INTRODUCTION
Ghana is situated at the Western part of Africa with a total area of 238,533 sq km. Ghana is a sovereign unitary presidential constitutional democracy, located along the Gulf of Guinea and Atlantic Ocean, in the sub region of West Africa. Ghana is bordered by the Ivory Coast in the west, Burkina Faso in the north, Togo in the east and the Gulf of Guinea and Atlantic Ocean in the south. The word Ghana means "Warrior King" in Mande. Accra is the capital and largest city of Ghana. Ghana was the first place in sub-Saharan Africa where Europeans arrived to trade - first in gold, later in slaves. Ghana is well endowed with natural resources, has twice the per capita output of the poorer countries in West Africa. The major sources of foreign exchange are gold, timber and cocoa production. The domestic of economy of Ghana continues to revolve around subsistence agriculture that accounts for 36% of GDP and employs 60% of the work force. The population of Ghana is divided into some 75 ethnic groups. A multicultural nation, Ghana has a population of approximately 27 million, spanning a variety of ethnic, linguistic and religious groups. Its diverse geography and ecology ranges from coastal savannahs to tropical jungles. Ghana's economy is the ninth-largest on the Africa continent by purchasing power parity and nominal GDP. Ghana is a major producer of petroleum and natural gas, with the continent's fifth largest oil reserves and sixth largest natural gas reserves. It is one of the world's largest gold and diamond producers,[citation needed] and is projected to be the largest producer of cocoa in the world as of 2015. Ghana's growing economic prosperity and democratic political system has made it a regional power in West Africa. The industries contribute to 22.1% of the GDP of Ghana. This sector is mainly composed of the mining & quarrying, manufacturing, electricity and water & construction sub-sectors. The Service sector is the fastest growing sector and contributes to about 24.3%. This is the most diversified sector made up of wholesale - retail trade, restaurants & hotels, infrastructure services, financial services, community, social & personal services as well as private non-profit services.
Geography and Climate: Ghana is located on the Gulf of Guinea, only a few degrees north of the Equator, therefore giving it a warm climate. Ghana spans an area of 238,535 km2 (92,099 sq mi), and has an Atlantic coastline that stretches 560 kilometres (350 miles) on the Gulf of Guinea in Atlantic Ocean to its south. It lies between latitudes 4° and 12°N, and longitudes 4°W and 2°E; and the Prime Meridian passes through Ghana, specifically through the industrial port town of Tema. Ghana is geographically closer to the "centre" of the Earth than any other country in the World; even though the notional centre, (0°, 0°) is located in the Atlantic Ocean approximately 614 km (382 mi) off the south-east coast of Ghana on the Gulf of Guinea. The climate of Ghana is tropical and there are two main seasons: the wet season and the dry season. There are two rainy seasons: from March to July and from September to October Rainfall is highest in the south, with some areas receiving in excess of 2,000mm each year, but the drier north more typically receives about 800mm annually. Average temperatures range from 21°C to 28°C (70 to 82°F) with a relative humidity between 77 percent and 85 percent.
Economic Condition: Ghana is one of the countries with the fastest growing economy in Africa. The economy of Ghana has a diverse and rich resource base, including the manufacturing and exportation of digital technology goods, automotive and ship construction and exportation, and the exportation of diverse and rich resources such as hydrocarbons and industrial minerals. These have given Ghana one of the highest GDPs per capita in Africa. Ghana's economy has been strengthened by a quarter century of relatively sound management, a competitive business environment, and sustained reductions in poverty levels. Ghana is well-endowed with natural resources and agriculture accounts for roughly one-quarter of GDP and employs more than half of the workforce, mainly small landholders. Most government efforts to restore the productivity of the Ghanaian economy have been directed toward boosting the country's exports. Over the past five years, economic freedom in Ghana has increased by 3.6 points. Along with an improvement of more than 20 points in its score for control of government spending, the country's scores have advanced in half of the 10 economic freedoms including freedom from corruption and monetary freedom. These improvements have propelled Ghana into the ranks of the "moderately free." Ghana's GDP has registered steady growth, most of it attributable to the export sector, including cocoa and minerals and, to some extent, timber processing.
