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OBG’s partner Deloitte lays out what investors need to know about income tax legislation in Ghana. This section also includes a viewpoint from Felix Nana Sackey, CEO, Deloitte Ghana.

More than ever before, Ghanaians have seen their access to health care improve, and as a result they are living longer, healthier lives. Since the roll-out of the National Health Insurance Scheme (NHIS) in 2005, 10.2m active subscribers had been added to the scheme as of end-2014, out of a total population of 25m. This has led to improvements in average life expectancy, which, in the decade leading up to 2014, rose from 57.79 years (2003) to 61.1 years (2013). The maternal mortality rate has declined steadily as well, to 380 deaths per 100,000 live births in 2013, down 49% from 1990, though the country is still some way off from reaching the UN Millennium Development Goal of 185 deaths per 100,000 live births. The health care system is currently dealing with considerable financial challenges, but ongoing developments suggest a positive, and healthy, future for the sector. This chapter includes an interview with Nathaniel Otoo, Chief Executive, National Health Insurance Scheme (NHIS).

Universal access to basic education has been a key goal for Ghana, and the country has continued on its path towards full enrolment. At the same time, Ghana has focused on improving and expanding its existing school infrastructure, particularly at the senior high school level through its Secondary Education Improvement Programme, launched in May 2014 and aimed at increasing access to senior secondary education in underserved communities. Educational enrolment levels have continued to improve, in part due to the success of government efforts, and the country has moved closer to achieving the Millennium Development Goal of universal primary education by 2015. Regardless, performance rates have left many in Ghana concerned about the readiness of graduates entering the university system.

Over the next 12 years Ghana aims to move from an off-the-beaten-track locale to a major player in African tourism. Ambitious plans are afoot to increase visitor numbers five-fold by 2027, capitalising on the country’s natural beauty, cultural heritage, hospitality, and safety and security. The World Travel & Tourism Council forecasts that the tourism sector will grow by an annual average of 4.5% per year between 2014 and 2024. This is in line with broader economic growth: the council expects tourism and travel to contribute the same 3% to GDP in 2024. A new, well-financed tourism authority is already implementing a detailed strategy emphasising private sector leadership and investment. This chapter includes an interview with Charles Osei-Bonsu, CEO, Ghana Tourism Authority.

Growing year-on-year as a contributor to the economy, Ghana’s construction sector is increasingly dynamic and led by private sector participants. While parts of the real estate market have slowed in recent years, demand for low-cost housing remains as strong as ever. Government investment is a major driver of growth, with a substantial pipeline of projects in transport infrastructure in particular expected to be rolled out in the coming years, often using public-private partnership models. Construction activity contributed $3.8bn to GDP in 2014 at current prices, according to the Ghana Statistical Service. This was equal to 12.7% of GDP and up 26.9% from $2.9bn in 2013. The sector has grown strongly over the past decade, up from $280.3m in 2006, and has become of increasing importance to the broader economy, more than doubling as a contributor to GDP from 5.7% in 2006.

While Ghana boasts a number of advantages for manufacturers, including access to a 300m-person regional market, a host of raw material inputs and competitive labour costs, 2014 was a particularly challenging year for the industrial sector. In large part this was due to a declining currency, power shortages, limited credit and high overhead costs. Nevertheless, industry still accounts for 28.4% of GDP and generated output worth $8.5bn in 2014. The government’s goal is to increase annual revenues from non-traditional exports from $2.3bn to $5bn by 2017, as well as reduce the trade deficit. While the Ghanaian retail market is relatively untapped, rising incomes suggests its time is coming. Research indicates that over 479,000 households, or 9% of the total, will be in the $10,000-per-year-plus bracket by end-2015. With a large and growing middle class benefitting from higher disposable incomes, retail spending is expected to reach $11bn by 2019.