Ghana

Ghana is a country in West Africa on the coast of the Gulf of Guinea. Unusual and vibrant Ghana is a country of contrasts, where poor neighborhoods coexist alongside the ancient colonial architecture of palaces and castles. The ancient history of this land has revealed to the world many unique cultures and peoples.

General information

Official name of the country — Republic of Ghana. The state covers an area of approximately 238,540 km² (83rd in the world). The population of Ghana today is about 33,899 059 people. There are about 95 nationalities represented in the country. 49.3% of Ghana's population — peoples of the Akan group (Ashanti, Fanti, Twi, etc.), the rest — mole-dagbon, ewe, ga-dangme, guan, gourma, gruncy. About 60% of the population — Christians (mostly Protestants and Catholics), 35% — Muslims (mainly Sunnis), 5% — adhere to traditional African beliefs.

Official language of Ghana — English (knows about a third of the population). The majority of the country's indigenous population speaks Niger-Congo languages: Twi (Chwi), Ewe, Ga.

The official currency of the state is the Ghanaian cedi.

The capital of the country — the city of Accra, the largest economic and administrative center in Ghana. In addition, it is a center of culture and tourism. Also Accra — It is a major transport hub for the country, with Kotoke International Airport and rail links to Tema, Sekondi-Takoradi and Kumasi. The city is a popular destination for national and international business conferences.

Accra has developed oil refining, textile, food, metalworking, automotive, woodworking and pharmaceutical industries, and the real estate market has been developing rapidly in recent years. There is a stock exchange (GSE). Most of the city's large companies are controlled by Lebanese, British or Chinese capital. Many residents are engaged in handicraft jewelry production and selling fruits and vegetables on the city streets. There is a large market for diamonds and cocoa beans. More than 70% of Ghana's manufacturing capacity is located in the capital region.

Kumasi is the second largest city after the capital of the country. The residence of the Ashanti king is located here (since 1695).

Tamale — third largest city in Ghana. Due to its key location, Tamale serves as the center for all administrative and commercial activities in the region, serving as the political, economic and financial capital of the region. The center of Tamale is home to regional branches of Ghana's financial institutions and a significant number of international non-governmental organizations, such that Tamale is often referred to as the non-governmental organization capital of Ghana. Due to its strategic location on the Accra Highway — Ouagadougou, the city is the commercial center of northern Ghana. Trade takes place in three main markets, including the central market and the Abuabu market, through which large volumes of agricultural goods pass from the surrounding areas, as well as from the state of Burkina Faso (corn, yams, millet, sorghum, rice, peanuts, tomatoes, onions, etc.) and regions of southern Italy (pineapples, bananas, plantain, etc.). The sheep and cattle trade is also important to the economy, particularly due to the absence of tsetse flies north of Lake Volta. Finally, local crafts and the production of semi-finished products such as shea butter are widely developed, employing a large part of the workforce, especially women.

Most of the major banks currently present in Ghana have branches in Tamale. In the city there are: Agricultural Development Bank, Barclays, Commercial Bank of Ghana, Intercontinental Bank, National Investment Bank, Prudential Bank, SG-SSB (a subsidiary bank of Societe Generale), Stanbic Bank and Zenit Bank.

Bolgatanga — city in northern Ghana. The national road N10, the “Great Northern Road”, passes through it. (Great North Road), connecting the south and north of the country by road. The road from Accra on the coast of the Gulf of Guinea to the north through the administrative centers of the regions (Koforidua, Kumasi, Tamale) leads to Burkina Faso and is a transport corridor for access to the sea of Burkina Faso, Mali and Niger.

Administratively, Ghana is divided into 10 regions, which include 170 districts, including 40 urban entities and 6 metropolitan areas.

History, geography, culture, mentality

The territory of modern Ghana was inhabited already in the Mesolithic era. By the end of the classical era, regional kingdoms had formed in West Africa, with Ghana becoming the first major state. Between the 5th and 13th centuries, Ghana's possessions extended approximately to the southern border of modern Mauritania and Mali. The main population of Ghana — Soninke, a branch of Mande, which, along with Bantu, forms the main language family of the Niger-Congo group of languages.

