The Covid-19 pandemic triggered cascading health and economic challenges globally, and Ghana was no exception. Prior to the pandemic ushering in a far-reaching economic crisis, Ghana was one of the fastest growing economies in the world with a GDP growth rate of about 7%. Despite this, there is currently a rebound in economic activties in Ghana, this is evident in the current Bank of Ghana updated Composite Index of Economic Activity (CIEA). So far, the key drivers of the index during the current period were industrial prodcution, exports, credit to the private sector, and air passenger arrivals.
Why invest in Ghana
Encouraging political and social stability
Wide market access
With the world’s largest free trade area and a 1.3 billion-person market, the African continent is replete with business opportunities. Fortunately, Ghana is a member and the host country for the secretariat of the African Continental Free Trade Area (AfCFTA). Ghana serves as the gateway to most land linked west African countries. Its strategic location gives it an edge through strong geographic, trade and cultural links with neighbouring counties and by providing 24-hour connectivity through its robust shipping and logistics system. Also, Ghana has minimal trade restrictions thus allowing businesses to import goods and services from around the world.
Lucrative investment incentives
The Ghanaian government has abolished the 1% Special Import Levy; abolished the 17.5% VAT/NHIL on domestic airline tickets; abolished the 17.5% VAT/NHIL on financial services; abolished the 17.5% VAT/NHIL on selected imported medicines, that are not produced locally; abolished the 5% VAT/NHIL on Real Estate sales; replaced the 17.5 VAT/NHIL rate with a flat rate of 3 % for traders; and granted Capital Gains Tax Exemption on stocks traded on the Ghana Stock Exchange or publicly held securities approved by the Securities and Exchange Commission.
Diverse agro-ecology and fertile soils
Ghana’s diverse agro-ecology and fertile soils make the country ideal for agriculture. It is the second-largest producer of cocoa, with about 15% of the world market. The country has a wide expanse of land which can be acquired with little difficulty.
Macro-economic policies
The primary goal of the Ghanaian government is to accelerate the process of growth and transformation of the economy under competitive conditions, so as to create more jobs and reduce poverty. Government has created fiscal space by capping earmarked funds to 25% of government revenue, and realigning expenditures to government priorities.
Expanding infrastructure
Ghana has inaugurated the nine-member Board of Directors of the Ghana Investment and Infrastructure Fund (GIIF), charging them to develop the country’s infrastructure space with creativity and purpose. Ghana possesses well developed seaports, airports and road networks. Telecommunication facilities in Ghana are excellent with more private service providers offering telephone, internet and other telecommunication services. Ghana improved in every component of the Emerging Markets Logistics Index 2022, but the leap to 37th place in the International Logistics Opportunities ranking was the most significant.
