In co-operation with
INVESTING IN GHANA
Produced by Top Reports and IC Publications
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Ghana Electrometer (GEM) was established in 2003 in response to the increasing demand for quality electricity meters in Ghana. The company has since grown into a dedicated, fully integrated electricity metering solutions provider and utilities management organization.
Our Vision is to be the preferred metering solutions provider in West Africa. Our Mission is to provide customers with metering systems that meet and exceed expectations of quality and performance on time, every time and at the best time.
The company, which supplies ISO/ IEC certified credit and prepayment meters to government through the Ministry of Power and electricity distribution companies, was the first to set up an assembly plant in Ghana.
Our Values: • Respect: Understanding and Honesty • Transparency: Proper Appreciation and Excellence • Sense of Urgency: Punctuality • Safety.
Through the company’s strategic partnership with the Electrometer Group (EMG) of Egypt, Ghana Electrometer has gained the technology, skill and capacity to offer the Ghanaian and West African Markets electronic meters with modern technologies. Ghana Electrometer is an organization with a global ambition, and we are savvy in realizing our objectives.
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- O. B. Solomon, Director Strategy, Operations & External Relations. GHANA ELECTROMETER 62 MIAMONA CLOSE RING ROAD SOUTH INDUSTRIAL AREA P.O. BOX OS 784 ACCRA, GHANA Tel: +233 302 661615 / 678984 Fax: +233 302 689977 email@example.com www.electrometer.com.gh
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Contents Produced by Top Reports International Communications Agency Suite 8, 78 Montgomery Street Edinburgh, UK, EH7 5JA firstname.lastname@example.org www.topreports.org Contact in Ghana: +233 (0)24 910 5995 / +233 (0)302 774466 IC Publications 7 Coldbath Square London EC1R 4LQ Tel: +44 20 7841 3210 Fax: +44 20 7841 3211 icpubs@icpublications. com Publishers Silvia Salvetti Ollennu Omar Ben Yedder Country Representative Sian Alexandra Thomas Creative Director Karishma Mehta
Introduction 5 Doing Business in Ghana Sector Features 8 Financial Services: Powering the economy 14 Energy: A design for development 18 Oil & Gas: Discoveries and opportunities 20 Real Estate: The housing boom takes hold 28 Infrastructure: Closing the infrastructure gap; prospects for investment 36 ICT: Driving development 44 Mining: Supporting Ghana’s mineral resources
48 Tourism: Ghana’s world-class potential 52 Agriculture: Meeting new challenges Business Communities 56 Focus on the Italian Community 58 Focus on the Chinese Community Ghana Fact Sheet 59 Ghana in a nutshell Useful Contacts: 60 Agencies, airlines, embassies, hospitals and hotels
Sub Editor Stephen Williams
Production Manager Richard Briggs Editorial Coordinator S. Kwame Ofori Appiah
Editorial Contributions The Ghana Investment Promotion Centre (GIPC) www.gipcghana.com World Bank - Ghana Office www.worldbank.org
Beautiful leisure settings are just one of Ghana’s tourist appeals
Printers Headley Brothers Ltd The Invicta Press Queens Road, Ashford Kent, TN24 8HH v
Zaina Lodge, Mole National Park
52 Agriculture Redeveloping the sector is a key government aim
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of special benefits such as foreign investor ownership of local companies, participation in joint ventures with a minimum required equity of $10,000 and companies wholly-owned by non-Ghanaians at $50,000. The other factors that make Ghana a favourable place for investors in Africa and among developing countries in general, include the following: 1. Stable political environment Ghana is politically stable and this is recognised all over the world, with leaders such as US President Barack Obama and UK Prime Minister David Cameron expressing appreciation for the political stability of Ghana. This is supported by the fact that there have been smooth transitions of government from one political party to another.
hana is one of the most attractive locations in Africa to invest and do business in. To make the Ghanaian environment more business-friendly, there are efforts to reduce the occupancy costs for commercial and industrial properties and the general cost of doing business in the country. The importance to investors of the cost of doing business in Ghana is fully grasped by the government. Appropriate legislation and structural frameworks have been put in place to make the low cost of doing business in Ghana an incentive. The Ghana Investment Advisory Council (GIAC), which was established with the help of the World Bank, helps shape government policy aimed at creating an enabling investment environment. The GIAC consists of multinational and local companies and institutional observers â€“ International Monetary Fund (IMF), World Bank (WB), and United Nations Development Programme (UNDP). Also, there is a liberal investment environment in Ghana that offers a number
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3. Foreign ownership In the ongoing privatisation programme, 100% foreign ownership is permitted. 4. Access to the Ecowas market Ghana is easily accessible to the markets of all the member states of the Economic Community of West Africa (Ecowas), with a population of about 250 million people. 5. Good physical infrastructure Ghana possesses well-developed seaports, airports and roads capable of meeting the needs of business in the 21st century. There is an effort to upgrade the rail network to make it easy to get to the ports from the interior. Telecommunication facilities in Ghana are excellent, with an expanding number of private service providers offering telephone, internet and other telecommunication services. The basic utilities such as water and electricity are readily available at affordable rates. 6. Excellent labour force The country has some of the best teachers, lecturers and researchers on the continent, who have excelled not only in Ghana but in Africa more widely and other parts of the world. There is also a large human resource base of both skilled and unskilled labour
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A space and place to live and prosper
2. Macro-economic policies The government of Ghana has initiated a number of sound macroeconomic policies designed to accelerate the process of growth and transformation of the economy under competitive conditions. Management of and access to foreign exchange in Ghana continues to get better.
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which can be sourced at relatively low rates. The minimum wage in Ghana is 6 Ghana cedis (approximately $1.88) per day. 7. Access to international markets Ghana has easy access to the USA and European Union markets. The flight time to almost all the European Union countries is about 6 hours and the flight time to the USA about 9 hours. 8. Availability of sources of funds Ghana has a number of sources of funds with fast-developing but competitive financial institutions that allow companies to raise long-term capital at a competitive rate. These institutions include banks, insurance and venture capital companies and a stock exchange (Ghana Stock Exchange). 9. High safety standards There are high standards of health and safety measures in the country. 10. Warm and friendly people Ghana is internationally acclaimed for its hospitality to investors and foreigners as a whole. 11. Availability of land Ghana has a wide expanse of land around the country that can be acquired with little difficulty through appropriate agencies and owners.
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12. Ready market in the educational sector Ghana has pupils and students ready to enter various tiers of education, especially at the senior high school and tertiary level.
In addition, investment in Ghana is buoyed by the following: • A demonstrated commitment to the philosophy and practice of market liberalisation policies • Investor confidence in the country’s economy, as evidenced by major successful investments in most sectors • Availability of a stock exchange and other emerging financial markets • Progressive institutional development as evidenced by the process of establishing export free zones and factory-specific export processing zones for existing firms, as well as emerging bank and nonbank financial institutions • Ongoing donor and government support
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for infrastructure development. • Quota-free access to US and EU markets • Strong private sector advocacy groups such as the Private Enterprise Foundation (PEF) and the Private Sector Advisory Group.
There is custom duty exemption for agricultural and industrial plant, machinery and equipment imported for investment purposes. Listed companies enjoy corporate tax of 25% and newly listed companies enjoy 25% corporate tax for the first three years. There are location incentives (tax rebate) for manufacturing industries located in the regional capitals.
Ghana is a safe investment destination. Guarantees against expropriation of private investments provided under law are buttressed by the Ghanaian Constitution. Some investment guarantees are detailed below: • Free transferability of capital, profits and dividends. • Insurance against non-commercial risks – Ghana is a signatory to the World Bank’s Multilateral Investment Guarantee Agency (MIGA) Convention • Double Taxation Agreements (DTAs) – to rationalise tax obligations of investors in order to prevent double taxation. DTAs have been signed and ratified with France and the United Kingdom. DTAs have also been signed with Germany and concluded with Belgium, Italy and Yugoslavia
Potential sources of funding
Viable companies and projects can easily attract financing both on the local and international financial markets. The main sources of funding are: 31 banks 38 non-bank financial institutions 127 rural banks The Ghana Stock Exchange (note that in the last four years, many issues of shares on the GSE have been oversubscribed by 100% –300%, indicating the availability of funds for investment purposes). International development finance institutions based in Ghana, such as the International Finance Corporation and the African Development Bank.
For further information please contact: The Chief Executive Officer, Ghana Investment Promotion Centre (Office of the President), Public Services Commission Building, Ministries, Accra, Ghana +233 302 665 125-9 email@example.com
World Bank Guarantee Helps Ghana Secure $1bn, 15-Year Bond
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$ 4 0 0M IDA GUA R A N T E E S UP P OR T ING A $1BN GH A N A S O V E R E IGN B OND
$400 million rolling IDA guarantee
How the guarantee works The IDA guarantee backstops principal and coupon payments on a first-loss basis. It is designed to ensure timely payment of interest and/or principal by making guarantee support available until the bond is redeemed. The guarantee structure is as follows: If Ghana fails to make an interest or principal payment under the bond according to the debt service schedule, IDA pays the missed payment(s) up to $400m. After each payment date, the remaining balance of the guarantee ($400m less payments made by IDA) rolls over and becomes available for the next scheduled payment of interest and/ or principal. The guarantee cannot be accelerated and can only be called for scheduled and unpaid debt service payments. The PBG-supported bond issuance was launched at a time of heightened market nervousness about emerging market credits. Other emerging market issuers were forced to scale down or cancel planned issuances. Ghana did not have access to the market for a largesized, long-tenor bond issue, and its secondary trading levels had deteriorated substantially. Possibly, there was no
access for Ghana on a stand-alone basis at the time of issuance. Ghana’s sovereign credit rating had been deteriorating as a result of balance of payments and fiscal deficits caused by a number of external and domestic macroeconomic shocks. To address the high risk of debt distress, Ghana entered into a 2015 macroeconomic stabilisation programme supported by the IMF. The bond issuance was part of the government’s strategy to improve its debt sustainability. The PBG helped Ghana mobilise substantial private capital from institutional long-term investors to meet its debt management needs at a lower cost. Proceeds from the issuance were used to refinance Ghana’s short-term (90-day to 2-year) domestic debt bearing an interest rate of 25%, resulting in significant interest savings each year as well as extended debt maturities. The proceeds also reduced risks associated with domestic debt, adding to the overall positive impact on Ghana’s debt sustainability. A key benefit of extending the final maturity of the PBG bond to 15 years was to smooth Ghana’s short and medium-term debt amortisations. The principal of the bond will be repaid in three equal installments in 2028, 2029 and 2030.
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The Republic of Ghana issued a $1bn sovereign bond on 7 October 2015, with a 15-year final maturity. The sovereign bond is partially guaranteed by a $400m Policy Based Guarantee (PBG) by the World Bank Group’s International Development Association (IDA), which allowed Ghana to place the bond successfully under very challenging market conditions for emerging market issuers. The Ghana PBG was the first IDA Guarantee backstopping government debt raised for budget support purposes. This operation demonstrates how World Bank guarantees can be used to help emerging countries refinance their existing stock of debt, at favourable terms, and extend maturities. It also marks a successful return of the World Bank guarantees to the international bond market after 15 years. The operation was part of a larger World Bank guarantee-support programme for Ghana to improve macro-fiscal stability and attract foreign direct investment into the extractives sector and power generation projects. The programme includes $700m of World Bank guarantees, extended in support of the Sankofa integrated oil and gas project as well as $300m of planned guarantees for private-sector-led power generation projects. Recognising the value of the PBG credit enhancement, Moody’s and Fitch gave the notes a two-notch upgrade (B1 by Moody’s and BB- by Fitch) from Ghana’s stand-alone credit rating (B3 by Moody’s and B by Fitch). Ghana achieved an oversubscribed order book for the notes with strong interest from high-quality, long-term investors. The bond issuance widened the country’s investor base as some bond buyers were first-time investors in Ghana’s bonds. It was Ghana’s fourth bond issuance in the international capital markets, but the first one to reach a 15year maturity. At the time of issuance, it was the longest in sub-Saharan Africa, except for issuances from South Africa.
Powering an emerging economy
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hana has a very sophisticated financial services sector, buoyed by an innovative and aggressive private sector, while the central bank provides regulation and oversight designed to allow maximum competition and growth. This has attracted global players, even as local players also provide strong competition. Since the approval of the Financial Sector Strategic Plan (FINSSP) in 2003, the financial services sector in the country has blossomed and Ghana can be considered well on its way to achieving its intention of becoming a hub for transactions for the entire West African sub-region. Three main sectors make up the financial service industry in Ghana. They are banking and finance (including Non-Bank Financial Services and Forex Bureaux); insurance; and financial market/capital markets. All of these have major players actively competing, giving credit to government policy to liberalise the sector while maintaining strong regulatory oversight. Through the implementation of the
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FINSSP, the government of Ghana intends to promote the evolution of a financial sector which is appropriate for the needs of a country moving towards middle income status. The vision is one of a financial sector which is responsive to the needs of the 21st century, particularly given the prospect of greater international and regional competition and opportunities for Ghanaian financial market participants. Following significant improvements in the financial system, there is no doubt that the sector is now in a better shape to play an effective role in harnessing financial resources for the sustainable economic growth of the country. Non-bank financial institutions have come to play a greater role in the economy, catering particularly to the large informal sections of the economy. However, some missteps have led to some of them collapsing and endangering depositors. While the Central Bank gears up to tighten and enforce regulations to prevent further incidents, it is also clear that greater investments from experienced operators, both local and foreign, will serve all parties well in the sub-sector.
The sector continues to grow and expand, taking on more players and investments, even as a state-backed campaign to expand financial inclusion continues. In response to operatorsâ€™ urging, government has stepped up its efforts to complete street and home address systems to enable easier tracking of credit benefi-
THE AVAIL ABILIT Y OF CREDIT INFORMATION IS GENER ALLY ACCEP TED TO BE CRUCIAL FOR THE DE VELOPMENT AND MAINTENANCE OF AN EFFECTIVE FINANCIAL SECTOR ciaries. A biometric national identification system which is currently under review prior to re-activation, will further boost confidence in the sector. These will add to the introduction of credit reference bureaux for this purpose. The operating institutions include both foreign and local major banks, Rural and Community Banks (RCBs), Savings and Loans Companies (SLCs) and other finance and leasing companies.
Investment opportunities A credit reporting system in Ghana would provide a debt profile and repayment history of borrowers.
There is a high demand for various financial services in Ghana, as evidenced by the consistent high growth of companies in the sector. The relatively underdeveloped financial services sector in neighbouring countries is an opportunity for financial service firms in Ghana to supply needed services in those countries. Furthermore, the establishment of off-shore banking services provides new opportunities for expanding and diversifying financial services exports. Credit reference bureaux Investment opportunities also exist for financial institutions to acquire licences for the operation of credit reference bureaus in the country. The Credit Report Act, which became
law in June 2007, is supposed to provide a legal and regulatory framework for credit reporting in Ghana to banks. The availability of credit information is generally accepted to be crucial for the development and maintenance of an effective financial sector. Borrowers tend to have a natural incentive not to reveal negative information about themselves. The lack of a credit information system therefore increases the risks of lending, and causes financial institutions to provide less credit. A credit reporting system in Ghana would provide timely, accurate, and up-to-date information on the debt profile and repayment history of borrowers. Discovery of oil Ghana has struck oil in commercial quantities (estimated at 3bn barrels) while exploration is still in progress. Enormous opportunities therefore exist for the banking and financial sector to develop appropriate products to support the oil industry. Total expected oil revenues are estimated at $6m a day by GNPC (or $2.2bn a year). Oil revenues accruing to the state are estimated at $2.3m a day which would translate to more than $836m a year. Banking services that will be needed include financing for GNPCâ€™s interest, transfers, letters of credit, financing rigs and supply vessels, and importing foreign rigs. All equipment and facilities of the oil industry would have to be insured. The various downstream activities in the sector will also require significant financing.
insurance brokers ltd. Risk Management Claims Management
Market Leaders For Over Twenty Three (23) years World Class Service Delivery Ability to obtain competitive Terms Experienced and competent technical team Partnership with Global brokers
Location: Airport Residential Area, Accra Tel:+233 302 764023 Email: Kek@kekinsurancegroup.com
OUR MISSION IS TO PROVIDE EXCELLENT, QUALITY,PROFESSIONAL AND TIME BOUND INSURANCE AND REINSURANCE BROKING SERVICES
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General Insurance Broking Life Insurance Broking Reinsurance Broking
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General investment opportunities exist for the following range of institutions: • Universal banks • Development banks • Insurance companies • Reinsurance companies • Mortgage finance institutions • Leasing companies • Venture capital companies • Hire purchase companies • Export finance companies • Investment banks • Mutual funds • Investment trusts • Savings and loans companies • Specialised finance houses
GHANA HAS A REL ATIVELY WELL DE VELOPED LEGAL AND REGUL ATORY ENVIRONMENT COMPARED TO NEIGHBOURING WEST AFRICAN COUNTRIES
The industry’s competitive advantages include: • The availability of skilled professionals in the financial sector. • Improved academic and training institutions, e.g. University of Ghana Business School, Ghana Institute of Management and Public Administration (GIMPA), National Banking College, the Char-
tered Institute of Bankers (Ghana), the Institute of Chartered Accountants, the Ghana Insurance College, the Ashesi University College and the Ghana Stock Exchange, which all provide training to the highest international standards. The banks are rapidly increasing the deployment of ICT infrastructure to enhance competitiveness and efficiency of operations. Ghana has a relatively well developed legal and regulatory environment compared to neighbouring West African countries. New financial instruments have been introduced such as asset-backed securities, dollar-denominated bonds and inflationindexed bonds. Further developments include the improved regulation and supervision of financial institutions, i.e. the revamping of the National Insurance Commission and establishment of a Securities and Exchange Commission. The introduction of off-shore banking has opened many new channels in business and options in the sector.