Manufacturing: Ghana's most important manufacturing industries include electronics manufacturing, car manufacturing, electric car manufacturing, automotive manufacturing, light manufacturing, aluminium smelting, food processing, cement, and small commercial ship building. A relatively small glass-making industry has also developed due to the high-quality sand available from the Tarkwa mining area. The foreign capital has increased in recent years. Most products are for local consumption and exportation. Other industries include the production of food and beverages, textiles, chemicals and pharmaceuticals, and the processing of metals and wood products. Manufacturing constitutes about 6% of Ghana's GDP (2011) and provides employment for over 250,000 people (2009). There are around 25,000 registered firms, though more than 80% of them are small size enterprises and around 55% of them are located within the Greater Accra/Tema region. Major industries include mining, light manufacturing, aluminium smelting, food processing, cement and small commercial ship building.
BUSINESS SECTORS
Agriculture Sector: The food and agricultural industry plays a major role in Ghana's economy. Food is one of the basic needs of man and anyone that ventures into food production is sure of a never ending demand. The country is classified into three main agriculture zones. The forest vegetation zone consists of parts of Western, Eastern, Ashanti, Brong-Ahafo and Volta Regions. The northern savannah vegetation zone includes the Upper East, Upper West and Northern Region while the coastal savannah includes mainly the Central, Greater Accra and parts of Volta Region. With a 2013 GDP of US$47.93 billion, Ghana is West Africa's second-largest economy. Ghana's GDP has experienced sustained growth of 5 to 8% per year over the past decade. Ghana has soils that can support a vast variety of food crops. Opportunities exist in the processing of agricultural products such as cereals (maize, rice, millet) starchy crops (yam, cassava. Sweet potato, plantain), vegetables (carrots, cabbage, garden eggs, tomato), fruits (pineapple, pawpaw, banana, mango), industrial crops (rubber, sugarcane, cotton, oil palm, coconut, cocoa, coffee), livestock (cattle, pigs, poultry, sheep) and fisheries (tuna, tilapia, catfish). Rearing of silk worm for the production of raw silk. The scope for export of these products to regional and international markets is quite significant. Production of cassava and industrial starch is under the special Presidential Initiatives.
Food Processing: The food processing industry in Ghana is an exciting and fast-growing space. The demand of quality food is increasing for a growing population, especially in urban areas. This situation presents many business opportunities in food industry sector. When food products are sold to wholesalers, supermarket chains and organic food retailers, the highest margins are captured from adding flavours, food colouring, packaging and branded labels (comprising the second half of the value chain). For example, fruit juices, pastes, syrups, purees and concentrates are more expensive than raw fruits and vegetables. Ice cream, yoghurt and cheese are priced higher than milk; and the same is true for biscuits, pasta and bread when compared with raw grain and flour. This trend has subsequently repositioned food processing as a manufacturing and Fast Moving Consumer Goods (FCMG) sector. Because Ghana is home to many agricultural food products, it offers the much-needed raw materials for food processing companies. And due to the fact that food is always in high demand, starting a food processing business in Ghana is a smart and lucrative move. This business is one of the easiest to start, and it's very profitable, too.
Transportation Sector: Transport in Ghana is accomplished by road, rail, air and water. Ghana's transportation and communications networks are centered in the southern regions, especially the areas in which gold, cocoa, and timber are produced. Increased transport investment helped to increase the number of new vehicle registrations and transportation alternatives include rail, road, ferry, marine and air. Entry into the public transportation field is unrestricted. Most services are offered by private operators and competition is keen despite the presence of two state-owned firms, City Express Bus Company Ltd and the Omnibus Services Authority. Investors are invited to invest in Ghana‘s transport infrastructure and services. Identified as one of government's priority areas to be developed under its medium term plan, transport services offer exciting opportunities especially in mass transportation.
If you are planning to start a business in Ghana, but you are yet to find a promising opportunity, the transport sector is an option. You can start a business that renders transport services, either on a small scale with few vehicles that ply short routes or on a large scale with many large vehicles that ply long routes. The development of roads and transportation is a government priority. Entry into the public transportation sector has been made easy and unrestricted. Despite the presence of a few government subsidized companies, competition is strong.
