focus africa
Focus : Africa
Helping Indian companies do business with Africa
INDIA
INDIA
Africa
AFRICA
INDIA : India’s Trade with the African Region notched US$ 38.96 Billion in the year 2009-10 (DGCI&S provisional figures) constituting 8.37% share in India’s total trade. Trade with the region has grown at a CAGR of 18.10% from US$ 4.48 Billion in 1996-97.
AFRICA : 54 Countries, 1 billion people, US$ 1.01 Billion of trade. Imports worth US$ 468 billion include Mineral Fuels, Oils, Machinery, Vehicles including Boats, Ships, Aircrafts, Electronics & Electricals, Iron & Steel & Articles thereof, Cereals, Plastics, Pharmaceuticals, etc.

Top 20 product groups imported by select African countries ............. [More].
Sector Profile : Ghana
Ghana

Principle Economic Sectors of Ghana

Ghana is well endowed with natural resources. Gold-cocoa production and individual remittances, are major sources of foreign exchange. The domestic economy still revolves around sectors like agriculture and accounts for about 35% of GDP and employs about 55% of the work force, mainly small landholders. Ghana has signed a Millennium Challenge Corporation (MCC) Compact in 2006, which aims to assist in transforming Ghana's agricultural sector. The country opted for debt relief under the Heavily Indebted Poor Country (HIPC) program in 2002, and is also benefiting from the Multilateral Debt Relief Initiative that took effect in 2006. The priorities under the Growth and Poverty Reduction Strategy, which also provides the framework for development partner assistance, are: macroeconomic stability, private sector competitiveness, human resource development and good governance and civic responsibility. Sound macro-economic management along with high prices for gold and cocoa helped sustain GDP growth in 2008.

gdp
Sector % age Contribution to GDP(2007)
Agriculture 27%
Fishing,forestry,hunting and gathering 8%
Electricity and water  3.20%
Manufacturing  0.4%
Contruction 10.30%
Trade and Restaurants and Hotels 12.30%
Transport and Communications 6.10%
Real Estate and Business activites 8.70%
Mining and Quarying 4.90%
Government Services 11.50%
Other Services 7.60%

Agriculture Sector

Agriculture is the considered as the backbone of Ghana’s economy accounting for about 40 percent of the country’s gross domestic product, employing 60-70 percent of the labour force and generating more than 55 percent of the foreign exchange earnings.

The Ministry of Food and Agriculture (MOFA) is the one responsible for the development and growth of agriculture in the country with the exception of the Cocoa-Coffee and Forestry sector. These two sectors fall under the Ministries of Finance and Lands and Forestry. MOFA’s role is the formulation of appropriate agricultural policies, planning & co-ordination, monitoring and evaluation within the overall national economic development.

Many challenges are being faced by the agricultural sector of Ghana which are access to credit, poor infrastructure including lack of irrigation development, insufficient and inadequate storage facilities, high transport cost, land acquisition and tenure issues and social and environmental problems.

The country’s major exports commodities include cocoa, timber and pineapples. The emerging industrial sector's products include cassava, fruits, and cocoa by-products.

The sector of seafood is rapidly emerging as one of Ghana’s most important industries. The processing sub-sector is one of the attractive sectors for investment. The Ghana Free Zone can boast of one of the major fish processing firms in West Africa, processing about 170 tons of seafood (tuna) a day.

Mining Sector

The mining accounts for around 5% of the GDP and the minerals take up 37% of total exports. The major share of exports of minerals which is around 90% is taken up by gold. Thus, the main focus of Ghana's mining and minerals development industry remains focused on gold. Ghana is Africa's 2nd largest gold producer. Gold production reached 2,143 Moz in 2005. The majority of mining is done in the homegrown Ashanti Gold Fields, which produced nearly half at 37 t from its five mining operations. Ghana is also a major producer of bauxite, manganese and diamonds.

The country is at present got thirteen large-scale mining companies producing gold, diamonds, bauxite and manganese and there are also over three hundred registered small scale mining groups and ninety mine support service companies. Several other organisations are also involved in producing building and industrial minerals in the country.

Ghana's economic geology is centered on Proterozoic rock types,majorly the Birimian and Tarkwian systems. The Birimian belt in West Africa hosts nearly all of the known gold deposits in Ghana, Burkino Faso and Cote De Ivoire. Ashanti Gold Belt of South West Ghana, part of the volcano sedimentary Birimian Belt, includes seven producing mines. The Gold deposits in the Birimian are mainly in the form of auriferous quartz veins of 'reefs' and as sulphide ore. The Tarkwian system rocks consist of a thick series of argillaceous sediments resting unconformably on the Biriman. Gold is found in these sediments, occurring as blanket reefs or conglomerate beds, similar to those of the Witwatersrand in South Africa. Alluvial diamonds, about 80% of industrial grade, are produced on a large scale. Primary kimberlites have yet to be found.

Tourism

The available statistics records show that Ghana’s tourism sector annually makes almost $1.1bn in foreign exchange earnings, contributes about four percent of the national Gross Domestic Product and generates about 220,000 direct formal employments nationwide. The spending of a tourist as in 2006 averaged to about $1,985 while the average length of stay was 10 days. In that year, the country attracted 497,129 tourists.

 Ghana's Tourism Ministry, is aiming to help the country to attain a per capita income of $1,000 by 2015 through the realization of the sector’s full potential in contributing to economic wealth creation, employment generation, poverty reduction, environment conservation as well as national and international cohesion.

The government further seeks to attract about a million tourists into Ghana annually with a corresponding growth in the expansion of tourism plants across the country including restaurants, pubs, night clubs and tourist receptacles.


Financial Services

The financial sector in Ghana encompasses a broad range of organizations that deal with the management of money. The financial services industry is categorized into three main sectors:

  • Banking and Finance (including Non-Bank Financial Services and Forex Bureau)
  • Insurance and
  • Financial market/capital marke

The Ghanaian government has shown their strong commitment towards the development of the financial sector. In 2003, the Financial Sector Strategic Plan (FINSSP) got the approval from the government and came into power with the aim to broaden and deepen the financial sector. Improved governance in the financial markets remains an important focus for the continued reform agenda.

Through 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 opportunity for Ghanaian financial market participants.

The Banking Act has made way for the establishment of the International Financial Services Centre (IFSC) by the government. This was setup to increase the competitiveness of the Ghanaian banking sector. 

For Further Reference

African Economic Outlook

BBC News

World Bank

Budget 2010