SOGEC@SHNET The vision is one of a financial sector which is responsive to the needs of the 21st century
DO BUSINESS WITH JUST A CLICK! Simplify your day-to-day business-related banking activities with SOGEC@SHNET today! Enjoy: ■ Having a single access point to all your accounts held with Societe Generale Ghana and other banks in Ghana. ■ Making local and international payments in multiple currencies with ease.
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■ Safety and security knowing that only authorized users have access to your accounts. ■ Uploading payment orders directly from your accounting system conveniently. FIND OUT MORE. EMAIL firstname.lastname@example.org
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13% 8% 1991-1998 recorded the highest poverty reduction of 13%
A steady growthrate post-2006
2010 50% Ghana achieves middle-income status
Poverty cut in half over last two decades
RE AL CONSUMP TION ALMOST DOUBLED, THE MOST R APID GROW TH BEING BE T WEEN 1998 AND 2005, WHEN IT E XPANDED BY ABOUT 30% The economic development of Ghana has been a tale of success over the last two decades. The country has achieved sound economic growth and a stout increase in consumption among the bottom 4% of the consumption distribution. It has cut poverty figures by half and considerably reduced vulnerability. Strong growth in income and consumption has been accompanied by substantial improvement in nonmonetary indicators of living standards. Newborns in Ghana today are expected to live two years longer than newborns in 2005, and children are more than twice as likely to be enrolled in secondary school. They live in houses that are more than twice as likely to have electricity and improved sanitation facilities. The striking progress made in providing better opportunities for all is more than an achievement in its own right. It has also strengthened the prospects for strong and inclusive growth in the future. After over a decade of stable annual growth at between 4% and 5%, gross
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domestic product (GDP) began to pick up in the early 2000s and reached a steady growth rate of nearly 8% after 2006. There was then an impressive peak in 2011, mainly because of the discovery of oil and the rebasing of GDP. Since 2008, Ghana has grown more quickly than many African economies and, since 2010, more quickly than the average among lower-middle-income countries. It reached middle income status in 2010. These achievements have been important especially in light of external shocks, such as the global financial crisis of 2008–09, reduced trade revenues, and fluctuating oil prices. The impressive GDP growth of the last decade was associated with a substantial increase in average household consumption. Mean and median real consumption almost doubled, with the most rapid growth occurring between 1998 and 2005, when consumption expanded by about 30%. The rates of growth in rural and urban areas were almost the same in 1991–2012, though there were substantial differences across subperiods. In urban areas, the growth rate was greater than the national average between 1998 and 2005, but slowed significantly between 2005 and 2012. In rural areas, growth slowed during the latter period, but was, overall, more rapid than that in urban areas. The benefits of growth were broadly shared among the population, although the top percentile received relatively more. Overall, the growth of consumption in 2005–12 was less than the growth over the whole period: an average rate of 2.5% a year against 3.2%. On the basis of their performance, three subgroups stand out: the top 20% of the distribution, the bottom 25%, and the percentiles in between. The top percentiles’ consumption grew consistently more rapidly than the national average, and this contributed to a widening in inequality. The consumption of the bottom 25% performed less well than the rest over the whole period, but its performance improved, in relative
terms, in the last decade: it continued to grow at about 2.5% a year, which, over the decade, coincided with average consumption growth. The middle percentiles’ consumption grew at rates slightly below the mean (2.8% versus 2.9%), but still at a sufficiently high rate to justify considering their performance particularly good. This group roughly corresponds to those people who, in 1991, were poor or vulnerable to poverty and who had managed to move out of poverty (or, among some of them, out of vulnerability) by 2012. Poverty has been cut in half over the last two decades. The estimated poverty rate fell by 31.3 percentage points - from 52.7% in 1991 to 21.4% in 2012. The country seems on track to reduce the poverty rate by half in line with Millennium Development Goal 1. Ghana’s performance in reducing poverty compares well with that of other African countries. In 2012, the rate of poverty in Ghana was less than half the African average of 43%, while in 1991, it had been only 10% lower. However, the highest poverty reduction, 13.0%, was recorded between 1991 and 1998. Since then, the speed of poverty reduction has declined, to 11% in 1998–2005 and to 7.1% in 2005–13. This is despite increasing GDP growth. Extreme poverty declined more rapidly. The share of the population with consumption below the food poverty line declined from 37.6% in 1991 to 9.6% in 2012. Growth in average consumption was the driving force behind the impressive poverty reduction. The sharp decline in poverty was clearly driven almost exclusively by the increase in average household consumption. Inequality changed little over the period, and the impact of growth was large enough to offset the potential rise in poverty associated with the small increase in inequality experienced after 1998. Credit: Poverty Reduction in Ghana: Progress and Challenges (Vasco Molini and Pierella Paci)
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Two Decades of Expanding Prosperity for All
THE ROYAL BANK Ghana’s bank of choice Questions and answers with Mr. Robert Kow Bentil, MD and CEO of the bank
The Royal Bank Limited (TRB) is a wholly owned Ghanaian Bank incorporated on July 15, 2011. TRB started operations on December 10, 2012 after it was issued with a Universal License from the Bank of Ghana to undertake Universal Banking Services. The vision of the Bank is to be the Bank of Choice with a mission to provide an excellent, innovative and world-class banking experience. The operations of the Bank are guided by the following core values: • • • • • • •
Professionalism Respect Integrity Confidentiality Commitment Excellence Transparency
Consistent with its brand promise and based on the understanding of clients, TRB offers a total banking relationship centered on providing customised services to meet the financial needs of its clients. TRB’s objective is to enhance the customer’s ability to focus on their core activities.
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How would you describe the financial sector in Ghana? The financial sector is segmented into banking, insurance and capital markets. The banking sector comprises universal banks, rural banks, savings and loans companies and microfinance and is largely indigenous, government and foreign controlled. The financial sector in Ghana is regulated by the Bank of Ghana. Currently 29 Universal Banks are competing in Ghana, making the industry highly competitive. In spite of the competition, the sector has seen continuous growth in Assets, Liabilities, and Profitability. In a bid to bring banking to the doorstep of Ghanaians, the sector has seen massive improvements in technology. The Ghana Interbank payment and Settlement Systems (GhIPSS) through the Bank of Ghana has also introduced technological platforms and electronic services such as mobile banking, e-zwich point of sale (POS) terminals, VISA cards, MasterCard, UnionPay and other e-banking products. What are the Royal Bank’s main business areas? The main business areas of the bank include commerce, telecommunications, hospitality, agro-processing, oil and gas, energy, mining and construction. In addition, The Royal Bank has developed customised products like The Royal Consumer Loan, Private Banking, The Royal Child Account, The Royal Ride and The Royal Akuafo Account. What are your major objec-
tives and future projects? Our major objectives are to provide low interest loans to help local businesses to create more jobs for the youth of this country. Looking into the future, the Bank will continue to invest in technology and conduct research to develop products to satisfy customer needs. Have you any won awards? Yes, we have won a few local and international awards. In our 2nd year of operations, the Bank was adjudged Best Growing Bank. The Bank replicated this achievement at the 14th banking awards, where we hauled five remarkable Best Bank awards in Customer Care, Advisory Services, Bank Growth, Household Financing and Long Term Loan Financing. The Bank was also adjudged Top Emerging Brand at the Ghana Super Brands Awards in December 2014. Internationally, we won the New Era Award for Technology, Innovation, and Quality in Rome, Italy. More recently, The Majestic Five Continents Awards for Quality & Excellence was also conferred on the Bank in Berlin, Germany. What makes the Royal Bank different and why should clients choose you? The Royal Bank is a wholly owned Ghanaian Bank with the main aim of helping businesses to create more jobs and develop the country’s economy. As a committed and dedicated business partner, we offer excellent banking services to all our clients. We have a management team with local and international exposure providing quick and prompt responses to customer needs. The needs of our customers are at the heart of our operations.
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Energy for progress and development
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hana’s energy sector has attracted keen attention in recent years. Hobbled by generation and distribution issues, the sector has been found wanting in delivering reliable power for the industrial and domestic needs of the country. The government’s efforts to deal with the almost four-year-long crisis, have seen it turning to the private sector to deliver new plants and also explore entirely new avenues of production, such as solar and coal. A complete streamlining of the sector is also underway, as part of the Millennium Compact II, signed with the US, which should see further private sector involvement in all areas of the distribution chain. At the beginning of 2016, a new tariff regime was introduced, demonstrating a commitment to stem losses for the production companies and make the sector more attractive to new and independent players. These measures have been spearheaded by the Ministry of Power, created in 2015 to focus on a sector that the government considers key to its medium-term ambition
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The energy sector in Ghana, including the petroleum sub-sector, contributes 18.2% of Ghana’s GDP.
to become an industrial hub in the West African sub-region and a net exporter of power to its neighbours. The power sector involves the generation, transmission and distribution of electrical energy for industrial, commercial and domestic use in Ghana. The power system of Ghana is run by three utility companies; the Volta River Authority (VRA), Ghana Grid Company Limited (GRIDCo) and Electricity Company of Ghana (ECG). Electricity is the dominant modern energy form used in the industrial and service sectors, accounting for 69% of the energy used in these two sectors of the national economy. Ghana’s electricity supply industry is unbundled, with separate jurisdictions and entities regarding the activities of electricity generation, transmission and distribution. The grid transmission network connecting the main production to consumption centres has been modelled and categorised into the following five zones under the Ghana Grid Company (GRIDCo):
Zone 1: Greater Accra Region and parts of Eastern, Central and Volta regions; Zone 2: Western Region and part of Central Region; Zone 3: Ashanti Region and part of Eastern Region; Zone 4: Brong Ahafo Region; and Zone 5: Northern part of the country with Northern, Upper West and Upper East regions. There are four voltage levels in the power grid: 330kV, 225kV, 161kV & 69kV. The total length of the transmission line is 4,315km, which breaks down as follows: 330kV line (219km); 225kV line (73km); 161kV line (3,888km); and 69kV line (132km).There are 53 substations and about 100 transformers in the transmission grid. It is expected in the power grid planning of Ghana that the 330kV backbone grid will extend over the country’s grid by 2020. The 161kV voltage level will serve as the regional transmission voltage.
There are three distribution companies currently operating in Ghana, with about 69 substations scattered across the country. The Electricity Company of Ghana (ECG) serves
THE SECTOR HAS BEEN UNDERGOING A NUMBER OF DE VELOPMENTAL INITIATIVES TO IMPROVE OVER ALL OPER ATIONAL EFFICIENCY AND SUPPLY SECURIT Y
customers in southern Ghana while the Northern Electricity Distribution Company serves the northern part of the country. Enclave Power, a third unit, serves companies at the Tema free zone enclave. The government’s energy policy is embodied in the Strategic National Energy Plan (SNEP) 2006-2020. The policy aims to develop a sound energy market that will provide sufficient, viable and efficient energy services for Ghana’s economic development through the formulation of a comprehensive plan identifying the optimal path for the development, utilisation and efficient management of energy resources available to the country. The energy sector has been a vital com-
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The homegrown power of Ghana
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ponent of Ghanaâ€™s industrial and socio-economic development. In this regard, the sector has been undergoing a number of developmental initiatives to improve overall operational efficiency and supply security. Ghana has in the past relied mainly on hydro-power plants for electricity generation. A few thermal plants are used to regulate the peak load. However, recently the net demand for electrical power has been considerably greater than the supply. Currently, the VRA contributes 75% of the total generation in Ghana. The northern regions and the northern parts of Brong Ahafo and Volta regions receive very high solar radiation levels with a monthly average of between 4.0 and 6.5kWh/m2/day. The average duration of sunshine varies from 5.3hrs/day in Kumasi, in the cloudy semi-deciduous forest region, to 7.7hrs/day at Wa in the dry savannah region. Ghana has about 2,000MW of potential for wind energy. It is currently reliably projected that over 300MW installed capacity of wind farms could be established at the coast to generate over 500GWh to supplement the nationâ€™s energy supply.
Agencies in the energy sector
As part of the policies to achieve the objectives in the Strategic National Energy Plan, the government, through the Ministry of Power, is encouraging public-private sector partnership by securing private sector investment partnerships for re-capitalisation of the energy supply system. Multiple investment opportunities exist for the development of a viable local industry for the production of components and systems locally, to meet future spare-parts requirements. It is envisaged that future investments will make savings and ensure sustainability in future years.
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The National Interconnected Transmission System (NITS) for electricity is owned and operated by the Ghana Grid Company (GRIDCo). GRIDCo is state-owned. Electricity distribution is undertaken by the state-owned Electricity Company of Ghana (ECG), and the Northern Electricity Department (NED), a subsidiary of the Volta
River Authority (VRA). The Energy Commission (EC) and the Public Utilities and Regulatory Commission (PURC) regulate the electricity supply industry. The Energy Commission, in addition to being responsible for technical regulations in the power sector, also advises the Minister for Power on matters relating to energy planning and policy. The PURC on the other hand is an independent regulatory agency responsible for the economic regulation of the power sector, with a mandate to approve rates for electricity sold by electricity distribution utilities. The Ministry of Power is responsible for formulating, monitoring and evaluating policies, programmes and projects in the power sector. It is also the institution charged with the implementation of the National Electrification Scheme (NES) which seeks to extend the reach of electricity to all communities in the long term.
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Investment opportunities in the sector include: 1. Energy service companies to provide energy services in these areas: • Energy audits and developing energy management strategies • Power factor correction • Electrical load management • Boiler efficiency/heat recovery • Monitoring and targeting energy management • Tariff analysis • Refrigeration and air conditioning systems • Compressed air systems • Kilns and furnaces • Fuel substitution 2. Energy manufacturing companies to supply energy-monitoring equipment to better meet the increased requests for power monitoring and tariff analysis from industry in the country 3. Companies to provide an alternative decentralised sustainable energy system that can easily be deployed in remote and deprived communities, adding to the overall national energy mix 4. Companies to provide solar vaccine refrigerators for the preservation of vaccines for child immunisation programmes in remote and off-grid parts of the country
6. New, higher quality and cost-competitive energy services for the poor, for cooking, transport, water heating etc Other opportunities in the sector • Penetration of rural electrification by decentralised renewable energy complementation • Penetration of solar energy in hotels, restaurants and institutional kitchens using solar water heaters • Increased LPG penetration • Improved, efficient cook-stove penetration • Penetration of biogas for cooking in hotels, restaurants and institutional kitchens • Increase the penetration of modern energy into agriculture for increased production, to help achieve the nation’s food supply security objectives • Substitution of diesel with bio-diesel in agricultural mechanisation • Drying of exportable farm produce such as pepper with solar dryers • Displacing the use of diesel for irrigation by grid electricity and mechanical wind pumps • Large-scale commercial poultry farmers to meet at least 10% of their electricity needs from biogas, using the droppings from birds
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5. Provision of solar energy systems to schools in off-grid communities
THE MINISTRY OF POWER IS RESPONSIBLE FOR FORMUL ATING, MONITORING AND E VALUATING POLICIES, PROGR AMMES AND PROJECTS IN THE POWER SECTOR
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OIL & GAS
Discoveries and opportunities
n June and September 2007, a consortium of companies comprising Kosmos Energy Ghana, Tullow Ghana Ltd, Anardarko Petroleum Corporation, Sabre Oil and Gas Limited, and E.O. Group in conjunction with the Ghana National Petroleum Corporation (GNPC) announced discoveries of significant quantities of oil and gas in the offshore deepwater Tano/ Cape Three Points basins located in the southernmost part of Ghana. Under these circumstances, the Petroleum Law required that the discovered oil and gas resources in the two blocks be produced as one unit to reduce costs, optimise the recovery of oil and gas in the field. The two discovered fields were therefore unitised and designated as the Jubilee Field, in commemoration of Ghana’s Jubilee Year celebration. In 2010, then-president John Atta Mills ceremonially turned on the taps, signalling the commencement of commercial oil production in the country. Ghana’s oil gas and industry is growing at a steady pace, with a total proven reserve base as at August 2014 of approximately 883.4m barrels of oil and 2,312.4bn cu ft of gas. There are four major oil and gas fields in the country namely: the producing Jubilee Field, the sub-commercial producing Saltpond Field, and the Tweneboa-Enyenra-Ntomme (TEN) and Sankofa-Gye Nyame fields, currently in the development phase. In addition to this, 23 post-Jubilee discoveries have been made in offshore Ghana on six different blocks in the Tano/Cape three points basin.
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Crude oil production
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The total amount of oil produced by the Jubilee Field from January to December 2014 was 37,201,691 barrels, representing an average daily production rate of 111,382bpd. Total crude oil lifting for the corresponding period in 2013 was 35,587,558 barrels with an average daily production rate of 100,246.64bpd. The Ghana Group lifted 7,681,120 barrels in 2014 with a gross value of over $700m.
