With a population of about 27 mn and a GDP per capita of USD 1,700, Ghana has experienced strong, stable growth for the last 15 years. Between 2006 and 2012, Ghana was considered a role model for economic growth and grew at a high CAGR of 7.7% driven by natural resource exploration and exports. It was also one of the top five recipients of FDI in Africa in 2015 attracting USD 3.2 bn in foreign investment inflows.

1. 23
1. Ghana
1.1 Country overview
1.1.1 Ghana as an investment destination
With a population of about 27 mn and a GDP per capita of
USD 1,700, Ghana has experienced strong, stable growth for
the last 15 years. Between 2006 and 2012, Ghana was
considered a role model for economic growth and grew at a
high CAGR of 7.7% driven by natural resource exploration
and exports
89
. It was also one of the top five recipients of FDI
in Africa in 2015 attracting USD 3.2 bn in foreign investment
inflows.
As the most stable English-speaking country in West Africa, Ghana is a destination of choice for the
regional headquarters of companies and institutions. With a long coastline, it is well-positioned as a
regional entry and exit point on trade routes, offering two large ports which continue to be expanded.
It also has direct, quick air links to Europe and the US.
Ghana is an active member of key regional integration arrangements in West Africa and in the
continent, including the African Union, the Economic Community of West African States, and the West
African Monetary Zone. Ghana recently signed the economic partnership agreement (EPA)
90
with the
EU that provides duty-free and quota free access to the EU market for an unlimited period for all
imports originating in Ghana
91
. Ghana also enjoys access to the US market under the Africa Growth
and Opportunity Act (AGOA)
92
which has now been extended until 2025. Under AGOA, a large variety
of local products are exempt from USA import tariffs and quotas. This presents a great opportunity for
Ghanain companies to diversify beyond the two key export commodities of raw cocoa and gold.
Ghana maintains strong relations with the UK, US, EU and emerging powers such as China, India
and South Africa that have helped it bolster investments into the country.
Ghana is also considered one of the well-governed and stable states in the African region, with free
and open elections, comparatively low levels of corruption and a broader social stability. There are
numerous political parties with a stable political settlement around two major parties, the National
Democratic Congress (NDC) and the National Patriotic Party (NPP). There have been six successful
multiparty elections since 1992, with three peaceful transfers of power. In 2013 the country
successfully resolved a dispute over the outcome of the close December 2012 presidential elections,
which reinforced Ghana’s reputation as a stable and maturing democracy in the region. Recent
elections were held in December 2016 and won by former foreign minister Nana Akufo-Addo of the
opposition party.
Ghana's abundant natural resources including vast agricultural land, cocoa, gold, oil and gas and
other minerals hold potential of driving strong economic growth for the country in the near future.
Ghana has emerged as one of the most prominent
investment destinations in the African region driven
by its dynamic economic growth, strategic location,
stable democratic political system and wealth of
natural resources.

2. 24
Ghana is the world’s second-largest exporter of cocoa globally (840,000 Mt in FY '16)
93
, and second
largest producer of gold in Africa (85 Mt in 2015). Ghana has proven oil reserves of 0.7 bn barrels and
is ranked 42
nd
in the world
94
. Both oil and natural gas production are expected to increase within the
next five years with the start of new offshore projects.
After 2012, Ghana's economy took worsened
with growth going down from 9% in 2012 to 4%
in 2015.
95
The overall economic situation also
deteriorated and the country witnessed 3 years
of increasing debt, high inflation and
depreciating currency.
A combination of factors led to this deterioration, such as
macroeconomic shocks, policies and institutions. On the
policy side, in 2012, there was a large expansion in the
fiscal deficit which was driven by wage increases and a
reform of the pay scale. It was accompanied by increases
in other public spending witnessed after the 2012 Arab
spring and over-optimistic revenue projections by the
government.
96
As a result, fiscal deficit almost tripled
during 2012. Monetary policy also couldn’t respond quickly
and it resulted in the Ghanaian cedi (GHc) depreciating by
~52% against the USD between 2012 and 2015, pushing
inflation to over 17 percent.
Institutional rigidities in the public finance system made
subsequent adjustment efforts challenging. Large spending conducted by agencies and widespread
earmarking of revenues within the budget and constrained the expenditure reduction. Also, large tax
exemptions made reversing revenue shortfalls more difficult.
The global gold price started declining at the end of 2012 which further accentuated Ghana's problem
and adversely impacted its foreign exchange reserves and current account balance.
Also, Ghana had been facing acute energy shortage since 2012 which led to frequent power outages
across the country. The situation further worsened in 2015 with energy supply getting adversely
affected by the impact of lower rainfall on hydroelectric power generation and disruptions to the
supply of gas from Nigeria. Power unavailability adversely affected private sector activity and led to
collapse of several companies.
1.1.2 Government's policy response
Turbulent external environment and
macroeconomic challenges between
2012 and 2015 led to a slowdown in
Ghana's economy
Source: "Global Economic Database". 2017. Oxford
Economics.
http://www.oxfordeconomics.com/forecasts-and-
models/
Source: "Perspectives Economiques En Afrique". 2016. Perspectives
Economiques En Afrique. http://www.africaneconomicoutlook.org
The government has formulated and launched short and medium term strategies to
overcome the fiscal and energy crisis and to reduce the poverty level in the nation

