My Business advice for Ghana
Before we start talking about Ghana business and the opportunities this country gives. it is important to know what is Ghana about, you need to know the main facts about this country as we go deeper into it and talk about doing business in Ghana.
Gold Coast have rich deposits of minerals and precious metal, therefore the Republic of Ghana is acclaimed as West Africa’s golden child. As one of Africa’s intriguing success stories, Ghana is a country that is reaping the benefits of embracing democracy and development in their day-to-day running of government.
The West African nation is a vibrant civil society that keeps successive administrations in check. The years over, Ghana has made impressive strides towards amalgamating its democratic achievements, such as peaceful multi-party elections and peaceful transfer of power.
Ghana borders Cote D’Ivoire to the west, Burkina Faso to the North, Guinea to the south, and Togo to the east.
Ghana Key Facts
- The country has a population of 25.5 million
- The majority of the population communicate in English and other African languages such as Ewe, Akan
- Comprises of multiple ethnic communities
- Christianity, Islam, and indigenous traditions are the predominant religions practiced in the country
- The country has a land area of about 238,500 square kilometers
- Life expectancy for men and women is 64 years and 66 years, respectively
- Cedi is the official currency
However, when gold was discovered in the country, this attracts European trader and with it the colonization. Interestingly, Ghana was also the first country in Africa to break away from colonial rule in 1957 when Kwame Nkrumah declared independence. 2 years later, Ghana joined the Commonwealth.
However, the father of the nation, Kwame Nkrumah removed by a military coup. Which then brought years of military rule. In 1966, Kwame Nkrumah the founding father of the country, been removed from power through a military coup, which heralded years of military rule. At the time, the country’s economy suffered, leading to a second coup conducted by Flight Lieutenant Jerry Rawlings. Soon after Rawlings took over the reins of power, the government began to record economic stability and democracy.
Business Capital of Ghana
Accra is not only the capital city of Ghana but also one of the largest in the country. It lies partly on a cliff about 30 to 40 feet above sea level, spreading northwards over the wavy Accra plains. Compared to other African nations, Accra experiences occasional earthquakes due to its vulnerability to faulting.
The city is the administrative, economic, and educational epicenter of the African country. It contains most government departments’ head offices, trading firms, private corporations, and large financial firms. Accra also hosts most of the country’s leading insurance agencies, the electricity corporation, the largest open-air markets, the Accra Central Library, and the general post office.
In addition to the above institutions, significant buildings such as the Korle Bu General Hospital, Holy Trinity Anglican Church, the Holy Spirit Roman Catholic Church, the national museum, Methodist cathedrals, and the national archives stand in the city. Other important buildings and social amenities are located in the city, stressing Accra’s significance in Ghana’s socio-economic development.
Due to recent good governance, Accra has well-paved roads and seamless transportation services. Processed food, textile, and lumber are some of Accra’s chief manufacturers.
Geography and Location
The West African nation is on the Gulf of Guinea, a few degrees north of the Equator. Due to these factors, Ghana enjoys a warm climate all year through. The landmass area is about 238,000 square kilometres. Togo, Côte D’Ivoire, the Gulf of Guinea, and Burkina Faso all border Ghana from the east, west, south, and north respectively. The country is divided into 16 regions; since December 2018.
Ghana experiences a tropical climate where wet and dry seasons are shared throughout the year. For instance, in the south, the wet season runs from April to November and the north from March to November.
The southern part of Ghana has semi-deciduous forests that contain ebony, Odum, and mahogany trees. On the other hand, the central region has baobabs, Shea, and acacias trees.
Religion in Ghana
In Ghana, more than half the population are practicing Christians, and about a fifth are Muslims. A small section of the population adheres to traditional ethnic customs and beliefs.
Although traditional customs and beliefs are widely observed and deep-rooted among many, they lack a systematic body of doctrines. Most traditional religions believe in the existence of a higher power, just like other modern-day religious institutions.
Considerable eminence is accorded to dead ancestors, as they are regarded as mediators between the living and the gods. It is also believed that ancestors can influence the trajectory of living events due to their ever-present nature.
