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U.S. Department of State 
Ghana Country Commercial Guide 
Office of the Coordinator for Business Affairs 
 
 
                             GHANA COUNTRY COMMERCIAL GUIDE

 
                            TABLE OF CONTENTS 
 
CHAPTER I. EXECUTIVE SUMMARY 
CHAPTER II. ECONOMIC TRENDS AND OUTLOOK 
CHAPTER III. POLITICAL ENVIRONMENT 
CHAPTER IV. MARKETING U.S. PRODUCTS AND SERVICES 
CHAPTER V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT 
CHAPTER VI. TRADE REGULATIONS AND STANDARDS 
CHAPTER VII. INVESTMENT CLIMATE 
CHAPTER VII. TRADE AND PROJECT FINANCING 
CHAPTER IX. BUSINESS TRAVEL 
 
APPENDICES 
 
APPENDIX A:  COUNTRY DATA 
APPENDIX B:  DOMESTIC ECONOMY 
APPENDIC C:  MERCHANDISE TRADE DATA (MILLIONS OF U.S. DOLLARS) 
APPENDIX D:  INVESTMENT INFORMATION 
APPENDIX E:  KEY COUNTRY CONTACTS 
APPENDIX F:  TRADE EVENT SCHEDULE 
 
 
GHANA - 1995 COUNTRY COMMERCIAL GUIDE 
 
 
CHAPTER I.  EXECUTIVE SUMMARY 
 
GHANA IS A SMALL WEST AFRICAN COUNTRY WITH AN ECONOMY TRADITIONALLY 
ORIENTED TOWARD AGRICULTURE AND SMALL SCALE DOMESTIC TRADING.  A FORMER 
BRITISH COLONY, ENGLISH IS THE LANGUAGE OF COMMERCE AND GOVERNMENT 
ALTHOUGH SOME 75 OTHER LANGUAGES AND DIALECTS ARE SPOKEN.  IN THE PAST 
GHANA HAS CONDUCTED MOST OF ITS EXTERNAL TRADE WITH EUROPE AND NORTH 
AMERICA AND ONLY A RELATIVELY SMALL AMOUNT WITH OTHER AFRICAN COUNTRIES.  
RECENTLY GHANA RE-ESTABLISHED DIPLOMATIC AND TRADE TIES WITH SOUTH 
AFRICA AND THIS IS EXPECTED TO RESULT IN SIGNIFICANTLY HIGHER TRADE AND 
INVESTMENT FLOWS WITH THAT COUNTRY. 
 
TRADITIONAL GHANAIAN EXPORTS INCLUDE COCOA, TIMBER, AND GOLD.  WHILE 
COCOA PRODUCTION IS HIGHLY DEPENDENT ON WEATHER CONDITIONS, THE MINING 
SECTOR HAS EXPERIENCED VIGOROUS GROWTH IN RECENT YEARS AS NEW MINING 
TECHNOLOGY HAS PERMITTED THE PROFITABLE EXPLOITATION OF LOWER GRADE 
ORES.  AGRICULTURE STILL DOMINATES THE ECONOMY (ABOUT 45 PERCENT OF GDP) 
AND SUSTAINED GROWTH IN THE MANUFACTURING SECTOR HAS BEEN ELUSIVE.  
UNTIL REFORM MEASURES WERE ADOPTED IN THE MID-1980S THE ECONOMY WAS 
DOMINATED BY PUBLIC SECTOR ENTERPRISES--MORE THAN 300 IN NUMBER.  THE 
GOVERNMENT OF GHANA IS NOW WORKING TO DIVEST ITSELF OF MANY OF THESE 
FIRMS BUT PROGRESS HAS BEEN SLOW. 
 
GHANA'S MACROECONOMIC MANAGEMENT IMPROVED IN 1994 AND A BUDGET SURPLUS 
OF OVER 2 PERCENT OF GDP WAS RECORDED.  THE SURPLUS RESULTED LARGELY 
FROM THE GOVERNMENT'S DIVESTITURE OF A PORTION OF ITS INTEREST IN THE 
ASHANTI GOLDFIELDS CORPORATION.  POOR PERFORMANCE IN THE AGRICULTURAL 
SECTOR IN 1994 (ONLY 1 PERCENT GROWTH) LED TO DISAPPOINTING GDP GROWTH 
OF 3.8 PERCENT.  INFLATION ACCELERATED TO 34 PERCENT FOR THE YEAR AND 
REACHED 44 PERCENT DURING THE FIRST QUARTER OF 1995.  THE GOVERNMENT'S 
1995 BUDGET FORECASTS 5 PERCENT REAL GDP GROWTH THIS YEAR, A REDUCTION 
IN INFLATION TO 18 PERCENT AND A FISCAL SURPLUS OF 1.2 PERCENT OF GDP.  
THIS PRESUMES GROWTH IN AGRICULTURAL OUTPUT OF 2.4 PERCENT.  THE 
INTRODUCTION OF A 17.5 PERCENT VALUE-ADDED TAX IN MARCH 1995 SOON BECAME 
THE FOCAL POINT FOR WIDESPREAD POPULAR DISCONTENT AND WAS REPEALED BY 
PARLIAMENT FOLLOWING VIOLENT DEMONSTRATIONS AND SEVERAL DEATHS.     A 46 
PERCENT INCREASE IN THE MONEY SUPPLY DURING 1994, CONTINUING 
DEPRECIATION OF THE CEDI AND HIGHER TAXES (SUCH AS HIGHER PETROLEUM AND 
IMPORT LEVIES) SUGGEST THAT THE GOVERNMENT WILL HAVE DIFFICULTY 
ACHIEVING ITS 1995 INFLATION GOAL. 
 
GHANA'S INADEQUATE INFRASTRUCTURE, WHILE CONSTITUTING A SUBSTANTIAL 
IMPEDIMENT TO DOMESTIC PRODUCTIVITY, ALSO OFFERS OPPORTUNITIES FOR 
FOREIGN VENDORS AND INVESTORS.  SHORTCOMINGS IN THE TELECOMMUNICATIONS 
SECTOR ARE ESPECIALLY NOTABLE.  PROGRESS HAS BEEN MADE IN THE 
DEVELOPMENT OF WIRELESS SERVICES AND IN THE MODERNIZATION OF ANTIQUATED 
SWITCHING FACILITIES BUT MUCH REMAINS TO BE DONE.  THE GENERALLY POOR 
QUALITY OF THE GHANAIAN ROAD NETWORK ALSO HAS AN ADVERSE EFFECT ON 
ECONOMIC DEVELOPMENT. 
 
UNTIL RECENTLY GHANA WAS A NET EXPORTER OF SURPLUS ELECTRICITY PRODUCED 
BY THE AKOSOMBO DAM.  EXPANSION OF THE ELECTRICITY GRID TO PREVIOUSLY 
UNSERVED AREAS OF THE COUNTRY AND GROWING DEMAND HAVE NOW CREATED A 
SHORTAGE SITUATION.  LAST YEAR ROTATING BLACKOUTS WERE IMPOSED IN THE 
CITY OF ACCRA TO RATION THE AVAILABLE POWER. THE GOVERNMENT HAS 
EXPRESSED ITS WILLINGNESS TO CONSIDER THE ESTABLISHMENT OF INDEPENDENT 
POWER PRODUCERS IN GHANA TO ALLEVIATE THE TIGHT SUPPLY SITUATION.  WHILE 
NO INSTITUTIONAL FRAMEWORK YET EXISTS TO REGULATE SUCH ENTERPRISES, IT 
MAY BE AN OPPORTUNITY FOR PRODUCERS OF GENERATING EQUIPMENT AND PLANT 
OPERATORS. THE GHANA NATIONAL PETROLEUM COMPANY IS CURRENTLY PLANNING 
CONSTRUCTION OF A GENERATING PLANT THAT WILL USE OFFSHORE GAS RESERVES 
AS FUEL.  THE VOLTA RIVER AUTHORITY IS ALSO PLANNING CONSTRUCTION OF A 
THERMAL PLANT. 
 
THE GOVERNMENT OF GHANA HAS AFFIRMED ITS INTENTION TO STICK WITH A 
RIGOROUS PROGRAM OF MACROECONOMIC REFORMS AND STRUCTURAL ADJUSTMENT.  
DURING THE RUNUP TO THE 1996 PRESIDENTIAL AND PARLIAMENTARY ELECTIONS 
THERE WILL BE GROWING PRESSURES, HOWEVER, TO ACCEDE TO THE DEMANDS OF 
PUBLIC SECTOR EMPLOYEES AND OTHERS TO EASE UP ON THE GOVERNMENT'S POLICY 
OF TIGHT FISCAL AND MONETARY DISCIPLINE. 
 
COUNTRY COMMERCIAL GUIDES ARE AVAILABLE ON THE NATIONAL TRADE DATA BANK 
ON CD-ROM OR THROUGH THE INTERNET.  PLEASE CONTACT STAT-USA AT 1-800-
STAT-USA FOR MORE INFORMATION.  TO LOCATE COUNTRY COMMERCIAL GUIDES VIA 
THE INTERNET, PLEASE USE THE FOLLOWING WORLD WIDE WEB ADDRESS: WWW.STAT-
USA.GOV.  CCGS CAN ALSO BE ORDERED IN HARD COPY OR ON DISKETTE FROM THE 
NATIONAL TECHNICAL INFORMATION SERVICE (NTIS) AT 1-800-553-NTIS. 
 
CHAPTER II.  ECONOMIC TRENDS AND OUTLOOK 
 
-MAJOR TRENDS AND OUTLOOK 
 
THE GOVERNMENT OF GHANA'S MACROECONOMIC MANAGEMENT IMPROVED IN 1994 AND 
A BUDGET SURPLUS OF OVER 2 PERCENT OF GDP WAS RECORDED.  THE SURPLUS WAS 
ATTRIBUTABLE LARGELY TO RECEIPTS FROM THE GOVERNMENT'S DIVESTITURE OF A 
PORTION OF ITS INTEREST IN THE ASHANTI GOLDFIELDS CORPORATION.  POOR 
PERFORMANCE IN THE AGRICULTURAL SECTOR IN 1994 (ONLY 1 PERCENT GROWTH) 
RESULTED IN DISAPPOINTING GDP GROWTH OF 3.8 PERCENT.  INFLATION 
INCREASED TO 34 PERCENT FOR THE YEAR AND CONTINUED TO ACCELERATE DURING 
THE FIRST QUARTER OF 1995 (44 PERCENT FROM MARCH 1994 TO MARCH 1995).  
THE GOVERNMENT'S 1995 BUDGET FORECASTS 5 PERCENT REAL GDP GROWTH FOR 
1995, A REDUCTION IN INFLATION TO 18 PERCENT AND A FISCAL SURPLUS OF 1.2 
PERCENT OF GDP.  AGRICULTURE IS EXPECTED TO GROW AT A 2.4 PERCENT RATE 
WITH FOOD CROP PRODUCTION REGISTERING 4 PERCENT GROWTH AS A RESULT OF 
FAVORABLE RAINS, AN INCREASE IN THE USE OF NEW CROP VARIETIES (DUE TO AN 
INCREASE IN AGRICULTURAL EXTENSION COVERAGE) AND AN INCREASE IN THE USE 
OF FERTILIZERS AND PESTICIDES.   THE INTRODUCTION OF A 17.5 PERCENT 
VALUE-ADDED TAX IN MARCH 1995 AND A 46 PERCENT INCREASE IN THE MONEY 
SUPPLY DURING 1994 ARE SEEN AS THE CAUSES OF THE HIGHER INFLATION 
REGISTERED THUS FAR THIS YEAR.  THE VALUE-ADDED TAX WAS THE FOCAL POINT 
OF WIDESPREAD POPULAR DISCONTENT AND WAS REPEALED BY PARLIAMENT IN JUNE.  
THE GOVERNMENT HAS NOW REVERTED TO THE TAX STRUCTURE THAT EXISTED PRIOR 
TO THE IMPLEMENTATION OF THE VAT. 
 