3. 25
In response to the ongoing fiscal and external challenges, the government of Ghana formulated a
medium-term development framework, the Ghana Shared Growth and Development Agenda
(GSGDA) - II, 2014 – 2017. Its medium-term vision is “A stable, united, inclusive and prosperous
country with opportunities for all”. Through implementation of the development agenda, Ghana hopes
to transform into a full-fledged Middle Income Country with per capita income of around USD 2,500 by
end of 2017, and at least USD 3,000 by 2020.
The success of Ghana’s structural transformation rests on three strategic interventions namely:
(i) strengthening and deepening the essential elements and institutions of good governance,
(ii) promoting export-led growth through products that build on Ghana’s comparative strength in
agricultural raw materials; and (iii) anchoring industrial development on prudent use of natural
resources based on local value addition. Thus, the strategic direction of GSGDA-II is to enhance
agricultural potential and human resources and to leverage Ghana’s natural resource endowments for
accelerated economic growth and job creation.
The development agenda addresses the causes of poverty by emphasizing inclusive growth
underpinned by Ghana’s natural resource endowments and local value addition. The focus on fiscal
consolidation in the short to medium term will promote macroeconomic stability as a solid foundation
for long term inclusive economic growth.
In support of its medium term development program to restore macroeconomic stability, Ghana
entered a 3 year USD 918 mn extended credit facility (ECF) agreement with the IMF
97
in April 2015.
The program focuses on addressing Ghana’s key credit weaknesses through prioritizing fiscal
consolidation, raising revenue and improving Central Bank policies.
Over time, commitment to the program is expected to result in a recovery of donor inflows, foreign
investment in the domestic bond market, and easing of domestic funding costs.
The Ghana Export-Import (EXIM) bank has been setup to offer credit, guarantees, insurance and
development finance to support Ghanaian exporters for building Ghana's competitiveness in
international markets. EXIM will be financed from a levy of 0.675% on the dutiable value of imports of
non-petroleum products which was hitherto payable to the Export Development and Agricultural
Investment Fund now replaced by Ghana EXIM. EXIM is even though set up to be independent in the
performance of its duties, it is accountable to the Minister of Finance on the achievement of its
objectives and compliance with its enabling Act.
Also, the Ghana Infrastructure Investment Fund (GIIF) has been established with a legal backing
targeted at projects that have the potential to induce transformative growth. Some current projects
that are commercially viable will be transferred to the GIIF for execution as soon as it becomes fully
operational.
To address the energy crisis, a number of short- and medium-term measures have been undertaken
and new investments made. At the peak of the crisis in mid-2015, Ghana's electricity generation
deficit hovered around 400 MW to 600 MW which resulted in load shedding. New projects have been
undertaken by the government to enhance power generation in the country. The Electricity Company
of Ghana (ECG) signed a Power Purchase Agreement (PPA) with Karpowership for two power barges
in June 2014
98
. The electricity generated from the barges is directly fed into Ghana’s electrical grid
and will continue for 10 years. In January 2016, Africa and Middle East Resource Investment (AMERI)
power units were moved to the Aboadze power enclave adding another 250 MW to the National
Electricity Grid, comprising ten units of generators with each one having a capacity of 25 MW. In

4. 26
addition, the Sankofa gas project which is currently under development will add another 1000 MW to
Ghana's electricity generation capacity, potentially transforming Ghana's power sector. These
initiatives have been complemented by reforms such as prepaid metering and tariff adjustments and
levies aimed at strengthening the balance sheet of the Volta River Authority and the Electricity
Company of Ghana (ECG).
99
Lastly, Ghana’s poverty reduction strategy as per GSGDA II amounted to GHc 5.3 bn of government
expenditure or 4 percent of GDP in 2015. These interventions supported (i) targeted cash transfer
programs—the Livelihood Empowerment Against Poverty (LEAP) and Social Inclusion Transfers
(SITs); (ii) health measures such as exemptions of low-income households from health insurance
payments; and (iii) education measures such as Ghana School Feeding Program. Some 89 thousand
households benefited from the LEAP program in 2015 through bi-monthly cash grants, with total
allocation of GHc 6.7 mn. In 2016, the LEAP program is expected to be expanded to cover over
250,000 beneficiaries, at a cost of GHc 50 mn
100
. SITs (implemented by the Social Investment Fund),
aiming at social inclusion at the local level, provide support to poor urban communities under the
Urban Poverty Reduction Project (“UPRP”). About 3,356 households and 10 thousand individuals
have benefited from quarterly cash transfers at a total cost of GHc 0.7 mn. Given the high level of
unemployment, the Government of Ghana has also been improving conditions for small business
development, including through public infrastructure and training.
On the back of these reforms, Ghana's macroeconomic conditions and growth have started
recovering. Ghana substantially reduced its overall (cash) deficit from 10.1% of GDP in 2014 to 9% in
2016 and aims to narrow it further to 6.5% of GDP in 2017. Real gross GDP in the first quarter of
2016 grew by 4.9 % (in comparison to 4.5% in 2015), with the non-oil economy growing at 6.6 %.
Also, economic growth is expected to be supported by a more stable electricity supply. The electricity
crisis eased towards the end of 2015 as the expansion of power generating capacity by 800 MW
helped balance rapidly growing demand with supply.
In September 2016, IMF rated Ghana's implementation of the Extended Credit Facility (ECF)
supported program as satisfactory despite highlighting a challenging economic outlook. Its economic
growth is expected to recover to 5.8% in 2016 and 8.7% in 2017.
1.1.3 Challenges to growth
In the World Bank report - Doing Business 2016, Ghana
101
ranked a low 108 out of 190, which is a
climb of 6 ranks from the previous year. Although Ghana scores better than the regional average in
documentary compliance for time to export, cost to export, cost to import and border compliance, it
needs to particularly improve on ease of starting a new business, trading across borders, and ease of
getting electricity. In the past, the frequent power outages adversely affected industry. Government
has taken steps to overcome some of these challenges but a pickup in business activity as a result of
these improvements remains to be verified.
The biggest challenges to Ghana's growth in the medium term remain in terms of tackling
debts and taming the public payroll. The other major risk is that the new policies related to
campaign promises of the new government could affect the businesses adversely.

