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ECONOMY OF GHANA (BACKGROUND)

Ghana has an abundance of both nature and human resources. The natural resources include mineral
wealth, a good supply of arable land suitable for both crop and livestock production forest resources,
marine and freshwater fish stock and a good potential for hydroelectricity generation. The economy
of the country is based on two distinct on two distinct sectors.

 A large, traditional sector ( principally agricultural and informal activities)
 A relatively small, labor – intensive industrial and service sector

The economy has traditionally depended on exports of primary products, with about 60 percent of
the labor force employed in agriculture. Agriculture contributes about 46 percent to the gross
domestic product (GDP) and is characterized by small – scale operations, principally staple food
crops and cocoa production. The service sector is the second largest employer (about 25 percent of
the force), accounting for over 40 percent of real GDP from trade and public sector service, while
the industrial sector accounts for about 14 percent of GDP and employment. Ghana began an
economic recovery programme (ERP) in 1983, and has undertaken a series of comprehensive
macroeconomic and structural adjustment reforms aimed at reversing the economic decline that had
characterized the state of the economy for almost a decade. The reform programme included
restructuring of institutions, diversifying the economy, balancing the national budget, liberalizing
trade and exchange rate and attracting direct private investment the ERP also sought to improve the
economy’s capacity to adjust to both external and internal stocks and to generate sustainable growth
and development.
It is widely acknowledged by economic analysts that the reforms have largely succeeded. The
precipitous decline in real GDP has been arrested and reversed, with the result that annual GDP
growth rate has averaged 5 percent since 1984. Government revenues have increased to an extent
that the overall fiscal balance has shown a surplus. In addition, the growth in money supply has been
controlled, bringing about relative price stability in the economy.
Financial restructuring
The banking sector has been restructured to respond more positively to the needs of the needs of the
productive sector. Incentive packages have also been introduced to enable these sectors of the
economy to increase production , while public investment strategies have helped to rehabilitate the
physical infrastructure on a large scale. The industrial production growth rate is positive and the
mining sector is booming, an indication that confidence has been restored in commerce and other
tertiary activities. In spite of these significant improvements, the earlier period of economic
stagnation has left its mark. Per capital income remains low at about US$ 400 (1996) while the
country’s population of over 15 million is growing at approximately 3.2 percent annum.

B. Trade Investment, Science and Technology Policies
1.00 TRADE AND INVESTMENT
Government of Ghana Policy thrust is on:—
 A liberalised Trade (Import/Export) regime within the spirit and principles of the World
Trade Organisation (WTO).
 Liberalised investment regime sustained by a targeted investment drive
 An export oriented, value-addition industrial development strategy
 Free zone development encompassing:-
– Factory specific and export processing zones
– Liberalised skies
– Free ports
AREAS OF OPPORTUNITIES:
 Imports of goods and services including essential industrial inputs, machinery and services.
 Labour intensive and value-added manufactures.
 Agricultural business.
 Exports of non—traditional goods with quota-free access to EU and
 US markets and the West African sub regional market.
 Development of, and operation within EPZ and industrial Estate.
 Rehabilitation of infrastructural facilities and privatisation of operations at Ghana’s Ports.
2.00 TOURISM
Tourism is one of the fastest growing sectors of the economy, third to Gold and Cocoa in terms of
foreign exchange earnings.
15 years (1996 – 2010) Tourist Development Plan emphasises historical heritage, nature-based,
recreational and conference tourism.

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AREAS OF OPPORTUNITY
 Provision of Hotel Accommodation of International standards.
 Provision of Tourist Class Hotel, beach and lake resorts
 Development of Safari Lodges and Camps in Ghana’s unique wild life and national park
reserves.
 Conversion of some of some of the European built salve castles and forts into museums and
Inns
 Development of water and air transport linkages with the originating markets
 Development of efficient transport linkages between tourist site in Ghana and within the sub
region.
 . Development of efficient tourist service along tourist routes
 Development of recreational tourism infrastructure and facilities –
Water sports, river rafting and adventure tourism activities
3. ENVIRONMENT, SCIENCE AND TECHNOLOGY
Current national policies on science, technology and the environment are aimed at ensuring that all
development efforts and plans are science-led, based on sound environmental management practices.
Specifically, the environmental policy seeks to:
 maintain the ecosystem,
 ensure sound natural resource management,
 adequately protect plant, human and animal habitats against destructive practices,
 guide development to prevent and eliminate pollution and nuisances
 integrate environmental consideration for national and sectional development planning
 ensure that environment impact assessment is a requirement for all projects
 have common global solutions to environmental problems;
 Ensure enforcement of occupational health and safety rules in industry.
 The science and technology (S&T) policy is to be achieved through:
 development and utilisation of S&T capabilities;
 science and technology acculturation;
 promotion of women in Science and Technology and
 Development of indigenous technology.
INVESTMENT AREAS
 Food processing technologies.
 Low-cost housing technologies.
 Information technologies.
 Water Supply: water pollution, prevention and treatment
 Sewerage and effluent treatment and disposal
 Marine, river, estuary and coastal pollution; treatment and disposal, instrumental and
measurement
 Air Pollution: improvement and purification; instrumentation for monitoring
 Waste planning and management; waste management contractors; municipal waste collection
services.
 Designs and engineering of waste treatment plants.
 Noise: abatement, protection and control.
 Energy management and control systems including energy saving systems.
 New and alternative energy technologies.