PRESSURE FOR HIGHER WAGES FROM PUBLIC SECTOR EMPLOYEES WILL CONTINUE TO 
CHALLENGE THE GOVERNMENT'S POLICY OF FISCAL DISCIPLINE.  PERSISTENT 
INFLATION, THE DECLINING VALUE OF THE CEDI AND HIGH UNEMPLOYMENT AND 
UNDEREMPLOYMENT HAVE LEFT MANY GHANAIANS FEELING LESS THAN PROSPEROUS.  
IT IS NOT CLEAR AT THIS POINT HOW OR WHETHER THESE FEELINGS WILL FIND 
POLITICAL EXPRESSION  IN THE 1996 PRESIDENTIAL AND PARLIAMENTARY 
ELECTIONS. 
 
INCREASING CONSUMPTION OF ELECTRIC POWER IN GHANA IN RECENT YEARS HAS 
RESULTED IN POWER SHORTAGES.  LAST YEAR ROTATING BLACKOUTS WERE IMPOSED 
IN ACCRA AS A MEANS OF RATIONING THE AVAILABLE POWER.  GHANA CONTINUES 
TO IMPORT POWER FROM COTE D'IVOIRE TO SUPPLEMENT LOCAL PRODUCTION.  THE 
AKOSOMBO DAM IS THE SOURCE OF MOST OF GHANA'S ELECTRICITY AND INADEQUATE 
RAINFALL THIS YEAR COULD WORSEN THE SITUATION.  THERE ARE SEVERAL 
THERMAL GENERATING PLANTS IN THE PLANNING STAGE AND THESE SHOULD BEGIN 
TO ALLEVIATE THE SITUATION BY 1997. 
 
-PRINCIPAL GROWTH SECTORS 
 
GOLD MINING CONTINUES TO BE THE FOCUS OF GROWTH IN GHANA'S INDUSTRIAL 
SECTOR.  THE ESTABLISHMENT OF DIPLOMATIC RELATIONS (AND AIR LINKS) WITH 
SOUTH AFRICA HAS RESULTED IN GROWING TRADE AND INVESTMENT TIES WITH THAT 
COUNTRY.  SOUTH AFRICAN FIRMS ARE ACTIVE IN THE MINING SECTOR AND ALSO 
IN THE MARKETING OF AGRICULTURAL PRODUCTS.  COCOA PRODUCTION DURING THE 
1994/95 GROWING SEASON IS EXPECTED TO INCREASE ABOUT 5 PERCENT FROM THE 
APPROXIMATELY 324,000 METRIC TONS PRODUCED DURING THE 1993/94 SEASON.  
GROWING COMMERCIAL INTEREST IN GHANA HAS ALSO RESULTED IN THE LAUNCHING 
OF SEVERAL MAJOR HOTEL PROJECTS IN ACCRA AND ELSEWHERE.  THE GOVERNMENT 
IS MAKING AN EFFORT TO PROMOTE GHANA AS A TOURIST DESTINATION, BUT 
RESULTS TO DATE HAVE BEEN LIMITED. 
 
-GOVERNMENT ROLE IN THE ECONOMY 
 
GOVERNMENT POLICY IS TO MOVE TOWARD DISENGAGEMENT FROM THE ECONOMY BY 
DIVESTING MANY STATE-OWNED ENTERPRISES.  SOME SIGNIFICANT DIVESTITURES 
HAVE BEEN COMPLETED BUT OVERALL PROGRESS HAS BEEN SLOW.  THIS YEAR THE 
GOVERNMENT PLANS TO REDUCE OR ELIMINATE ITS INTEREST IN SEVERAL LOCAL 
BANKS.  THE GOVERNMENT HAS ALSO SAID THAT IT INTENDS TO BE MORE 
DISCIPLINED IN THE EXTENSION OF CREDIT TO STATE-OWNED COMPANIES. 
 
-BALANCE OF PAYMENTS SITUATION 
 
IN 1994 GHANA REGISTERED A CURRENT ACCOUNT DEFICIT (EXCLUDING OFFICIAL 
TRANSFERS) OF 9.7 PERCENT OF GDP.   THE MERCHANDISE TRADE BALANCE WAS 
NEGATIVE IN SPITE OF INCREASED EXPORTS.  GOLD AND TIMBER EXPORTS ROSE 
BUT COCOA RECEIPTS WERE DOWN.  PETROLEUM IMPORTS ACCOUNTED FOR ABOUT 10 
PERCENT OF TOTAL IMPORTS.  A NET INFLOW IN THE CAPITAL ACCOUNT RESULTED 
IN AN OVERALL BALANCE OF PAYMENTS SURPLUS. 
 
LAST YEAR GHANA EARNED USD 119.3 MILLION FROM THE SALE OF NON-
TRADITIONAL EXPORTS (ITEMS OTHER THAN GOLD, TIMBER AND COCOA).  THIS WAS 
A 66 PERCENT INCREASE OVER 1993 EARNINGS OF USD 71.7 MILLION.  THE 
GROWTH IN SALES OF NON-TRADITIONAL EXPORTS WAS DUE PARTLY TO PRODUCTS 
SUCH AS COTTON, PROCESSED PINEAPPLE JUICE, CANNED FISH AND GARMENTS. 
 
THE DEPRECIATION OF THE CEDI RELATIVE TO THE DOLLAR CONTINUED IN 1994, 
BUT AT A SLOWER RATE.  1994'S DECLINE OF 22 PERCENT COMPARES WITH THE 36 
PERCENT DROP IN 1993.  THE MINISTRY OF FINANCE ATTRIBUTES THE CEDI 
DEPRECIATION TO LOW DOMESTIC AGRICULTURAL OUTPUT, AN INCREASE IN IMPORT 
DEMAND AND A SHORTAGE OF FOREIGN EXCHANGE DUE TO NON-DISBURSEMENT OF 
GRANTS AND LOANS. 
 
THE ESTABLISHMENT OF A MARKET-DETERMINED EXCHANGE RATE AND THE EASING OF 
RESTRICTIONS ON ACCESS TO AND USE OF FOREIGN EXCHANGE HAVE LED TO 
INCREASED REMITTANCES FROM ABROAD AND GREATER FOREIGN INVESTMENT FROM 
COMPANIES NOW ABLE TO REPATRIATE EARNINGS AND DIVIDENDS. 
 
-INFRASTRUCTURE SITUATION 
 
INFRASTRUCTURE SHORTCOMINGS CREATE A SUBSTANTIAL IMPEDIMENT TO DOMESTIC 
PRODUCTIVITY AND DISCOURAGE INCREASED FOREIGN DIRECT INVESTMENT.  
INADEQUACIES IN THE TELECOMMUNICATIONS SECTOR ARE PARTICULARLY NOTABLE.  
GHANA'S CALL COMPLETION RATE IS QUITE LOW AND COMMUNICATING WITH AREAS 
OUTSIDE OF ACCRA IS DIFFICULT AT BEST.  EXPANDED AND MODERNIZED 
SWITCHING FACILITIES SHOULD BEGIN TO IMPROVE INTERNATIONAL AND SOME 
LOCAL TELEPHONE SERVICE LATER THIS YEAR.  THE AVAILABILITY OF WIRELESS 
SERVICES IS ALSO EXPANDING. 
 
THE POOR QUALITY OF GHANAIAN ROADS SLOWS DOWN THE DELIVERY OF GOODS AND 
SERVICES AND COMPLICATES EFFORTS TO INTRODUCE NATIONAL MARKETING 
STRATEGIES.  THE GOVERNMENT HAS EXPLORED PLANS TO INCREASE RELIANCE ON 
VOLTA RIVER TRANSPORT AS AN ALTERNATIVE TO THE INADEQUATE ROAD NETWORK.  
OVERLOADED VEHICLES COUPLED WITH POOR ROAD CONDITIONS CONTRIBUTE TO 
ACCIDENTS WHICH IMPEDE THE FLOW OF OTHER COMMERCIAL AND PRIVATE TRAFFIC. 
 
A DESILTING AND EXPANSION PROJECT AT THE PORT OF TEMA HAS BEEN 
COMPLETED.  THIS SHOULD REDUCE TRAFFIC FROM SHALLOW-DRAFT VESSELS IN THE 
PRINCIPAL CHANNEL ENTRY TO THE PORT.  PLANS FOR THE ESTABLISHMENT OF AN 
INLAND PORT AT FUMESUA (NEAR KUMASI) ARE FAR ADVANCED AND THIS SHOULD 
EASE CONGESTION AT TEMA AND TAKORADI HARBORS.  AN URBAN TRANSPORT 
PROJECT IN ACCRA INVOLVING THE WIDENING OF MAJOR ARTERIES AND THE 
CONSTRUCTION OF CLOVERLEAFS AND OVERPASSES HAS BEGUN. 
 
 
CHAPTER III.  POLITICAL ENVIRONMENT 
 
-NATURE OF POLITICAL RELATIONSHIP WITH THE U.S. 
 
THE U.S. AND GHANA ENJOY A RELATIONSHIP BEST DESCRIBED AS CORDIAL AND 
CONSTRUCTIVE.  THERE ARE NO MAJOR OBSTACLES DISRUPTIVE OF THE BILATERAL 
RELATIONSHIP, ALTHOUGH THE DISPROPORTION BETWEEN THE SIZE AND WEALTH OF 
THE TWO COUNTRIES CONTRIBUTES FREQUENTLY TO DIVERGENT PERSPECTIVES 
REGARDING GLOBAL AND REGIONAL POLITICAL, MILITARY, ECONOMIC AND TRADE 
ISSUES.  GHANA HAS HISTORICALLY EXERCISED A POSITION OF LEADERSHIP 
WITHIN THE NON-ALIGNED MOVEMENT AND ITS VOICE IN INTERNATIONAL FORA IS 
MOST OFTEN HEARD IN SUPPORT OF DEBT-RELIEF AND OTHER ISSUES THAT TEND TO 
PIT THE HAVES AGAINST THE HAVE-NOTS.  VARIOUS AFRICAN LEADERS HAVE SPENT 
TIME IN THEIR FORMATIVE YEARS IN GHANA AND THIS REINFORCES GHANAIAN 
SUPPORT FOR PAN-AFRICANISM AND A POPULIST BRAND OF AFRICAN DEMOCRACY.  
GHANA HAS COME TO RECOGNIZE THE SHIFT IN THE WORLD POWER BALANCE AWAY 
FROM THE FORMER "EAST BLOC" AND TOWARDS THE WESTERN DEMOCRACIES.  
DESPITE THIS TREND, GHANA MAINTAINS CLOSE OFFICIAL RELATIONS WITH LIBYA 
AND CUBA, AS WELL AS APPARENTLY WARM DIPLOMATIC TIES WITH THE GOVERNMENT 
OF NORTH KOREA. 
 
