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After rising 71.8% in 2013, Ghana’s stock market had a modest 2014, with the benchmark index up just 5.4% (and most of that rise seen in the beginning of the year following on the 2013 rally). To a great extent, the muted performance reflected external circumstances, namely the drop in commodity prices and the prospect of rising interest rates in the US. Currency depreciation against the US dollar was an issue as well. Nevertheless, Ghana’s markets are developing in spite of the limited trading volumes, with momentum building and a solid foundation being set for future growth. Companies are continuing to list on the Ghana Alternative Exchange (GAX), the depository is installing a new working platform and an electronic bond market is being created. In addition, a new and far-reaching Securities Law is in the works that could result in a wider range of products on the market, better and more effective regulation, and more flexibility for investment funds. This chapter includes a viewpoint from William Adjovu, CEO, Liberty Capital.

Despite the challenges faced in the economy in general – for example, the decline in the currency, the rise in government debt, low commodity prices and a persistent deficit – the Ghanaian banking sector has remained profitable and well capitalised. The country’s lenders have managed not only to survive but also to thrive. The banking sector is highly competitive and open, albeit somewhat crowded. The country has 28 deposit money banks, 60 non-bank financial institutions, 138 rural and community banks, and 503 microfinance institutions. This chapter includes an interview with H A Kofi Wampah, Governor, Bank of Ghana (BoG).

The Ghanaian economy is strongly correlated to global commodities such as cocoa, gold and oil, which are the three main sources of income and foreign currency. Price swings for these three resources, increased spending on domestic public sector wages, an electricity shortage and other external factors have combined to slow the pace of development in recent years, leading to a depreciating currency and a budget shortfall. According to provisional statistics, GDP for 2014 was estimated at $33.4bn, indicating year-on-year growth of 4%, while non-oil GDP totalled $31.12bn. New offshore oil and gas fields are expected to accelerate economic growth starting in 2016, with energy set to contribute 2% to GDP in 2016 and 4.1% by 2017. This chapter includes interviews with Seth Terkper, Minister of Finance, and Mawuena Trebarh, CEO, Ghana Investment Promotion Centre (GIPC).

Revenues for RAK’s tourism sector rose 44% in 2014 and the total number of overnight stays by guests grew by 72% to reach 2.14m.The tourism sector is estimated to support 307,000 jobs across the UAE, or 5.4% of total employment, which is expected to rise by 5.4% in 2015 and 2.6% per annum until 2025. Developers hope to see the area grow substantially in the next few years as the mixed development of holiday homes, restaurants, marinas and numerous hotels will make a significant contribution to the economy and change the shape of the hospitality sector.

Moves towards the development of a knowledge-based economy have begun in RAK as the emirate implements education reforms and student enrichment initiatives get under way. The Ministry of Education’s mid-range policy for the 2015-21 period targets knowledge integration in industries related to science, technology, engineering and mathematics. Meanwhile, with the federal goal of meeting 15% of total energy demand via renewable sources by 2030, RAK’s research institutions are increasingly involved in launching their own renewable energy projects.