Purchase OBG Publications

In conjunction with Deloitte, OBG explores the taxation system, examining Ghana’s investor-friendly environment. OBG talks to Felix Nana Sackey, CEO and Managing Partner, Deloitte.

The introduction of structural health reforms and provision management systems over the past decade has enabled the health sector to more effectively confront its persistent challenges. While many indicators are improving, diseases such as hypertension and diabetes are on the rise. There are also persistent concerns about maternal mortality and human waste disposal. The refined roll-out strategy for the National Health Insurance Scheme (NHIS), along with a renewed focus on maternal health, investment in new equipment and overall infrastructural upgrades, demonstrates a positive outlook regarding health coverage and disease prevention for Ghanaians. In education, capacity building and knowledge transfer through new training programmes, private universities and public-private partnerships are a top priority. While the budget is robust, overspending and inefficient allocations still impede optimal growth. Hard infrastructure also remains a key challenge and greater investment from the private sector is part of the government’s strategy. This chapter contains interviews with Frederik Hsu, Deputy Chairman, NMS Infrastructure; and Mark E Smith, Vice-Chancellor, Lancaster University.

Leveraging its broad range of attractions and reputation as one of Africa’s safest and most welcoming destinations, the country now has a clear road map for increasing tourism arrivals, boosting revenues, and spreading the geographical and social impact of the sector’s growth. The World Tourism & Travel Council (WTTC) forecasts that Ghana will see 1.19m international tourist arrivals in 2014, up from the 993,600 projected by the government for 2013. This trend has been moving strongly upwards in the past few years. The official Ghana Tourism Authority (GTA) has set a target of 5m arrivals by 2027, and 2m in the nearer term. The challenge now will be to ensure the continued growth of tourism through appropriate investments in infrastructure, amenities and attractions, while revamping and substantially boosting the sector’s promotional and marketing efforts abroad. This chapter includes interviews with Elizabeth Ofosu-Adjare, Minister of Tourism, Culture and Creative Arts; and Ulrich T Eckhardt, President of India, Middle East & Africa, Kempinski Hotels.

Infrastructure development in Ghana has seen a healthy progression over the past decade, mainly as a result of the Jubilee oil field discovery in 2007. Demand for construction surged in 2011-12 as the government commenced various large-scale infrastructure projects. However, the sector is not without its various challenges. Following the oil discoveries, local financing was readily available. As revenue began to slow and, more recently, the value of the cedi slid, depreciating by 27% against the US dollar from January to July 2014, a number of local banks became reluctant to fund large-scale infrastructure projects, as turnover requires a long-term investment. The recently established Ghana Infrastructure Fund intends to facilitate private investment, with a new public-private partnership (PPP) infrastructure law expected to be passed in late 2014. Capital generated by Ghana’s energy-led aggressive growth from 2010 onwards has both helped attract high-end real estate offerings, largely funded by foreign investors, and stoke home-grown demand. Returns on commercial property are steady but the real growth opportunity lies in the provision of affordable housing to the urbanised middle-income earners. This chapter contains interviews with David Adjaye, Principal, David Adjaye Associates; and David Morley, Partner and Head of Real Estate, Actis.

As Ghana’s growth has accelerated in recent years, the government has sought to boost investment in all modes of transport through public and private resources. Unlike many emerging markets, Ghana’s transport backbone covers every region of the country, with heavy concentration in the most economically developed areas, such as around the capital, Accra. Oil earnings have stimulated Ghana’s economic growth and provide the resources needed to support infrastructure development. Nonetheless, as the country moves into the middle-income bracket, limitations in infrastructure are becoming increasingly apparent, and in some cases are impeding growth in select sectors. As such, the government is keen to attract more participation from private and foreign partners. This chapter contains an interview with James Antwi, CEO, Starbow.

In spite of its role as one of Africa’s fastest growing economies, Ghana has yet to fully transition its agriculture and resource commodities base into a vibrant and diversified industrial sector. According to the Ghana Statistical Service (GSS), industry accounted for 28.6% of GDP in 2013. While not the region’s largest market, Ghana does provide a range of competitive advantages, including a transparent regulatory environment, accessible inputs and lower overheads than some of its neighbours. As with many African frontier markets, formal retailing is beginning to capture a greater share of spend as an expanding middle class increases consumption and becomes more demanding in terms of convenience and variety. Setting up shop in Ghana, however, is not without its challenges. A shortage of prime retail real estate translates into high rents, and the fact that a large proportion of consumer goods are imported leaves margins subject to currency volatility, import duties and logistics bottlenecks. This chapter contains an interview with Mustapha Ahmed, Acting Minister of Trade and Industry.