In the past, the conquest of Ghana was always attributed to the Almoravids and dated back to 1076. Recent studies of Arab sources from more recent times cast doubt on the reality of these events. In the last quarter of the 11th century, the Soninke rulers of Ghana converted to Islam. After the death of Caliph Abu Bakr in 1087, the Almoravid forces were largely withdrawn to the north. This allowed the rulers of Ghana — Soninka, and then Malinka — return their territories.

In the 12th and 16th centuries, a guild of merchants arose in the Mali Empire in North Africa. By origin they belonged to the Soninke, Malinke or Bamana tribes and were, as a rule, Muslims. They enter the forests and trade nuts, food and gold. Their trade routes passed through the cities of Walata, Tadmeka, as well as Tumbuktu and Gao. In 1482, the Portuguese from Diogo de Azambuja's expedition, including Christopher Columbus, landed on the coast and built the fortress of Elmina, followed by other fortresses such as Axim and Shama. They exported gold and slaves from the Gold Coast, accounting for about 10% of world gold production in the 16th century. The wealth of the Gold Coast also attracted other European powers such as the Netherlands, Sweden, Prussia and England. The first English settlers arrived here in 1631. In the mid-17th century, the Danish West India Company began active colonization of the coast of modern Ghana. Then, in 1821, the British colony of the Gold Coast was formed. In 1844, the British governor entered into a treaty with the Fanti rulers, recognizing them as a British protectorate.

As a result of fierce competition for control of the wealth of the Gold Coast, Great Britain had driven out other European competitors by 1871.

In British West Africa, the struggle for independence was led by the former kingdom of Ghana. In 1946, the British again revised the colony's constitution and allowed the indigenous African majority to be represented in the legislature. At that time the British still believed that self-government for Ghana could be achieved through some reform of the existing system of "indirect rule". This excluded the participation in government of the country by those few educated and influential Africans who were determined to get a larger share in government. In 1947, several successful businessmen and lawyers from Accra and other coastal cities founded the Convention for the Protection of the Gold Coast. They demanded a revision of the constitution to increase the number of elected rather than appointed members of the government. In 1948, an event occurred that accelerated the process. Police opened fire on demonstrators protesting massive increases in the cost of living. The shots sparked riots in Accra, Kumasi and other major cities.

Formed by the merger of the British colony of the Gold Coast and the British part of Togoland, Ghana in 1957 became the first country in colonial Africa to gain independence. The founder and first president of the modern Ghanaian state was the colonial liberation fighter Kwame Nkrumah. Nkrumah was overthrown in a coup supported by the CIA. A series of subsequent coups culminated in Lieutenant Jerry Rawlings coming to power in 1981. Under him, the constitution was suspended and political parties were banned. In 1992, a new constitution was adopted, restoring a multi-party system, and Rawlings was elected in free elections that year, as well as in the next election in 1996. The 2000 election was won by John Kufour, who after two terms lost the presidency to John Atta Mills in 2009. Since 2019, Nana Akufu Addo has been president.

In the west, the country borders on Cote d'Ivoire, in the northwest and north — from Burkina Faso, in the east — from Togo. In the south, Ghana is washed by the Gulf of Guinea of the Atlantic Ocean. Coastline length — 539 km. Most of Ghana's territory is a plain with altitudes ranging from 150 to 300 m. In the east, Ghana is bordered by the southern parts of the low Atakora mountain range, located mainly in Togo, and here the highest point of Ghana rises — Mount Afadjato. Large deposits of bauxite (total reserves are estimated at approximately 300 million tons), manganese ores (about 30 million tons), gold and diamonds are associated with the structures of the Early Proterozoic basement. Iron ore deposits have been developed in the Atakor zone. In the sedimentary rocks of Chehalis there are deposits of limestone and barites, and in the Cretaceous deposits in the coastal marginal depressions and in the Volta syncline — oil deposits. Most of the country's territory is covered with savanna forests and tall grass savannas. In the south and southwest they give way to tropical rainforests with partially deciduous foliage. Forests cover about 10% of Ghana's territory and are home to the world's largest cocoa plantations. They also grow many valuable tree species: wawa, mahogany, sapale, utility, makore, etc.

