Financial Data
Updated 21 Jul 2017


Ghana

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Business opportunities and risks

Opportunities for you to do business in Ghana

Ghana-Brochure-Image

Due to its coastal location and the population’s growing demand for products and services, Ghana presents opportunities for growth in the technology and service sectors.

Here’s how your business could benefit from establishing a presence in Ghana:

  • The investment climate in Ghana caters for foreign investment. Investors get extra incentives for projects that the country classifies as crucial to its development
  • The country has a well-established democracy, political stability, ample natural resources, a favourable demographic profile and a relatively accommodative business environment
  • Food, oil, gas and minerals processing have been identified as sectors with potential for growth
  • The country aims to privatise its energy sector to relieve electricity supply constraints by involving independent power producers (IPPs). This provides opportunities for companies within renewable energy offerings.
  • E-commerce in Ghana is expected to increase, as internet penetration rates have increased sharply in recent years. There are signs that the country may experience strong market growth, and this should result in more internet users with bigger disposable incomes. 
Business opportunities
  • Investors receive incentives for projects that Ghana classifies as crucial to its development.
  • The country has a well-established democracy, political stability, ample natural resources, a favourable demographic profile and a relatively accommodative business environment.
  • Food, oil, gas and minerals processing have been identified as sectors with potential for growth.
  • The country is looking to privatise its energy sector.
Operational risks to consider

High operating costs and underdeveloped infrastructure are just two of the challenges you can expect when expanding into Ghana. The following operational challenges have also been identified as risks to the development environment:

  • Electricity shortages limit the productivity of power- intensive businesses and also pushes up production costs
  • Power cuts have meant consumers may have 12 hours of electricity followed by 24 hours without. Commercial users are supposed to have 24 hours on and 24 hours off, but they often receive less electricity than scheduled.
  • Establishing a business in Ghana is a lengthy process. Applicants have to comply with the regulations and procedures of at least five government agencies
  • Persistent oil price drops foreshadow limited economic growth prospects
  • Inflation is a serious concern. Ghana generally targets an inflation rate of 17%. This is rather high and may imply inflated costs. VAT of 17.5% was imposed on domestic air travel in July 2015. Electricity and water tariffs have gone up, as have gasoline prices.

The cost of doing business is high. The minimum capital required for wholly foreign-owned enterprises is USD500 000.This is USD300 000 higher than for an enterprise jointly owned with Ghanaian partners. A joint venture between foreign-owned enterprises and local enterprises would require a minimum of USD200 000.

Business challenges
  • Limited broadband access.
  • The country has one of the highest rates of inflation.
  • Electricity shortages can affect energy intense businesses from meeting production deadlines.
  • Inflation is a serious concern. Ghana generally targets an inflation rate of 17%. This is high and may imply inflated costs.
  • Establishing a business in Ghana is a lengthy process. Applicants have to comply with the regulations and procedures of at least five government agencies.
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