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The Ghanaian energy sector has undergone transformative changes in recent decades. When Ghana made its first discovery of deepwater oil and gas in 2007, biomass was the largest component in total energy consumption. The subsequent exploitation of this new hydrocarbons resource, combined with a national drive towards electrification, saw a significant reduction in the importance of biomass as an energy input. Ghana has one of the highest electrification rates in sub-Saharan Africa. A recent drive to develop electricity infrastructure has brought the period of unstable supply and raised installed generation capacity to an end. However, this development brought its own challenges: oversupply in the system resulted in the government paying for power it did not utilise, leading to contract renegotiations with private sector power producers that threaten to undermine investor confidence. This chapter also contains interviews with John Peter Amewu, Minister of Energy; and Kevin Okyere, CEO, Springfield Group.

After successfully weathering a period of financial instability stemming from the banking sector, Ghana’s insurance industry is growing in size and sophistication. The coming year, however, will bring a fresh set of challenges as the authorities look to roll out a new legislative framework for the industry in 2020, and as companies seek to meet the 2021 deadline for revised capital requirements. Increasing competition and lower investment returns also mean that underwriting performance is under greater scrutiny than in recent years, especially as consumer complaints against the industry rise. Insurers are responding to less favourable conditions by diversifying their distribution channels and taking advantage of mobile technology to reach previously underserved demographics. This chapter contains an interview with Justice Yaw Ofori, Commissioner, National Insurance Commission.

Sector stabilisation and reform are key focuses within the capital markets arena. While the regulator is taking steps to shore up market confidence in light of recent banking and asset management reforms, the long-term ambition of authorities is to introduce new products and services to attract the capital flows necessary for a deeper and more sustainable market. Ghana’s principal exchange is the Ghana Stock Exchange (GSE), which as of the first quarter of 2019 had 33 companies listed on its main board. In terms of market capitalisation, the GSE is dominated by the mining and petroleum sectors, which accounted for 52.5% of the total in 2018. The financial sector is the second-biggest component, contributing 23.85% to total market capitalisation, followed by ICT (15.88%), food and beverages (2.71%), and distribution (2.66%). This chapter also contains interviews with Cecilia Hesse, Managing Director, Temple Investments; and Ekow Afedzie, Managing Director, Ghana Stock Exchange.

A regulatory crackdown on poor business practices and weak capital positions in Ghana’s banking sector has resulted in a series of market exits since August 2017. The outcome is a smaller but more sustainable banking industry, though this has come at a price. The Bank of Ghana puts the total cost of its clean-up operation at GHS10.98bn ($2.1bn), equivalent to over 3% of the nation’s GDP in 2019. The central bank’s reform effort means that Ghana’s banks will have greater capacity to respond to rising demand from the private sector, thanks to larger capital bases and improved corporate governance structures. Demand for credit is likely to be driven by growing sectors such as manufacturing and mining, as well as the government’s need for debt financing to cover its fiscal deficit. This chapter also contains interviews with Ernest Addison, Governor, Bank of Ghana; and Julian Opuni, Managing Director, Fidelity Bank.

Ghana’s economy is one of the fastest growing in Africa, and its recently established oil and gas industry has made it a target for foreign investment. However, while prospects for continued expansion are good, the state faces a stubborn fiscal deficit and the longer-term challenge of reducing the nation’s reliance on a small number of exports. Fiscal and economic reform, therefore, remain top of the agenda in the election year of 2020. Ghana is Africa’s biggest producer of gold and second-biggest producer of cocoa. Since the 2007 discovery of significant oil reserves, hydrocarbons exports have been added to the roster. A reliance on export commodities, however, means that the economy has in the past been vulnerable to crop failures and falling prices. This chapter also contains an interview with Yofi Grant, CEO, Ghana Investment Promotion Centre; and Yaw Adu Gyamfi, President, Association of Ghana Industries.