Numerous Ghanaian tribes have a colossal set of historical and cultural traditions. Ghana is considered one of the most conservative countries in Africa. For several centuries, a strict Presbyterian brand of Christianity has dominated the south of the country. In the north of Ghana — Islam. In many places there is a merging of Islamic and Christian cults with local traditional religions. All this forms a complex set of beliefs and traditions. Such a complex mixture of beliefs led to the formation of a huge number of various customs and rituals. They accompany a person at every stage of life. It all begins with birth and education, and ends with the death of a person and the subsequent reincarnation of the individual. Even during the harvest or construction of a house, a whole range of rituals and ceremonies are held here. The same reasons explain the conservatism of Ghanaians in almost all aspects of life.

It is considered good manners to address each other using all formal titles; abbreviating titles is not recommended. In Ghana, as in most West African countries, it is not customary to offer your left hand in greeting or use it for eating. The prevailing style in clothing is rather informal, but not sporty.

Power

Ghana — republic with a presidential form of government. In accordance with the country's 1992 constitution, the president is the head of the executive branch of the republic with the functions of head of state and government, as well as commander-in-chief of the armed forces. The President and Vice President of Ghana are elected simultaneously for a term of 4 years each and cannot hold office more than twice.

The legislative branch is represented by a unicameral parliament consisting of 275 deputies. Elected by direct secret ballot for a term of four years. The Speaker is the third official of the state after the President and Vice President.

The traditional form of government operates outside the branches of government — king, the state of Ghana consists of several kingdoms. By coincidence, since 2003, a citizen of the Russian Federation became king. Two more kings of Ghana also live / lived outside the country, in compliance with the obligation to participate in the life of the state of Ghana.

Economy

The share of Ghana's working-age population is about 43%, the official unemployment rate is at around 13% (real - about 40%). Currently, 6.8 million people live below the generally recognized poverty level ($1.9 per day). The minimum wage as of June 2023 is 14.8 Ghana cedis per day (1.3 US dollars). Poverty levels are highest in rural areas of the country's three northern regions. Thus, in the Northern region this figure fluctuates around 80%, in the Upper Eastern region — 68%, in the Upper West region — 65%.

Over the past five years, the country's total public debt has more than tripled and, as of June 2023, amounted to $64.8 billion, or 102% of GDP. According to the Central Bank of Ghana, domestic loans account for $32 billion, external — US$32.8 billion.

According to the UNCTAD (United Nations Conference on Trade and Development) classification, the Ghanaian economy is characterized by a pronounced raw material orientation. According to the Central Bank of Ghana, the country's foreign trade turnover in 2022 amounted to 32.1 billion US dollars, exports — US$17.4 billion, imports — US$14.7 billion. The country receives more than 80% of its export earnings from three major commodities — gold (41%), crude oil (29%) and cocoa (13%), making its economy vulnerable to a sharp drop in prices for these goods.

In the structure of Ghana's gross domestic product in 2022, the services sector occupied the largest share (44.9%), followed by industry (34.2%) and agriculture (20.9%). According to the IMF forecast, the growth rate of Ghana's GDP at the end of 2023 was about 1.6% and will reach 765.9 billion Ghana cedis (66.6 billion US dollars). It is predicted that in percentage terms, the service sector will account for 46.6% of GDP (USD 31.1 billion), the share of industry — 33.4% (22.2 billion US dollars), agriculture — 20% ($13.3 billion).

In order to combat poverty and unemployment, the government approved the presidential “Program of Economic and Social Development until 2024” on October 20, 2017. The strategy defines the main development goal — growth of the economy and well-being of citizens, improving the quality and standard of living of the population. In addition, the “Jobs and Skills” project has been initiated, and state employment service centers are being modernized by introducing an information system widely accessible to the population. At the same time, targeted work is being carried out to improve the quality and accessibility of education. In 2022, 1.3 billion US dollars were allocated for the development of educational infrastructure in the country. In this case, special attention is paid to areas of knowledge related to engineering and mathematical sciences, information technology.