-MAJOR POLITICAL ISSUES AFFECTING THE BUSINESS CLIMATE 
 
THE POLITICAL SUSPICION BETWEEN GOVERNMENT AND THE OPPOSITION PARTIES 
STANDS BETWEEN GHANA AT PRESENT AND THE CREATION OF AN IDEAL SETTING IN 
WHICH TO CONDUCT BUSINESS.  APPROPRIATE TO GHANA'S HISTORY OF COUP-
PLOTTING, THE GOVERNMENT IS EXTREMELY SECURITY CONSCIOUS AND EQUALLY 
CONSCIOUS OF WHETHER POLITICAL FRIENDS OR FOES ARE BENEFITING FROM ITS 
ECONOMIC POLICIES.  MEMBERS OF THE POLITICAL OPPOSITION HAVE ONLY 
RECENTLY GROWN COMFORTABLE WITH BEING ABLE TO DISPLAY SIGNS OF WEALTH, 
FOLLOWING A PERIOD WHEN TO DO SO WOULD HAVE RISKED TAX AUDITS OR 
HARASSMENT THAT WAS OFFICIALLY CONDONED, IF NOT SPONSORED.  A MAJOR 
THRUST OF GOVERNMENT POLICY IS THE PRIVATIZATION OF POORLY PERFORMING 
STATE-OWNED ENTERPRISES, MOST OF WHICH CREATE A SUBSTANTIAL DRAIN ON 
OFFICIAL COFFERS.  GOVERNMENT REMAINS INTENT ON SEEING THAT POLITICAL 
FOES DO NOT ACQUIRE SUBSTANTIAL INTERESTS IN THE FEW PARASTATALS WITH 
PROSPECTS FOR FUTURE PROFITABLE OPERATION.  THERE ARE FEW SIGNS THAT 
GOVERNMENT IS CONTENT TO GET OUT OF THE BUSINESS OF PICKING ECONOMIC 
WINNERS AND LOSERS.  THE GOVERNMENT HAS LIBERALIZED THE ECONOMY AND, IN 
SO DOING, INCREASED THE SCOPE BY WHICH THE PRIVATE SECTOR GENERALLY CAN 
OPERATE PROFITABLY. 
 
THE 1994 ENACTMENT OF A NEW INVESTMENT CODE HAS IMPROVED SIGNIFICANTLY 
THE LEGAL ENVIRONMENT FOR FOREIGN INVESTORS IN GHANA.  THE GOVERNMENT 
OFFERS VARIOUS TAX INCENTIVES IN AN EFFORT TO ATTRACT FOREIGN CAPITAL.  
 
-BRIEF SYNOPSIS OF POLITICAL SYSTEM 
 
IN THE AFTERMATH OF NATIONAL ELECTIONS IN 1992 FOR BOTH THE PRESIDENCY 
AND SEATS IN THE UNICAMERAL PARLIAMENT, THE GOVERNMENT HAS MAINTAINED AN 
UNEASY POSTURE WITH REGARD TO OPPOSITION PARTIES, WHICH HAVE ACCEPTED 
THE OUTCOME OF THE PRESIDENTIAL ELECTION ONLY WITH GREAT RELUCTANCE OR, 
IN SOME CASES, NOT AT ALL.  THE OPPOSITION PARTIES BOYCOTTED THE 
PARLIAMENTARY ELECTIONS, RESULTING IN THE GOVERNMENT COALITION OBTAINING 
99 PERCENT OF THE SEATS IN PARLIAMENT, WITH THE REMAINING SEATS GOING TO 
INDEPENDENTS.  EFFORTS TO PROMOTE DIALOGUE AND COOPERATION BETWEEN THE 
GOVERNMENT AND THE OPPOSITION HAVE NOT SUCCEEDED AND THERE REMAINS A 
HIGH LEVEL OF MUTUAL SUSPICION.  THE NEXT NATIONAL ELECTIONS ARE 
SCHEDULED FOR 1996.  RECENT DISTRICT LEVEL ELECTIONS HAVE BEEN CONDUCTED 
IN AN ENVIRONMENT FREE OF DISCORD AND IN A RELATIVELY NON-POLITICIZED 
MANNER. 
 
THE GOVERNMENT IS HEADED BY PRESIDENT JERRY J. RAWLINGS.  RAWLINGS RULED 
IN A PROVISIONAL MILITARY GOVERNMENT FROM THE END OF 1981 UNTIL NOVEMBER 
1992, WHEN HE PUT HIS MANDATE TO A POPULAR VOTE AND WAS ELECTED WITH 58 
PERCENT OF THE BALLOTS CAST.  THE NDC AND ITS THEN-SUPPORTING PARTIES, 
THE NATIONAL CONVENTION PARTY (NCP) AND EVERY GHANAIAN LIVING EVERYWHERE 
(EGLE) PARTY, COULD BE BEST DESCRIBED AS POPULIST WITH STRONG SUPPORT IN 
THE RURAL AREAS.  THE SO-CALLED  "PROGRESSIVE ALLIANCE" COMPRISED OF 
THESE THREE PARTIES CARRIED NINE OF TEN REGIONS IN THE 1992 ELECTION.  
POLITICAL DIFFERENCES HAVE SINCE CAUSED THE DEPARTURE OF THE NCP FROM 
THE COALITION.  THE NDC NOW GOVERNS WITH THE EGLE PARTY. 
 
THE LEADING OPPOSITION PARTY IS THE NEW PATRIOTIC PARTY (NPP) WHICH WON 
APPROXIMATELY 30 PERCENT OF THE VOTE IN THE 1992 PRESIDENTIAL ELECTION.  
THE NPP IS SEEN TO HAVE A STRONG PRIVATE SECTOR ORIENTATION AND ENJOYS 
CONSIDERABLE SUPPORT WITHIN THE GHANAIAN BUSINESS COMMUNITY AND IN URBAN 
AREAS GENERALLY.  THE NPP HAS A STRONG TRADITIONAL BASE IN GHANA'S 
ASHANTI REGION, ALTHOUGH IT IS FAIRLY WELL ORGANIZED THROUGHOUT MOST OF 
THE COUNTRY. 
 
THE REMAINING LEADING POLITICAL PARTIES, THE PEOPLE'S HERITAGE PARTY 
(PHP), NATIONAL INDEPENDENCE PARTY (NIP) AND PEOPLE'S NATIONAL 
CONVENTION (PNC), CLAIM TO CARRY THE SOCIALIST AND PAN-AFRICANIST MANTLE 
OF GHANA'S FIRST PRESIDENT, KWAME NKRUMAH.  SOME PARTISANS MAINTAIN THAT 
NKRUMAHISM HAS CHANGED ITS FUNDAMENTAL NATURE AND HAS COME TO RECOGNIZE 
THE NEED FOR THE PRIVATE SECTOR, RATHER THAN GOVERNMENT, TO PROVIDE THE 
IMPETUS FOR GROWTH IN THE ECONOMY.  THESE PARTIES APPEAR TO LACK A 
UNIFIED ECONOMIC POLICY OR, INDEED, THE FOLLOWING THAT WOULD COMPEL THEM 
TO DEVELOP SUCH A POLICY. 
 
 
CHAPTER IV.  MARKETING U.S. PRODUCTS AND SERVICES 
 
-DISTRIBUTION AND SALES CHANNELS 
 
U.S.-SOURCED GOODS ARE HIGHLY REGARDED IN GHANA BUT TEND TO BE PRICED ON 
THE HIGH END OF THE SCALE.  HIGH SHIPPING COSTS FROM NORTH AMERICA ARE 
AN IMPORTANT COMPONENT OF THIS HIGHER COST.  IN THE PAST, GHANAIAN 
CUSTOMERS HAVE SOMETIMES BEEN RELUCTANT TO ACKNOWLEDGE THE COST OF THE 
HIGH QUALITY THEY SEEK.  THERE ARE INDICATIONS THAT THIS ATTITUDE IS 
CHANGING. 
 
THE CHANNELS OF DISTRIBUTION AVAILABLE TO U.S. SUPPLIERS OF GOODS AND 
SERVICES ARE MANY AND VARIED.  ONCE GOODS ARE BROUGHT INTO THE COUNTRY, 
THERE ARE NUMEROUS SOLE PROPRIETORSHIPS PREPARED TO BUY GOODS AT 
WHOLESALE PRICES FOR DISTRIBUTION.  VARIOUS LARGE TRADING ORGANIZATIONS 
ALSO HAVE DISTRIBUTION AND SALES OUTLETS THROUGHOUT GHANA. 
 
 
-USE OF AGENTS AND DISTRIBUTORS; FINDING A PARTNER 
 
LOCATING APPROPRIATE AGENTS OR DISTRIBUTORS WHO CAN MARKET EFFECTIVELY 
THE PRODUCTS AND SERVICES OF U.S. SUPPLIERS IS ALWAYS A DIFFICULT AND 
TIME-CONSUMING EXERCISE.  LOCAL BUSINESSES ARE USUALLY INTERESTED IN 
BEING APPOINTED AGENTS OR DISTRIBUTORS FOR FOREIGN FIRMS.  MANY OF THESE 
COMPANIES DO NOT, HOWEVER,  POSSESS THE MANAGERIAL AND FINANCIAL 
CAPACITY TO MARKET PROPERLY AND PROMOTE THE LINES OF GOODS AND SERVICES 
THEY WISH TO REPRESENT. 
 
THERE IS NO SUBSTITUTE FOR IN-DEPTH RESEARCH INTO THE QUALIFICATIONS AND 
OPERATING EXPERIENCE OF PROSPECTIVE AGENTS OR DISTRIBUTORS. 
 
-FRANCHISING 
 
TO DATE FRANCHISING HAS NOT BEEN WIDESPREAD IN GHANA.  UNDER-
CAPITALIZATION OF MANY COMPANIES DISCOURAGES GREATER USE OF THIS 
APPROACH TO BUSINESS.  
 
-DIRECT MARKETING 
 
EFFORTS HAVE BEEN MADE BY SOME U.S. COMPANIES TO MARKET THEIR PRODUCTS 
INDEPENDENTLY WITHOUT COLLABORATION WITH LOCAL AGENTS OR DISTRIBUTORS.  
IN LARGE PART THESE EFFORTS HAVE BEEN UNSUCCESSFUL.  THE PECULIARITIES 
OF THE MARKET, INCLUDING CULTURAL AND SOCIAL MORES, CREATE PROBLEMS FOR 
NEW ENTRANTS UNFAMILIAR WITH THE BUSINESS ENVIRONMENT.  THE 
IDENTIFICATION OF TARGET MARKETS FOR COMPANIES UNFAMILIAR WITH GHANAIAN 
CULTURE AND SPENDING HABITS CHALLENGES DIRECT MARKETING EFFORTS FROM 
ABROAD. 
 