5. 27
In addition, while there are subtle changes in the
economic policy of the new president, post 2016
elections, the government's big challenge remains
to tackle debts and tame the public payroll.
Industrial action, actual and threatened, is putting
pressure on the government as it seeks to
manage its debts. Also, turning campaign
promises of the new government such as 'one
district one factory', 'one village one dam' and 'one
constituency, one million dollars per year' into
reality will require substantial improvements in the
overall situation
102
.
1.1.4 Analysis of high potential industries
In 2015, Ghana had a GDP of USD 47 bn with the services sector (comprising mostly of non-tradable
services) contributing the largest share at 56% in 2015, followed by industries at 24% and agriculture
at 20%. Gold, cocoa and more recently oil are the major foreign exchange earners and form the
cornerstone of Ghana's economy.
Based on the strategic importance, investment potential and government promotion
intensity of different sectors of the Ghana's economy, we analyzed 3 sectors that are
particularly interesting for foreign investors - 1) Oil and Gas, 2) Agriculture and Agro-
processing and 3) Construction
Source: "Doing Business in Morocco". 2016
http://www.doingbusiness.org/data/exploreeconomies/ghana
Source: "Undata | About Us". 2016. Data.Un.Org. http://data.un.org/CountryProfile.aspx

6. 28
Ghana’s energy sector is young and expected to grow fast at CAGR of 24%
103
from 2015-20. A
second major oil and gas field (TEN
104
) recently commenced production in August, 2016 and a third to
follow soon (Sankofa-Gye). The government drives large investments into the sector as it is critical for
Ghana's economic rebound and successful implementation of reforms. In the face of a large fiscal
deficit, increasing oil production can help the Ghanaian government reduce expenditure on energy
imports and conserve valuable foreign reserves. The regulatory environment in the sector is improving
with the establishment of regulatory regimes in the upstream market and price deregulation in the
downstream market.
Ghana's agriculture and agro-processing sector remains a vital contributor to economic activity with
20% contribution to GDP in 2015
105
. It provides employment to almost half of the working population
of Ghana. The country cultivates a rich array of staples and cash crops and is the second-largest
producer worldwide of cocoa. The sector experienced a year-on-year growth rate of 4.6% in 2014 and
remained the second-fastest-growing part of the economy behind only services (5.6%). Several
investment incentives have been extended by the government for this sector including tax holidays,
income tax exemptions, 5 year loss carry over and investment guarantees.
Construction activity in Ghana contributed GHc 2.9 bn (8.6%) to GDP in 2014 as compared to a 5.4%
contribution in 2006 and has become increasingly important to the broader economy. Ghana's
construction and infrastructure sector growth is driven by a strong unfulfilled demand for housing and
government investment into infrastructure projects. As per UN Human Settlement program, 2 mn new
housing units are required in Ghana by the beginning of 2020 owing to the growing population and
prosperity levels. Significant supply shortages exist in both the higher end luxury market and the low-
cost housing market. In 2015, the government launched the National Housing Policy which
encouraged investment in low cost housing by creation of a guarantee scheme worth USD 1.5 bn and
by creation of a National Housing Fund for providing affordable mortgages. Government investment is
another major driver of growth, with a substantial pipeline of projects in transport infrastructure in
particular expected to be rolled out in the coming years, often using public-private partnership models.
1.2 Oil and Gas sector
1.2.1 Sector Overview:
Ghana’s oil and gas sector contributed 7% to
Ghana's GDP in 2015. The sector has expanded
considerably after the discovery of the Jubilee oil field
in 2007, which now produces light sweet crude oil.
The field came online in 2010, and production in
Ghana has since increased from almost 9,000 barrels
per day (b/d) in 2010 to almost 101,000 b/d in 2015,
according to government estimates.
106
Technical
challenges at the Jubilee field have prevented it from
reaching its expected production plateau of 120,000
Oil and gas sector in Ghana expanded considerably since 2010. Production is expected
to increase owing to new oil and gas fields that are expected to come online by 2018
Source: World Bank, UN Data http://data.un.org/

