period ranging between few months to three years. They are known as trokosi (literally: wife of a god), fiashidi , or vudusi. This practice requires young girls to work and serve the religious order, in order to atone for family members’ alleged sins or as an offering for the family's good fortune. This practice is claimed to be also present in neighboring countries, even though it has been outlawed and imposes prison term under the laws of Ghana and neighboring countries.[104]

In 2013, statistics on children's work have not changed much and according to the DOL's Findings on the Worst Forms of Child Labor in Ghana, the majority of working children engage in hazardous activities like pesticide spraying in the production of cocoa, fishing and gold mining.[105] The Department's 2014 List of Goods Produced by Child Labor or Forced Labor includes fish and tilapia in particular, cocoa and gold as goods produced in such working conditions in Ghana.

See also

[edit]

References

[edit]
  1. ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
  2. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
  3. ^ "Ghana population (2023) live — Countrymeters".
  4. ^ "Report for Selected Countries and Subjects".
  5. ^ "International Monetary Fund, April 2023".
  6. ^ a b c "Ghana - gross domestic product (GDP) growth rate". statista.com. Retrieved 7 June 2023.
  7. ^ a b "World Economic Outlook Database, October 2019". IMF.org. International Monetary Fund. Retrieved 19 January 2020.
  8. ^ a b c d e f "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 2 February 2019.
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