-JOINT VENTURES/LICENSING 
 
THE GHANAIAN INVESTMENT CODE PROVIDES LEGISLATIVE ENCOURAGEMENT FOR 
JOINT VENTURE ACTIVITIES.  HOWEVER, JOINT VENTURE ARRANGEMENTS WITH 
GHANAIAN FIRMS SHOULD SPELL OUT CAREFULLY AREAS OF RESPONSIBILITY.  SOME 
LOCAL ENTREPRENEURS OPERATE UNDER THE IMPRESSION THAT ALL COSTS WILL BE 
BORNE BY THE FOREIGN INVESTOR WHILE EXPERTISE IN SELLING TO THE LOCAL 
MARKET IS ALL THAT IS REQUIRED OF THEM.  MANY POTENTIAL LOCAL JOINT 
VENTURE PARTNERS HAVE LITTLE EQUITY TO OFFER AND MERELY SEEK TO 
CAPITALIZE ON THEIR KNOWLEDGE OF THE LOCAL BUSINESS ENVIRONMENT. 
 
-STEPS TO ESTABLISHING AN OFFICE 
 
INTERESTED COMPANIES MAY CONSULT WITH THE COMMERCIAL SECTION OF THE U.S. 
EMBASSY FOR GUIDANCE AND ASSISTANCE IN COMPLIANCE WITH THE COMPANIES 
CODE.  ALTERNATIVELY, COMPANIES MAY WISH TO CONTACT A REPUTABLE 
CHARTERED ACCOUNTING FIRM (THE EMBASSY COMMERCIAL SECTION CAN PROVIDE 
NAMES AND POINTS OF CONTACT) TO ENSURE PROPER REGISTRATION. 
 
-SELLING FACTORS/TECHNIQUES 
 
IT IS IMPORTANT TO BEAR IN MIND THAT THE MARKETING OF GOODS AND SERVICES 
IN GHANA IS A VERY PERSONAL PROCESS.  MAIL-ORDER MARKETING AND 
TELEMARKETING ARE NOT EMPLOYED IN GHANA.  TRADE SHOWS PERMITTING 
VISITORS TO TOUCH AND FEEL THE PRODUCT IN QUESTION ARE USUALLY WELL-
ATTENDED.  VIDEO CATALOGUE SHOWS ARE RECOMMENDED ONLY WHEN A MORE DIRECT 
SELLING APPROACH WOULD BE UNWORKABLE. 
 
THERE IS CONCERN IN GHANA ABOUT THE DUMPING OF INFERIOR GOODS, EXPIRED 
PERISHABLES, AND IMPROPER LABELING OF IMPORTS.  WITH SOME COMMON-SENSE 
EXCEPTIONS (E.G. FRESH FISH) CONTAINERS MUST CLEARLY IDENTIFY IN ENGLISH 
THE NATURE AND SOURCE OF GOODS IMPORTED, AND INDICATE AN EXPIRY DATE (IN 
THE CASE OF PERISHABLES).  THE GOVERNMENT HAS AUTHORIZED THREE FIRMS, 
THE SOCIETE GENERAL DU SURVEILLANCE (SGS) FROM SWITZERLAND, INCHCAPE 
TESTING SERVICES INTERNATIONAL LIMITED FROM THE U.K. AND COTECNA 
INSPECTION SERVICE (S.A.) FROM SWITZERLAND TO PERFORM STATESIDE 
PRESHIPMENT INSPECTIONS OF GOODS DESTINED FOR GHANA.  THE PRE-SHIPMENT 
INSPECTION THRESHOLD HAS BEEN RAISED FROM USD 3,000.00 TO USD 5,000.00 
F.O.B.  THIS THRESHOLD DOES NOT APPLY TO FOOD, PHARMACEUTICALS AND USED 
ITEMS.  THESE CATEGORIES OF GOODS ARE SUBJECT TO PRE-SHIPMENT INSPECTION 
REGARDLESS OF VALUE. 
 
IMPORTED GOODS TYPICALLY ARRIVE IN GHANA AT ONE OF TWO DEEP WATER PORTS 
(TAKORADI IN THE WESTERN REGION OR TEMA NEAR ACCRA) OR AT KOTOKA 
INTERNATIONAL AIRPORT IN ACCRA.  THERE IS SIGNIFICANT CROSS-BORDER TRADE 
BETWEEN GHANA AND ITS NEIGHBORS, BUT MUCH OF THIS ACTIVITY IS NOT 
CAPTURED IN OFFICIAL STATISTICS. 
 
-ADVERTISING AND TRADE PROMOTION 
 
SEVERAL PUBLIC RELATIONS AND ADVERTISING FIRMS OPERATE IN GHANA.  THE 
COMMERCIAL SECTION OF THE U.S. EMBASSY CAN BE OF ASSISTANCE IN 
IDENTIFYING SUITABLE COMPANIES FOR BRAND REPRESENTATION AND THE 
IDENTIFICATION OF LEADING PUBLICATIONS WITH GENERAL OR SPECIALIZED 
READERSHIP. 
 
THE FOLLOWING IS A LIST OF MAJOR NEWSPAPERS AND  BUSINESS JOURNALS: 
 
GHANAIAN TIMES 
DAILY GRAPHIC 
GHANA CHRONICLE 
INDEPENDENT 
VOICE 
FREE PRESS 
MARKETING OUTLOOK 
BUSINESS IN GHANA 
BUSINESS AND FINANCIAL TIMES 
 
-PRICING PRODUCT 
 
GHANAIANS TEND TO BE VERY PRICE CONSCIOUS WITH RESPECT TO MOST 
PURCHASES.  INCREASING SOPHISTICATION IS LEADING SOME BUYERS AWAY FROM 
THE LOW COST ALTERNATIVES THAT RESULT EVENTUALLY IN HIGHER REPLACEMENT 
COSTS. 
 
-SALES SERVICE/CUSTOMER SUPPORT 
 
GOODS SOLD IN GHANA ARE FREQUENTLY SUBJECTED TO HEAVY USE AND OFTEN ARE 
NOT MAINTAINED IN ACCORDANCE WITH THE MANUFACTURER'S RECOMMENDATIONS.  
SERVICE CONTRACTS, PRODUCT RECALLS, AND WORK PERFORMED UNDER WARRANTY 
ARE VIRTUALLY UNKNOWN IN GHANA.  MOST GOODS ARE SOLD "AS IS" WITHOUT 
EXPRESS OR IMPLIED WARRANTIES. 
 
-SELLING TO THE GOVERNMENT 
 
THE GHANA SUPPLY COMMISSION (GSC) IS THE GOVERNMENT ENTITY ENTRUSTED 
WITH RESPONSIBILITY FOR PROCUREMENT ON BEHALF OF THE GOVERNMENT AND ITS 
VARIOUS INSTRUMENTALITIES.  THE GSC COMMONLY PROVIDES A 45 DAY TENDERING 
PERIOD ON PROCUREMENT CONTRACTS BEING LET.  THE POINT OF CONTACT FOR GSC 
IS C/O THE CHIEF EXECUTIVE, P.O. BOX M 35, ACCRA, TELEPHONE (233)(21) 
228131, FAX (233)(21) 668452 AND TELEX 208 SUPCOM GH. 
 
-PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT 
 
THE PROTECTION OF INTELLECTUAL PROPERTY IS AN EVOLVING AREA OF LAW IN 
GHANA BUT STRIDES HAVE BEEN MADE IN RECENT YEARS TO AFFORD PROTECTION TO 
A VARIETY OF INTELLECTUAL PROPERTY UNDER BOTH LOCAL AND INTERNATIONAL 
LAW.  GHANA IS A MEMBER OF THE WORLD INTELLECTUAL PROPERTY ORGANIZATION 
(WIPO) AND THE ENGLISH-SPEAKING AFRICAN REGIONAL INDUSTRIAL PROPERTY 
ORGANIZATION (ESARIPO). 
 
-NEED FOR A LOCAL ATTORNEY 
 
ORDINARY CRITERIA GO INTO THE DETERMINATION TO HIRE LOCAL COUNSEL ON 
RETAINER OR FOR PURSUIT OF A SPECIFIC CLAIM OR TO INSTITUTE LITIGATION.  
ON REQUEST THE COMMERCIAL SECTION OF THE EMBASSY WILL PROVIDE NAMES OF 
QUALIFIED LOCAL COUNSEL.  THERE ARE NO U.S. ATTORNEYS KNOWN BY THE 
EMBASSY TO BE ENGAGED IN THE PRACTICE OF LAW IN GHANA. 
 
 
CHAPTER V.  LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT 
 
- BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES 
 
1  - FOOD PROCESSING AND PACKAGING EQUIPMENT (FPP) 
NEW SUPERMARKETS AND OTHER FOOD STORES IN THE ACCRA/TEMA AREA HAVE 
INCREASED THE AVAILABLE OUTLETS FOR PROCESSED FOODS AND THUS INCREASED 
DEMAND FOR THESE ITEMS.  THERE ARE ATTRACTIVE LOCAL OPPORTUNITIES FOR 
EQUIPMENT SUPPLIERS TO CANNERS OF BEER, STOUT, SOFT-DRINKS AND LOCALLY-
PRODUCED FRESH PRODUCE, PARTICULARLY TOMATOES.  COMPANIES ARE SEEKING TO 
PRODUCE MORE ATTRACTIVE PACKAGING FOR MANY CONSUMER FOOD PRODUCTS. THE 
ABILITY OF LOCAL FOOD PROCESSORS TO PRODUCE QUALITY PACKAGING IS VERY 
LIMITED AND IN NEED OF IMPROVEMENT. 
 
                              1993    1994     1995 (EST.) 
                                $M      $M       $M 
 
A. TOTAL MARKET SIZE           1.4    15.3     16.0 
B. TOTAL LOCAL PRODUCTION        0       0        0 
C. TOTAL EXPORTS                 0       0        0 
D. TOTAL IMPORTS               1.4    15.3     16.0 
E. IMPORTS FROM THE U.S.      .009    1.65      3.0 
 
 
2 - CONSTRUCTION AND EARTH MOVING EQUIPMENT (CON) 
 
IN GHANA EARTHMOVING EQUIPMENT IS IN DEMAND FOR USE IN ROAD 
CONSTRUCTION, MINING OPERATIONS AND IN COMMERCIAL AND RESIDENTIAL 
PROPERTY DEVELOPMENT.  CURRENTLY THERE ARE AN ESTIMATED 1,600 PIECES OF 
EARTHMOVING MACHINERY IN GHANA.  PRICE AND FINANCING TERMS ARE KEY 
CONSIDERATIONS FOR BUYERS WHERE SALES ARE NOT LINKED TO EXTERNAL 
ASSISTANCE PROGRAMS.  NON-U.S. PRODUCERS OF CONSTRUCTION AND EARTHMOVING 
EQUIPMENT HAVE BEEN SOMEWHAT SLOW TO ENTER THE GHANAIAN MARKET, BUT 
THERE ARE INDICATIONS THAT THEY ARE BECOMING MORE AGGRESSIVE. 
 