Gas infrastructure production
The Offshore Pipeline, the Onshore Pipeline, the Gas Processing Plant, the NGLs Export System, and the Office Complex are collectively known as the “Project” and sometimes referred to as the Western Corridor Gas Infrastructure Development Project or the Ghana Early Phase Gas Infrastructure Development Project. The gas processing plant at Atuabo is expected to help to process Ghana’s gas from the Jubilee field, which will make gas constantly available to Ghana’s Thermal plants. This will also lead to the construction of more thermal plants, helping to reduce the cost of electricity. It will also promote the petrochemical industry by providing the much needed raw materials for the petrochemical industry. Ghana Gas was incorporated in July 2011 with the responsibility to build, own and operate infrastructure required for the gathering, processing, transporting and marketing of natural gas resources. It is currently making available to the VRA thermal power plant complex around 3235 MMSCFD of lean gas, enough to support the generation of about 130-140MW of electricity from the Aboadze complex out of the maximum 550MW possible. Since the commissioning of the gas processing facility, the plant has been receiving raw gas supplies from the Jubilee Field for processing onward transmission to the Aboadze thermal plant. Gas export from the Jubilee Field to the Ghana National Gas Company commenced on 8th November 2014 and a total of 1,906 MMSCF of gas has been exported, of which 400 MMSCF was used for commissioning activities.
There are currently over 200 registered service providers in this sector. The services offered cover the broad range of oil field services listed below, as well as other general services such as accounting, auditing and legal. Ghana’s petroleum sector involves upstream and downstream activities. The upstream activities include the production, procurement and refining of crude oil.
Due to the emerging nature of the petroleum industry, opportunities exist in virtually every area, both upstream and downstream. The upstream petroleum sector: • Geophysics (site surveys, seismic data acquisition, processing interpretation) • Basin modelling • Geological studies • Biostratigraphy sequence stratigraphy • Sedimentology • Geochemistry • Geochemical studies • Geographical studies • Equipment supply/or leasing (boats, barges, aircraft, etc) • Supply of casings for boreholes Drilling products and services: • Land drilling rigs, swamp drilling rigs • Petroleum engineering consultancy • Offshore drilling rigs (jack-ups, semisubmersible rigs, submersible rigs etc) • Offshore rig towing services, rig move/ positioning services • Drilling mud, chemicals, mud logging and mud logging services • Drilling site preparation, well control, blow-out prevention • Underwater inspection, sand control, fish and fishing tools • Dry-dock facilities for offshore supply vessels, tugboats, offshore rigs • Measurement while drilling (MWD) and
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OVER 200 REGISTERED SERVICE PROVIDERS IN THIS SECTOR OFFER A BROAD R ANGE OF OIL FIELD SERVICES, AS WELL AS OTHER REL ATED SERVICES SUCH AS ACCOUNTING, AUDITING AND LEGAL
logging while drilling (LWD) services • Casing & high pressure pumping, tubing services, tools, cased-hole electrical logging • Directional drilling and survey • Surface and bottom hole sampling and tubing conveyed perforation (TCP) • Fluid filtration, solid control, laboratory & pilling services, and PVT analysis • Mechanical wireline services and petrophysical reservoir data services • Coil tubing & electrical line and production logging • Oil field waste management, jetty and shore support services and rigless workover services • Well production testing, wellhead maintenance and well completion services • Supply of drilling materials and equipment (drill bits, drill pipes, drill collars, cone bits etc) Production support services: • Wireline services and pipeline inspection • Production chemical management • Engineering design, procurement of production facilities • Corrosion engineering services • Blow out central services and flow line construction • Oil expand terminal design and crude oil lifting • Fire fighting systems design and installation of 2/3 phase meter supplies • Supply and maintenance of safety equipment • Gas valve supplies and installation Reservoir engineering: • Consultancy services • Simulation • Economic analysis • Complete field study Downstream sector business opportunities in marketing, storage, distribution, transport and refining: • Technical partnership • Field development contractor financing • Gas utilisation • Refineries maintenance • Pipeline construction maintenance • Petroleum products haulage • Petroleum products marketing • Petrochemicals • Gas development/conversion • Butanisation project • Fertiliser plants • Vehicle fuels • Methanol /MTBE plants
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Those downstream include production, distribution and marketing of petroleum products; and the premixing of petroleum products for industrial uses, including fishing. Companies in the upstream include multinationals such as Tullow and Kosmos. There are opportunities for new entrants as new fields are discovered, and acreage is auctioned off for new exploration. Distribution of petroleum products in Ghana is dominated by the multinational oil marketing companies. Following the deregulation policy of the government, the oil marketing companies have increased in numbers to include several local Ghanaian companies. Products are retailed through fuel stations which are either owned by the Oil Marketing Companies (OMCs) or private individuals. There are 133 oil marketing companies in Ghana. The private sector, including the OMCs and others, source and supply finished products through an open competitive tendering system.
The housing boom takes hold
Ghana is slowly turning into a go-to investment destination and a springboard for investors from all over the world
can be divided into three main segments: • The public sector real estate development • Emerging private sector real estate development • Private individual developers The activities of these three groups are facilitated by the banks and the primary mortgage market which – although at its early stages of development – has demonstrated enormous growth potential. The real estate industry is however dominated by property management companies, commercial real estate developers, residential construction firms and private individuals. In the last 10 years, the residential market, undoubtedly the most vibrant in the industry, has registered more than 85,000 transactions. The commercial property segment, which includes office accommodation and retail space, is the second-largest seg-
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he real estate industry in Ghana, in recent years, has seen a massive boom and growth. This is attributed to the rapid economic growth of the Ghanaian economy. With a vibrant economy, a growing population, a sophisticated and well-educated professional class, demand for all kinds of real estate development largely outstrips supply. It is a sector desperately waiting to be explored. For a country widely acknowledged to have moved from low-income to lower middle-income status (according to World Bank classifications), with a reputation for economic and political stability, Ghana is slowly turning into the go-to investment destination and a springboard for investors from all over the world, seeking a safe haven for their investment capital on the African continent. Ghana’s property development industry
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ment in the industry. Third is the industrial segment which is considerably smaller in size. Recreational and civil/cultural property developments are new areas that are gaining interest among the industry stakeholders. The property industry, especially the residential and commercial segments is led by private companies that control over 90% of Ghana real estates and property markets. Government participation in the property market is minimal when compared to the private sector. The Tema Development Corporation (TDC), State Housing Corporation (SHC) and the Social Security and National Insurance Trust (SSNIT) are the only public sector-controlled agencies involved in the property market. The Ghana Real Estate Developers Association (GREDA), an organisation of private real estate developers, has played an active
role in property development in the country. They mainly service the upper income and expatriate demand for housing, especially in Accra and Tema. Regimanuel Gray, Parakuo Estates, NTHC Properties Ltd, ACP Estates Ltd and Manet Housing Company Ltd, the leading developers in the country, between them accounting for about 75% of the GREDA groupâ€™s residential property development. Few Ghanaians can afford to acquire their homes and most lack access to home loans facilities. Most banks neglect the home loans market and instead focus on shortterm lending and investment such as riskfree government bonds and trade finance facilities that can offer higher returns while consuming less capital. Only four of Ghanaâ€™s 28 banks officially offer home loans as products. The total home loans book in Ghana is worth around
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THE PROPERT Y INDUSTRY IS DOMINATED BY PRIVATE COMPANIES THAT CONTROL OVER 90% OF GHANA RE AL ESTATES AND PROPERT Y MARKE TS
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of tenure, though it is fraught with many difficulties. Middle income rent ranges from $500 to $800 per month. The government of Ghana has started to seek alternative sources by inviting companies, with the potential, to offer affordable housing for the majority of middle to lower income level Ghanaians who are unable to meet the higher rentals readily.
US$180 million and the number of borrowers is just under 6,000. With the upsurge of rapid urbanisation, and a population with a 3% growth rate per annum, the housing sector has become a very important and central concern for public policy. The UN’s Habitat estimates over 2 million houses will be needed to curb Ghana’s rapidly increasing housing demand. The Habitat report spells out the pace at which Ghana would have to meet its required 5.7m new homes by 2020. The construction sub-sector registered a robust growth of 12.8% in 2014, with the water and sewerage sub-sector recording a marginal growth of 0.1% in 2014
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Ghana’s property market is dominated by residential and commercial property development. The residential market is the most active, registering over 85,000 transactions a year over the past decade, with an estimated value of about $1.7bn. Returns on commercial property are steady but the real growth opportunity lies in the provision of affordable housing to the urbanised middle-income earners. Industry sources indicate that Ghana’s current residential property demand is over 200,000 units a year, with an accumulated shortfall of 1.7m housing units. Current production of residential properties averages only 70,000 units a year, implying a significant annual supply gap. Ghana is clearly on the ascendency to becoming predominantly urbanised. Accra and Kumasi stand out with populations above 1,000,000. Takoradi has recently seen an increase in numbers due to oil and gas exploration in the region. Rapidly rising property costs coupled with low mortgage and high construction cost make renting the widely used form
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A potential investor interested in the real estate sub-sector would be looking at the construction of residential houses, industrial and commercial houses
Ghana has many opportunities in property development and construction. A potential investor interested in the real estate subsector would be looking at the construction of residential houses, industrial and commercial houses as well as shopping centres. Residential accommodation, particularly hotels and hostels for tertiary, is in significant demand. Opportunities exist in: • Residential (low-cost housing, high-rise luxury apartments, retirement villages) • Industrial (light industrial parks, warehousing facilities) • Commercial (regional shopping centres/ malls, office accommodation, storage) • Rehabilitation and modernisation of existing railway infrastructure, mainly tracks, bridges, signals and telecommunication systems for mobility and connectivity • Production and marketing of construction equipment and building materials. The cement market is dominated by a handful of producers and suppliers including Ghana Cement, Diamond Cement Group, Pozzolana Cement, Dangote Cement and Savannah Cement.
• Customs duty exemptions on specific equipment needed for the project • Graduated and reasonable corporate taxes of 25% • Seven-year tax holidays and five years in consultation with the Ministry of Water Resources, Works and Housing (MWRWH) • Automatic immigrant quotas • Relief from double taxation where there are special agreements signed between Ghana and other countries • Repatriation of dividends and net profit • Transfer of funds in respect of servicing of foreign loans • Guarantee against expropriation • Remittance of proceeds in the sale or liquidation of investment.
Ghana’s urban housing deficit is wide and growing. Urban housing in Ghana is informal, overcrowded and predominantly rental or rent‐free without any financial collateral. About 90% of housing in urban Ghana is built without local authority control; almost 60% of households occupy single rooms, and only 25% of households own their housing (UNHabitat 2012). Households on average spend less than 10% of their disposable income on housing, but 35% of households can only afford housing for US$6,000 or less. Estimates indicate that on average, the cheapest housing price is around $3,700 (compared to a GDP per capita around $1,600). The deficit in the Ghanaian urban housing sector becomes even more critical when housing is broadly defined as not only comprising the physical shelter but also related services and infrastructure as well as the inputs for its production. Rapid urbanisation and urban growth has triggered a situation whereby
the supply of housing lags behind effective demand, especially in large metropolitan areas. The annual housing stock is growing, but at a relatively slower rate compared to the rate of growth of the total population. Estimates indicate that Ghana’s housing gap is around 70,000 to 120,000 units per year. By 2020, Ghana requires a total of 2 million new dwellings (that is, 5.7 million rooms, or about 600,000 new units per year). The highest demand for new housing is in Kumasi and Accra. The housing deficit situation in Accra in 2010 was 72% of the total deficit for the Greater Accra region while the deficit for Kumasi was 72% of the total for the Ashanti region. The inability of the existing housing delivery system (supply) to meet effective demand results in a situation where many urbanite Ghanaians are forced to live in slums or areas of poor housing conditions characterised by overcrowding and low‐quality or absent basic services, such as in‐house water supply, toilets, and bathrooms.
A DECENT HOUSE SERVES AS NOT ONLY A HOME BUT ALSO A SOURCE OF SAFE T Y AND SECURIT Y
Evidence confirms that formal housing is unaffordable. When starting from the price of formal housing aimed at particular income ranges, it is evident that only the top 20–25% of urban households can afford anything available, even with housing payments at one third of income. Rental levels at the current rent‐to‐ household income ratio of 10% or less are also very low, showing 50% capable of paying GH¢300 or less per month. Housing remains critical as it is directly linked to practically all aspects of urban living. Many of the challenges of urban living are associated with the quality, location, and security of housing. For many urban dwellers, especially the poor, a house in a habitable neighbourhood is a vital starting point that allows individuals to tap into opportunities offered by the city – jobs, income, infrastructure, services, and amenities. In other words, a decent house serves as not only a home but also a source of safety and security. It is a venue for employment creation, developing and strengthening social relations and networks, and accessing basic urban services. How Ghana tackles its housing development problems will become critical for the growth of urban areas in the coming decades. Development policy will affect whether unplanned urban expansion will continue and create further inefficiencies in mobility and service delivery, or whether cities can find sustainable ways to accommodate an increasing population through effective spatial planning. To address its housing deficit, which will have side-effects on urban form, Ghana must urgently seek ways to reduce construction costs, address land market constraints, and make efforts to improve and enforce spatial planning and zoning. Credit: Rising through Cities in Ghana, Ghana Urbanization Review Overview Report (April 2015)
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Meeting Ghana’s ever widening housing supply challenge driven by the country’s urbanisation
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Interface – providing the best materials to upgrade properties Interface Ltd is the leading supplier and installer of finishing input materials for the residential and commercial building and refurbishment sectors. Interface Ltd is a sister company to Textile Trico, and Nsawam Foam Company. The company started to import gypsum boards and accessories for suspended ceilings, dry wall partitions, as well as other decorative products, in 2007 and presently holds distributor rights for well-known brands such as AMF, HADLEY, USG/DONN, ISOVER, GYPROC, IKO, and WEBER. As an industry leader, Interface has a track record of recommending expert installers to undertake any project associated with the company’s materials, used extensively by major construction firms, banking institutions, architects, churches and also individual home owners across the country. Some of the major projects supplied or executed by Interface Limited include: Labadi Beach Hotel, Trasaaco Valley ICGC Church complex in Takoradi Villagio Protea Hotel by Marriot –Takoradi The Bank of Ghana Cash Processing centre on Spintex Ghana Airport Cargo Centre projects Kempinski Hotel - Accra Marriot Hotel - Accra Australia House - the Residence of the Vice President of the Republic of Ghana Our high quality products and professionalism have ensured
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unsurpassed value-for-money propositions for our clients over the years and have earned the company the prestigious Input Supplier of the Year Award in 2010, 2011 and 2012 from the Ghana Property Awards. There are branches in Weija, Spintex, Takoradi and Kumasi and there will be others opening across Ghana in due course. Mission statement We pledge to: • Make available the best quality input finishing materials for the construction industry in Ghana. • Stock the widest range of products to meet all project requirements, big or small. • Continue to develop and empower our teams to deliver superior customer service. • Introduce innovative products, new levels of excellence and be regarded by customers as world class suppliers Our current objectives To exceed consumer expectations in terms of quality, value for money and service delivery. According to the company’s managing director: “Ghana has a large supply of qualified manpower available for industrial output and a central location to aid cost-effective distribution of goods and services within the sub region. “The construction industry in the country is very vibrant, with growth in the sub-sector of housing delivery growing astronomically year on year. “Currently the shortfall announced with regards to housing delivery is in the region of 1.5m
houses. Interface’s targeted customers are both the large and medium sized contractors, but more importantly, providing finished input materials for the large number of individual home developers as well, including the real estate companies. “Our main products targeted at those groups of customers include (but are not confined to) suspended ceilings, partitions, roofing and flooring solutions. “Our strategy includes the widening of our product offering and the expansion of our branches in order to be able to provide superior client services on time to all our customers everywhere in the country. “We are differentiated by the provision of first class brands at prices that are most competitive on the market, as well as offering the widest range of products in both scope and scale including the introduction of innovative additions frequently to meet all requirements in the industry. “Our customer service delivery focuses more on solving the customers’ problems with the highest levels of integrity. “Interface Ltd would like its customers to know that modernising or renovating their properties is an investment. It should never be construed as a cost, as investing in high quality products is always cost-effective. “Remember, a house is an investment, give it all your love and attention, and it will serve you well now and beyond. “Interface Limited is there to help you achieve this in style.”
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BAE builds on Ghana success B Appah Electricals Ltd (BAE) is an electrical engineering and contracting company that provides electrical services for building projects and also supplies and distributes quality, yet affordable, electrical products. BAE also undertakes electrical installations and maintenance services and has accreditation for the distribution of the following brands: • Schneider electric • MK accessories and cable management • Nexans Alcatel cables • Furse earthing and lightning protection • Thorn lighting • Belotti automatic voltage regulators BAE has undertaken several large projects in Ghana. Some of the projects executed are Achimota Retail Shop, National Communication Authority (NCA) Tower, 34 Court Room Complex, ICON House, SSNIT Emporium, West Hills Mall, Nester Square, etc Due to continuous expansion, the company now has two main operational units, the Project Business unit and the Consumer Business and Retail unit. The Project Business Unit provides electrical engineering and contracting services which includes design, installation, testing and commissioning. The Consumer Business and Retail Unit is in charge of supplying and distributing quality electrical products which include lighting fittings and installation accessories.