Relations with Russia

Diplomatic relations with Ghana were established on January 14, 1958. In 1959, the USSR Embassy opened in Accra, in 1960 — Embassy of Ghana in Moscow.

There are more than 20 agreements, protocols, and memorandums in force between the USSR / Russian Federation and the Republic of Ghana, covering a wide range of cooperation.

According to the Federal Customs Service of Russia, the volume of Russian-Ghanaian trade turnover in 2022 amounted to more than 200 million US dollars (in 2021 - 196 million US dollars). The main Russian exports are: cereals, fertilizers, ferrous metals, paper and cardboard. Ghana supplies Russia mainly with cocoa and cocoa products. Imported product groups also include rare wood and products made from it, living trees and plants. 

In February 2021, M.L. Bogdanov, Deputy Minister of Foreign Affairs, Special Representative of the President of the Russian Federation for the Middle East and African Countries, visited Accra on a working visit, during which he met with N. Akufo-Addo, Minister of Foreign Affairs Del. Sh.A. Botchway, Minister of Land and Natural Resources S.A. Jinapor. The parties discussed options for cooperation in the energy, mining, transport and agricultural sectors, as well as issues of bilateral cooperation in the field of development, extraction and processing of minerals.

Both sides are taking steps to develop cooperation in the field of nuclear energy. In 2015, an Intergovernmental Agreement on Cooperation in the Field of the Use of Nuclear Energy for Peaceful Purposes was signed in Moscow (came into force on September 17, 2015). As part of this agreement, negotiations are currently underway to build a nuclear power plant and nuclear research center in Ghana.

The work of the Intergovernmental Russian-Ghana Commission on Trade, Economic, Scientific and Technical Cooperation (IPC), established in 2013, is intended to contribute to the development of bilateral trade and economic relations between Russia and Ghana.

Business climate

Although registering a business is a relatively simple procedure and can be done online through the Registrar General's Department (RGD), businesses note that the process of setting up a business in Ghana is lengthy and complex and requires compliance with the rules and procedures of at least four other government agencies , including the Ghana Investment PC (GIPC), the Ghana Revenue Authority (GRA), the Ghana Immigration Service and the Social Security and National Insurance Trust (SSNIT). In 2019, Ghana passed the new Companies Act 2019 (Act 992), which, among other things, created an independent office called the Office of the Registrar of Companies (ORC) responsible for registering and regulating all businesses. ORC, launched in July 2022, took over the company registration process from the Registrar General; the latter will continue to serve as the state registrar for such transactions as registration of marriages, industrial property rights, public trusts and property administration.

The law also simplifies some registration processes by eliminating the need to issue a certificate to begin business and the requirement for a company to state business purposes, which limits the activities a company can engage in. The Act also expands the role of the company secretary, who must now have some experience in company law and administration or have been trained by a company secretary for a minimum of three years. Foreign investors must obtain a capital import certificate, which may take 14 days. The local authorized bank must confirm the capital import with the Bank of Ghana, which confirms the GIPC transaction for investment registration purposes.

According to the GIPC Act, all foreign companies must register with the GIPC after registering with the RGD. You can register online. Although the registration process takes five business days, bureaucratic delays often occur. The Ghanaian business environment is unique and advice can be extremely helpful. In some cases, foreign investment may enjoy certain tax benefits under the law or additional benefits if the project is considered critical to the development of the country. Most companies or individuals considering investing in Ghana or trading with Ghanaian counterparts find it helpful to consult with a local attorney or business promotion company.

The main body that carries out tariff and non-tariff regulation of foreign economic activity is the Ghana Revenue Authority (GRA). He regulates customs procedures and is responsible for the timely receipt of taxes and fees to the country's budget. The organization's portal provides information on ECOWAS (Economic Community of West African States) customs tariffs in force in Ghana, as well as up-to-date information on preferential tariffs, excise taxes and prohibited import goods.