                              1993    1994     1995 (EST.) 
                                $M      $M       $M 
 
A. TOTAL MARKET SIZE          19.6    39.7     50.0 
B. TOTAL LOCAL PRODUCTION        0       0        0 
C. TOTAL EXPORTS                 0       0        0 
D. TOTAL IMPORTS              19.6    39.7     50.0 
E. IMPORTS FROM THE U.S.       5.8     7.8     15.0 
 
3 - AUTOMOBILES/LIGHT TRUCKS/VANS (AUT) 
 
GHANA HAS NO DOMESTIC ASSEMBLY OF MOTOR VEHICLES AND THUS RELIES 
EXCLUSIVELY ON IMPORTS OF THESE PRODUCTS.  RECENT INCREASED DEMAND FOR 
TRUCKS IS ATTRIBUTABLE TO DONOR-FINANCED ROAD CONSTRUCTION AND 
RESIDENTIAL CONSTRUCTION PROJECTS.  THE MINISTER OF TRADE AND INDUSTRY 
HAS TAKEN THE UNUSUAL STEP OF ENCOURAGING GREATER VEHICLE IMPORTS TO 
IMPROVE DOMESTIC INDUSTRIAL PRODUCTIVITY.  TAX DISINCENTIVES DISCOURAGE 
THE IMPORTATION OF OLDER USED VEHICLES.  TRAFFIC IN GHANA PROCEEDS ON 
THE RIGHT HAND SIDE OF THE ROAD. 
 
                            1993      1994     1995 (EST.) 
                              $M        $M       $M 
A. TOTAL MARKET SIZE      201.72     197.2    250.0 
B. TOTAL LOCAL PRODUCTION      0         0        0 
C. TOTAL EXPORTS               0         0        0 
D. TOTAL IMPORTS           201.7     219.7    225.0 
E. IMPORTS FROM THE U.S.     4.9      16.2     20.0 
 
4 - COMPUTERS AND PERIPHERALS (CPT) 
 
THE U.S. REMAINS THE DOMINANT SUPPLIER IN THE COMPUTER EQUIPMENT MARKET 
IN GHANA AT A TIME WHEN COMPUTER USAGE IS INCREASING DRAMATICALLY.  A 
GROWING NUMBER OF FIRMS SERVE THE GHANAIAN HARDWARE AND SOFTWARE 
MARKETS.  DEMAND IS SPURRED BY IMPROVED LOCAL SERVICING CAPACITY COUPLED 
WITH GROWTH OF OFFSHOOT ACTIVITIES INCLUDING SHAREWARE, SOFTWARE DESIGN, 
COMPUTER GRAPHICS, AND SYSTEMS CONSULTING. 
 
 
                            1993    1994     1995 (EST.) 
                              $M      $M       $M 
A. TOTAL MARKET SIZE        11.4    10.1     12.0 
B. TOTAL LOCAL PRODUCTION      0       0        0 
C. TOTAL EXPORTS               0       0        0 
D. TOTAL IMPORTS            11.4    10.1      12.0 
E. IMPORTS FROM THE U.S.     2.9     2.3       3.0 
 
5 - MINING INDUSTRY EQUIPMENT (MIN) 
 
THE MINING SECTOR CONTINUES TO ENJOY A STRONG RESURGENCE IN GHANA.  GOLD 
EXTRACTION IS THE FOCUS OF MOST ACTIVITY, BUT BAUXITE, MANGANESE, SALT, 
AND DIAMONDS ARE ALSO BEING MINED.  GHANA NOW PRODUCES OVER ONE MILLION 
OUNCES OF GOLD ANNUALLY.  THE INDUSTRY LEADER, ASHANTI GOLDFIELDS 
CORPORATION, WAS PARTIALLY PRIVATIZED IN 1994.  AMERICAN, AUSTRALIAN AND 
SOUTH AFRICAN FIRMS ARE ALSO ACTIVE IN THE GHANAIAN GOLD MINING 
INDUSTRY. 
 
IMPROVED DIPLOMATIC TIES BETWEEN SOUTH AFRICA AND GHANA HAVE BOOSTED THE 
PROSPECTS FOR SOUTH AFRICAN MANUFACTURERS OF MINING EQUIPMENT. 
 
 
                            1993    1994     1995 (EST.) 
                              $M      $M       $M 
A. TOTAL MARKET SIZE        13.5    27.1     30.0 
B. TOTAL LOCAL PRODUCTION      0       0        0 
C. TOTAL EXPORTS               0       0        0 
D. TOTAL IMPORTS            13.5    27.1     30.0 
E. IMPORTS FROM THE U.S.     0.6     0.9      2.0 
 
- BEST PROSPECTS FOR AGRICULTURAL PRODUCTS 
 
1 - WHEAT 
 
WHEAT IS NOT CULTIVATED LOCALLY.  POPULATION INCREASES AND RISING DEMAND 
FOR WHEAT BRAN BY LIVESTOCK AND POULTRY FARMERS ARE LIKELY TO RESULT IN 
SUSTAINED IMPORT DEMAND.  GHANAIAN OFFICIALS ESTIMATE TOTAL FEED MILLING 
CAPACITY AT 350,000 MT. 
 
 
                              1993    1994     1995 (EST.) 
                                MT      MT       MT 
A. TOTAL CONSUMPTION          44.1    30.2     32.5 
B. TOTAL LOCAL PRODUCTION        0       0        0 
C. TOTAL EXPORTS                 0       0        0 
D. TOTAL IMPORTS              44.1    30.2     32.5 
E. IMPORTS FROM THE U.S.      30.9    21.4     20.0 
 
2 - RICE 
 
RICE CULTIVATION TAKES PLACE THROUGHOUT GHANA BUT MAINLY IN VALLEY 
BOTTOMS.  THE USE OF IRRIGATION SYSTEMS IS INCREASING, PARTICULARLY IN 
THE NORTHERN, UPPER EAST AND GREATER ACCRA REGIONS. RICE IMPORTS FROM 
PAKISTAN AND SOUTH ASIA ARE INCREASING.   
 
                              1993    1994     1995 (EST.) 
                                MT      MT       MT 
 
A. TOTAL CONSUMPTION           418     443      435 
B. TOTAL LOCAL PRODUCTION      157     162      160 
C. TOTAL EXPORTS                 0       0        0 
D. TOTAL IMPORTS               261     281      275 
E. IMPORTS FROM THE U.S.       182     191      110 
 
3 - FROZEN BEEF/CHICKEN/TURKEY 
 
THE CATTLE INDUSTRY IN GHANA IS BASED MAINLY ON EXTENSIVE PASTORAL 
 
OR FREE-RANGE SYSTEMS AMONG PEASANT FARMERS.  THE NORTHERN SAVANNAH ZONE 
ACCOUNTS FOR THE BULK OF CATTLE PRODUCTION.  INEFFECTIVE CONTROL OF 
CATTLE DISEASES IS A MAJOR PROBLEM.  ABOUT 80 PERCENT OF POULTRY 
PRODUCTION IN GHANA IS BACKYARD/FREE RANGE AND CHICK MORTALITY IS VERY 
HIGH.  IMPORTS ARE LIKELY TO SATISFY 40-50 PERCENT OF GHANA'S POULTRY 
REQUIREMENTS OVER THE MEDIUM TERM. 
 
                              1993   1994     1995 (EST.) 
                                MT      MT       MT 
 
A. TOTAL CONSUMPTION          66.7    71.1     75.0 
B. TOTAL LOCAL PRODUCTION     42.6    43.5     45.0 
C. TOTAL EXPORTS                 0       0        0 
D. TOTAL IMPORTS              24.1    27.6     30.0 
E. IMPORTS FROM THE U.S.       4.8     5.5      6.0 
 
- SIGNIFICANT INVESTMENT OPPORTUNITIES 
 
THE GHANAIAN GOVERNMENT HAS STATED ITS INTENTION TO DIVEST ITSELF OF 
NUMEROUS STATE-OWNED ENTERPRISES.  ALTHOUGH SOME OF THESE COMPANIES HAVE 
SUFFERED FROM INADEQUATE INVESTMENT AND THEIR ASSETS ARE OBSOLETE, THERE 
MAY BE ATTRACTIVE OPPORTUNITIES IN SOME SECTORS FOR AMERICAN FIRMS 
INTERESTED IN ENTERING THE GHANAIAN MARKET.  COCOA AND COFFEE 
PLANTATIONS, POULTRY FARMS, FISHING OPERATIONS AND MINING, HOTEL AND 
TIMBER COMPANIES ARE INCLUDED AMONG THE ENTERPRISES TO BE SOLD.  THE 
DIVESTITURE IMPLEMENTATION COMMITTEE (DIC) WAS ESTABLISHED BY THE 
GOVERNMENT TO IMPLEMENT THE DIVESTITURE POLICY. 
 
THE GOLD MINING INDUSTRY CONTINUES TO ATTRACT SIGNIFICANT FOREIGN 
INVESTMENT TO GHANA.  AMERICAN, CANADIAN, AUSTRALIAN AND SOUTH AFRICAN 
COMPANIES ARE REPRESENTED.  THE GOVERNMENT OF GHANA'S MINERALS 
COMMISSION IS RESPONSIBLE FOR OVERSEEING FOREIGN INVESTMENT IN THE 
MINING SECTOR. 
 
TELECOMMUNICATIONS AND POWER GENERATION ARE TWO ADDITIONAL SECTORS THAT 
MAY BE OF PARTICULAR INTEREST TO POTENTIAL INVESTORS.  THE 
LIBERALIZATION OF GHANA'S TELECOMMUNICATIONS INDUSTRY SHOULD CREATE 
OPPORTUNITIES FOR PROVIDERS OF A VARIETY OF COMMUNICATIONS SERVICES.  AS 
FOR POWER GENERATION, GHANA'S CURRENT SHORTAGE OF ELECTRICITY AND THE 
GOVERNMENT'S APPARENT WILLINGNESS TO CONSIDER PRIVATE SECTOR SOLUTIONS 
TO THIS PROBLEM OFFER OPPORTUNITY TO INDEPENDENT POWER PRODUCERS. 
 
THE GOVERNMENT OF THE UNITED STATES ACKNOWLEDGES THE CONTRIBUTION THAT 
OUTWARD FOREIGN DIRECT INVESTMENT MAKES TO THE U.S. ECONOMY.  U.S. 
FOREIGN DIRECT INVESTMENT IS INCREASINGLY VIEWED AS A COMPLEMENT OR EVEN 
A NECESSARY COMPONENT OF TRADE.  FOR EXAMPLE, ROUGHLY 60 PERCENT OF U.S. 
EXPORTS ARE SOLD BY AMERICAN FIRMS THAT HAVE OPERATIONS ABROAD.  
RECOGNIZING THE BENEFITS THAT U.S. OUTWARD INVESTMENT BRINGS TO THE U.S. 
ECONOMY, THE GOVERNMENT OF THE UNITED STATES UNDERTAKES INITIATIVES SUCH 
AS OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC) PROGRAMS, INVESTMENT 
TREATY NEGOTIATIONS AND BUSINESS FACILITATION PROGRAMS THAT SUPPORT U.S. 
INVESTORS. 
 