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With staff strength of approximately 200 employees including professionals of various disciplines, BAE is looking to expand its operations beyond the boundaries of Ghana to other African countries. The underpinning of BAE’s success has been its pursuit of high quality and on time delivery at a competitive cost, as well as building long-term working relationships with its customers, suppliers, and colleagues in the electrical industry. This is driven by our commitment to Honesty, Quality, Teamwork, Respect, Fairness and Total Client Satisfaction. BAE is also committed to working according to electrical standards such as Institute of electrical Engineering (IEE) wiring regulations and ECG wiring codes and offering a safe installation to clients
Our range of electrical installation services includes: Electrical and electronic engineering services Voice and data installations Fire alarm installation Power generator installation
Head Office Tel +233 302 770178 / 770155 Fax +233 302 768376 email@example.com No. 7 Patrice Lumumba Close, Airport Residential Area, Accra, Ghana
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Showroom Tel +233 302 782787 Fax +233 302 782788 firstname.lastname@example.org No. 23 Nyaniba Estate, Osu- Blorgodor Road, Osu Accra, Ghana www.bappahelectricals.com
Infrastructure Top of the agenda
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losing the infrastructure gap continues to be one the main areas of concern for Ghana, with several avenues being explored and employed to make this possible. In particular, the government is keen to encourage public-private partnerships and has passed the enabling legislation to drive this. Estimates say government needs to spend in excess of US$1.5bn a year for the next ten years to fully achieve its goals.
Electricity sub-sector The electricity sector involves the generation, transmission and distribution of electrical energy for industrial, commercial and domestic use in Ghana. In Ghana electricity is run by three utility companies; the Volta River Authority (VRA), Electricity Company of Ghana (ECG) and Ghana Grid Company (GRIDCo). Ghana’s demand for electricity outstrips the supply from the two hydro generation stations. The shortfall is therefore met by the development of thermal power systems. A 330MW Combined Cycle Thermal Plant was developed at Aboadze near Takoradi in 1999, followed by an additional 220MW simple cycle thermal plant at the same site. A 110MW steam plant is planned to bring the total installed thermal generation capacity to 660MW. As a result of crippling power outages
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in the last three years and in its quest to increase the generation capacity available to it, international firms – Ameri and Karpower – have been contracted to provide power via barges that are docked off the coast of Tema. VRA sells power to about seven major bulk customers. The major sale, in foreign currency, is made to the Volta Aluminum Company’s (VALCO) aluminium smelter at Tema. The second major customer is The Electricity Company of Ghana, which is responsible for distribution of the bulk of local electricity consumption throughout the southern part of the country. Bulk sales are also made to a number of smaller industrial and mining consumers. VRA also exports to Togo and Benin and interchanges power with Côte d’Ivoire. While the power crisis has abated, government is pushing ahead with its desire to significantly increase the generation capacity, exploring other alternatives such as solar, wind and coal, while inviting new investors into the sector. The Electricity Company of Ghana, the state-owned distribution company, is set to enter into a management arrangement with an investor from 2017, as part of a Millennium Compact Agreement entered into with the USA in which over $0.5bn will be spent on improving the generation and transmission of power in the country.
Stanbic Bank, Accra. The bank plays a significant role in assisting with infrastructure development in Ghana.
The Public Utilities Regulatory Commission (PURC) of Ghana is an independent body set up to regulate and oversee the provision of the highest quality of electricity and water services to consumers. At present PURC only regulates the electricity and water sectors. Water and sanitation sector Ghana’s water sector is segmented into two parts, identified as the Urban Water sector and Community Water sector. The Urban Water sector comprises about 87 cities and towns where the national water utility – the Ghana Water Company Limited (GWCL) – owns and manages water supply. The sector is under the dual authority of the Ministry of Water Resources, Works and Housing (MWRWH) and the Ministry of Local Government (MLG). The Community Water sector deals with over 16,000 rural communities and some 287 small towns. Management of the water supply is the responsibility of District Assemblies with facilitation and oversight role by the Community Water and Sanitation Agency (CWSA). Municipal assemblies and districts are responsible for the investment, operation and maintenance of water and sanitation infrastructure within the community water sector. The Environmental Sanitation SubSector covers both the liquid and solid
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waste management and disposal. The sanitation sector is therefore varied, covering diverse types of waste, such as organic waste, inorganic and hazardous waste. Depending on the type of waste, different methods as regards collection, treatment and disposal are used. The institutional framework places the overall responsibility for environmental sanitation with the MLG, as it is the central government agency in charge of local government affairs and the environment. The responsibility for implementation of environmental sanitation projects and programmes lies with the Metropolitan/Municipal and District Assemblies. In Ghana, part of the collection and disposal of waste water is done using conventional sewer systems. The sewer systems are at Tema and some parts of Accra, Kumasi and Sekondi-Takoradi. A greater part of consumers use underground tanks such as septic tanks. The waste is then transported by de-sludging tankers to treatment works or dumping sites. The transportation is done by the waste management department of the district/municipal/metropolitan assemblies and private tanker operators. In Ghana, industrial wastewater is discharged after treatment, if required by the national environmental standard, into the public drainage system. Waste water is discharged from the breweries and such industries as the food processing, textile, mining, chemical and pharmaceutical industries. The main types of treatment facilities used in Ghana are oxidation or waste stabilisation ponds, aerated lagoons, trickling filter and activated sludge process treatment facilities. The wastewater treatment facilities in the country are largely used for treating domestic wastewater. Telecommunications The telecoms industry has experienced a transformation from a largely monopolised, state-owned model to a broadly competitive, private, and open market model. Ghana has been among the leading countries in Africa to promote these developments. Market segments include basic domestic voice telephone, international voice telephone, mobile telephone and data transmission. Roads and transport The Transport sector is made up mainly of road transport, maritime and water transport, civil aviation and the railways. Road transport is the major carrier for Ghana’s land transport system, currently taking up
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THE GOVERNMENT IS KEEN TO ENCOUR AGE PUBLICPRIVATE PARTNERSHIPS IN INFR ASTRUCTURE, AND HAS PASSED THE ENABLING LEGISL ATION TO DO THIS
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about 98% of freight and 95% of passenger traffic. The road infrastructure sector is managed by the Ghana Highway Authority (GHA), Department of Feeder Roads (DFR) and the Department of Urban Roads (DUR), under the Ministry of Transport. The fundamental policy objective of the transport sector therefore is to establish an efficient, modally complementary and integrated transport system. Most major international carriers fly regularly to Accra’s Kotoka airport, Ghana’s main entry point by air. This is the result of Ghana’s open skies policy, which frees an air space regulator from the constraints on capacity, frequency, route, structure and other air operational restrictions. In effect, it allows the Ghana Civil Aviation Authority to operate with minimal restrictions from aviation authorities, except in cases of safety and standards, and/or in the event of a dominant company being able to distort market conditions. The port of Tema covers 166ha of water area enclosed by two breakwaters. There are two quays housing 12 multi-purpose berths. Quay 1 houses berth 6-12, while Quay 2 houses berths 1-5. These berths are operated as common-user, and handle a wide range of cargo including dry bulks, steel products, bagged cargo, newspapers, vehicles and containers. There is a terminal for handling crude and other liquid petroleum products. The oil berth can take tankers of up to 244 metres in length with a maximum draught of 9.7 metres. The Takoradi port, a smaller one, was commissioned in 1928, but underwent major rehabilitation in the 1990s. It is currently undergoing another refurbishment under the Ghana Gateway Project. It handles about 60% of Ghana’s total exports, which mainly includes minerals (manganese, bauxite and gold), timber and cocoa. A new centrally located “inland port” is being constructed at Boankra near Kumasi. This is expected to be an important staging post for goods in transit to and from the landlocked areas in the north. It will be a facility handling both road and rail traffic.
The market Electricity The national access to electricity supply is about 53% of the population. This is a result of an aggressive electrification
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THE LONG-TERM GOALS OF THE GOVERNMENT’S POLICIES ARE DIRECTED AT PROVIDING THE ENTIRE COUNTRY WITH POTABLE WATER AND ELECTRICIT Y BY 2020
programme embarked on by successive governments over the last two decades. Water Approximately 14.9 million people (50.5%) have access to improved water supplies in Ghana. For the 8.4 million residents in the country’s urban areas this increases slightly to 61% with two thirds of these or 40% of the total urban population covered by GWCL’s networks. The major consumptive uses of water in Ghana are water for domestic and industrial uses, irrigation and livestock watering. Domestic and industrial urban water supplies are based almost entirely on surface water, either impounded behind small dams or diverted by weirs in rivers. At present irrigation development does not play an important role in the overall water resources balance considerations. However, the potential for irrigation has been shown to be considerably more than the present land area under irrigation. The main non-consumptive uses of water are hydropower generation, inland fisheries and water transportation.
The Akossombo dam, 80km north of Accra, is a key source of hydro-electric power.
Telecommunications Ghana’s telecommunications sector has registered one of the most significant growth rates in Africa. The governments’ proactive policy and regulatory interventions, combined with support from the World Bank Group and other development partners, has resulted in a competitive and vibrant industry. Currently, the country has 2 National Fixed Network Operators, 6 Mobile Cellular Network and 29 Internet Data Service Providers. The rest are 57 VSAT Data Operators, 25 Public/Corporate Data Operators. There are also over 130 FM Stations; 11 Free to Air and 7 Pay-per-view TV Stations. And there are 10 Direct to Home Satellite Services (DTH) operational. Public transport The bulk of passengers on the road network are transported by public transport vehicles such as taxis, ‘trotros’ and buses. The state owned provider, Metro Mass Transport Company, is available in selected urban and inter-city routes. The State Transport Company, which predates the MMT and travels on all the main inter-city links, is also in resurgence and is now partnering with private investors who provide it with buses. Private sector operators such as VIP Transport are also available to travellers on inter-city routes. There is the need to provide more buses and improve on the quality of service to attract more people to use the mass transport system as this will lead to lower congestion in the cities. The plan to introduce Bus Rapid Transit (BRT) in Accra and other cities is therefore a move in the right direction. Maritime transport There are two main seaports (or harbours) in Ghana namely Tema and Takoradi.
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Tema is the biggest port and major operations here are skewed towards import commodities such as heavy machinery, containerised cargo etc. Operations at the Takoradi port are skewed towards the export trade with emphasis on commodities such as cocoa, timber, manganese and bauxite. Port facilities and the domestic transportation networks serving them are critical elements in Ghana’s transportation system. Container seaport traffic Container seaport traffic has been increasing steadily since 2001. As at year end 2014, total container seaport traffic (imports & exports) stood at 956,647 TEUs. Container transport is expected to remain the preferred means of maritime cargo transport owing to its considerable advantages. Aviation sector Air passenger traffic has increased steadily every year throughout the period 2006 to 2014. Europe remains the dominant route, accounting for about 52% of the total passenger throughput that was handled at the Kotoka International Airport (KIA); followed by the West African sub region which contributed about 28%. Rail sector The rail industry in Ghana has a total track length of 1300km and operates a route length of 947km. It is in dire need of investment as government seeks to reestablish it as a reliable and cheap means of carrying people and goods around the country. Ecowas market Ecowas, with a population of over 250 million, offers considerable demand for water for consumption. In addition, a large proportion of the sub-region is facing increasing desertification challenges which make the potential and future demand for water for consumption enormous. On the other hand water demand has increased due to the growing population and higher standards of living, leading to more competition for water and conflicts between the consumers. Experts agree that pressure on resources will be incomparably higher in 20 years than it is today. This will also be true in Africa and West Africa in particular. The necessary and probable improvement
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On the basis of surface water resources alone, the consumptive water demand for 2020 has been projected to be 5.13 billion m3, which is 13% of surface water resources. Likewise, the non-consumptive demand can also be met from the surface water available. Rainwater harvesting has also become common and has a great potential to increase water availability in certain localised areas. It can be concluded, that, if duly conserved and distributed, the surface water resources of the country should be adequate to meet future demands.
of living conditions of the West African population, the progress towards the Millennium Development Goals, as well as agricultural growth and industrial development all imply a significant increase in water consumption.
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A view across Accra from the Jamestown Lighthouse. The road and transport sector is one of the government’s priority areas to be developed under its medium-term plan.
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The water supply and sanitation infrastructure is insufficient, especially in rural areas. Major investments are needed to extend coverage, rehabilitate and maintain existing infrastructure and provide Point Sources (boreholes/hand-dug wells), Small Towns Pipe Schemes, Rain Harvest Plants and Household/Institutional Latrines. Investment is needed to provide electrical services in the construction of the physical facilities including street lighting, improved coverage/access and service efficiency, and manufacturing. Considerable investment opportunities abound in the telecommunication sector. The sector requires service providers to connect international voice calls to the local public network. Technological and other support related services such as the supply of quality telecommunications equipment are also required. Major investment opportunities for the roads and transport sector exist in the areas of construction and maintenance, services and sales.
Identified as one of government’s priority areas to be developed under its medium term plan, transport services offer exciting opportunities, especially the following: • In mass transportation – scheduled bus system • Rail upgrades and passenger rail transport on chosen corridors • Lake transportation systems • Air transport operators for domestic and sub-regional services • Development of regional airports • Upgrading of existing trunk roads under BOT, BOO, BAT, BLT etc. systems
Why invest? The infrastructure sector in Ghana has been subjected to structural reforms at various periods. The different reforms have taken the form of restructuring, commercialisation, increased competition and privatisation. Over the years, the Government has initiated policies to rationalise the water, sanitation and electricity sectors and to promote and improve the delivery of water and electricity services in terms of economy, efficiency, effectiveness and satisfaction. The long-term goals of the policies are generally directed at providing the entire country with potable water and electricity by the year 2020, with emphasis on the payment of adequate tariffs by consumers to ensure full cost recovery, and to provide adequate revenue for operations and maintenance and replacement of the systems. Private sector participation is a key element in the operations and management of the urban water supply. The road and transport sector has a readily available and accessible market for prospective investors who want to invest. There are several automobile sales companies which sell different brands of cars and also provide after sales services. Moreover, hundreds of spare-parts dealers support the industry all over the country. The government has introduced new tolling practices paving the way for Build, Operate and Transfer (BOT) systems and other forms of private sector participation. The roads and transport industry has available to it: • Adequate transport fuel and a number of automotive service centres • Raw materials for roads construction, including affordably-priced gravel, chipping, sand and laterite.
Over the last three decades, Ghana’s urban population has more than tripled, rising from 4 million to nearly 14 million people, and outpacing rural population growth. The country is moving steadily and uniformly – all regions have experienced this growth – toward cities. In fact, Ghana’s urban population growth has been faster in its smaller cities than its larger ones. Can this increasing pool of urban residents secure good jobs and access affordable housing, clean water, and public transport? Ghana’s urban transformation has been momentous, but it is not unique; a similar process has characterized other countries at similar levels of development. Ghana’s key challenge now is to ensure that urbanisation continues to complement growth through improvements in productivity and inclusion, rather than detracting from these goals. Many rising problems are related to efficiency and inclusion. These include slums, lack of basic services, underdeveloped manufacturing, and insufficient transport infrastructure. The Ghana urbanisation review report “Rising through Cities in Ghana” (World Bank, 2014) and its accompanying reports provide an analysis of Ghana’s rising urbanisation challenges and a framework to successfully overcome these challenges. With Ghana’s specific urban challenges and strengths in mind, the Ghana urbanisation review focuses on four priority areas that will enable the attainment of a successful urban system in Ghana. To meet the challenges of urbanisation, Ghana requires stronger land use management and planning in municipal and metropolitan areas. Urban and land use planning are negatively affected by an inflexible land ownership system. Successful planning can be achieved by valuing land to create effective markets and facilitate the transferability and bankability of land assets, and by coordinating land development with infrastructure and affordable housing. In particular, Ghana should strengthen
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and clarify property rights through land market formalisation, make land use regulations and administrative procedures more market friendly and coordinate land market reforms with increased provision of affordable housing. Transport improvements are required to connect markets, boost factor mobility, and help modernise Ghana’s urban economies. Strong connectivity enhances the competitiveness of an economy and generates a business environment conducive to firm growth and development. Quality infrastructure efficiently connects firms to their customers and suppliers, and enables the use of modern production technologies. Yet the provision of transport infrastructure in Ghana has generally been undertaken as a result of development rather than in anticipation of it, resulting in piecemeal infrastructure provision that is inadequate to meet effective demand. Policy makers should consider options for guiding and managing transport investment in a more coordinated manner and making cities more mobile and competitive through forward-looking and transformative infrastructure investments. In particular, Ghana’s authorities should increase intermodal coordination in intercity connectivity, develop high capacity public transport systems in large metropolitan areas to improve intracity connectivity, and prioritise high-return
transport infrastructure. Improved land use planning and transport connectivity require new sources of finance, as current investment in the urban sector and existing revenues fall far short of needs. The efficiency of the urban system and of urban service delivery is largely influenced by the provision of adequate financing. Providing universal basic services, increasing the availability of affordable housing, and expanding transport infrastructure are expensive; yet they are expensive investments that pay off. To improve financing capacity, Ghana should improve metropolitan and municipal revenues; rationalise the intergovernmental fiscal framework, including ongoing decentralisation reforms; and develop new urban financing mechanisms. Underlying Ghana’s urban land market friction, poor transport connectivity, and insufficient financing is weak institutional capacity and coordination. Land use planning is negatively affected by political and institutional constraints related to coordination and Metropolitan, Municipal and District Assemblies (MMDA) capacity, including an unresponsive legislative framework, undue political interference, acute human resource shortages, and inadequate financial resources. Connecting cities and regions requires inter-jurisdictional coordination, yet the laws, regulations, institutions, decision making, and financing mechanisms affecting the transport sector in Ghana remain uncoordinated. And rationalising the intergovernmental fiscal framework requires greater intergovernmental institutional coordination as much as it requires more formal allocation rules. Building institutional strength through human capital development is essential to confronting these challenges. In addition, Ghana should improve inter-jurisdictional coordination, complete decentralization reforms, and further develop public-private partnerships (PPPs). Credit: World Bank Group
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Urbanisation in Ghana: Challenges and Strengths
Opportunities for industrial and production infrastructure
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s part of its policy to improve productive infrastructure in the country, the government of Ghana (GoG) has set up the Ghana Infrastructure Investment Fund (GIIF) to foster investment in the sector. GIIF is presenting projects under its Ghana Industrial Development Initiative (GIDI) programme, to enable investors to take advantage of emerging opportunities. Projects under the GIDI scheme consist of investments in industries and the infrastructure that is necessary to operate these industries. The idea is to ensure that the offtake capacity of the projects can pay for the investment in the infrastructure required to support any specific project or industry. While the aluminium industry is of immediate interest, industrial infrastructure including railways, access roads, port developments, transportation distribution hubs, industrial parks or estates (including agro-processing plantations), and baseload power generation, is being promoted under GIDI. GIIF is therefore sounding out investors to establish market interest in the commercial opportunities presented.