7. 29
b/d
1
.
In addition to the Jubilee field, two other fields – TEN and
OCTP – are currently being commercially developed for
monetization. TEN project (an integrated development of
the Tweneboa, Enyenra, and Ntomme fields) came online
in August 2016 and is planned as a 80,000 b/d
development with ultimate recovery of roughly 240 mn
barrels. In addition, TEN is expected to supply 50 mn
cubic feet per day (MMcfd) of gas beginning in 2018.
Tullow Oil is the operator of both Jubilee and TEN.
The third development is the Offshore Cape Three Points
(OCTP) block, which includes the non-associated gas
fields of Sankofa and Gye Nyame (“Sankofa gas field”) as
well as the Sankofa East oil field. The OCTP fields are
developed by Eni Exploration and Production Ltd. a
subsidiary of Eni S.p.A. of Italy and Vitol Group of the
Netherlands.
To support the development of the gas fields, a gas processing and transportation project from the
Jubilee site to the Aboadze power complex near Takoradi in Western Ghana was commissioned in
2015. About 100 MMcfd of associated gas from Jubilee is expected until the Sankofa gas field comes
on line in 2018.
Tullow oil, Anadarco Petroleum and Kosmos Energy together control over 75% of the revenues in the
oil and gas extraction sector in Ghana.
Institutional responsibility for managing the oil
and gas sector is divided into three mandates.
The Ministry of Energy and Petroleum has policy-
making and oversight responsibility for the sector.
The Petroleum Commission is the upstream
regulator with responsibility for, inter alia,
qualifying licensees, approving exploration and
development plans, and implementing local
content regulations. Ghana National Petroleum
Corporation (GNPC) is the national oil company
with responsibility for commercializing oil and
gas. GNPC negotiated the petroleum agreements
with International Oil Companies (IOCs) and holds the participating and carried interests under each
petroleum agreement. Because of GNPC’s extensive experience, it acted in the past as de facto
regulator until the establishment of the Petroleum Commission.
1
In July 2015, Jubilee’s production was almost halved because of problems with gas compression
systems on its Kwame Nkrumah FPSO (floating production, storage, and offloading vessel). Between
March and May of 2016, a technical issue with the FPSO’s turret again restricted the field’s
operations.
Oxford Business Group, Report on Ghana 2014;
http://www.oxfordbusinessgroup.com/ghana-2014/energy-utilities

8. 30
1.2.2 Drivers and growth outlook:
A boost to the oil and gas sector can help provide the much needed growth to Ghana's economy
which faces a large fiscal deficit and declining foreign exchange revenues from gold exports. The
increase in oil exports and compressed aggregate demand resulting from the ongoing fiscal correction
will support an improvement in the external current account deficit over the medium term, from about
7.5 percent of GDP in 2015 to about 5 percent in 2017.
Commercialization of Ghana's natural gas resources also addresses the country's urgent need to
develop internal sources of power for overcoming the power crisis without losing valuable foreign
exchange.
107
The current volumes of proven reserves in Ghana’s domestic gas fields are sufficient for
domestic use of gas for the medium term. The power sector critically depends on additional gas
resources becoming available as an alternative and relatively less expensive fuel source to improve
electricity services and reestablish the sector’s financial equilibrium. Harnessing of more domestic
natural gas resources for future electricity generation will significantly lower electricity production costs
and thus reduce the need for fuel subsidies for the power sector which in the past several years have
amounted to over half a bn USD.
The sector also drives investments in basic and high level public infrastructure, for example, airports
and planned townships of global standards for meeting the needs of international energy
organizations investing in the country. Over the medium term, financing of Ghana’s Growth and
Poverty Reduction Strategy is critically dependent upon the revenues generated from royalties from
hydrocarbon exports.
Additional investments by the government of Ghana, global development institutions and the private
sector for developing new oilf fields are driving the growth in the sector. GNPC plans to incur costs of
USD 1.25 bn until 2020 for the development of Jubilee, Sankofa and TEN fields in Ghana. In 2015,
the Ghanaian government received a USD 700 m loan from World Bank in guarantees for the
Sankofa Gas project, as a part of wider program of support based around technical assistance for
energy sector reform. The project aims to increase the availability of natural gas for power generation
by leveraging private capital investment. The proposed guarantees will mobilize private investment in
Ghana’s domestic gas sector and facilitate an investment of up to USD 7.9 bn by private sponsors.
1.2.3 Foreign investment opportunities:
Each of the developing fields offers a plethora of opportunities to companies / suppliers to provide
equipment or enable the laid out plans. For example, the USD 7.9 bn development plan of the OCTP
Rapid development of the oil and gas sector is one of the top priorities of Ghanaian
Government as it will drive macroeconomic performance improvement; help overcome the
power crisis without losing valuable foreign exchange and drive development in the
associated real sector.
Ghana is ranked fifth in Africa as the most attractive investment destination for Foreign
Direct Investment (FDI), mainly due to the opportunities emerging in the oil and gas sector

9. 31
block
108
offers opportunities to provide pipelines, pumping equipment and associated infrastructure
around compression stations.
While huge capital investments are inevitably required to develop the infrastructure necessary for oil
exploration, external technical expertise is also required – to train the existing unskilled workforce,
improve downstream operational efficiencies and support sustainable growth practices. These needs
for investment and technical expertise offer immense opportunities for global and regional entities
focused on the oil and gas sector.
Financial markets are also enabling investors to access the oil and gas markets in Ghana with new Oil
and Gas sector focused funds being launched for supporting local small and medium enterprises in
the country.
1.3 Agriculture and Agro-processing
1.3.1 Sector Overview:
The country cultivates a rich array of staples and cash crops in various climatic zones which range
from dry savannah to wet forest. The country’s main agricultural commodities include cocoa, cassava,
yam, banana and maize, as well as other cereals and fruits. Oil palm, cotton and coconut are also
important cash crops. Cocoa farming, livestock, forestry and logging and fishing are the biggest
activities together comprising ~35% of total agriculture revenues in 2015.
Despite its leadership in a few export commodities, Ghana's
agriculture remains largely rain-fed and subsistence based.
From 2011 to 2015, the sector grew at a modest CAGR of
3.1% with cocoa registering the lowest growth of 0.1% over
the period.
Ghana is the second-largest producer of cocoa in the world.
Cocoa beans are also the principal agricultural export for
Ghana with total exports in 2014 valued at USD 2.24 bn109
(accounting for ~22% of Ghana's total exports). The
government controls the industry through the Ghana Cocoa
Board (Cocobod). Ghana's cocoa production dropped from
897,000 tonnes in 2014 to 740,000 tonnes in 2015, mainly
owing to bad weather conditions. The production is however
estimated to be 840,000 tons in 2016.
The agricultural sector is a vital contributor to Ghana's economic activity contributing 21%
to GDP in 2015, and employing about half of the total working population. Since 2007,
Ghana's agriculture activity has benefitted from international high prices, particularly of its
main export item cocoa.
Source: ":: Ghana Statistical Service ::". 2016.
Statsghana.Gov.Gh. http://www.statsghana.gov.gh/.