CHAPTER VI.  TRADE REGULATIONS AND STANDARDS 
 
-TARIFFS AND IMPORT TAXES 
 
GHANA IS CURRENTLY USING THE HARMONIZED COMMODITY CODING SYSTEM (HS) IN 
CLASSIFYING GOODS.  TAXES ASSESSED ON THE BASIS OF WEIGHT, VALUE OR 
VOLUME ARE SUBJECT TO CHANGE ANNUALLY.  GOODS ARRIVING IN COUNTRY MAY BE 
SUBJECT TO IMPORT DUTIES, SALES TAX, SPECIAL OR SPECIFIC DUTIES, AND 
OVER-AGE PENALTY.  DUTIES ARE IMPOSED ON CERTAIN CATEGORIES OF EXPORTS. 
 
ASIDE FROM A FEW ITEMS WHICH ARE EXEMPT FROM THE PAYMENT OF CUSTOMS 
DUTIES, ALL IMPORTS ARE SUBJECT TO IMPORT DUTY AND SALES TAX.  THE SALES 
TAX IS CALCULATED ON THE DUTY-INCLUSIVE VALUE OF THE GOODS AT RATES 
CONTAINED IN THE HS MANUAL.  GENERALLY, THE IMPORT RATES IMPOSED ON 
VARIOUS GOODS FOR THE CURRENT YEAR ARE AS FOLLOWS: AGRICULTURAL AND 
EDUCATIONAL MATERIALS - ZERO DUTY; OTHER RAW MATERIALS AND CAPITAL GOODS 
- 10 PERCENT AD VALOREM; AND ALL OTHER GOODS - 25 PERCENT AD VALOREM.  
CONCESSIONARY DUTY RATES ARE AVAILABLE FOR PRESCRIBED CATEGORIES OF 
MANUFACTURES WHILE 16 CATEGORIES OF MANUFACTURED PRODUCTS ATTRACT A 
HEAVIER CUSTOMS DUTY AS THE GOVERNMENT OF GHANA SEEKS TO PROTECT CERTAIN 
DOMESTIC INDUSTRIES. 
 
A 17.5 PERCENT VALUE-ADDED TAX WAS INTRODUCED IN MARCH 1995 TO REPLACE 
EXISTING SALES AND EXCISE LEVIES.  THIS TAX BECAME THE FOCUS OF 
WIDESPREAD POPULAR DISCONTENT AND WAS FINALLY REPEALED IN JUNE.  THE 
GOVERNMENT NOW PLANS TO REVERT TO THE PREVIOUS TAX STRUCTURE. 
 
-CUSTOMS VALUATION 
 
IN GENERAL, ALL IMPORTS ARE SUBJECT TO CUSTOMS DUTIES.  EXEMPTIONS FOR 
GOVERNMENT, PRIVILEGED PERSONS, ORGANIZATIONS AND INSTITUTIONS ARE 
PROVIDED BY LAW.  ALL COMMERCIAL GOODS WITH A VALUE OF USD 5,000 OR MORE 
FOB MUST BE COVERED BY A CLEAN REPORT OF FINDINGS.  ITEMS VALUED BELOW 
THIS THRESHOLD ATTRACT WHAT IS TERMED THE COMMISSIONER'S VALUE, WHICH IS 
SUBJECT TO CHANGE WITHOUT NOTICE. 
 
-IMPORT LICENSES 
 
THE IMPORT LICENSE SYSTEM WAS ABOLISHED IN 1989. 
 
 
-EXPORT CONTROLS 
 
WITH A FEW EXCEPTIONS, THERE ARE NO CONTROLS ON EXPORTS.  THE MAIN 
CATEGORIES OF RESTRICTED EXPORTS INCLUDE MILITARY HARDWARE AND ANTIQUES 
AND COLLECTOR'S ITEMS MORE THAN 50 YEARS OLD, INCLUDING WORKS OF ART.  
THESE ITEMS REQUIRE SPECIAL PERMITS AND CERTIFICATES AS A PREREQUISITE 
FOR THEIR EXPORTATION.  OTHER ITEMS THAT REQUIRE PERMITS ARE 
AGRICULTURAL PRODUCE, GAME AND WILDLIFE, TIMBER PRODUCTS, PRECIOUS 
MINERALS, LIVE PLANTS AND KENTE CLOTH.  PROHIBITED EXPORTS INCLUDE ITEMS 
SPECIFIED BY LAW, NARCOTICS, PARROTS, AND GHANAIAN CURRENCY IN EXCESS OF 
5,000 CEDIS (APPROXIMATELY USD 4.30). 
 
-IMPORT/EXPORT DOCUMENTATION 
 
GHANA REQUIRES USE OF THE FOLLOWING DOCUMENTATION: AIRWAY BILLS, BILLS 
OF LADING, SHIPPERS NOTIFICATION FORMS, INVOICES, PACKING LISTS, PRE-
SHIPMENT INSPECTION REPORT OF FINDINGS, AND PAY-IN SLIPS. 
 
-TEMPORARY ENTRY 
 
THE LAWS OF GHANA PROVIDE FOR THE ENTRY OF CERTAIN GOODS CONDITIONALLY 
RELIEVED FROM PAYMENT OF IMPORT DUTIES AND TAXES.  SUCH GOODS MUST BE 
IMPORTED FOR A SPECIFIC PURPOSE AND MUST BE INTENDED FOR RE-EXPORT 
WITHIN THREE MONTHS, IN THE STATE OF ENTRY OR AFTER HAVING UNDERGONE 
FURTHER PROCESSING OR REPAIR.  IF GOODS BROUGHT INTO GHANA UNDER 
TEMPORARY ENTRY PERMIT ARE TO BE SOLD, THE CUSTOMS EXCISE AND PREVENTIVE 
SERVICE (CEPS) MUST BE NOTIFIED AND APPROPRIATE TAXES SETTLED IN FULL 
BEFORE THE SALE. 
 
-LABELING, MARKING REQUIREMENTS 
 
THE GOG CONTINUES TO ENFORCE A PRODUCT LABELING LAW OF GENERAL 
APPLICABILITY WHICH TOOK EFFECT IN 1992.  BY LAW, IMPORTS IN VIRTUALLY 
ALL CATEGORIES (NOTABLE EXCEPTIONS INCLUDE PETROLEUM AND FISH) MUST 
CLEARLY IDENTIFY THE GOODS SHIPPED (IN ENGLISH), THE INGREDIENTS OR 
COMPONENTS, THE POINT OF ORIGIN, AND ESTABLISH A DATE OF EXPIRATION FOR 
PERISHABLES.  IMPROPERLY IDENTIFIED FOOD AND DRUGS ARE HELD FOR TESTING 
BY THE GHANA STANDARDS BOARD WHERE APPROVED GOODS ARE RELEASED UPON 
PAYMENT OF A FINE AND UNAPPROVED GOODS ARE CONFISCATED FOR DISPOSAL. 
 
-PROHIBITED IMPORTS 
 
IMPORT PROHIBITIONS INCLUDE: NARCOTICS, MERCURIC MEDICATED SOAP, TOXIC 
WASTE, CONTAMINATED GOODS, FOREIGN CIGARETTES WITHOUT A WARNING NOTICE, 
FOREIGN SOIL, COUNTERFEIT NOTES AND COINS OF ANY COUNTRY AND ANY GOODS 
PROHIBITED BY LOCAL LAW. 
 
-STANDARDS 
 
THE GHANA STANDARDS BOARD (GSB) IS THE AUTHORITY RESPONSIBLE FOR 
DEVELOPING AND PROMULGATING STANDARDS AS WELL AS ENSURING THE QUALITY OF 
GOODS IMPORTED INTO GHANA.  THE GSB HAS PROMULGATED APPROXIMATELY 160 
GHANAIAN STANDARDS AND ADOPTED OVER 300 FOREIGN STANDARDS FOR 
CERTIFICATION PURPOSES.  THESE STANDARDS COVER A WIDE RANGE OF PRODUCTS.  
BOTH MANUFACTURERS AND IMPORTERS ARE REQUIRED TO REGISTER WITH THE GSB. 
 
THE GSB HAS NOT YET ADOPTED THE ISO 9000 FOR GHANA.  THE ISO 9000 AND 
TOTAL QUALITY MANAGEMENT ARE BEING CONSIDERED FOR INTRODUCTION OVER A 
FOUR YEAR PERIOD BEGINNING IN 1995 WITH EMPHASIS ON INPUTS FOR NON-
TRADITIONAL EXPORTS. 
 
-FREE TRADE ZONES/WAREHOUSES 
 
CURRENTLY GHANA HAS ONE FREE TRADE ZONE LOCATED IN TEMA AND OPERATED BY 
TARZAN ENTERPRISES LTD.  A FREE TRADE ZONE BILL THAT WOULD ESTABLISH 
ADDITIONAL ZONES IN TEMA AND TAKORADI IS UNDER CONSIDERATION BY 
PARLIAMENT.  MOST OF THE GHANAIAN COMMERCIAL BANKS OWN BONDED 
WAREHOUSES. 
 
-SPECIAL IMPORT PROVISIONS 
 
AN IMPORT DECLARATION FORM (IDF) ISSUED BY THE MINISTRY OF TRADE AND 
INDUSTRY IS REQUIRED TO INDICATE THE CATEGORY, QUANTITY AND VALUE OF 
IMPORTED GOODS.  ANOTHER REQUIRED DOCUMENT IS A VALID INCOME TAX 
CLEARANCE CERTIFICATE ISSUED BY THE GHANA INTERNAL REVENUE SERVICE. 
 
-MEMBERSHIP IN FREE TRADE ARRANGEMENTS 
 
GHANA IS A MEMBER OF THE WORLD TRADE ORGANIZATION (WTO) AND IS A 
SIGNATORY TO THE LOME CONVENTION. 
 
CHAPTER VII.  INVESTMENT CLIMATE 
 
- OPENNESS TO FOREIGN INVESTMENT 
 
GHANA'S NEW INVESTMENT CODE (THE GHANA INVESTMENT PROMOTION CENTER ACT 
OF 1994) ENCOURAGES FOREIGN INVESTMENT, GUARANTEES THE FREE 
TRANSFERABILITY OF DIVIDENDS, LOAN REPAYMENTS, LICENSING FEES AND THE 
REPATRIATION OF CAPITAL, PROVIDES GUARANTEES AGAINST EXPROPRIATION AND 
PROVIDES FOR DISPUTE ARBITRATION.  FOREIGN INVESTORS ARE NOT SUBJECT TO 
DIFFERENTIAL TREATMENT ON TAXES, PRICES, OR ACCESS TO FOREIGN EXCHANGE, 
IMPORTS, AND CREDIT.  STEPS HAVE BEEN TAKEN TO REMOVE A NUMBER OF LEGAL 
AND ADMINISTRATIVE IMPEDIMENTS TO FOREIGN INVESTMENT. 
 