Tourism: The tourism industry in Ghana is another sector you can start a business in if you want huge gains in the long term. One of the fastest growing sectors in the economy of Ghana, tourism holds a lot of attractions for investors. Tourist arrivals to Ghana include: South Americans, Asians, Europeans, and North Americans. The attractions and major tourist destinations of Ghana include a warm, tropical climate year-round; diverse wildlife; exotic waterfalls such as Kintampo Waterfalls and the largest waterfall in west Africa, Wli Waterfalls; Ghana's coastal palm-lined sandy beaches; caves; mountains, rivers; meteorite impact crater and reservoirs and lakes such as Lake Bosumtwi or Bosumtwi meteorite crater and the largest man-made lake in the world by surface area, Lake Volta; dozens of castles and forts; UNESCO World Heritage Sites; nature reserves and national parks. A wide spectrum of investment opportunities arise out of Ghana's long-term tourism plans. These include:
- Tourist Accommodation
- Motel and Highway Rest Stops
- Tourist Information Shops
- Tourist Travel Services
- Tourism Financial Services
- Tourism Medical Services
- Entertainment
Cotton Textiles Sector: Textile manufacturing in Ghana is an industry consisting of ginneries and textile mills producing batik, wax cloth, fancy printed cloth and Kente cloth. Firms have located in Ghana to serve local and regional markets with printed African patterned fabrics. The industry has shown signs of significant growth in recent years, promoting high-quality traditionally designed fabrics as "Made in Ghana" to niche markets, especially the US. Ghana has a reputation for producing high quality, traditionally designed printed cloth. The widely celebrated Kente cloth of the Ashanti and Ewe people are hand-woven and brightly coloured with traditional symbols and design. Today, Ghana's textiles industry include vertically integrated mills, horizontal weaving factories and the traditional textile manufacturing firms involved in spinning, hand-weaving and fabric-processing. Textile exports include:
- Cotton yarn
- Cotton fabric
- Printed fabric
- Polyester fabric
- Blankets
- Bed sheets
The following investment opportunities are available:
- Production
- Marketing and Distribution
- Raw Materials
- Technological and Supporting Services
Minerals Mining Sector: Mining is one of the oldest industries to have ever developed in West Africa. Mining existed in Ghana long before the colonial era. The mining sector is an important segment of the Ghanaian economy and has played a significant role in the country's socioeconomic development since the colonial period. Historically, the mining sector's contribution to gross foreign exchange, particularly gold, has only been paralleled by the cocoa sector. The Mining industry of Ghana accounts for 5% of the country's GDP and minerals make up 37% of total exports, of which gold contributes over 90% of the total mineral exports. Thus, the main focus of Ghana's mining and minerals development industry remains focused on gold. The mining sector has therefore been an important part of our economy, with gold accounting for over 90% of the sector. Ghana is the second largest gold producer in Africa and the 9th largest producer in the world. There are opportunities present for setting up of downstream production facilities to manufacture key inputs for the mining industry e.g. mill balls, drill bits, cyanide and activated carbon etc., commemorative coins, jewellery and electronic components. Many investors could take an advantage of the Industrial Free zone facility to produce such items for the international market.
FEW PROJECTS FOR INVESTMENT
Agriculture:
Modern Soyabeans Production
Modern Vegetables Production
Modern Fruits Production
Modern Maize Production
Modern Cassava Production
Construction and Real Estate:
Cement Blocks making
Stabilized Earth Bricks Making Unit
Hardware Shop
Cement Blocks making Plant
Clay Brick Manufacturing Plant
Concrete Pipes Making
Concrete Slabs, Beams and Pillars Making Plant
Food Processing:
Making Soya Milk, Tofu and Yogurt
Flour or Maize Milling Plant
Cassava Processing Plant
Rice Mill
Palm Oil Extraction Mill
Honey Processing Plant
Poultry Feed Plant
Fruit Juice and Jam Making Plant
Tomato Paste and Ketchup Production Unit
Livestock Production Feed Plant
Coffee Processing Plant
Dairy Processing Plant
Sugar Cane Production Plant