10. 32
Source: "The High Commission of Republic Of Ghana New Delhi, India". 2016. Ghana-Mission.Co.In. http://www.ghana-
mission.co.in/hcg.php?id=Agriculture.
1.3.2 Drivers and growth outlook:
Being a large source of employment and foreign exchange, the agriculture sector is being actively
promoted by Ghana's government by means of various subsidies, tax breaks and public programs.
The government allows 100% foreign ownership in the agricultural sector. A 5-year tax break is
provided to agro-processing companies and companies producing cocoa by-products from cocoa
waste. The Ghana Shared Growth and Development Agenda (GGSDA) and Food and Agricultural
Sector Development Policy (FASDEP) actively
promote the processing of raw agricultural
products. Exemptions are provided on import
duties of imported plant, machinery or
equipment and agro inputs such as fertilizers,
weedicides and pesticides.
Re-introduced in 2008, the national fertilizer
subsidy programme aims to increase the rate
of fertilizer application among farmers in
Ghana, which is one of the lowest in the world.
The programme subsidizes small-size crop
farmers, covering approximately 50 percent of
fertilizer prices, and is distributed in the form of
fertilizer-specific and region-specific vouchers.
Because of the low level of agricultural
mechanization in the country the government
launched the ‘Agriculture Mechanization
Services Enterprise Centres’ (AMSECs)
programme in 2007 as a credit facility, assisting
qualified private sector companies in
Source: "Ministry Of Food And Agriculture ". 2016. Mofa.Gov.Gh.
http://www.mofa.gov.gh.
Being a large source of employment and foreign exchange, the government has launched
various subsidy and mechanization schemes and has various policies and incentives to
drive the growth in the sector and has a special focus on the cocoa sub- sector.

11. 33
purchasing agricultural machinery at a subsidized price and interest rate which in turn is rented to
rural farmers at affordable prices. The programme has been extended and, as of 2015, 89 AMSECs
have been established throughout the country.
In the cocoa subsector, the government follows a policy of direct intervention in the form of provision
of free seedlings, free fertilizer application, and mass spraying of crops. Investment guarantees are
being provided by the government for free transferability of capital, profits and dividends. Insurance is
also provided against non-commercial risks under the World Bank's Multilateral Investment Guarantee
Agency (MIGA) Convention. Ghana has also signed Double Taxation Agreements (DTAs) with
France, the United Kingdom, Germany, Belgium, Italy and Yugoslavia.
In addition to government policy incentives, several other important public projects are underway that
promise strong growth for the sector in the near future. Regulatory boards are being set up for rubber,
cashew and oil palm to develop these crops in line with best practices in leading producing countries
and to create a platform for formalized interactions between the government and the private sector.
The Competitive African Rice Initiative (CARI) targets to train 34,000 farmers by the end of 2017, in
order to help decrease rice imports which currently stand at a value of 500 mn USD. The SADA
(Savannah Accelerated Development Authority) Master Plan targets to achieve a production of 3 mn
tons of rice, soya bean, sugar, chicken meat and fruits and vegetables in 2035 in the agriculture-
friendly arable lands in the Northern Savanna Ecological Zone (NSEZ) as compared to 1 mn tons in
2014. The Ghanaian government aims to reduce fish imports and plans to construct 25 landing sites,
supply 2,000 outboard motors and provide extension services to 3000 fish farmers by the end of
2016. Agricultural extension services typically include capacity development through training,
strengthening innovation processes, building linkages between farmers and other agencies, and
helping to strengthen farmers' bargaining position through appropriate institutional and organizational
development.
1.3.3 Foreign investment opportunities:
Most of Ghana's agricultural exports are exported without enough value addition. In 2015, Ghana
exported ~USD 2.6 bn worth of cocoa and cocoa products. 73% of total cocoa export is cocoa beans.
Significant opportunities exist in value addition for cocoa, coffee, cotton and cotton products.
Development of private irrigation facilities for the cultivation of cash crops and supply and production
of certified seeds for cash crops are other potential areas of opportunity.
Similarly, Ghana's processed foods industry can be better developed with improvements in areas
such as packaging material, cold chain equipment and hatcheries, etc.
2
Horticulture equipment can be
produced for both domestic and international markets, especially Europe. Within forestry, there is a
requirement for establishing wood plantations, pulp paper and panel industries. Major fishing landing
2
In 2015, Ghana exported ~USD 293 mn worth of processed foods.
Given the strong investment incentives provided by government and the ongoing sectoral
transformation taking place, several investment opportunities are emerging in the sector

