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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.
Capital City: Accra (GMT)
Chief of State: President John Agyekum KUFUOR
Head of Govt.: President John Agyekum KUFUOR
Currency: Cedi
Main Cities: Kumasi, Tema, Sekondi-Takoradi
Major Languages: English, African languages
Calling Code: 233
Voltage: 220V
Primary Religions: indigenous beliefs, Muslim
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.
WEAKNESSES
- 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.
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