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    (T Presented by OMAR SABER 121101259: Ghana International Business 7Th Projec

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    Shimaa Mohamed
    Ghana has a market-based economy based on natural resources like gold, oil, and cocoa. Ghana's GDP was $47.33 billion in 2019 and it has experienced strong GDP growth, though recent budget deficits and currency issues have slowed the economy. Agriculture accounts for 20% of GDP and over half the workforce. Foreign direct investment flows decreased slightly between 2017-2018 but mining, oil exploration, and agriculture attract the most FDI. While Ghana offers tax incentives and has pursued reforms to simplify investment procedures, challenges remain around bureaucracy, infrastructure, and an unskilled workforce.

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    (T Presented by OMAR SABER 121101259: Ghana International Business 7Th Projec

    Uploaded by

    Shimaa Mohamed
    64 views5 pages
    Ghana has a market-based economy based on natural resources like gold, oil, and cocoa. Ghana's GDP was $47.33 billion in 2019 and it has experienced strong GDP growth, though recent budget deficits and currency issues have slowed the economy. Agriculture accounts for 20% of GDP and over half the workforce. Foreign direct investment flows decreased slightly between 2017-2018 but mining, oil exploration, and agriculture attract the most FDI. While Ghana offers tax incentives and has pursued reforms to simplify investment procedures, challenges remain around bureaucracy, infrastructure, and an unskilled workforce.

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    ECONOMICS

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    GHANA

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    Ghana has a market-based economy based on natural resources like gold, oil, and cocoa. Ghana's GDP was $47.33 billion in 2019 and it has experienced strong GDP growth, though recent budget deficits and currency issues have slowed the economy. Agriculture accounts for 20% of GDP and over half the workforce. Foreign direct investment flows decreased slightly between 2017-2018 but mining, oil exploration, and agriculture attract the most FDI. While Ghana offers tax incentives and has pursued reforms to simplify investment procedures, challenges remain around bureaucracy, infrastructure, and an unskilled workforce.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    64 views5 pages

    (T Presented by OMAR SABER 121101259: Ghana International Business 7Th Projec

    Uploaded by

    Shimaa Mohamed
    Ghana has a market-based economy based on natural resources like gold, oil, and cocoa. Ghana's GDP was $47.33 billion in 2019 and it has experienced strong GDP growth, though recent budget deficits and currency issues have slowed the economy. Agriculture accounts for 20% of GDP and over half the workforce. Foreign direct investment flows decreased slightly between 2017-2018 but mining, oil exploration, and agriculture attract the most FDI. While Ghana offers tax incentives and has pursued reforms to simplify investment procedures, challenges remain around bureaucracy, infrastructure, and an unskilled workforce.

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    [GHANA INTERNATIONAL

    BUSINESS 7TH PROJECT


    PRESENTED BY
    OMAR SABER 121101259
    About Ghana Economy

    Economic facts

     Gross domestic product: 47.33 billion USD (2019) World Bank


     GDP per capita: 1,641.49 USD (2019) World Bank
     GDP growth rate: 8.5% annual change (2019) World Bank
     GNI per capita: 4,490 PPP dollars (2019) World Bank
     Gross national income: 129.4 billion PPP dollars (2019) World Bank

     Ghana has a market-based economy with relatively few policy barriers to trade and
    investment in comparison with other countries in the region, and Ghana is endowed with
    natural resources. Ghana's economy was strengthened by a, a competitive business
    environment, and reductions in poverty levels, but in recent years has suffered the
    consequences of loose fiscal policy, high budget and current account deficits, and a
    depreciating currency.
     Agriculture accounts for about 20% of GDP and employs more than half of the
    workforce, mainly small landholders. Gold, oil, and cocoa exports, and individual
    remittances, are major sources of foreign exchange. Expansion of Ghana’s oil industry
    has boosted economic growth, but the fall in oil prices since 2015 reduced by half
    Ghana’s oil revenue. Production at Jubilee, Ghana's first commercial offshore oilfield,
    began in mid-December 2010.