During the time of colonialism, Christianity gained ground in the country at the expense of the traditional customs and beliefs, but the trend slowed down after independence. During the time of colonialism, Islam also spread across Ghana due to the Middle East traders. At present, the influence of Christianity is most substantial in the southern parts of the country. At the same time, Islam is dominant in larger urban centers and Ghana’s extreme northern side.
Many spiritualists and churches that blend two or more religious beliefs claim some loyalty to Christianity combined with indigenous customs and beliefs in divination and magic. This type of syncretistic religion is quickly making its way in Ghana as many people feel more comfortable fusing Christianity with traditional culture.
There are other Christian church divisions in Ghana, such as the Roman Catholic denomination and Protestant.
According to 2019 estimates, the total population in Ghana is about 31 million people, with an annual population growth rate of about 2.5 percent.
Moreover than 35 percent of the country’s population is under the age of 15, with the average number of children per woman remaining higher than other countries of the world. The average number of children per woman in Ghana stands at about 3 to 4 children. However, the rate at which women adopt family planning methods such as contraceptives is witnessing a sharp increase annually.
Now, Ghana ranks at number 46 among 197 countries, according to internal research. Unlike other countries, the male population in Ghana is greater than that of women, with men representing 15,084,235 or 50.67 percent of the population than women at 14,682,873 or 49.32 percent. In terms of density population, Ghana has about 130 people per square kilometer.
Ghana Climatic Conditions and Weather
Like other West African nations, Ghana’s climatic conditions are influenced widely by the interaction of 2 air masses. These include a warm, tropical air mass coming from the South Atlantic and a hot and dry mainland air mass originating from the Sahara Desert.
The warm tropical air mass travels northwards with the southwest winds, while the mainland air masses travel southwards with the Harmattan winds that are also known as northeast trade winds.
Ghana Business Climate
After all the Ghana Government continues to record favourable economic growth rates annually. Thanks to its democratic and development-oriented political system.
Some of the top investment opportunities in the country include:
- Real Estate: The country has been witnessing a surge in construction in Accra and neighboring towns. This is due to its thriving oil and gas market.
- Telecommunication: According to estimates by local research, the mobile penetration in Ghana has passed the 100 percent mark, paving the way for telecommunication opportunities.
- Financial Services: When it comes to the demand for financial services, Ghana leads the western region. At present, financial service provers and banks are struggling to meet the oil, gas, mining, energy, and telecommunication sectors’ needs.
- Industrial: Although Ghana is one of the more advanced countries in sub-Saharan Africa. It is still far from realizing its full potential. Untapped areas include the gas, oil, and pipeline manufacturing sectors, car manufacturing, and agriculture.
- Services: ICT, teaching, and health services are in high demand in Ghana at present.
For foreigners wishing to start a business in Ghana, they might want to consider the following factors:
State Capital and Ownership Requirements
Every company owned by a foreigner has to register and satisfy the requirements of GIPC while meeting specific capital and ownership requirements.
Offshore Owned Company
For businesses wholly owned by foreigners, they must have a minimum capital of 500,000 USD to operate in Ghana.
Joint Venture Business with a Citizen
In a joint venture business between a foreigner and a resident, the foreigner shareholder must contribute 200,000 USD to the company as capital. According to the GIPC Act of 2013, Ghanaian citizens are mandated to hold not less than 10 percent of the company’s equity.
Apart from the 200,000 USD and 500,000 USD capital required from foreigners. There is another 1 million USD capital requirement for trading enterprises, requiring Ghanaians to contribute. According to the 2013 GIPC Act, a Trading Enterprise is outlined as a company tasked with buying and selling imported goods and services.
For foreigners wishing to open a business in Ghana. The minimum capital requirement either in the form of cash or equipment is 1 million USD, 500,000 USD, or 200,000 USD, depending on the business category they wish to operate.
When you consider all factors, Ghana has a favorable business environment that promises good returns due to the lack of manufacturers and essential commodities.