THE MINIMUM REQUIRED EQUITY FOR FOREIGN INVESTORS IS USD 10,000 (IN 
JOINT VENTURES) OR USD 50,000 (FOR ENTERPRISES WHOLLY-OWNED BY A NON-
GHANAIAN).  TRADING COMPANIES EITHER WHOLLY OR PARTLY OWNED BY NON-
GHANAIANS REQUIRE MINIMUM FOREIGN EQUITY OF USD 300,000 AND THE FIRM 
MUST EMPLOY AT LEAST 10 GHANAIANS.  THE HIGHER MINIMUM INVESTMENT 
REQUIRED IN TRADING COMPANIES IS MEANT TO BE A DISINCENTIVE FOR 
FOREIGNERS TO ENGAGE IN THIS KIND OF ACTIVITY. 
 
THE GHANA INVESTMENT PROMOTION CENTER (GIPC) IS RESPONSIBLE FOR THE 
PROMOTION OF DIRECT INVESTMENT IN GHANA.  INVESTMENT IN MINING AND 
PETROLEUM EXPLORATION ARE REGULATED BY THE MINERALS COMMISSION AND THE 
GHANA NATIONAL PETROLEUM CORPORATION RESPECTIVELY.  PORTFOLIO INVESTMENT 
IS OVERSEEN BY THE GHANA STOCK EXCHANGE.  THE CATEGORIES OF BUSINESS 
ACTIVITY CLOSED TO FOREIGN INVESTMENT HAVE BEEN REDUCED TO FOUR: PETTY 
TRADING AND HAWKING, OPERATION OF TAXI AND CAR HIRE SERVICES, LOTTERIES 
AND BETTING ARRANGEMENTS AND THE OPERATION OF BEAUTY SALONS AND BARBER 
SHOPS. 
 
-CONVERSION AND TRANSFER POLICIES 
 
RELIANCE ON INTERBANK AND PRIVATE FOREIGN EXCHANGE BUREAUS IS RISING.  
THE GHANA FOREIGN EXCHANGE AUCTION WAS ELIMINATED IN 1992 TO PROMOTE USE 
OF THESE MECHANISMS.  THERE ARE NO RESTRICTIONS ON THE CONVERSION AND 
TRANSFER OF FUNDS.  GHANA'S HARD CURRENCY NEEDS ARE MET LARGELY THROUGH 
GOLD AND COCOA EXPORT REVENUES AND DONOR AID. 
 
-EXPROPRIATION AND COMPENSATION 
 
THE 1994 INVESTMENT CODE GUARANTEES THAT FOREIGN-OWNED ENTERPRISES SHALL 
NOT BE SUBJECT TO EXPROPRIATION OR NATIONALIZATION UNLESS THE TAKING IS 
IN THE NATIONAL INTEREST FOR A PUBLIC PURPOSE.  PAYMENT OF FAIR AND 
ADEQUATE COMPENSATION IN CONVERTIBLE CURRENCY IS GUARANTEED FOR 
ENTERPRISES SO ACQUIRED BY THE STATE. 
 
-DISPUTE SETTLEMENT 
 
GHANA'S LEGAL SYSTEM IS BASED ON BRITISH COMMON LAW.  LAWSUITS ARE 
ALLOWED AND USUALLY BEGIN IN HIGH COURT.  THE 1994 INVESTMENT CODE 
ADDRESSES DISPUTE SETTLEMENT PROCEDURES AND PROVIDES FOR ARBITRATION 
WHEN DISPUTES CANNOT BE SETTLED BY OTHER MEANS. 
 
-POLITICAL VIOLENCE 
 
OVERALL, GHANA OFFERS A RELATIVELY STABLE AND PREDICTABLE POLITICAL 
ENVIRONMENT FOR AMERICAN INVESTORS.  RECENT ETHNIC VIOLENCE IN GHANA'S 
NORTHERN REGION DID NOT AFFECT ANY FOREIGN-OWNED ASSETS. THERE IS NO 
INDICATION AT THE PRESENT TIME THAT THE LEVEL OF POLITICAL RISK IN GHANA 
WILL CHANGE MARKEDLY OVER THE NEAR TERM. 
 
-PERFORMANCE REQUIREMENTS/INCENTIVES 
 
THE GHANA INVESTMENT PROMOTION CENTER ACT OF 1994 DOES PROVIDE FOR 
INCENTIVES FOR FOREIGN INVESTORS.  THESE INCLUDE TAX HOLIDAYS, CAPITAL 
ALLOWANCES (ACCELERATED DEPRECIATION), LOCATIONAL INCENTIVES AND OTHER 
INDUCEMENTS. 
 
-RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT 
 
THE LAWS OF GHANA RECOGNIZE THE RIGHT TO PRIVATE OWNERSHIP AND 
ESTABLISHMENT. 
 
-PROTECTION OF PROPERTY RIGHTS 
 
THE GHANAIAN CONSTITUTION AND ESTABLISHED CASE LAW PROVIDE FOR 
PROTECTION OF PROPERTY RIGHTS IN GHANA.  THE PROTECTION OF INTELLECTUAL 
PROPERTY IS AN EVOLVING AREA OF LAW.  PROGRESS HAS BEEN MADE IN RECENT 
YEARS TO AFFORD PROTECTION UNDER BOTH LOCAL AND INTERNATIONAL LAW.  
GHANA IS A MEMBER OF THE WORLD INTELLECTUAL PROPERTY ORGANIZATION (WIPO) 
AND THE ENGLISH-SPEAKING AFRICAN REGIONAL INDUSTRIAL PROPERTY 
ORGANIZATION (ESARIPO). 
 
-REGULATORY SYSTEM: LAWS AND PROCEDURES 
 
THE GOVERNMENT OF GHANA HAS BEEN MOVING TOWARD LIBERALIZATION AND 
DEREGULATION.  THE GHANA INVESTMENT PROMOTION CENTER ACT OF 1994 
CODIFIED THE GOVERNMENT'S DESIRE TO PRESENT FOREIGN INVESTORS WITH A 
LIBERAL FOREIGN INVESTMENT REGULATORY REGIME.  SCREENING OF FOREIGN 
INVESTMENT HAS BEEN ELIMINATED AND THE PREREQUISITES FOR ESTABLISHMENT 
OF A BUSINESS IN GHANA ARE NOW QUITE MINIMAL.  
 
-BILATERAL INVESTMENT AGREEMENTS 
 
BILATERAL INVESTMENT AGREEMENTS EXIST WITH THE FOLLOWING COUNTRIES: THE 
UNITED KINGDOM, NORTHERN IRELAND, THE REPUBLIC OF CHINA, ROMANIA, 
DENMARK, AND SWITZERLAND.  THESE AGREEMENTS NORMALLY RUN FOR TEN YEARS 
AND WERE SIGNED AND RATIFIED BETWEEN 1989 AND 1992.  ITALY AND FRANCE 
ARE CURRENTLY WORKING ON SIMILAR ARRANGEMENTS.  THE POSSIBILITY OF 
AGREEMENTS WITH GERMANY, INDIA, PAKISTAN, SOUTH KOREA, NORTH KOREA, AND 
BELGIUM IS BEING CONSIDERED. 
 
-OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS 
 
OPIC IS ACTIVE IN GHANA AND INTERESTED IN EXPANDING ITS PORTFOLIO.  OPIC 
OFFICERS VISIT GHANA PERIODICALLY AND MEET WITH REPRESENTATIVES OF 
PROMINENT AMERICAN AND GHANAIAN BUSINESSES. 
 
-LABOR 
 
GHANA HAS A LARGE POOL OF INEXPENSIVE, UNSKILLED LABOR.  LABOR 
REGULATIONS AND POLICIES ARE GENERALLY FAVORABLE TO BUSINESS.  LABOR- 
MANAGEMENT RELATIONS ARE FAIRLY GOOD. 
 
-FOREIGN TRADE ZONES/FREE PORTS 
 
PLANNING IS UNDERWAY TO ESTABLISH FREE TRADE ZONES AT THE TEMA AND 
TAKORADI PORTS.  MOST LARGE GHANAIAN BANKS OWN BONDED WAREHOUSES. 
 
-CAPITAL OUTFLOW POLICY 
 
THE GHANA INVESTMENT PROMOTION CENTER ACT OF 1994 GUARANTEES THE 
UNCONDITIONAL TRANSFERABILITY OF CAPITAL, PROFITS AND DIVIDENDS.  GHANA 
IS A MEMBER OF THE INTERNATIONAL CENTER FOR THE SETTLEMENT OF INVESTMENT 
DISPUTES (ICSID). 
 
-MAJOR FOREIGN INVESTORS 
 
THESE INCLUDE COMPANIES SUCH AS TEBEREBIE GOLDFIELDS, LTD, 
(AMERICAN/GHANAIAN),  REGIMANUEL-GRAY LIMITED (AMERICAN/GHANAIAN), VOLTA 
ALUMINUM CO. (VALCO) LTD. (AMERICAN), AND STAR-KIST FOODS (AMERICAN). 
 
CHAPTER VIII.  TRADE AND PROJECT FINANCING 
 
-BRIEF DESCRIPTION OF BANKING SYSTEM 
 
FOLLOWING IS A LIST OF THE PRINCIPAL BANKS IN GHANA: 
THE BANK OF GHANA 
GHANA COMMERCIAL BANK 
STANDARD CHARTERED BANK 
BARCLAYS BANK 
MERCHANTS BANK (GHANA) LIMITED 
SOCIAL SECURITY BANK 
NATIONAL INVESTMENT BANK 
ECOBANK 
 
THERE ARE ALSO A NUMBER OF SMALLER INSTITUTIONS.  GHANA ALSO HAS 12 
RURAL BANKS THAT PROVIDE BANKING FACILITIES FOR RURAL COMMUNITIES.  THE 
BANK OF GHANA IS THE CENTRAL BANK AND IS RESPONSIBLE FOR THE ISSUANCE 
AND MANAGEMENT OF CURRENCY AND THE REGULATION AND CONTROL OF FOREIGN 
EXCHANGE.  THE BANK OF GHANA IS ALSO CHARGED WITH THE MANAGEMENT OF 
MONETARY AND CREDIT POLICIES, BANK SUPERVISION AND THE DEVELOPMENT AND 
PROMOTION OF A HEALTHY BANKING SYSTEM. 
 
-FOREIGN EXCHANGE CONTROLS AFFECTING TRADING 
 
THE GOVERNMENT OF GHANA HAS MOVED AWAY FROM EXCHANGE CONTROLS AND HAS 
PERMITTED THE ESTABLISHMENT OF FOREIGN EXCHANGE BUREAUS.  THE CEDI CAN 
NOW BE READILY EXCHANGED FOR FOREIGN CURRENCY THROUGHOUT GHANA. 
 