12. 34
sites at Western, Greater Accra and Central Regions are under equipped and require large cold
stores with modern equipment
3
.
1.4 Construction sector
1.4.1 Sector Overview:
The construction sector contributed 11% to the GDP of Ghana in 2015. The sector grew rapidly at a
CAGR of 13% from 2.3 Cedi bn in 2011 to 3.8 Cedi bn
4
in 2015
110
.
In 2010 over half of Ghana’s population (52%) lived in urban areas as compared to just 30% at
independence in 1957. It is estimated that by 2035, 72% of the population will be urbanized. Ghana
has 388 urban settlements of widely varying populations and population growth rates. While growth in
recent years has been fastest in smaller cities, the country’s urban population is concentrated in a few
large cities. Significant infrastructure development and industrialization has taken place around the
Accra, Kumasi and Sekondi-Takoradi "golden triangle". These metropolitan areas while covering only
0.15% of landmass, generated over 30% of national GDP in 2010
5
.
In recent years, Accra has expanded to absorb peripheral towns and municipalities such as the
industrial hub and port city of Tema, Ashiaman, Adenta and even Kasoa in the central region. It is
now known as the Greater Accra Region.
3
In 2015, Ghana exported ~USD 189 mn worth of fish and fish products that presents a significant
opportunity.
4
Constant 2006 prices
5
Constant 2006 prices
Source: "Statistical Service ". 2016. Statsghana.Gov.Gh.
www.statsghana.gov.gh/gdp.html
Source: "Statistical Service". 2016. Statsghana.Gov.Gh.
http://www.statsghana.gov.gh/gdp.html
Construction sector in Ghana expanded considerably since 2011. The sector is
flourishing with increasing privatization and is expected to grow in the next 5 years
owing to the annual increase in urbanization on the country.

13. 35
The discovery and production of commercial quantities of offshore oil in 2010 led to significant
migration to Sekondi-Takoradi, which is emerging as a potential regional hub for the oil and gas
sector.
Kumasi, the fastest growing city, serves as a commercial hub, connecting the more urbanized and
developed coastal areas of the country. Unlike Accra, no rapidly growing settlements have developed
around Kumasi.
Tamale, the fourth largest city in the country and regional
capital for the Northern Region, experienced an initial
growth spurt in the 1970s and 1980s due to the
development of the rice industry and natural population
growth. The city has the only commercial airport in the
Northern Savannah Ecological Zone, which is now being
converted to an international airport.
Ghana has several legislation and policy documents that
are pertinent to urban development. The most recent
policies are the 2012 National Urban Policy and Action
Plan, 20-year National Spatial Development 2015-35,
National Decentralization Policy Framework and National
Decentralization Action Plan II (2015- 19).
The National Urban Policy promotes sustainable urban
centers as engines of growth, and one of its twelve
objectives is to facilitate the re-distribution of the urban
population. The National Spatial Development, amongst others, seeks to infuse a spatial dimension
into national planning and to guide regional, sub-regional and district spatial development
frameworks, structure plans and local plans.
In 2015, Ghana launched a National Housing Policy to enable investment in rental housing and
promote greater private sector participation in housing delivery. The policy also encourages housing
schemes that maximize land use and accelerate improvement of the existing housing stock
(upgrading and transformation). Ghana is also developing a 40-year, long-term development plan that
includes a national infrastructure plan and a spatial development framework to transform where
Ghanaians live and work. The plan is expected to enhance the Accra and Kumasi city regions and
other urban clusters with railways and freeways that link towns and cities.
Financing the master plans and key infrastructure has been a challenge. However the fiscal
decentralization policy and the upcoming local government finance/ borrowing bill should help
metropolitan and municipal authorities raise resources needed for urban territory development.
The real estate sector is dominated by private companies, which control over 90% of Ghana's real
estate and property markets. The government participation in the real estate sector is minimal. The
Tema Development Corporation (TDC), State Housing Corporation (SHC) and the Social Security and
National Insurance Trust (SSNIT) are the only public sector-controlled agencies involved in the
property market. The TDC works on planning and development of the entire city of Tema
111
. SHC
focuses on increasing the availability of dwelling houses in Ghana
112
and the SSNIT's aim is to build
affordable housing for workers
113
. The Ghana Real Estate Developers Association (GREDA), an
organization of private real estate developers, has played an active role in property development.
They mainly service the middle, upper income and expatriate demand for housing, especially in Accra
and Tema.

14. 36
1.4.2 Growth outlook and drivers
The construction industry in Ghana is expected to maintain a similar growth trajectory compared to its
recent performance in the medium-term. Based on these growth estimates, the total construction
sector revenues will climb 14% per annum from 2015 revenues
of 3.8 Cedi bn (in constant 2006 prices)
114
. The projections for
2016 and 2017 thus stand at 4.3 Cedi bn and 4.9 Cedi bn (in
constant 2006 prices) respectively. The sector is on the rise,
taking advantage of increased demand for residential and office
accommodation, as well as hospitality services reflecting the
growth of Ghana's already-sizeable middle class population.
Growth in Ghana's construction sector will be driven primarily
by three factors: rapid urbanization in the country's population,
the existence of infrastructure to support construction projects
and increased investments by the public and private sectors.
Rapid urbanization in Ghana is expected to benefit the
population through favorable demographic shifts and
subsequently higher incomes. The working-age population (as
a percentage of the total) is forecast to increase from 57.5% in
2010 to 64.8% in 2040. Furthermore, the share of Ghanaians in
the low income bracket is expected to fall from 60% at present
to just 20% by 2030. As a result of these demographic shifts,
increased consumption expenditure from Ghanaians can be
expected. This is expected to increase demand for housing as
people migrate from rural areas to urban centers. Urbanization
has already led to rapid expansion of Ghana's cities, with the
cities of Accra, Kumasi and Takoradi having a population above
1 mn. The urbanization rate is further expected to increase from
53.3% in 2014 to 72% by 2035. The United Nations Habitat has
estimated that 2 mn houses will be needed to curb Ghana's
rapidly growing housing demand in the immediate future and
that 5.7 mn houses will be needed by 2020
115
.
The linkages between the infrastructure and construction
sectors are another driving force for the industry. Efforts are
underway to improve Ghana's overall infrastructure capabilities,
especially in the rail network and port facilities. The railway
network is currently small and mostly concentrated in the Southern region. It is being expanded to
cover other areas of the country. Investments are being made to upgrade the Tema and Takoradi
ports, with the Government planning expenditures of USD 2 bn for capacity expansion
116
. Increased
expenditures in the infrastructure sector will drive demand for construction projects supporting these
expansions, particularly in the commercial real estate segment.
Source: "Ghana railway expansion plan" NDPC-
Statistics https://s3.amazonaws.com/ndpc-
static/.../05/.../Ghana+MP-Final_Annex+2-
ESMF.pdf
Source: "Statistical Service". 2016.
Statsghana.Gov.Gh.
http://www.statsghana.gov.gh/gdp.html
The construction sector is driven forward by rapid urbanization, existence of infrastructure
to support the construction projects and increasing public and private investments