Industrial infrastructure investments GIIF is now promoting GIDI as its flagship program to stimulate development of both commercial infrastructure and industries in partnership with private sector investors. It is anticipated that investment in power generation, railways, roads, and port services, etc., in direct coordination with industrial projects, will contribute to growth and expansion of the economy in a win-win for investors and the country. The GIDI programme is also responding to keen investor interest in industrial minerals and infrastructure. A number of investors have approached Ghanaâ€™s authorities with proposals and ideas to partner Ghana in exploring opportunities in infrastructure and industrial minerals processing. There is special interest to integrate the existing Volta Aluminium Company Ltd (Valco) smelter with mining
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through processing bauxite with salt and limestone into alumina. In view of their linkages to infrastructure and the potential multiplier impact on the economy (including power, railways, roads, industrial parks, industrial salt, exports, aluminium products, steel products, etc.), GIIF is promoting industrial investments linked to commercial private sector-led projects in infrastructure. This includes both pure private sector as well as public private partnership (PPP)-type industrial enclaves as the key components of the GIDI programme. To maximise both the potential and government support for the private sector, most projects will be in bundles with the off-take capacity of industries linked with on-going government or private sector-led infrastructure projects. For instance, a bundle may consist of industrial parks or estates as hubs contiguous to clustered mineral locations or distribution staging platforms where access to
INVESTMENT IN POWER GENER ATION, R AILWAYS, ROADS AND PORTS, E TC, IN DIRECT COORDINATION WITH INDUSTRIAL PROJECTS, WILL CONTRIBUTE TO THE GROW TH AND E XPANSION OF THE ECONOMY
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GIDI ready-to-go-opportunities GIIF is promoting three projects where information exists to implement them on the back of Valcoâ€™s off-take capacity and bundled with infrastructure to create viable investment propositions, making them ready-to-go projects. These projects seek to integrate the local aluminium industry, through a Valco enclave linked to free-zone industrial estates for alumina refining, and higher value added aluminium processing and allied products and services. The projects will link the mining of bauxite, construction, petrochemicals, salt, natural gas, fertiliser and agro-business, with infrastructure development. GIIF is focused on the available value-adding investment opportunities. Valco is the state-owned aluminium smelter with installed capacity of 200,000 metric tonnes. It is being reactivated and integrated vertically with bauxite mining, alumina refining and tertiary local value-added industries. Several options are possible to revitalise and reposition the smelter to consolidate the existing domestic aluminium industry, to integrate the value-added processing potential in the local value chain for export markets. Valco is also primed for capacity expansion to 700,000 metric tons to supply local tertiary industrial needs and export markets. This also requires a power solution for the integrated aluminium industry and allied industries. Industrial minerals processing estates This is the creation of heavy industrial estates or parks to concentrate the mining and primary-to-secondary processing of industrial and base minerals in Ghana. The
availability of industrial minerals in many locations gives options to seed dedicated industrial estates to move mining from basic ore exports into secondary and tertiary processing of bauxite (554m tons), limestone (54m tons), iron ore (1,424m tons) and manganese (34m tons). Beyond the value enhancements, the concentration of processing industries in a single location would provide off-take capacity for infrastructure, especially power, roads, railway extensions and port services. Targeted enclaves include bauxite-to-alumina, iron ore to steel, limestone for alumina. Salt extraction and processing Three potential locations exist: in the Keta enclave in the Volta region, Ada estuary in the Greater Accra Region, and the Cape Coast-Shama-Sekondi coastal corridor in the Central and Western regions. These are available for industrial salt extraction and processing. Industrial salt mining and processing complements bauxite and limestone in the upstream integration of the aluminium industry in Ghana. Industrial salt processing will supply caustic soda to complement lime and bauxite for alumina refining to supply the Valco aluminium smelter. Electric power generation A key goal in GIDI is to attract investment into electric power generation to install baseload capacity capable of driving industrial investment and growth over the next 15 years. Initial estimates indicate as much as 20,000MW of incremental baseload power generation is needed by 2030 to propel value added industrial production. GIIF intends to attract investments for the estimated 20,000MW baseload generation capacity required to backstop the industrial projects promoted under GIDI, to power basic industrial demand by 2030. Ghana is an attractive destination for investment as its economy has been on a buoyant trajectory for the past 20 years. There has been increasing stability, and an average GDP growth of about 5% a year leading to the attainment of a lower middle income status of $1300 per capita in 2010. But infrastructure and industry have lagged behind these achievements. The period 2009-12 recorded a remarkable stretch of single digit inflation. However, recent challenges from fiscal overruns and power supply shortages led to a three-year corrective IMF fiscal consolidation programme built around homegrown policy initiatives.
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power and transportation already exists, is being developed, or can be easily created to provide the necessary inputs and gateway to markets and established supply chains. An example is the mineral belt along the Eastern, Western, and Central Corridors of the country, that led the design of railways and ports. Thus the Western rail line linked the mineral belts of the Western and Ashanti regions to the Takoradi port, while the Eastern rail line again linked the mineral belt in the Eastern and Ashanti regions to the Tema port. This industrial haulage architecture was tied to the Central rail spine (Trans-Ecowas Coastal Line). GIIF is promoting similar projects under GIDI that will link to investment in rail haulage architecture.
well-being through the rapid development and modernisation of the economy and society using information and communication technologies as the main engine for accelerated and sustainable economic and social development”.
The market (composition and trends)
ICT driving development
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he ICT industry comprises the telecommunications operators, internet service providers, VSAT data operators, software manufacturers, broadcast institutions, ICT education providers, internet cafés, etc. Generally, the Ministry of Communications and the National Communications Authority (NCA) oversee activities in the sector. The Ministry of Communications (MOC) is facilitating the vision of government to develop policies and programmes transforming Ghana into a country with sufficient, efficient, cost-effective and accessible communications infrastructure, to propel appropriate technological applications and innovations and enhance socio-economic development. Presently in place is the ICT for Accelerated Development (ICT4AD) Policy which is a long-term strategy for developing the ICT sector and expanding its role in the Ghanaian economy. The ICT4AD vision for Ghana is “To improve the quality of life of the people of Ghana by significantly enriching their social, economic and cultural
Operators and service providers include FM stations, TV operators, ISPs, telecom operators, etc. Ghana currently has six registered mobile operators, all of which are functional. These are MTN, Vodafone Mobile, Tigo, Expresso, Glo Mobile Ghana and Airtel Mobile. Additionally, Vodafone and Airtel are the two fixed-line operators. The market continues to grow aggressively in all segments, since the enabling environment provided by government continues to promote competition. Increased competition, a key driver of growth in the industry, is witnessed in terms of: • The rising sale of SIM cards and airtime • Better and increased coverage • Improved quality of service on most networks • Introduction of cheap phones increasing ownership • Aggressive marketing promotions etc. In December 2008, the number of access lines totalled 11.7m, comprising mobile subscriptions of 11.5m and relatively low landline fixed telephony of 143,244. As at December 2014, total access lines in operation stood at just over 30.6m with 99.14% and 0.86% being due to mobile telephony and fixed-line telephony respectively. This compares with lower figures of 17.7m and 21.4m at the end of the years 2010 and 2011 respectively. Telephony penetration The penetration rate increased consistently from 52.4% in December 2008 to 114.35% in 2011. Mobile phone penetration increased steadily to reach a 113.37% mark (due to dual networks being held) as at the end of December 2014. Fixed telephone penetration, on the other hand, has been relatively marginal over the years. Mobile penetration increased more than 10-fold over the period from December 2008 to December 2014. With five mobile operators, penetration was 51.8% in December 2008, represented by 11.5m subscribers. By December 2012, the rate had surged to 100.4%.
TOGE THER WITH THE MOBILE CELLUL AR MARKE T, THE INTERNE T MARKE T IN GHANA PRESENTS AN IMPORTANT POTENTIAL FOR GROW TH AND DE VELOPMENT Market shares (telecom voice subscription) As at December 2014, MTN was the leading mobile phone company with 13.8m subscribers, representing 45.63% of the market. With 7m subscribers, Vodafone Mobile followed with 23.29% market share. Next was Millicom (Tigo), holding a 13.62% market share with 4m subscribers. Airtel took the fourth position with a subscriber base of 3.7m, representing 12.30% of the market. Glo Mobile controls 4.78% of the market with a subscriber base of just under 1.5m. 0.39% of the market is controlled by Expresso, with 119,059 subscribers. With regards to fixed telecommunications, Vodafone remains the dominant operator, controlling 97.03% of the market. Its subscriber base is 252,669. Airtel, on the other hand, has 7,738 fixed-line subscribers, representing 2.97% of the market.
Left: Internet usage in Ghana has improved greatly over the years.
Internet and broadband As a critical source of information, the internet is viewed as a significant development enabler. Although Ghanaâ€™s mobile market is quite saturated with over 98% penetration and keen competition between the six mobile service providers, room for progress still exists when it comes to the provision of internet connections. Nevertheless, internet usage has improved tremendously over the years. Together with the mobile cellular market, the internet market in Ghana presents significant potential for growth and development. According to the Measuring the Information Society Report (2014), by the end of 2013, on average, less than 10% of households in Africa had access to the internet at home, compared to the global average of 40% and the developing-country average of 28%. Only four out of a total of 38 countries in Africa record more than 30% of households with internet access. They are: Seychelles (51%), Mauritius (44.5%), South Africa (39%) and Ghana (32%). Twenty countries have a penetration of less than
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5%, including eight countries in which less than 2% of households have internet access. The improvement in internet penetration has also been partly facilitated by the coming of Wimax technology and mobile broadband networks. In 2005, the number of broadband subscribers stood roughly at 1,904, representing 0.01% of inhabitants. By 2008, the number of fixed subscribers had increased by 1,106.93% to 22,980 subscriptions, with roughly 0.10% of inhabitants having fixed broadband services. The rise continued with 65,332 and 68,795 broadband subscriptions being recorded in 2012 and 2013 respectively. Broadband penetration has also increased from 0.07% of inhabitants to 0.3% of inhabitants over those years. It is significant to note that the internet subscriptions are lower than the internet penetration each year since a majority of Ghanaians make use of internet cafés.
INTERNE T SUBSCRIP TIONS ARE LOWER THAN THE INTERNE T PENE TR ATION E ACH YE AR SINCE THE MAJORIT Y OF GHANAIANS MAKE USE OF INTERNE T CAFÉS
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Mobile broadband According to the “Measuring Information Society Report” released in the last quarter of 2012, by the International Telecommunications Union, mobile broadband penetration rose from 33.9% in 2012 to 40.2% in 2013. The figure was 1.8% in 2008. Ghana presently has the highest mobile broadband penetration in sub-Saharan Africa.
IT-enabled Services/BPO Ghana is ranked the top destination in sub-Saharan Africa (ahead of Senegal and South Africa) and 29th globally (out of 51 countries) by the 2014 A.T. Kearney Global Services Location Index (GSLI). The country was earlier ranked the first destination in sub-Saharan Africa (ahead of Mauritius and Senegal) and No. 15 globally out of 50 countries by the 2009 A.T. Kearney GSLI. Government remains interested in making Ghana a competitive destination for Business Process Outsourcing (call centres and the like) having identified it as a focus area for development, with much emphasis being placed on it as an economic driver. This galvanised the establishment of the IT Enable Services (ITES) Secretariat, an implementing arm of the Ministry of Communications, to promote and develop the sub-sector to become a very large source of income and employment generation. The preference for Ghana in connection with this industry is supported by its large pool of skilled and trainable English-
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speaking labour, GMT time zone location, competitive labour costs, etc. Currently, the IT-enabled services sector provides approximately 3,000 jobs and Ghana’s potential to become a significant player in this industry is recognised as enormous. E-business Aside from computers, there is increasing use of mobile phones to access internet services. Therefore, the use of services (e-commerce, advertising and marketing) provided through the internet is on the rise. Following the introduction of up-tothe-minute networks in Ghana, people can surf the net anywhere at any time and mobile phone users can have easy and fast data exchange on the net. The Ghana Interbank Payment and Set-
Infrastructure The infrastructural base of the ICT sector includes licensed gateway operators, undersea cable links, private licensed VSAT systems, fixed centres, dedicated transition networks, public distribution networks, wireless mobile operators, public telephones systems, tele-internet service providers, the Ghana Interbank Payment and Settlement Systems (GhIPSS) e-commerce platform, internet backbone connectivity throughout the country and public access point and broadcasting systems. As an initiative to support emerging technologies, the Ministry of Communications is also facilitating the establishment of Science and Technology Parks. The construction of an ICT park in Accra started mid 2012. Funds have also been secured to commence the construction of a second ICT park in Cape Coast.
The Ministry of Communications is facilitating the establishment of Science and Technology Parks.
The cables land Over the years, broadband connectivity has improved significantly and this is partly due to the arrival of undersea cable links. Their arrival has subsequently improved internet speed and made prices more competitive. Presently, five of them exist, namely, SAT-3, the West African Cable System (WACS), Main One Cable, Glo-1 and the African Coast to Europe (ACE) submarine cable. SAT-3 is the first undersea cable to be brought into Ghana. It arrived in 2001 and presently has capacity of 340GB per second. The Main One undersea cable followed almost 10 years later (it arrived in 2010) and has 5.12TB per second capacity. In 2011, Glo-1 arrived and has 2.5TB per second capacity. The WACS came on board in 2012 with capacity of 5.12TB per second. Early in 2013, the ACE also came on board with 5.2TB. Sectoral Developments 1. National Fibre Communications Backbone Infrastructure To complement the efforts of the private sector in the extension of affordable
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and efficient connectivity solutions, the National Fibre Communications Backbone Infrastructure Network, aimed at providing open access broadband connectivity, is being developed. Following the successful completion of the southern loop, the second phase of the National Communication Backbone from Tamale to the northern parts of the country and neighbouring countries is being pursued. The formal launch of the construction of the 780km fibre optic ICT backbone infrastructure in the Eastern Corridor of the country has been done at Wamale near Tamale, with the aim of providing broadband infrastructure to over 120 towns and communities along the route from Ho to Bawku, with linkage to Tamale from Yendi. The project is presently ongoing. 2. Promotion of a competitive telecoms market To promote the deployment of affordable wireless broadband access, the National Communications Authority (NCA) has commenced the development of modalities for allocation of Worldwide Interoperability for Microwave Access (WIMAX) service, for the benefit of the major telecom sector players. 3. Ghana Investment Fund for Telecommunications (GIFTEL) GIFTEL has been set up to facilitate the extension of communications services to underserved and unserved areas through the provision of common facilities. It has thus far completed a total of 39 Common Telecom Facilities and this has enabled telecommunications providers to extend their services to over 273 communities. For instance, GIFTEL has undertaken the common telecom tower service facility at Nandom (in the Upper West Region) which is now offering transmission coverage to over 10 towns including Lambushie, Boe, Burutu, Piiri, Basabli, Yipele, Naapal, Pofiem, Napaali, and Gengenkpe. 4. Business Process Outsourcing (BPO) The Ministry of Communications in collaboration with the Ghana Telecommunications University College has trained several Call Centre and Data Entry Trainers. Government has formally adopted and identified priority skills development areas within the BPO/Information Technology Enabled Service (ITES) industry. Further,
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tlement Systems (GhIPSS), established by the Bank of Ghana to reform the countryâ€™s payment system, has set up an e-commerce window which is scheduled to soon become operational. This infrastructure will make it possible for private sector businesses in Ghana to sell and receive payment online within and outside the country.
the BPO/ITES training curriculum has also been streamlined with the skills requirement of the industry. Modalities have also been finalised for the Business School of the Kwame Nkrumah University of Technology (KNUST) in collaboration with the Ghana Multimedia Incubator Centre (GMIC) to deliver business development training to clients under the ICT Business Incubation Programme. 5. Increased availability of broadband/ reduction in the price of bandwidth The government has the focus of developing e-Government Points of Presence through the development of broadband connectivity to link all district capitals to the national high speed broadband spectrum. Over the past two years, owing to massive investments made by major industry players, the Ministry of Communications has commissioned major submarine fibre optic cables to increase bandwidth capacity. Ghana has, cumulatively, approximately
THE GOVERNMENT HAS DE VELOPED GOVERNMENT POINTS OF PRESENCE THROUGH THE INTRODUCTION OF BROADBAND CONNECTIVIT Y TO LINK ALL DISTRICT CAPITALS
7,160 Gigabytes (i.e. 7.16 Terabytes) of bandwidth capacity available. The country is thus well positioned as the potential ICT-enabled services hub in the subregion. 6. Mobile Number Portability Mobile Number Portability (MNP), a facility that permits a mobile phone subscriber to migrate from one telecommunication service provider to another whilst retaining the original mobile number, was launched by the National Communications Authority (NCA) on 1 July 2011. This makes Ghana the first country in West Africa to introduce the facility. The introduction of MNP is intended to enhance competition, improve quality of service and offer mobile customers freedom of choice. 7. Last mile effect To ensure the continuous development of infrastructure, government has particular interest in the â€œlast mile effectâ€?, which encourages the extension of fibre optic networks to enable all districts and
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The vision is one of a financial sector which is responsive to the needs of the 21st century
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communities to get connected.