    Foreign Direct Investment In Ghana and major sectors

     According to the UNCTAD's World Investment Report 2019, FDI flows in Ghana


    decreased from 3.2 million to USD 2.9 million between 2017 and 2018. The FDI stock
    reached USD 36 million in 2018 and stood at the 55.4% of GDP. Mining and oil
    exploration are the main sectors that attract most of the FDI.
     The country hosts annual summits (Ghana Investment Summit) to position itself as hub in
    West Africa for foreign investors.
     China has the highest number of investment projects registered with Ghanaian
    institutions, followed by India, the United Kingdom, South Africa, Turkey, Mauritania
    and France.

    2
     Mining and oil sectors are the major FDI recipients and account for 63 % of the incoming
    FDI into the country

    Major Transnational Companies in Ghana

     MTN Ghana. ...

     Olam Ghana Limited. ...

     Total Petroleum Ghana Limited. ...

     Ecobank Ghana Limited. ...

     Benso Oil Palm Plantation Limited (BOPP) ...

     Fan Milk Ghana Limited (FML) ...

     I-zone Ghana.

    FDI Attraction incentives

     The authorities in Ghana have been pursuing efforts to simplify the complex and lengthy
    procedures while also offering tax incentives.
     Ghana is one of the most democratic countries in Africa, and it counts a large and
    inexpensive labour force, a large agricultural base, multiple natural resources and stable
    institutions.
     It is also one of the more open economies to foreign equity ownership in the region.
     In the recent years, the country has poured substantial amounts in its oil and gas
    operations, but also in agriculture and industries. Economic diversification, an abundant
    labour and the government’s efforts to simplify investment procedures are all positive
    assets for the country.
     In 2019, the government announced it would implement ten major reforms to secure
    more foreign investments.

    3
     Also, issuing construction permits, operating permits and identification numbers will be
    automated and digitalized. In addition to these reforms, a scheme to boost the
    performances of the power sector was initiated.
     A reduced corporate tax rate of 8% is available for companies engaged in “non-
    traditional exports,” and a 20% rate applies for financial institutions on income from
    loans granted to farming enterprises and leasing companies.
     Free Trade Zone (FTZ) companies have a 10-year exemption period after which they pay
    corporate tax at 15% on export sales
     Tax holidays are granted, from the time operations start , to companies in the following
    sectors: Agricultural enterprises, agro-processing and waste processing companies, rural
    banks periods ranging from five to 10 years.
     Entrepreneurs aged 35 years and under are given a five year corporate tax holiday if
    they are engaged in specific businesses include manufacturing, ICT, agro processing,
    energy production, waste processing, tourism and creative arts, horticulture and
    medicinal plants.
     -Privately-owned universities are exempted from corporate tax if they reinvest 100% of
    their profits into the operation of the university
     Employers receive an additional tax deduction for employing new graduates as part of
    their workforce

    Foreign Direct Investment Challenges

     The bureaucracy, weak productivity, costly and difficult to obtain financing services,
    under-developed transport infrastructure, ambiguous property laws, frequent power and
    water cuts and an unskilled labour force are the main factors that hinder FDI.
     In the World Bank's 2020 Doing Business Report, Ghana ranked 118th worlwide for the
    ease of doing business, losing four positions comparing to the previous year.
     However, some challenges discouraging investments remain. Some of these include
    cumbersome administrative processes, corruption, a weak productivity and unskilled
    labour.

    4
     Other major issues include insufficient water and power supply. Access to electricity, the
    resolution of insolvency problems and the protection of investors are points on which the
    country has a large margin of progress.

    References

    https://assets.kpmg/content/dam/kpmg/pdf/2014/04/ghana-mining-guide.pdf

    https://yen.com.gh/108594-multinational-companies-ghana-2020-list.html

    https://unctad.org/en/PublicationsLibrary/wir2019_en.pdf

    www.worldbank.org

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