15. 37
1.4.3 Foreign investment opportunities
The main investment opportunities in Ghana's construction sector exist in residential, industrial, and
commercial real estate and related activities such as property management, construction equipment
and mortgage services.
Despite the continuous expansion of infrastructure capabilities in the country, Ghana still faces a
chronic shortage of housing supply. The Ghana Investment Promotion Centre estimates that the
demand for housing is increasing by 400,000 units annually with the current housing deficit already at
1.5 million units approximately. Coupled with high urbanization rates, this deficit presents significant
opportunities for new real estate developers to enter.
Investments include light industrial parks, warehousing facilities and commercial real estate such as
shopping malls and storage centers. For instance, a new airport city being planned at Prampram in
the Greater Accra region will require large-scale construction projects to provide support facilities such
as convention centers and business hotels. The airport city is being developed on a 60,000 acre plot
in the region, and will host a range of facilities in addition to the airport such as hospitality,
entertainment, commercial, sports, industrial and other social and economic zones. The government
aims to attract private investors to construct leisure facilities in the burgeoning tourism industry that is
expected to contribute 5.4% to Ghana's GDP by 2023
117
.
Very few Ghanaians can afford to buy homes outright, and most of them lack access to home loans
facilities. Most banks neglect the home loans market and focus instead on short-term lending and
investment such as risk-free government bonds and trade finance facilities that can offer higher
returns while consuming less capital. Only 4 out of Ghana’s 28 banks officially offer home loans as a
product. The total home loans book in Ghana is around USD 180 mn and the number of borrowers
just under 6,000 as of 2016. Mortgage services, therefore, are a lucrative opportunity for financial
institutions to seize.
Ghana's construction sector represents one of the most lucrative sectors for foreign investment as
there are no restrictions on foreign equity ownership in the sector, for both greenfield and brownfield
investments. The Ghanaian regulatory environment is conducive for the growth of the sector due to
numerous tax incentives provided by the government. A tax holiday of 5 years is provided for
construction of low cost affordable residential premises. A corporate tax rate of 25% is applicable after
the 5 year tax-holiday. Customs duty exemption is also provided for import of machinery and
construction equipment. Guarantees against expropriation of private investments provided under law
are supported by the Ghanaian Constitution. Remittances of proceeds in the event of sale or
liquidation are also permitted to investors. Double Taxation Agreements signed and ratified with
countries such as United Kingdom, France, and Germany and concluded with Belgium add to the
investment attractiveness of the construction sector in Ghana.
Increase in demand for housing and infrastructural requirements, no limits on foreign
equity and tax incentives provide investment opportunities.

16. 38
1.5 Examples of successful foreign companies
1.5.1 Olam
Olam Ghana's manufacturing facilities produce a portfolio of international quality, strong and
recognized brands. In addition to branded wheat flour, tomato paste, biscuits and confectionary, it
also distributes packaged rice. Collectively, it is one of the ‘top’ branded packaged food companies in
the region.
Olam Ghana has invested over USD 150 m in Ghana and has provided farmer funding of over 100
mn GHS every year. It has been instrumental in creating several employment opportunities, uplifting
the lives of 1000’s of farmers’ families, ensuring food security and investing in various manufacturing
and warehousing facilities.
Its success in Ghana is attributable to several factors such as training farmers, providing extended
services to farmers, partnering in the growth of local communities and providing extended services to
its customers.
Olam invests in training of farmers and educates
them about irrigation patterns, use of fertilizers and
farming best practices. It overcame the problems of
climate variation in Ghana by training farmers on
water and soil management for growing cocoa
sustainably. It has trained over 2000 farmers in more
than 30 communities that produce more than 2500
tonnes of verified climate-smart cocoa.
Olam also provides several additional services to its farmer community to improve their yield. It
provides short and long-term finance at 0% interest for crop production, purchasing, and asset
investments. It procures raw material directly from the farmers cutting out all middlemen- this ensures
that Olam gets produce at best prices and the farmers also get higher margins.
Olam goes beyond the business interests and supports several community development initiatives. It
launched Olam livelihood center in Ghana under which it supports several rural health, infrastructure
and health initiatives across communities. It also educates farmers on child labour, safety, gender and
financial issues.
In order to get best value for its produce and overcome quality challenges, Olam also offers several
risk management solutions to its customers including certification of the raw material produce. It works
closely with its certification partners – in 2015, 25% of Olam Livelihood Charter produce was certified.
This has helped Olam maintain long term relationships with its customers.
Olam leverages technology to increase farm productivity and improve yield forecasts: For example,
the Olam Farmer Information System (OFIS) was developed by Olam Cocoa. By GPS mapping
individual farms and completing survey data, Olam Cocoa created a data bank that produces tens of
thousands of individual farm management plans that tell the farmer, for example, exactly how much
fertilizer they need and when to apply it based on their farm landscape. This benefits the farmer by
saving money; the environment by using less fertilizer and pesticides; and Olam Cocoa by helping to
better forecast yields.
1.5.2 Tullow Oil119
Tullow Oil is a leading independent oil and gas exploration and production company. Its focus is on
finding and monetizing oil in Africa and the Atlantic Margins. Its key activities include targeted
"Ghana is strategically significant to the
future success of Olam Cocoa. We pledge
to continue to put farmer livelihoods at the
heart of its sourcing efforts
118
.”
-Amit Agarwal
Country Head, Ghana