Investment opportunities/ prospects
• The education sector in the area of software development, networking, VSAT, telecommunications and specialist IT engineering • Production of business solutions (software and networking services) • Business Process Outsourcing technologies • Supply of high-tech telecommunication equipment • Back Office Operations (especially for the institutions operating in the financial sector) • Provision of broadband facilities and services • Internet service provision services • Transaction processing • Manufacturing, assembling and supply of computers and accessories • VSAT services • E-commerce and legal database archiving services • Logistics management services and medical transcription services
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There are considerable investment opportunities in the ICT sector. The sector requires service providers for connecting international voice calls to the local public network. Internet Service Providers are also required to offer internet access to the public, especially the rural areas, at less cost and broadcasting operators to establish radio and television broadcasting in the country. There is a lack of ICT facilities and infrastructure on a broad scale across the nation. Investments are needed in the provision of software for the country, extension of the broadband network to reach the whole country and to provide computer access to rural students. And there is a need for technological and other support-related services such as the supply of quality telecommunications equipment, ICT equipment and office and network equipment.
There are additional opportunities in the following areas:
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Import and export transactions underpinned The delivery of the GCNet service was expanded over the past year with a further deepening of its electronic Single Window system; and its attendant benefits to the Ghanaian economy. This was manifested by the deployment of a new Transactional Document Verification System (TDVS) and a Letter Of Credit (LoC) Module. The deployment of these two systems have enabled the Bank of Ghana (BOG) and the commercial banks to access data on import and export transactions processed through Customs to check foreign exchange payments made for imports as well as foreign exchange earnings from exports that are repatriated into the country. With the deployment of the two systems abuses associated with foreign exchange transfers inflows and outflows are expected to be checked. The electronic processing and payment of stamp duty on the relevant products has also been interfaced with the Ghana Customs Management System (GCMS), thereby providing another medium for enhanced revenue mobilisation. The transit service also remained a model for electronic tracking systems used for monitoring consignments on inter-state journeys. Not only did it help to curb diversion of transit consignments on to the domestic market with its revenue implications, but it was used as a reference during the evaluation of the World Bank’s West African Trade Facilitation Project. Another revenue enhancing aspect of the GCNet service was re-
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flected in the geographical roll-out of the deployed automated TRIPS system for the Domestic Tax Revenue Division (DTRD) of the GRA. Having deployed a Shared Services Portal for the GRA in 2014 to facilitate taxpayers’ access to tax information, of tax assessments and filing, a business registration portal (i.e. the e-Registrar Portal) was also deployed in the past year, for the Registrar-General’s Department (RGD), to facilitate business registration, procurement of Tax Identification. The automation has contributed to a significant improvement in RGD’s revenues. The sectoral expansion of the Single Window also continued with the connectivity of the Museums and Monuments Board via its e-MDA Portal. This brought a new addition to the ever growing list of MDAs, e.g., the Ministry of Finance, Ghana Free Zone Board, Environmental Protection Authority (EPA), the National Communications Authority (NCA), Ghana Exports Promotion Authority (GEPA), Statistical Service (SS), BOG, etc. The connectivity was also extended to other offices of some other organisations, such as the Driver and Licensing Authority (DVLA), that have already been connected. In the case of the DVLA, for example, its offices at Techiman and Kuntunse were connected to join other DVLA offices in Cantonments, Kumasi, Cape Coast, Weija, Obuasi, etc. The relevance of the e-MDA Portal was also noted during the year with the deepening of its usage
by the oil sector, with additional training being provided the Bulk Oil Distributing Companies (BDCs), the Bulk Oil Storage and Transport (BOST) company and the Ghana National Petroleum Corporation (GNPC). The “technical refresh” undertaken by the Company in 2014, with the deployment of over 800 new work-stations at Customs stations and the optimisation of network links at various nodes, was followed in 2015 with the development of a new state of the art Tier III Data Centre to replace one of the five data centres already deployed by the Company. Furthermore, new infrastructure and logistics were also developed at some selected operational sites. The foremost development was the refurbishment of the James Town Customs Station, to promote a congenial environment for effective work. The geographical roll-out of the TRIPS system to TOs was also marked by the refurbishment of the new TOs that were connected. Outside the framework of its core mandate, GCNet has over the past year continued to provide technical resource to agencies such as the Kofi Annan IT Centre of Excellence for their Innovations Week, served on the evaluation committees (e.g., GEPA’s Export Awards Committee) and undertaken technical reviews (e.g., for the Association of African e-Commerce Operators). GCNet has also been socially responsible and at the same time fulfilled all its statutory obligations.
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Supporting Ghana’s sustainable mineral resources
ining is one of the pre-eminent industries in Ghana. Prior to its independence, Europeans who explored the West African coast named it the “Gold Coast,” a testament to the wealth of mineral resources available to the country. Mining is thus one of the most established economic sectors, host to a vast number of global players and a key pillar of the Ghanaian economy. Despite the discovery of oil, gold remains the top earner for the country. The minerals sector in Ghana thus remains one of the safest investment bets. Minerals exploited in Ghana on an industrial scale include diamond, granite, limestone/ dolomite, gravels and silica sand. Others are feldspar, kaolin, marble and salt. It is the government’s policy to diversify the exploitation of its mineral resources base from the traditional minerals like gold, diamonds, bauxite and manganese to include the exploitation of industrial minerals which could promote effective linkages in the economy and reduce the current over-reliance on imported substitutes. The industry operates under the objectives of the National Mining and Minerals Policy. The core aim of the Mining and Minerals Policy is to: “Conserve and sustain the development of the nation’s mineral resources and the maintenance of the environment.”
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The minerals extractive industry currently has 13 large-scale mining companies, over 300 registered small scale mining groups and 99 support service companies. While commodity prices – gold in particular – have fallen from 2011-12 highs, precious metals are set for a rally. Local challenges in the shape of illegal mining are also set to abate as government steps up its efforts to rein in the practice. Mining and minerals policy objectives • Ensuring that Ghana’s mineral endowment is managed on a sustainable economic, social and environmental basis and that there is an equitable sharing of the financial and developmental
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THE MINER ALS SECTOR IN GHANA REMAINS ONE OF THE SAFEST INVESTMENTS. MINER ALS E XPLOITED IN GHANA ON AN INDUSTRIAL SCALE INCLUDE GOLD, DIAMOND, GR ANITE, LIMESTONE/ DOLOMITE, GR AVELS AND SILICA SAND. OTHERS ARE FELDSPAR, K AOLIN, MARBLE AND SALT. benefits of mining between investors and all Ghanaian stakeholders • Encouraging local and foreign private sector participation in the exploration for, and commercial exploitation of mineral resources, consistent with the government’s commitment to a free-market enterprise economy. • The government recognises that private sector investors need to be able to operate profitably, be internationally competitive and satisfy their shareholders’ and employees’ expectations To this end, the government will establish and maintain the following: • A conducive macro-economic environment for mining investment • A stable regulatory environment that provides for the transparent and even-handed treatment of investors
e • A stable, competitive and fair fiscal regime • Achieve a socially acceptable balance between mining and the physical and human environment, and ensure that internationally accepted standards of health, mining safety and environmental protection are observed by all participants in the mining sector. • Encourage and facilitate orderly and sustainable development of small-scale mining. There is considerable potential for small-scale minerals exploitation in Ghana and the government recognises that small scale mining can provide additional or alternative livelihoods in rural areas and can help to foster the development of Ghanaian mining skills, entrepreneurship and capital. • Empower Ghanaians to become professional miners, mine managers and owners by maximising opportunities for minerals-related education, training, career development and other support. • Develop streamlined and effective institutional arrangements for the mining sector, together with an adequate capacity to promote, authorise, monitor and regulate mining operations. • Endow Ghanaian mining authorities with the capacities to gather, analyse and disseminate geo-data necessary for the promotion of minerals sector investment. • Promotion of sustainable mineral resource management and utilisation. • Promotion of effective inter-agency and cross-sectoral linkages. • Creation of an enabling environment for effective private sector participation. • Promotion of effective community participation in multiple uses of mineral resources.
Emphasis on investment promotion has been a major objective of the industry with a shift to a comprehensive vision that facilitates greater exploitation of Ghana’s industrial minerals. Investment opportunities in the industry are in the areas of exploitation or production and industrial processes.
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Ghana has a long tradition of gold mining and has produced a substantial portion of the world’s gold for over 1,000 years. During colonial British rule, the country was named the Gold Coast Colony, and gold production was booming. The first gold rush occurred between 1892 and 1901 and the second after World War I. Gold production decreased at the dawn of independence in 1957, and remained low until the 1980s. Over the last 20 years, Ghana has been experiencing its third gold rush. During this period, annual gold production has increased by 700%. It is the expansion that has occurred during the latest gold rush that is used to understand the socio-economic effects of mining. Ghana is the second-largest gold producer in Africa after South Africa, with gold production averaging 77 tons a year. In 2011, Ghana’s mineral sector accounted for about 14% of total tax revenues and 5.5% of the gross domestic product (GDP), as well as 44% of Ghanaian exports. This makes the gold mining industry one of the country’s most foremost industries, and an essential one to study. Similar to gold mining in other African countries, the sector is highly capital-intensive and direct employment generation is, relative to its economic importance, limited. In 2010, it was estimated that about 20,000 Ghanaian nationals – 0.08% of the population – were employed in large-scale mining, despite accounting for 5.5% of GDP. Nonetheless, the spillovers to other sectors of the economy may be substantial, because nonnationals also work in the mines and wages are relatively high. Aryee (2001) estimates that,
between 1986 and 1998, largescale mining injected over $300m into the national economy from salaries alone. Beyond direct and indirect employment effects, the mining industry is connected to the wider economy through taxes and royalties. Ghana has been highlighted as a good example of how mineral-rich countries can distribute mining wealth, since a proportion of the rents are distributed to the local communities. The royalty paid by mining companies was 3% until 2010, which was the average rate for gold production in Africa, but then increased to 5%. Of this money, 80% goes to the general government budget, 10% goes to the administration of mining oversight, and 10% supports district administration. Between 1993 and 1998, about $17m was distributed to local mining communities. While considered a model of best practice, there is still a worry that the beneficial effects of the district distribution are undermined by elite capture and corruption at the district level. The sector is today dominated by 12 currently active mines, and there are an additional five suspended mines that have been in production in recent decades. Most of these 17 mines have foreign ownership, such as Australian, Canadian, or South African, sometimes in partnership with Ghanaian firms or the Ghanaian state. Most are open-pit mines, although a few consist of a combination of open-pit and underground operations. Credit: The Local Socio-Economic Effects of Gold Mining: Evidence from Ghana (Punam Chuhan-Pole, Andrew Dabalen, Andreas Kotsadam, Aly Sanoh and Anja Tolonen)
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How Ghana distributes its mining wealth
Investment opportunities include: 1. The production of industrial minerals for both local and international consumption 2. Applications/processing of industrial minerals in the areas of construction, ceramics, paints, electronics, filtration, plastics, glass, detergents and paper. Production • Refinery facilities to serve the local industry for value-added products • Companies to exploit and produce solar salt. Potential exists for the utilisation of part of the salt to produce caustic soda –a raw material for the soap and detergent industry. The chlorine co-product can be used as a water treatment chemical and also serve as a raw material for the production of various sanitation chemicals • Companies to produce clinker for the mining industry, demand for which is estimated at over 1m tons a year • Companies to exploit the extensive deposits of granite to produce high quality floor tiles • Companies to produce dimension stones
EMPHASIS ON INVESTMENT PROMOTION HAS BEEN A MAJOR OBJECTIVE OF GHANA’S MINING INDUSTRY
for the building industry • Suppliers to supply salt for the local market Engineering and services • Service companies, including contract drilling, assay laboratories, contract mining and geological consultancies to mining companies • Companies to set up manufacturing plants and machinery for the mining industry, setting up downstream production facilities to manufacture key inputs such as drill bits, cyanide and activated carbon. Specific incentives • Depreciation 75% of the capital expenditure incurred in the first year of investment and 50% of the declining balance in subsequent years • Investment allowance of 5% in the first year only • Losses in each financial year, not exceeding the value of the capital allowance for the year, may be carried forward. Capitalisation of all pre-production expenses
The vision is one of a financial sector which is responsive to the needs of the 21st century
Italtec Ghana Ltd is a wholly Ghanaian registered operating company under the Company’s Registration Act. Its primary business is the purchase and export of gold.
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Iteltec Ghana Ltd. Started from a humble beginning in 1993 having been registered as an import and export business. The Company’s original director and current 100% shareholder is Kwame Anas Ofei. Italtec employs the concept of buying centers to guarantee a steady stream of gold suppliers for purchases on a daily basis. The company currently operates 17
LICENCED GOLD EXPORTERS
Countries that receive gold shipment from Italtec
UAE Italy Australia Turkey India USA
wholly established gold buying centers in all the major mining towns, fully – equipped with stateof-the-art water density specific gravity Swiss weighing scales.
Terms of Contracts: Our terms of contract are very simple – we supply gold on an annual renewable contact revolving. Please see our website for details: www.italtecgold.com
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currency out of Ghana • Exemption from the selective alien employment tax under the selective alien employment decree
approved by the authorities when the holder starts development of commercial mining The holder of a Mining Lease is also granted the following benefits: • Exemption for foreign staff resident out of Ghana, from payments of income tax relating to furnished accommodation at a mine establishment • Immigration quota for expatriate personnel free from any tax imposed by government for the transfer of foreign
10 ANUM YEMOH CR. East Legon, Accra Directions: Follow sign post opposite the Mensvic Grand Hotel, Off Lagos Ave OFFICE: +233 302544094 CELL: +233 244418922 SKYPE: ANAS641 www.italtecgold.com
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Mining companies enjoy significant tax breaks and duties on the plant and machinery they import for operations in Ghana.
Ghana’s Minerals and Mining Act 2006, Act 703 has added some significant aspects to the country’s commercial law and they are: • Expenditure on exploration and development may be capitalised in accordance with regulated amortisation provision for tax relief • Capital allowances have been designed to shorten the pay-back period and include a 75% write-off of capital in the first year and 50% annually thereafter on a declining balance • Retention of a proportion of revenue in a foreign currency account for use in acquiring essential equipment and spare parts required for mining operations which would otherwise not be readily available without the use of such earnings and importation from overseas • Exemptions from import duties on imported plant and equipment.
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Ghanaâ€™s world-class tourism potential
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he tourism industry in Ghana has experienced a dramatic turnaround since 1996. The trend of phenomenal growth has continued with the number of tourism visits from 2006 to 2014 showing an average annual growth of 17%. In 2010, the United Nations World Tourism Organisationâ€™s annual compilation singled out Ghana, along with three other sub-Saharan African countries, for outperforming the world average for the year. Ghana, with its total of 1,093,000 arrivals and receipts of nearly $3bn recorded in 2014, achieved a growth of 4.4% over 2013 levels. The country received the largest number of tourists visiting Africa for cultural purposes, and ranked amongst the top 10 African tourism destinations in 2014. Ghana is currently serviced by most major airlines including KLM Royal Dutch Airlines, Ethiopian Airlines, Air Namibia, Emirates, Lufthansa, Delta Airlines, Turkish Airlines, Brussels Air and British Airways. Tourism is among the most promising
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sectors of the national economy, ranking as the third highest foreign exchange earner since 2007. The sector was ranked as the fourth-biggest foreign exchange earner for Ghana, raking in more than $1.4m in 2008 and contributing 6.2% to GDP. The tourism sectorâ€™s growth rate at an average of 17% makes it one of the fastest growing sectors with huge potential to contribute to poverty reduction and wealth creation for the people. In 2014, the sector received $2.99m in receipts; contributed 6.9% to GDP and employed over 300,000 Ghanaians directly and indirectly across the country. Ghana has the great advantage of being the best tourism destination in Africa with its rich cultural heritage, its unique slave forts and history, cultural diversity, natural environment and political stability. The WTTC projected that in 2021, international tourist arrival to Ghana will have risen to over three million visitors. Ghana is keen to promote non-mass tourism, focusing on sustainable tourism. Some areas for consideration are:
Elmina Castle, or Castle of St George, one of a number of old slaving posts on the Atlantic seaboard that attract millions of foreign tourists
There are numerous colourful traditional festivals and durbars. One such festival is the Dipo (Puberty Rites) held by the Krobos. Aboakyir (Deer Hunting) is put on by the people of Winneba. Homowo (Harvest/ Thanksgiving) is a festival of “overcoming hunger” by the Gas. Damba is celebrated to mark the birth of the Prophet Mohammed but also has a traditional character; this is celebrated in the north of Ghana. Hogbetsotso is an Anlos tribe festivity and signifies their migration into Ghana. The Adae (Festival of Purifying of the Ashantis’ ancestral stools) is an equally great festival, with much pomp and pageantry.
a. Culture tourism – festivals, events, rural tourism b. Heritage tourism – with a focus on the slave routes c. Recreational tourism – beaches, water sports, theme parks and golf d. Adventure tourism – rainforest eco-tourism, game parks, white-water rafting, cruise line etc; and e. Events tourism – with a focus on conferences, meetings resources and facilities Ghana has numerous game and wildlife parks including the Mole National Park in the Northern Region. It offers visitors the unique experience of “foot (trekking) safaris”. The Owabi Wildlife Sanctuary, located 16km west of Kumasi, is a natural habitat for many species of wildlife, as well as for a number of migratory birds. Other wildlife reserves are the Shai Hills Game Reserve, Digya National Park, Kogyae District Nature Reserve, Bui National Park and the Ankasa Game Reserve and Nini Suhien National Park.