It should be taken into account that the country has an ECOWAS external tariff structure, according to which four categories of products are established with rates of 0, 5, 10 and 20%, respectively.

However, there are other import taxes in Ghana. In addition to the ECOWAS tax, the following are provided:

• national insurance tax — 2.5%;
• tax of the Education Development Fund — 0.5%;
• special import tax — 2%.

The government body responsible for implementing government policy in the field of standardization and quality, as well as responsible for the safety of all consumer products in the country, is the Ghana Standards Authority (GSA).

GSA maintains the safety of the consumer market by conducting product quality inspections against established standards of Ghana and the International Organization for Standardization. The issuance of a certificate of conformity for a product indicates that the product meets a certain set of safety requirements.

For the export of food products, medicines, food additives, veterinary drugs, cosmetics, medical products, household chemicals, tobacco and tobacco products, it is necessary to obtain certification from the Ghana Food and Drug Authority, FDA).

Also, in accordance with the Constitution of Ghana, foreign citizens cannot own land, but have the right to lease land for up to 99 years. For legal entities conducting business activities, a form of long-term state concession is provided (for 50 years with the possibility of extension for another 49 years).

Investment climate

As Ghana focuses on building a more sustainable economy, it has become important for the country to continually attract new foreign investment. The country has consistently attracted significant investment from abroad and maintained a good history of trade with the rest of the world. Ghana's rich commodity resources (gold, cocoa and oil/gas), relative security and political stability, and location of the African Continental Free Trade Area (AfCFTA) secretariat make it one of the best investment destinations in sub-Saharan Africa. Investment laws protect investors from expropriation and nationalization and ensure that investors can move profits out of the country, although international companies report high levels of corruption in their dealings with Ghanaian government agencies.

Among the most promising sectors — agribusiness and food industry; ICT and business related services; textiles and clothing; oil, gas and mineral processing; construction and real estate; and the mining-related services subsector.

The government has recognized the need to strengthen the enabling business environment to attract FDI and is taking steps to overhaul the regulatory framework, ease of doing business and restore financial discipline.

There is an exemption from customs duties on agricultural and industrial machinery, machinery and equipment imported for investment purposes, as provided for in Chapters 82, 84, 85 and 92 of the Customs Harmonized Commodity Tariff Code. However, with the exception of goods imported specifically for the education, health and agriculture sectors, all goods exempt from import duties are subject to applicable processing and/or other relevant fees or charges ranging from 0.5% to 1.0%.

Business and investment support structures

In Ghana, there are various structures and organizations aimed at supporting business and investment.

• Ghana Investment Promotion Center - GIPC. This is the main agency for attracting foreign investment to Ghana. GIPC provides investors with information about business opportunities in the country and also assists in the process of registering and starting a business.
• Ghana Enterprise Agency — GEA. This agency supports the development of small and medium-sized businesses in Ghana. GEA provides advisory services, training, financial assistance and other resources for entrepreneurs.
• Bank of Ghana. As the country's central bank, it plays a key role in the financial system and maintains economic stability. The Bank of Ghana also provides regulatory and financial services to businesses.
• Ghana Chamber of Commerce and Industry. This chamber is the main trade and industry association in the country. It represents business interests, provides networking opportunities, and provides information and advice to entrepreneurs.
• Association of Ghana Industries - AGI. AGI is an organization uniting industrial enterprises. It supports industrial development, protects the interests of entrepreneurs and provides training and advice.
• Ghana Export Promotion Authority - GEPA. This agency specializes in the development and promotion of exports from Ghana. GEPA provides information, advice and support to exporters.
• Entrepreneurship Development Center (EDC). This center provides training, advice and financial support to entrepreneurs and small businesses in Ghana. It helps develop business plans, teach management skills and provide access to credit.

These entities and organizations work together to support business and investment in Ghana by providing a variety of services, resources and information for entrepreneurs and investors.