Ghana

Formed from the merger of the British colony of the Gold Coast and the Togoland trust territory, Ghana in 1957 became the first sub-Saharan country in colonial Africa to gain its independence. A long series of coups resulted in the suspension of Ghana's third constitution in 1981 and a ban on political parties. A new constitution, restoring multiparty politics, was approved in 1992. Lt. Jerry RAWLINGS, head of state since 1981, won presidential elections in 1992 and 1996, but was constitutionally prevented from running for a third term in 2000. John KUFUOR, who defeated former Vice President John ATTA-MILLS in a free and fair election, succeeded him.

Main Airports

Accra (ACC) (Kotoka)

U.S. Embassy

Ring Road East, near Danquah Circle, Accra
tel. 233-21-775347/8/9

Statistics

GDP: purchasing power parity:

$54.45 billion (2005 est.)

GDP - real growth rate:

4.3% (2005 est.)

GDP - per capita: purchasing power parity:

2,500 (2005 est.)

Inflation rate (consumer prices):

15.1% (2005 est.)

Labor force:

10.62 million (2005 est.)

Exports:

$2.911 billion f.o.b. (2005 est.)

Exports - partners:

Netherlands 12.8%, UK 8.5%, US 6.8%, Belgium 5.9%, France 5.7%, Germany 4.5% (2005)

Imports:

$4.273 billion f.o.b. (2005 est.)

Imports - partners:

Nigeria 15.4%, China 12.7%, US 6.4%, UK 5.3%, South Africa 4.1%, Netherlands 4% (2005)

Population:

22,409,572

Population growth rate:

2.07% (2006 est.)

Population Below Poverty Line:

31.4% (1992 est.)

Major Industries:

mining, lumbering, light manufacturing, aluminum smelting, food processing, cement, small commercial ship building

Employing Workers: 120*

Registering Property: 113*

Enforcing Contracts: 50*

Closing a Business: 94*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Ghana	Region
Procedures (number)	12	11.1
Time (days)	81	61.8

Ghana Risk Assessment

Country Rating

Rating: C

A very uncertain political and economic outlook and a business environment with many troublesome weaknesses can have a significant impact on corporate payment behaviour. Corporate default probability is high.

Risk Assessment

Despite the drought that affected agriculture and mining, economic growth remained strong in 2007 buoyed by high gold and cocoa prices and by the dynamism of the services and construction sectors. Better precipitation patterns should benefit agriculture and industry in 2008 while the holding of the African Nations Cup should spur tourist business. Wage increases in the run-up to elections in 2008 should keep inflation at the levels reached in 2007 stoked by increases in food and electricity prices in the wake of the drought.

Amid rising social spending a narrow tax bases has handicapped public finances. The presidential elections in 2008 moreover augur a widening fiscal deficit. The current account deficit, exacerbated by growing demand for both capital and consumer goods, has, meanwhile, remained large despite the high volume of expatriate remittances. In that context, bilateral and multilateral debt relief notwithstanding, the sustainability of the foreign debt is all the more uncertain with the government not excluding a possible recourse to non-concessional loans. Covering internal and external financing needs will thus continue to depend on grants of international aid in the medium term.

Political stability and the absence of conflict with neighbouring countries will be conducive to structural reform implementation. The general elections scheduled for December 2008 will mark the end of John A. Kufuor's second and last term in office according to the constitution and should thus foster consolidation of democratic institutions.

STRENGTHS

• Political stability and an improved business environment constitute assets for foreign investors.
• Ghana's very successful Eurobond issue, a first for a West African country, was a great success testifying to investor confidence.
• The country's commitment to structural reforms focused on combating poverty has received international community support.
• The reduction in debt service resulting from debt relief granted under the HIPC and MDRI programmes should prove beneficial to development projects.
• Ghana has been a driving force in the region playing a particularly active role within NEPAD.

• An insufficiently diversified economy — with gold and cocoa generating about two-thirds of exports — has remained vulnerable to external shocks (such as weather conditions and world prices).
• The inadequacy and dilapidated state of transport and energy infrastructure has handicapped various economic sectors.
• Despite substantial progress, the limited development of financial intermediation still hampers the private sector.
• Public and external finances continue to show structural deficits that keep the country dependent on international aid.

• Agriculture
• Apparel
• Arts & Crafts
• Automobile
• Bags, Cases & Boxes
• Chemicals
• Computer Hardware & Software
• Construction & Real Estate
• Consumer Electronics
• Electrical & Electronics
• Energy & Environment
• Food & Beverage
• Furniture & Furnishing
• Health & Medicine
• Home Supplies
• Industrial Supplies
• Lights & Lighting
• Machinery
• Mineral & Materials
• Office Supplies
• Security & Protection
• Service
• Sports & Entertainment
• Telecommunications
• Textile
• Toys
• Transportation