Ghana

Cocoa production in Ghana is expected to receive a fillip in the current crop season with a substantial price hike for farmers and a new funding deal likely to encourage growth at a time when the global climate for cocoa remains uncertain and Ghana's output has dropped.

In spite of a softer macroeconomic environment, Ghana’s banking sector is in good health, thanks to an increase in assets and strong capital ratios, which in turn is encouraging an expansion by banks into new segments of the financial services market.

An expanding economy and growing population are increasing demand for power in Ghana and while lower levels of hydroelectric generation, sparked by a long-running drought, has reduced output, the forthcoming completion of several new plants should help ensure supply keeps pace with demand.

Having been among the continent’s fastest-growing economies on the back of an oil-fuelled boom, Ghana has cut its growth target for this year and revised its forecast for inflation and budget deficit upwards as a result of slowing commodity revenues and high current spending.

News that South African Airlines (SAA) looks to be homing in on Ghana as the most likely location for a secondary hub should bolster the country’s efforts to carve a niche as a regional air transport centre.

Although lower prices and higher costs are a concern for Ghana’s mining industry, the Mining Commission’s re-evaluation of prospecting licences could add some momentum and set the scene for a welcome revival and new lease of life for private operators.