Ghana

Ghana is ready for a rebound.

Ghana, formerly known as the Gold Coast, was the first sub-Saharan African nation to gain independence from European colonization and is now considered one of the most politically stable countries in Africa. Ghana’s freedom of press and speech are consistently ranked among the top three on the continent. Similarly, Ghana’s economy is one of the strongest and most diversified in the region, bolstered by vast natural resources and productive agriculture.

Timeline

1957
Independence, with Kwame Nkrumah instated as the first prime minister.
1975
Ghana joins the Economic Community of West African States (ECOWAS), established to promote economic trade, cooperation, and self-reliance among West African nations.
1981
After a long series of destabilizing military coups, Lt. Jerry Rawlings takes power and bans political parties. His conservative economic policies prove effective and Rawlings is later elected (and re-elected) in subsequent elections.
1992
A referendum approves a new Constitution and multi-party politics are restored.
2007
Major off-shore oil reserves discovered along Ghana’s coast.
2010
Production begins at Jubilee, Ghana’s offshore oil field, fueling one of Africa’s fast-growing economy.
2015
Ghana signs a $918 million credit facility with the IMF to help address fiscal woes.

Overview

Demographic + Economic Overview

Ghana is ethnically, linguistically and religiously diverse. Literacy among adults is 77%, and while English is the official language of the country, numerous other languages and dialects are spoken amongst the Ghanaian people.

26.3M Current
Population
52.6M Projected Population Growth by 2050
20.9 Median
Age
24.2% Poverty (2013)
69.5% Workforce
Participation
  • Income Level Classification:
  • Low
  • Lower Middle
  • Higher Middle
  • High

Outlook

Economic Outlook

Until recently, Ghana was seen as a model for African growth and political reform, but a growing public deficit, high inflation levels and a slumping currency have left the country facing economic austerity, growing public dissatisfaction, and a worsening energy crisis. A rebound is anticipated in the medium term, with the World Bank forecasting GDP growth to increase to 8.2% by 2018F, versus a 2015E level of 3.4%. This recovery is anticipated to be on the back of increased oil and gas production, combined with increased private sector and public infrastructure investments.

$37.7B Gross
GDP
$4,300 Per Capita
GDP
GDP Growth Chart Comparison
3.4% Ghana
3.4% Sub-Saharan Africa
2.4% World
16.9% Inflation
$3,400M Foreign Direct
Investments
114 / 189 Ease of Doing Business Ranking
56 / 168 World Corruption Ranking
4.28 GHS / $1 USD
Current Average Exchange Rate Currency: Ghanian Cedi (GHS)

Key Sectors

Key Sectors

Nearly a quarter of Ghana’s GDP comes from agriculture and almost half of the workforce is employed in the sector. Ghana is the world’s second-largest producer of cocoa and other major agriculture crops include rice, cassava, peanut, corn, and shea nuts. Additionally, Ghana is rich in natural resources: it is Africa’s second-largest producer of gold and has the fifth largest oil and sixth largest natural gas reserves. Oil was forecasted to become increasingly integral to the Ghanian economy, however, the recent global crash in oil prices gutted Ghana’s predicted 2015 oil revenue and the future is unknown.

GDP
by Sector
20.7% Agriculture
51.6% Service
27.7% Industry
Workforce by Sector
44.7% Agriculture
14.4% Service
40.9% Industry