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Ghana’s tourism industry is poised for sustained high performance in the coming decade. In 2014 the US, UK, Germany, Netherlands, France and China were the lead countries in terms of tourist arrivals from outside Africa. Those from Nigeria, Côte d’Ivoire, Togo and South Africa top the list of tourists from Africa visiting Ghana. Ghana embarked on the Harmonised Standards for Accommodation and catering establishments in the Ecowas sub-region for the classification of its hotels in 2006. The operators have been assisted in implementing these standards by the Ghana Tourism Authority (GTA). This standardisation by the operators resulted in a total number of 20,938 rooms and 32,000 beds in 2014 being classified from a total of 1,523 hotels registered. There is increasing evidence that Ghana is the preferred conference destination in Africa as more organisations choose the country for their conferences. Statistics also show that other West African nationals prefer to do business in Ghana, which is evidenced by the increasing number of airlines servicing the country. Ghana has strong cultural and historic links with both the USA and Europe. To meet the needs of these markets, the country has developed targeted programmes and events, some of which include: • Emancipation Day, an annual celebration of the freedom gained by Africans at home and abroad, after 400 years of slavery. • The Unique Culture heritage (festivals, music and dance, unique art and folklore) and rich historical heritage (world heritage monuments, Pan-Africanism, etc.). There is a renewed interest in traditional festivals and events.
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• The Hang and Paragliding Festival held in the Eastern Region of Ghana during the Easter holidays. • A regatta is organised in Elmina, Central Region for fisher communities, creating domestic tourism opportunities • The older parts of the capital Accra will be redeveloped and beautified under the Old Accra 2015 strategy.
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The increasing number of tourists and the evolving profile of today’s traveller demands a host of new tourism offerings and infrastructure projects. A wide spectrum of investment opportunities arise out of Ghana’s long-term tourism plans. These include: 1. Tourist accommodation • Multi-hotel resorts; single-hotel resorts at beach sites, botanic garden sites, etc.; mountain resorts; lodges and inns; motels on major tourist routes; hostels, near universities, for use by tourists and students. • Camping sites for the trans-Saharan adventure tourists in areas such as Paga, Tamale, Kintampo Falls, Kumasi, Accra. 2. Motel and highway rest stops 3. Tourist information shops 4. Tourist transport services including tourist taxis; air taxis; car hire schemes; and cruise boats. 5. Tourist travel services including tour guide services; tour operators; and travel agencies 6. Tourism financial services such as credit card agents and discount houses; forex bureaux; and tourism rental services 7. Tourism medical services including travel insurance companies and ambulance service for tourists 8. Food and beverage services 9. World-class entertainment centres such as pubs, discotheques, nightclubs with live shows, casinos, amusement parks, etc 10. Leisure and sports facilities 11. Commercial centres such as souvenir shops, supermarkets, shopping arcades and malls and duty-free shops 12. Meeting facilities, multipurpose convention/conference/exhibition centres and shopping malls 13. Education and training centres
GHANA HAS THE GRE AT ADVANTAGE OF BEING THE BEST TOURISM DESTINATION IN AFRICA WITH ITS RICH CULTUR AL HERITAGE
14. Specific investment incentives Goods imported by hotels and restaurants (including fast food chains with a seating capacity of 30 or more persons) under GIPC Act, 2013 (Act 865) are admissible at 10% or zero concessionary duty rate. The items considered which should be in the appropriate quantities (relating to size, number of rooms, seating capacity etc.) are as follows: Refrigerators/deep freezes, TV sets, air-conditioners, PA systems, Furnishing (including carpets, bedding and fixtures), fans, radio sets and crockery. (Source: HS Code, Chapter 98) Ghana’s competitive advantage: 1. Ghana’s accessibility has improved: airline seat availability has increased and airfares reduced as her “Gateway Programme” takes off to allow more airlines and cruise liners to use Ghana’s ports as “liberalised skies” and “free– ports” respectively. Requirements governing entry formalities have also been liberalised. 2. The tourism industry in Ghana has good prospects because Ghana’s political and social stability remains favourable. 3. Ghana’s product will not face stiff competition in the African region due to its unique attractions and diversity. Ghana has the opportunity to win a share of the tourist traffic for adventure, leisure and sports as the newest destination in these special markets. 4. For international tourism, Ghana is being developed as a ‘quality’ destination with a good standard of tourism product (tourist attractions, facilities, services and infrastructure) and has been keenly promoting tourist markets that appreciate and respect Ghana’s history, culture and environment. 5. Labour is of high quality but relatively inexpensive. The minimum labour wage is approximately GH¢7 (US$2.30) per day (as at January 2015). 6. Educational and training institutions in the Travel and Tourism industry have sprung up over the last few years to train and improve the skills of personnel in the industry. 7. Passenger loading figures are fairly high and some flights are full at peak periods, especially when overseas Ghanaians are returning home during holiday times.
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SAFARI LODGE IN WEST AFRICA-GHANA,MOLE
B E A UTY
N A TUR E
L UX UR Y
R E L A X A TI O N
Z a i n a L o d g e i s We s t A f r i c a ’ s ﬁ r s t l u x u r y s a f a r i l o d g e . L o c a t e d i n M o l e National Park, the Lodge elegantly blends a safari sensibility with modern amenities, and combines a luxurious visitor experience with
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sustainable business practices.
Tel: +233 303 938 736/ +233 540 111 504/ +233 540 111 511 Website: www.zainalodge.com email: firstname.lastname@example.org Location: Mole National Park
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Redefining to meet new challenges
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he ghanaian economy is traditionally agrarian. Even as the economy diversifies and attention is focused on other areas, notably services and the oil and gas industry, the agriculture sector remains the largest source of employment in the country. The government is keen to revive agriculture, which has suffered a decline in recent years, with attempts to shift from its predominantly subsistence nature, to more commercial, technology-driven ventures. Ghana has three main agriculture zones. The forest vegetation zone consists of parts of the Western, Eastern, Ashanti, Brong Ahafo and Volta regions. The northern savannah vegetation zone includes the Upper East, Upper West and Northern regions, while the coastal savannah includes mainly the Central and Greater Accra regions and parts of Volta Region. The northern savannah zone is the largest of the three. Most of the nationâ€™s supply of rice, millet, sorghum, yam, tomatoes, cattle, sheep, goats and cotton are grown in the region. In recent times, mangoes, cotton and commercial ostrich farms have gained footholds in the northern zone. The coastal savannah is noted for rice, maize, cassava, vegetables, sugar cane,
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mangoes and coconut cultivation, as well as livestock rearing. Sweet potato and soybean crops are also viable in this agroâ€“ ecological zone, under irrigation. The lower part of this zone is drained by the River Volta, other streams and lagoons. These water resources present opportunities for fish farming (aquaculture). Cocoa, coffee, oil palm, cashew, rubber, plantain, banana and citrus crops are mainly cultivated in the forest zones where rainfall is very heavy.
The government has resumed its previous role as a significant buyer of local produce, such as cassava ( pictured ), through the National Bufferstock Company.
Cocoa has historically been a key economic sector and a major source of export earnings. Ghana is the second largest producer of cocoa in the world. Other leading export products include fresh and tinned tuna, shea nuts, cashew, fresh and chilled fish, yams, banana and pineapples. The government has resumed its previous role as a significant buyer of local produce, through the National Bufferstock Company, which buys during the peak seasons and releases in leaner periods. The effect of this has been to stabilise prices and reduce post-harvest losses. A renewed focus on agro-processing also means that there will be newer markets for farm produce.
Distribution • Companies to provide post-production services (transport, packaging, storage facilities and cold vans) • Companies to provide distribution of improved seeds, planting materials and agro-chemicals (fertilisers, pesticides, weedicides) • Distribution of veterinary drugs, vaccines and chemicals, feed and nutritional supplement ingredients.
Production investment opportunities exist for producers and processing companies in the following areas: • Production of horticultural products (e.g. cereals, roots/tubers, industrial crops) for the national, regional and European Union (EU) markets. • Production of value-added cocoa, coffee and cotton products • Development of private irrigation facilities • Production of improved seeds and agro-chemicals (fertilisers, pesticides, weedicides) • Production of veterinary drugs, vaccines and chemicals, feed and feed ingredients. • Production of dairy products and agricultural products such as cereals, starchy crops, legumes, vegetables, livestock, fisheries, industrial crops and fruits. Technological and supporting services • Companies to produce and install cold chain equipment • Supply of machinery to establish hatcheries for day-old chicks • Processing machine manufacturers to supply agro-processing and packaging equipment/plants • Suppliers and financiers of factory building technology
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Specific investment incentives • There are exemptions of import duties on imported plant, machinery or equipment and agro inputs such as fertilisers, weedicides and pesticides • Agro-processing companies established in Ghana will enjoy a five-year tax holiday from the date of commencement of business • Location incentives (tax rebate) for agro-processing companies located in regional capitals and districts within the country • Agro-processing enterprises that use local agricultural raw materials as the main input shall have corporate tax rates based on their locations: Accra-Tema - 20% Other Regional Capitals – 10% Outside Regional Capitals – 0% 3 Northern Regions – 0% Companies engaged in the processing of waste products enjoy a seven-year tax holiday from the date of commercial production. Companies producing cocoa by-products from cocoa waste enjoy a five-year tax holiday from the date of commercial production. Cocoa farmers’ incomes are exempted indefinitely from taxes. The law also permits farming losses to be carried forward for five years of assessment.
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THE GOVERNMENT IS KEEN TO RE VIVE AGRICULTURE, WHICH HAS SUFFERED A DECLINE IN RECENT YE ARS
Services opportunities also exist for companies in the following areas: • Providing training and certification • Capacity building for management and market-oriented enterprises • Market intelligence research • Developing financial lending and insurance packages for agriculture
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Agriculture records a remarkable recovery, improving food security and the country’s nutrition
In Ghana, the agricultural sector remains the backbone of the economy. Nearly two decades of productivity growth, beginning in the early 1990s, has helped put Ghana back on a path to recovery following more than a decade of economic uncertainty. With the exception of millet and sorghum, output for most crops has increased at a faster rate than population growth. During the 18-year period between 1993 and 2010, the sector experienced only one year (2007) of negative growth. During the same period, it recorded three years when growth exceeded 7%. The sector’s remarkable recovery, facilitated in part by sustained public and private sector investments, has helped pull thousands of rural households out of extreme poverty. In the early 1990s, nearly two out of every three (63.6%) rural Ghanaians lived below the national poverty line. By 2006, the ratio had dropped to roughly two in ﬁve (39.2%), according to the National Statistical Service. Ghana reached the ﬁrst Millennium Development Goal, to halve extreme poverty, last year. Sustaining the sector’s growth trajectory is a top priority for President John Dramani Mahama’s administration. Success will depend, in part, on the government’s ability to manage the country’s ongoing transition to a more diversiﬁed economy while ensuring that the country’s smallholder farmers, food processors, and other sector actors have what they need to remain competitive. It also hinges upon the ability of all stakeholders to recognise, respond, and adapt to a changing landscape: one characterised by climate change, increasing weather variability, increasing threats from pests and diseases, and higher food price volatility, among other risks. The catastrophic ﬂooding of 2007 and more recent food price shocks served as stark reminders of the importance of eﬀective risk management. The government recognises more than ever the need to strengthen existing risk management systems, not only to ensure continued sector
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growth, but also, and more importantly, to protect the most vulnerable communities and strengthen their resilience to future shocks. Three commodities dominate production: cocoa, with 24% of total area, maize with 15%, and cassava with 13%. Cocoa accounts for the largest area and the bulk of agriculture export earnings, whereas maize and cassava are the main food staples. The remaining land is planted with more than 40 other food and cash crops such as yams, oil palm, groundnuts, vegetables, and plantain. With the exception of cocoa and groundnuts, where the area has ﬂuctuated in the past, the composition of crop production is fairly stable. This combination of diversity and stability ensures an adequate supply of staple foods at aggregate level. There is less diversity at the regional level, especially in the north where agro-climatic conditions are less favourable. Sorghum and millet are the main food crops in the Sudan savannah, with groundnuts the main cash crop. Livestock production, especially cattle, is also important. As rainfall increases, maize gradually replaces sorghum and millet as the major food crop in the Guinea savannah, the largest agro-climatic zone. Moving south into the transition zone, cassava and yam begin to replace maize as the major food crops and livestock production becomes less
important. Cocoa dominates land use in the deciduous forest zone, with cassava, maize and plantain the main food crops. These food crops also predominate in the high rainfall forest zone, which is less suited to cocoa production. The small coastal savannah region is unsuited to agricultural production. Most farmers grow a range of food and cash crops. Production risks are reduced as a consequence, both at the farm level and for the agricultural sector as a whole. Farmers’ ability to diversify also allows them to change their crop composition quite readily in response to changes in the proﬁtability of any given crop. Crop production has grown steadily, with an average annual increase in the crop production index of 12.9% from 1990–2011, according to World Development Indicators. This growth has been driven largely by area expansion, with the total cultivated area increasing from 2.9m ha in 1990 to 6.76m ha in 2011 (FAOSTAT). Crop yields increased little for most of this period, but have risen since the mid-2000s. Yields remain relatively low, despite this increase. The area expansion appears to be largely a result of population increase in the rural areas. This has resulted in a limited overall change in the nature and composition of production, as the small-scale subsistence farmers, who dominate production, tend to retain a diversiﬁed crop mix when they expand. Production of root crops, plantain, groundnuts, and rice has increased the most, whereas that of traditional cereal crops has grown less rapidly. This gradual shift to root crops has improved the stability of the food supply and resulted in a more varied food diet – both of which improve food security. Credit: GHANA: Agricultural Sector Risk Assessment – Risk Prioritisation (Vikas Choudhary and Stephen D’Alessandro),World Bank Group Report, Number 94228-GHJUNE 2015
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IC Publications 7 Coldbath Square London EC1R 4LQ Tel: +44 20 7841 3210 Fax: +44 20 7841 3211 email@example.com
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Top Reports International Communications Agency firstname.lastname@example.org www.topreports.org Tel: +233 (0)24 910 5995 / +233 (0)302 774466
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FOCUS ON THE ITALIAN COMMUNITY
Ghana and Italy building multi-platform ties
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here is a vibrant Italian business community in Ghana. With footprints in sectors such as construction, retail, real estate, hospitality and manufacturing, Italian companies are a vital source of jobs and taxes for the Ghanaian economy. There are over 118 Italian companies working in Ghana and Italy was ranked 10th in terms of foreign projects registered in Ghana in 2015. Ghana’s exports to Italy, however, reached almost GH¢2.2bn in 2012, while imports from Italy amounted to GH¢500m. The majority of Ghana’s exports to Italy were petroleum products. With such a robust business presence, the Italian influence can be felt in the social and cultural fabric of Ghana. Both countries are keen to promote this association and grow it for mutual benefit. This desire is set to be given quite a big
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boost with the launch of the Italian Business Association of Ghana. The mission of the association is to champion major business-oriented ideas and projects aimed at creating the platform for cultural, economic, and trading opportunities between Italy and Ghana. The Vice President of the Italian Business Association of Ghana (IBAG), Nii Amaa Ollennu, says that with the influx of competent and industrious Italian companies in Ghana, which are adding great value to the socio-economic growth of the country, he is confident that the association will continue to empower, train, and network with all sectors of the country to help boost the economy of Ghana. IBAG says it will be focused on advisory services for Ghanaian companies with a business interest in Italy as well as Italian companies that are planning to invest in Ghana. By sharing local knowledge of the
Above left: Laura Carpini, the Italian ambassador to Ghana. Above right: Nii Amaa Ollennu, VP of IBAG.
territory acquired over the years, it hopes to help new investors understand the Ghanaian/Italian market. The association will embark on business-oriented programmes such as organising focus interviews, events, workshops, and seminars on specific sectors of the economy by bringing experts to the table and facilitate business-oriented, capacity-building programmes for members to enable them to advance in their various business endeavours. Mr Ollenu adds that the association is open to companies and individuals without nationality restrictions. There will also be a cultural exchange programme between Italy and Ghana to undertake various projects as
THE ITALIAN BUSINESS ASSOCIATION OF GHANA WILL EMBARK ON A R AF T OF BUSINESS-ORIENTED PROGR AMMES
Through our resources and our partners, we work on projects of all sizes. From the earthworks, all the related civil facilities and steel structures we provide the complete turnkey project service. Since the registration of the company in 1964 has been located in Ghana with its headquarters moving from Accra to Tema.
A network of companies through West Africa has been established since with branches in Liberia, Ivory Coast, Burkina Faso, and Nigeria.
