A number of key developments in the country are expected to support economic growth in the coming years. A rapidly improving business environment and infrastructural base, the gradual liberalisation of the local currency and increased investment into export-oriented industries are all set to raise living standards and drive the emergence of a large national middle class.
In conjunction with PwC, this chapter explores the taxation system and Ghana’s efforts to build an investor-friendly environment. This chapter contains a viewpoint with George Kwatia, Tax Partner, PwC Ghana.
Ghana’s economic development is leading to heightened demand for specialised private health services, while on the public side; the government has made commitments to improve universal health coverage and is implementing plans to tackle specific challenges such as non-communicable diseases and a shortage of health professionals. Such commitments to legal reform and public resource provision will help spur further investment; however, challenges remain, including weaknesses in the National Health Insurance Scheme and high pharmaceutical and health care costs, all of which tend to have the greatest impact on low-income citizens. As for the education sector, the government has prioritised educational reform in recent years in a bid to improve access at all levels of the system. To this end, in 2018 the state introduced its Free Senior High School policy, an initiative which provides free tuition for attendees at all public secondary schools. On top of this, to improve learning outcomes and help fulfil demand in the job market for certain skills, the authorities have also encouraged greater investment in education infrastructure and strengthened technical and vocational education and training. This chapter contains an interview with Kwaku Agyeman-Manu, Minister of Health.
With significant potential to drive economic growth and job creation, the tourism sector is increasingly an area of focus for investment in Ghana. While the Bank of Ghana lists the sector as the fourth-highest foreign currency earner behind gold, cocoa and remittances, Ghana still has some way to go to become a destination of choice on the continent. Significant funding has therefore been committed to developing the sector through investments in infrastructure and skills development. With hotel capacity set to increase and a prominent profile in international circles as a safe and investment-friendly destination, Ghana’s tourism sector looks on track to continue growth. For sustained development, however, Ghana must address some key infrastructure bottlenecks. Chief among these is the road network outside of the Greater Accra Region, which must be developed and expanded to improve access to other parts of the country. This chapter contains an interview with Catherine Afeku, Minister for Tourism, Arts and Culture.
A budget prioritising infrastructure investment, one of the world’s fastest-growing economies and strong demand from demographic growth are the main factors driving the Ghanaian construction and real estate industries. In the construction sector public projects to build and improve roads, railways and social infrastructure are in the pipeline, in addition to the $5bn in UN-backed investment in affordable housing to address the country’s shortage. The sector’s growth has led to renewed calls for the establishment of an official body to regulate and promote construction business, particularly to support domestic companies and tackle malpractice. As for the real estate sector, thanks to a robust economy and the government’s reform programme, various segments, from high-end residential real estate to industrial and logistics property, are performing strongly. Growth is set to continue through 2019, though investors are keeping an eye out for downside risks and segments in which there is oversupply.
A range of game-changing infrastructure projects are set to reshape Ghana’s transport sector over the next half-decade, and 2019 should be a year of redoubled investment by the government. The country’s two main ports continue to expand, the budget for road development has increased by nearly 150%, the long-awaited transformation of the railway network is progressing and a new national airline is scheduled to join Accra’s new airport terminal. Public-private partnerships are central to this expansion, and local firms are joining a growing list of partners from Asia and Europe. The efforts of successive administrations to harness the expertise, technology and capital of domestic and foreign companies continue to bear fruit, and a commitment to improving transit systems as a key to unlocking broader economic growth should create further opportunities for private partners in 2019. This chapter contains an interview with Solomon Asamoah, CEO, Ghana Infrastructure Investment Fund.
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