17. 39
exploration and appraisal, selective development projects and growing its low-cost West Africa oil
production. Tullow's financial results for 2016 showed total revenues of USD 1.27 bn with a gross
profit USD 547 mn.
In West Africa, Tullow has significant low-cost oil production from Ghana as well as a portfolio of non-
operated assets in five other countries. Tullow’s major producing fields in Ghana are the Jubilee and
TEN fields which came on stream in 2010 and 2016 respectively. The Ghana business, with the
Jubilee field, which is Tullow’s largest producing asset along with TEN, generates significant low cost
production and increased cash flows for the business.
Tullow's success in Ghana is attributable to several factors,
especially its success in making long term investments that
have helped it demonstrated its commitment towards
developing the country. Tullow invested over USD 4 bn from
2007-10 for the development of the Jubilee field. This helped
it demonstrate its commitment towards the people and
government of Ghana, thus enabling it to get government
approvals and top talent from the country. It also opened the
Jubilee technical training center for developing future
talent.
1.5.3 Cargill
Cargill is an international producer and marketer of food, agricultural, financial and industrial products
and services. Founded in 1865, the privately held company employs 142,000 people in 65 countries.
In fiscal year 2016, Cargill had USD 107.2 bn in sales and other revenues. Adjusted operating
earnings were USD 1.64 bn.
Cargill entered Ghana in 2008 with an investment of 100 mn USD for opening a cocoa processing
facility in Ghana. Today, the company produces cocoa butter, cake and powder in Ghana. While it
also invested in farmer trainings and partnered in the growth of local communities, it adopted several
other practices that make it successful in Ghana.
Cargill successfully built relations with local
governments, regulatory bodies and local
development organizations. Cargill supports long-
term sustainable cocoa production to make a
difference in the lives of farmers and their
communities, while meeting the growing global
demand for better quality, sustainable cocoa beans.
In Ghana, Cargill is working with COCOBOD,
Solidaridad and Akuafo Adamfo (a Licensed Cocoa-
Buying Company) to provide support and training to
almost 15,000 farmers to improve their livelihoods,
encourage better farming standards and increase yields. Additionally, it is improving access to
healthcare and education for local communities through its partnership with CARE, which is enabling
over 12,500 children to benefit from primary education and providing nutrition education to thousands
of children and parents in cocoa growing communities.
"Having the opportunity to train and
acquire internationally accredited
skills will not only boost my career but
also give me a chance to participate
in Ghana’s growing oil and gas
sector”.
120
-Ishmeal Gyimah
Jubilee Technical Training
Centre student
"We have a commitment to grow and
sustain cocoa farming communities, while
meeting the growing global demand for
sustainable cocoa beans. It builds on what
we have been doing in Ghana since 2007
and the activities we have been developing
over the years to support and give back to
the communities we work in".
121
-Kojo Amoo Gottfried
Managing Director, Cargill

18. 40
Cargill has also successfully leveraged technology to overcome spatial and language challenges in
Ghana. Cargill partnered with Hershey’s, COCOBOD
6
and the WCF
7
to support their CocoaLink
program. This first-of-its kind program uses mobile technology to deliver practical information on
agricultural and social programs to rural cocoa farmers and enables them to ask questions and
provide feedback
122
. This enables cocoa farmers to get information about good farming practices,
labor safety, and crop marketing. Cargill has helped by rolling out the program to 6,000 farmers in
Ghana. It has developed applications for disseminating information which enable it to engage better
with the farmer community.
1.6 Key takeaways
Ghana has emerged as one of the most prominent investment destinations in the African region
driven by its dynamic economic growth, strategic location, stable democratic political system and
wealth of natural resources. In order to overcome the ongoing fiscal and external challenges, The
Ghanaian government formulated a credible medium term development plan, entered into a ~USD 1
bn loan agreement with IMF and has already implemented several structural reforms in government
policy. On the back of the ongoing reforms, Ghana's macroeconomic conditions and growth have
started recovering. New investment opportunities are emerging in Oil and Gas, Agriculture and Agro-
processing and Construction and Infrastructure sectors of the economy. We have identified four key
lessons from the pioneers who have successfully invested in Ghana that new investors can profit from
and that are crucial for ensuring success in the country:
• Collaborate with local partners, governments, regulatory bodies in order to improve and expand
year on year
• Leveraging technology to overcome management, spatial and language challenges
• Invest in local communities and regional development for unlocking long term sustainable value.
• Reassuring customers with or without certification on the sustainability of the product
6
COCOBOD -Ghana Cocoa Board
7
WCF - World Cocoa Foundation

19. 82
Contact
Study Author:
Dr. Wilfried G. Aulbur
Managing Partner India,
Member of Supervisory Board
Roland Berger
Phone: +91 99 206 30131
E-mail: Wilfried.aulbur@rolandberger.com