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De Simone ltd offers contracting, construction management, and design and build for building and civil engineering projects.
part of IBAGâ€™s social responsibilities. Ollennu believes all companies and individuals who desire to invest, build, and strengthen business relationships with Italian companies in Ghana and Italy should join the association to help attain strong business connections. Ms Laura Carpini, the Italian ambassador to Ghana, is firmly in support of the association and believes that it will come to complement the work of the embassy. The association, she says, will also help the Italian business community join forces and establish a structure that would give a well-deserved visibility to past and present achievements of the Italian embassy as well as serve as a platform for future successes. The Italian embassy in recent times has opened a trade promotion section, organised high-level visits as well as established a momentum for Ghanaian Italian relations in all sectors of the Ghanaian economy. Ms Carpini is hopeful that the IBAG will help Ghanaian companies and institutions to know the Italian market better as well as Italian companies looking to invest and do business with Ghana.
Tema Heavy Industrial Area PLOT/IND/A/38/2 email@example.com www.desimoneltd.com Tel: 00233 303 310 821 / 822
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FOCUS ON THE CHINESE COMMUNITY
China: a key partner in Ghana’s economic growth
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hina is now Ghana’s single largest trading partner. In 2014, the volume of trade between the two countries hit $5.6bn, reflecting the growing partnership between the two, which began soon after the West African country achieved independence in 1957. China is increasingly a significant development partner for Ghana, supporting the country in many ways as well as providing a market for varying products from the country. Ghana’s exports to China in 2014 hit $1.4bn. As a comparison, total trade between the two countries as recently as the year 2000 had a value of less than $100m. China’s non-financial direct investment in Ghana reached $230 million in 2014, putting the country second after the Republic of Congo amongst Chinese investment in the 24 mid-West African countries. China’s investment in Ghana led to it jumping from 10th position in 2013 to 5th in 2014. China’s role in the Ghanaian economy is also seen in the wealth of infrastructure projects it is involved in. Finance and execution for key projects such as Atuabo Gas Processing Project, Bui Dam and Kpong Water Supply Expansion Project have come from the
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Asian economic giant. Chinese investment in private sector and PPP projects can also be seen in the Sunon Asogli Power Plant and Africa World Airline. These reflect the interest that Chinese investors – backed by their government – have shown in the infrastructure, energy, manufacturing, agriculture, aviation and real estate sectors in Ghana. Tang Hong, owner of the 5-star Tang Palace Hotel in Accra, says that the China-Ghana relationship is solid. “Both countries have had a solid relationship since the days of Nkrumah and this will keep getting better and better. Look at trade between the two countries, for instance: it’s booming. “Most Chinese companies want to set up shop in Ghana and importation from China is growing. Ghana currently has two Chinese business chambers and I am the vice-president for both.” While engaging in the national development of Ghana, Chinese enterprises have also fulfilled social responsibilities and promoted a local content strategy, making great contributions to economic growth and the improvement of the people’s well-being.
Mr. Tang Hong, owner of the Tang Palace Hotel in Accra and Vice President of the Chinese Business Chambers.
“MOST CHINESE COMPANIES WANT TO SE T UP SHOP IN GHANA AND IMPORTATION FROM CHINA IS GROWING”.
GHANA FACT FILE
Ghana in a nutshell L A NGUAGE A ND R E L IGION
Ghana, a sub-Saharan coastal country, is located in West Africa, immediately north of the Gulf of Guinea (Atlantic Ocean) between latitudes 12º North and 4º South and longitudes 4º West and 2º East. The Equator is only 750km south and the Greenwich Meridian runs through the port of Tema, 30km east of Accra, the capital city. Ghana is bounded on the north and northwest by Burkina-Faso, on the east by Togo and on the West by Côte d’Ivoire. Accra, the capital, is the largest city in the country and it is also an important commercial, manufacturing, service and communication centre.
English is the official language and is taught and used in all schools. Nine other vernaculars are taught at basic school level. The literacy rate is estimated at 54%. Christians comprise 69% of the population, Muslims 13% and Traditional Animists 18%.
The total area is 239,460sq km (92,100sq miles), separated into a landmass of 230,020sq km (88,810sq miles) and water comprising 8,520sq km (3,290sq miles). The land stretches 672km north-south and 536km east-west. CL IM AT E
Ghana has a tropical climate, with annual mean temperatures ranging from 26ºC to 29ºC (78ºF to 84ºF). Relative humidity ranges between nearly 100% in the south, to 65% in the north. P OP UL AT ION
The population was estimated at 27.9 million in mid 2015, reflecting 75 major ethnic groups. Women account for 51.08% and men 48.92% with a density of 84 persons per square kilometre. The growth rate is estimated at 2.5% a year.
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GO V E R NME N T
Ghana was the first country in sub-Saharan Africa to gain post-colonial independence and attained sovereign independence from British colonial rule on 6 March 1957. From 1966 to 1992, the country went through a series of civilian and military regimes with different ideologies and development policies. In 1992, the current democratic pluralism was established with a new constitution that guarantees customary freedoms and liberties to individuals, institutions and entities on the platform of the rule of law, and a legislature currently consisting of 275 members. The fundamental tenet for economic and social development is a private sector led market economy with targeted interventions by the state in areas that will benefit from state mitigation of the non-commercial risks, and where strategic, commercial investment risk exists. The current president, John Dramani Mahama, was democratically elected in December 2012 through adult suffrage for a four-year term, after which, according to Ghana’s 1992 Constitution, he is able to contest again in 2016 for another four-year term of office.
C A P I TA L CI T Y
C OMME R CI A L L A NGUAGE
C UR R E NC Y
Cedi (1 USD = 3.8 GHC) P OP UL AT ION
27.9 million (July 2015 est.) F OR M OF GO V E R NME N T
President, Cabinet OF F ICI A L L A NGUAGE
CL IM AT E
Tropical (21ºC–34ºC) R E L IGION
Mostly Christian; Muslim, Animism GDP GR O W T H P R O JE C T ION F OR 2016
5.9% (World Bank)
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L OC AT ION
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Useful Contact Information OFFICE OF THE PRESIDENT P.O. Box 1627, Osu, Accra Tel: 0302 665415, 0302 666281 www.ghana.gov.gh, www.presidency.gov.gh
GHANA TOURIST AUTHORITY P.O. Box GP 4386, Accra Tel: 0302 222153, 0302 244794, 0302 244795, 0302 767323 Fax: 0302 244611
GHANA EXPORT PROMOTION AUTHORITY P.O. Box M146, Accra Tel: 0302 689889, 0302 683153 Fax: 0302 677256 www.gepaghana.org firstname.lastname@example.org
BANK OF GHANA P. O. Box GP 2674, Accra, Tel: 0302 666174 – 6 www.bog.gov.gh email@example.com
GHANA FREE ZONES BOARD P.O. Box M626, Accra Tel: 0302 780535, 0302 785037, 024 2174534 Fax: 0302 780536, 0302 780537 www.gfzb.com.gh firstname.lastname@example.org GHANA INVESTMENT PROMOTION CENTRE P. O. Box M193, Accra Tel: 0302 665125, 0302 665126, 0302 665127, 0302 665128, 0302 665129 Fax: 0302 663801, 0302 663655 www.gipcghana.com email@example.com
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GHANA NATIONAL PETROLEUM CORPORATION PMB Petroleum House, Tema Tel: 0303 206020, 0303 204654 Fax: 0303 206592, 0303 202854 www.gnpcghana.com firstname.lastname@example.org MINERALS COMMISSION P. O. Box M 248, Accra Tel: 0302 771318, 0302 773053, 0302 772783 Fax: 0302 773324 www.ghana-mining.org email@example.com
GHANA STOCK EXCHANGE P.O. Box 1849, Accra Tel: 0302 669908, 0302 669935, 0302 669914, 0302 664715 Fax: 0302 669913 www.gse.com.gh firstname.lastname@example.org CUSTOMS, EXCISE & PREVENTIVE SERVICE Tel: 0302 666841-2, Fax: 0302 668263 GHANA IMMIGRATION SERVICE Independence Avenue, Accra Tel: 0302 224445, 0302 258250, 0302 13401 Fax: 0302 258249 www.ghanaimmigration.org email@example.com GHANA REVENUE AUTHORITY PMB TUC Post Office, Accra Tel: 0302 675701-10, 0302 686106, 0302 684363 Fax: 0302 681163 www.gra.gov.gh REGISTRAR GENERAL’S DEPARTMENT P. O. Box 118, Accra Tel: 0302 664691-93 Fax: 0302 662043 www.rgd.gov.gh GHANA CIVIL AVIATION AUTHORITY Private Mail Bag Kotoka International Airport, Accra Tel: 0302 776171, Fax: 0302 773293 www.gcaa.com.gh firstname.lastname@example.org
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AIRPORTS AND AIRLINES KOTOKA INTERNATIONAL AIRPORT Accra: 0302 776617, 0302 776171 V.I.P. Lounge: 0302 776684 Kumasi: 03220 22969 Tamale: 03720 22108 AMERICAN AIRLINES Tel: 0302 688804, 0302 688805, 0302 688806, 0302 688808 email@example.com ANTRAK AIR Tel: 0302 782814/17 Fax: 0302 782816 www.antrakair.com firstname.lastname@example.org DELTA AIRLINES Tel: 0302213111 Fax: 0302213121 www.delta.com BRITISH AIRWAYS Tel: 0302 214996, 0302 214970 email@example.com EMIRATES AIRLINES Tel: 0302 213131, Fax: 030 2213158 firstname.lastname@example.org ETHIOPIAN AIRLINES Tel: 0302 664857, 0302 664856, 0302 664858 Fax: 0302 673968 www.ethiopianairlines.com GAMBIA BIRD AIRLINES Tel: +233 303 93 46 93 / 0249 050601 www.gambiabird.com
IBERIA Tel: 0302 773737, 0302 776171 Ext: 4335/4546 www.iberia.com/gh K.L.M. ROYAL DUTCH Tel: 0302 214700, 0302 214747 Fax: 0302 241574 www.klm.com.gh KENYA AIRWAYS Tel: 0302 215300, 0302 785013, 0302 241560, 026 1984854 www.kenya-airways.com LUFTHANSA Tel: 0302 243893, 0302 243894, 0302 243895 Fax: 0302 243897 www.ghana.lufthansa.com ROYAL AIR MAROC Tel: 0302 766333, 0302 768197, 0302 787182 www.royalairmaroc.com SOUTH AFRICAN AIRLINES Tel: 0302 783676, 0302 783680, 0302 783679 Fax: 0302 783561 www.flyssa.com TAP PORTUGAL Tel: 0302 768892/94, 0302 984524/5 www.flytap.com (Flying to Sao Tome from Accra three times a week) TURKISH AIRLINES Tel: 0302 765880, 0302 734561 www.turkishairlines.com
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GHANA PORTS & HARBOUR AUTHORITY P. O. Box 488,Tema Tel: 0303 219120 www.ghanaports.gov.gh email@example.com
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HOSPITALS AND MEDICAL CENTRES
EMBASSIES AND HIGH COMMISSIONS AUSTRIA Tel: 0302 783368, 024 6256806 Fax: 0302 763236 firstname.lastname@example.org AUSTRALIA Tel: 0302 216400 Fax: 0302 216410 www.ghana.embassy.gov.au BELGIUM Tel: 0302 776561 Fax: 0302 764384 email@example.com CANADA Tel: 0302 211521 Fax: 0302 211523, 0302 773792 www.ghana.gc.ca firstname.lastname@example.org CHINA Tel: 0302 777073 Fax: 0302 774527 www.gh.china-embassy.org email@example.com DENMARK Tel: 0302 253473 Fax: 0302 228061 www.ambaccra.um.dk firstname.lastname@example.org FRANCE Tel: 0302 214566 Fax: 0302 214559 www.ambafrance-gh.org consulat.accra-amba @diplomatie.gouv.fr
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GERMANY Tel: 0302 211000 Fax: 0302 221347 www.accra.diplo.de email@example.com
INDIA Tel: 0302 775601 Fax: 0302 772176 www.indiahc-ghana.com firstname.lastname@example.org ITALY Tel: 0302 77562 Fax: 0302 777301 www.ambaccra.esteri.it email@example.com
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JAPAN Tel: 0302 765060 Fax: 0302 762553 LEBANON Tel: 0302 776727 Fax: 0302 764290 firstname.lastname@example.org NETHERLANDS 021 - 773644 Tel: 0302 214356 www.ghana.nlembassy.org ACC-CDP@minbuza.nl RUSSIA Tel: 030 2775611 Fax: 0302 772699 email@example.com SAUDI ARABIA Tel: 0302 774311 Fax: 0302 773424 SOUTH AFRICA Tel: 0302 740450 Fax: 0302 762381, 0302 764484 firstname.lastname@example.org SPAIN Tel: 0302 774004 Fax: 0302 776217 email@example.com SWITZERLAND Tel: 0302 228125 Fax: 0302 223583 www.eda.admin.ch/accra firstname.lastname@example.org TURKEY Tel: 0302 771700 Fax: 0302 771628 email@example.com
AKAI HOUSE CLINIC Tel: 0302 784772, 0302 784773 Fax: 030 2784775 firstname.lastname@example.org NYAHO CLINIC Tel: 0302 775341, 0302 775291, 0302 784505 Fax: 0302 777593 www.nyahomedical.com LISTER HOSPITAL Tel: 0302 812325/6
MEDLAB GHANA Tel: 0302 776844, 0302 773994 WEST AFRICAN RESCUE ASSOCIATION (WARA) Tel: 0302 781258
37 MILITARY HOSPITAL Tel: 0302 777595, 0302 781802, 0302 767691 KORLE BU TEACHING HOSPITAL Tel: 0302 665401, 0302 673033
C I d I is t t
FIRE SERVICE 192 POLICE 191, 233-27-522288, 233-27-522299 INTERPOL +233(0302) 777606
UNITED KINGDOM Tel: 0302 221665 Fax: 0302 7010655 www.ukinghana.fco.gov.uk email@example.com UNITED STATES AMERICA Tel: 0302 741000 Fax: 0302 741389, 0302 741362 www.ghana.usembassy.gov firstname.lastname@example.org
COME VISIT SÃO TOMÉ, THE PEARL OF THE EQUATOR.
Pestana Equador Ilhéu das Rolas
Pestana São Tomé
Hotel Miramar by Pestana
Vila Maria, Luxury Condominium
Beach Club DIsco
Casino São Tomé
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Come visit the green islands of Africa, a small tropical paradise in the Atlantic Ocean. In São Tomé and Príncipe, between the dense vegetation, you will find secluded beaches, almost deserted, where you will be able to extend your time. If you want something different the Casino São Tomé and the Beach Club Disco, in the city capital, is the only Casino in the country, right next to one of our 3 hotels, the Pestana São Tomé, that offers the opportunity to try your luck in the several slot machines and roulette or to dance in one of Africa’s top discos.
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SUGGESTED HOTELS IN ACCRA
KEMPINSKI HOTEL GOLD COAST CITY ACCRA Ministries, Gamel Abdul Nasser Avenue - Accra Tel: +233 242 436000 firstname.lastname@example.org www.kempinski.com/en/accra/ hotel-gold-coast-city
LA VILLA BOUTIQUE HOTEL Osu, Accra Tel: +233 302 730 333-6 email@example.com www.lavillaghana.com
HOLIDAY INN Airport, Accra Tel: +233 302 740 930 / 785 212 www.holiday-inn.com
GOLDEN TULIP Airport, Accra Tel: +233 302 313161 firstname.lastname@example.org www.goldentulipaccra.com
IBIS HOTEL Airport, Accra Tel: +233 (0) 302 742 747 email@example.com ibisstyles.com - accorhotels.com
ALISA HOTELS Ridge, Accra Tel: +233 302 214 233 / 214 244 firstname.lastname@example.org www.alisahotels.com
TANG PALACE HOTEL Borstal Avenue, Near Gold House, South Airport Residential Area Tel: +233 (0) 302 788886 / 788888 / email@example.com
THE AFRICAN REGENT Airport West, Accra Tel: +233 302 765 180 /81/82 firstname.lastname@example.org www.african-regent-hotel.com
BEST WESTERN HOTEL Airport, Accra Tel: +233 302 766 902 / 766 905 www.bestwesternpremier.com.gh
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The Executive Rooms and Suites give exclusive access to the luxurious Executive Lounge at the Mövenpick Ambassador Hotel Accra. You will be offered complimentary breakfast in addition to local delicacies, to start your day. Our Executive Floor guests are invited to enjoy the hors d' oeuvre and selected wine and champagne in the evening hours while relaxing in the Lounge or on the balcony overlooking the city of Accra. With private checkin and check-out and the opportunity to use the Executive Boardroom for up to 3 hours during their stay our Executive Floor guests have the luxury of a "hotel within a hotel" to ensure privacy and exclusivity in sophisticated surroundings.
Mövenpick Ambassador Hotel Independence Avenue, Ridge, Accra, Ghana Phone: +233 302 611000, Fax: +233 302 611001 email@example.com www.movenpick.com
Where Efficiency inspiration meet.
OLMA COLONIAL SUITES Osu – Nyaniba Estates, Accra Tel: +233 50 257 9952 firstname.lastname@example.org / email@example.com www.olmacolonialsuites.com
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VILLA MONTICELLO (Boutique Hotel) Airport, Accra Tel: +233 302 77 3477 www.villamonticello.com
FIESTA ROYALE North Dzorwulu, Accra Tel: +233 302 740 811 firstname.lastname@example.org www.fiestaroyalehotel.com
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In co-operation with
INVESTING IN GHANA
Produced by Top Reports and IC Publications
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Published on May 10, 2016