The economy of Ghana boasts a diverse and rich resource base, which includes the manufacturing and export of digital technology goods, automotive and ship construction and export, and the export of resources such as hydrocarbons and industrial minerals. Ghana became the largest gold-producing country in Africa after overtaking South Africa in 2019. The country is also the second-largest cocoa producer (after Ivory Coast). Ghana is rich in diamonds, manganese ore, bauxite, and oil.
The Ghanaian domestic economy in 2012 revolved around services, which accounted for 50% of GDP and employed 28% of the work force. Ghana embarked on a currency re-denomination exercise from the Cedi (₵) to the new currency, Ghana Cedi (GH₵) in July 2007. The transfer rate is 1 Ghana Cedi for every 10,000 Cedis.
The following table shows the main economic indicators in 1980-2023.
| Year | GDP growth (annual %) | Inflation rate (annual %) | Unemployment rate |
|---|---|---|---|
| 1980 | -6.1 | 50.1 | n/a |
| 2023 | 2.9 | 43.1 | n/a |
Value-added tax is a consumption tax administered in Ghana. 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 industrial base is relatively advanced. Import-substitution industries include electronics manufacturing. 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.
Read also: Understanding Cameroon's GDP
At the end of January 2022, the total number of voice subscriptions in Ghana stood at 41,380,751. This represents a percentage increase of 1.28% over December 2019 figures of 40,857,007.
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.
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 import categories in 2016 were refined petroleum ($2.18B), crude petroleum ($546M), gold ($428M), rice ($328M) and packaged medicaments ($297M).
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 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. 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.
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. Ghana has 5 billion barrels (790×106 m3) to 7 billion barrels (1.1×109 m3) of petroleum in reserves. A large oilfield which contains up to 3 billion barrels (480×106 m3) of sweet crude oil was discovered in 2007. Since these discoveries Ghana increased production steadily, the nations current peak is 200,000 barrels per day in 2019.
Read also: Overview of Kenya's Economy
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. Ghana has Class 4-6 wind resources and high-wind locations, such as Nkwanta, the Accra Plains, and Kwahu and Gambaga mountains. 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 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. 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.
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.
The judicial system of Ghana deals with corruption, economic malpractice and lack of economic transparency. 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. Despite significant economic progress, obstacles do remain. Particular institutions need reform, and property rights need improvement. The overall investment regime lacks market transparency.
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. 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. Ghana is ranked 2nd in Africa and 7th globally in cyber warfare, cyber-terrorism, cyber crime, and internet crime. In 2018, the National Cyber Security Centre was founded. It is the national agency responsible for cybersecurity. In November 2020, Parliament passed the Cybersecurity Act 2020.
Read also: GDP Per Capita Trends in Egypt
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. 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. 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. 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. The economic centre is IE Singapore's second office in Africa.
Ghana's labour force in 2008 totalled 11.5 million Ghanaian citizens. Tema Harbour is Africa's largest manmade harbour, and Takoradi Harbour along with Tema harbour handle goods and exports. Over the years, the country has encountered various economic challenges especially in its bid to become financially sustainable.
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.
Most children working in rural areas are working on family farms and often combine schooling with their work. 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.
Key Economic Indicators:
- GDP Growth: Fluctuations in GDP growth reflect the country's economic performance over time.
- Inflation Rate: The annual inflation rate indicates changes in the cost of living.
- Unemployment Rate: Data on unemployment provides insights into the labor market dynamics.
Trade and Investment:
- Exports: Ghana's top exports include crude petroleum, gold, cocoa beans, cocoa paste, and cocoa butter.
- Imports: Key imports include refined petroleum, crude petroleum, gold, rice, and packaged medicaments.
- Foreign Investment: Efforts to attract investment in sectors such as logistics, oil and gas, and renewable energy are ongoing.
Ghana's economy: Government announces plans to reform key sectors | Citi Newsroom
Popular articles:
tags: #Ghana