-GENERAL FINANCING AVAILABILITY 
 
ALL EXIMBANK PROGRAMS ARE CURRENTLY AVAILABLE IN GHANA.  IN ADDITION, 
THE INTERNATIONAL FINANCE CORPORATION (IFC), A UNIT OF THE WORLD BANK, 
IS ACTIVE IN THE GHANAIAN MARKET.  U.S. DEPARTMENT OF AGRICULTURE 
FINANCING PROGRAMS ARE AVAILABLE FOR THE IMPORTATION OF U.S. FARM 
PRODUCTS.  LOCAL CREDIT MARKETS ARE CHARACTERIZED CURRENTLY BY HIGH 
INTEREST RATES AND THE ABSENCE OF LONG-TERM FINANCING INSTRUMENTS.  A 
WORLD BANK PROJECT IS FOCUSING ON THE DEVELOPMENT OF A LONG-TERM BOND 
MARKET IN GHANA.  THE GHANA STOCK EXCHANGE OFFERS LIMITED POSSIBILITIES 
FOR EQUITY FINANCING. 
 
-HOW TO FINANCE EXPORTS/METHODS OF PAYMENT 
 
CREDIT TERMS FREQUENTLY HAVE A STRONG BEARING ON THE SOURCING OF 
IMPORTED GOODS.  SOME EUROPEAN SUPPLIERS COMMONLY OFFER THEIR CUSTOMERS 
60 TO 120 DAY FINANCING.  TWO LOCAL BANKS, STANDARD CHARTERED GHANA LTD. 
AND BARCLAYS, HANDLE ACCOUNTS FOR SUPPLIERS WHO SHIP TO GHANA ON A 
COLLECTION BASIS TO PREFERRED CUSTOMERS.  BECAUSE OF HISTORICALLY WEAK 
COLLECTION PRACTICES BY DOMESTIC BANKS, MANY IMPORTERS ARE NOT 
ACCUSTOMED TO MAKING TIMELY REPAYMENT.  SALES BY NEW-TO-MARKET COMPANIES 
SHOULD BE MADE AGAINST AN IRREVOCABLE LETTER OF CREDIT ISSUED BY A 
CHARTERED GHANAIAN BANK, PAYABLE AT SIGHT. 
 
-TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE 
 
ALL OF EXIMBANK'S EXPORT FINANCING AND INSURANCE PROGRAMS ARE AVAILABLE 
IN GHANA.  EXIMBANK REQUIRES A BANK OF GHANA GUARANTEE ON LOANS, 
GUARANTEES AND INSURANCE FACILITIES OFFERED TO GHANAIAN PUBLIC SECTOR 
ENTITIES.  GOVERNMENT OF GHANA GUARANTEES REQUIRE THE APPROVAL OF THE 
RELEVANT SECTOR MINISTRY, THE MINISTRY OF FINANCE AND ECONOMIC PLANNING, 
AND THE BANK OF GHANA. 
 
-PROJECT FINANCING AVAILABLE, INCLUDING LENDING FROM MULTILATERAL 
INSTITUTIONS, AND TYPES OF PROJECTS SUPPORTED 
 
PROJECT FINANCING IS AVAILABLE FROM A VARIETY OF MULTILATERAL 
INSTITUTIONS SUCH AS THE IMF, WORLD BANK, AND THE EUROPEAN DEVELOPMENT 
BANK.  TYPES OF PROJECTS SUPPORTED INCLUDE THE EUROPEAN COMMUNITY-
SPONSORED RURAL SCHOOL PROGRAM, AND THE CONSTRUCTION OF A BUNGALOW-STYLE 
APARTMENT COMPLEX AS PART OF THE SCHOOL PROJECT.  THE GOVERNMENT OF 
SOUTH KOREA AND THE MINISTRY OF ENERGY ARE ALSO WORKING ON A JOINT 
PROJECT INVOLVING THE CONSTRUCTION OF PETROLEUM STORAGE TANKERS IN THE 
ASHANTI REGION.  MUCH OF THE FINANCING FOR THIS PROJECT CAME FROM THE 
WORLD BANK. 
 
-LIST OF BANKS WITH A CORRESPONDENT U.S. BANKING ARRANGEMENT 
 
BARCLAY'S BANK (GHANA) 
  BARCLAY'S BANK P.L.C., NEW YORK 
ECOBANK (GHANA) 
  MIDLAND BANK, NEW YORK 
  CITIBANK, NEW YORK 
  BANKERS TRUST, NEW YORK 
STANDARD CHARTERED BANK (GHANA) 
  STANDARD CHARTERED BANK OF AMERICA, ATLANTA 
  STANDARD CHARTERED BANK OF AMERICA, CHICAGO 
  STANDARD CHARTERED BANK OF AMERICA, AUSTIN 
 
 
CHAPTER IX.  BUSINESS TRAVEL 
 
-BUSINESS CUSTOMS 
 
WITH THE EXCEPTION OF HIGH-RANKING OFFICIALS SUCH AS GOVERNMENT 
MINISTERS, IT IS RELATIVELY EASY TO ARRANGE CALLS ON LOCAL BUSINESSMEN 
AND GOVERNMENT OFFICIALS. 
 
-TRAVEL ADVISORY AND VISAS 
 
ALL VISITORS (EXCEPT ECOWAS NATIONALS WHO ARE ALLOWED TO USE TRAVEL 
CERTIFICATES IN LIEU OF PASSPORTS) ARE REQUIRED TO POSSESS A VALID 
PASSPORT AND VISA.  VISAS ARE AVAILABLE FROM GHANAIAN DIPLOMATIC 
MISSIONS.  IN PLACES WHERE GHANA DOES NOT HAVE DIPLOMATIC 
REPRESENTATION, APPLICATIONS SHOULD BE MADE TO THE NEAREST BRITISH 
CONSULATE.  A VALID CERTIFICATE OF VACCINATION AGAINST YELLOW FEVER AND 
CHOLERA IS ALSO REQUIRED IF COMING FROM AN INFECTED OR ENDEMIC AREA.  
MALARIA IS ENDEMIC IN GHANA AND PROPHYLAXIS IS RECOMMENDED.  
APPLICATIONS FOR ENTRY PERMITS AND VISAS FROM BONAFIDE PERSONAL BAGGAGE 
OF A VISITOR IS ADMITTED FREE OF DUTY.  UNACCOMPANIED BONAFIDE 
PERSONAL/HOUSEHOLD EFFECTS SENT IN ADVANCE OF OR LEFT BEHIND MUST BE 
ENTERED ON A PASSENGER UNACCOMPANIED BAGGAGE DECLARATION (PUBD) FORM AT 
THE TIME OF ARRIVAL.  THE AIRPORT DEPARTURE TAX IS CURRENTLY CEDIS 
22,000 (ABOUT USD 20).  THERE ARE NO RESTRICTIONS ON THE IMPORT AND 
EXPORT OF FOREIGN CURRENCIES PROVIDED THEY ARE DECLARED AT THE POINT OF 
ENTRY AND EXCHANGED FOR LOCAL CURRENCY ONLY THROUGH BANKS AND FOREX 
BUREAUS. 
 
-PUBLIC STATUTORY HOLIDAYS 
 
NEW YEAR'S DAY 
 
JANUARY 1 
FOURTH REPUBLIC DAY 
 
JANUARY 6 
INDEPENDENCE DAY 
 
MARCH 6 
GOOD FRIDAY 
 
FRIDAY BEFORE EASTER 
EASTER MONDAY 
 
MONDAY AFTER EASTER 
LABOR DAY 
 
MAY 1 
REPUBLIC DAY 
 
JULY 1 
FARMERS' DAY 
 
FIRST FRIDAY IN DECEMBER 
CHRISTMAS DAY 
 
DECEMBER 25 
BOXING DAY 
 
DECEMBER26 
 
-BUSINESS INFRASTRUCTURE 
 
INTERNATIONAL AIR TRANSPORTATION TO ACCRA IS CURRENTLY OFFERED BY 
BRITISH AIRWAYS, KLM, SWISSAIR, ALITALIA, LUFTHANSA, AIR AFRIQUE, MIDDLE 
EAST AIRLINES, AEROFLOT AND GHANA AIRWAYS.  GHANA AIRWAYS ALSO OPERATES 
INTERNAL FLIGHTS TO VARIOUS DOMESTIC DESTINATIONS.  ALSO AVAILABLE FOR 
DOMESTIC TRAVEL ARE PUBLIC AND PRIVATE BUSES AND CAR RENTALS. 
 
ENGLISH IS USED IN GOVERNMENT OFFICES AND IN BUSINESS TRANSACTIONS.  
MAJOR LOCAL LANGUAGES SPOKEN INCLUDE TWI, FANTI, GA, DAGOMBA, HAUSA, 
NZEMA, EWE AND GRUSHIE. 
 
TELEPHONE, FAX AND TELEX FACILITIES ARE AVAILABLE AT PRINCIPAL POST 
OFFICES AND IN MOST HOTELS. 
 
HOTELS IN ACCRA RANGE FROM 1-STAR TO 5-STAR.  THE QUALITY OF HOTEL 
ACCOMMODATIONS IN OTHER CITIES ALSO VARIES WIDELY. 
 
RESTAURANTS IN MAJOR CITIES AND TOWNS OFFER EUROPEAN, ORIENTAL AND LOCAL 
DISHES.  THERE ARE ALSO MODEST EATING PLACES KNOWN AS "CHOP BARS" THAT 
OFFER LOCAL FOODS AT LOW PRICES. 
 
APPENDIX A:  COUNTRY DATA 
 
-POPULATION: 15.9 MILLION 
 
-POPULATION GROWTH RATE: 3.4% 
 
-RELIGION: FREEDOM OF RELIGION IS GUARANTEED IN GHANA.  TRADITIONAL 
RELIGIONS, CHRISTIANITY, AND ISLAM ARE PRACTICED THROUGHOUT GHANA. 
 
-GOVERNMENT SYSTEM: THE PRESIDENT IS ELECTED BY UNIVERSAL SUFFRAGE AND 
IS THE CHIEF EXECUTIVE AND THE COMMANDER-IN-CHIEF OF THE ARMED FORCES. 
LEGISLATIVE POWER RESTS WITH PARLIAMENT, A UNICAMERAL BODY OF 200 
MEMBERS ALSO ELECTED BY UNIVERSAL SUFFRAGE. 
 
-LANGUAGES: ENGLISH IS THE OFFICIAL NATIONAL LANGUAGE, BUT SOME 75 OTHER 
LANGUAGES AND DIALECTS ARE SPOKEN. 
 
-WORKWEEK: THE FIVE-DAY WORKWEEK EXTENDS FROM MONDAY THROUGH FRIDAY. 
 
APPENDIX B:  DOMESTIC ECONOMY 
 
                                 1993       1994       1995 (EST.) 
 
-GDP (IN BILLIONS OF 
US DOLLARS AT CURRENT PRICES)     6.1        5.4        5.0 
-REAL GDP GROWTH RATE (PERCENT    5.0        3.8        5.0 
-GOVERNMENT SPENDING AS 
        PERCENT OF GDP           20.8       22.3       21.0 
-INFLATION (PERCENT)               23         34         35 
-UNEMPLOYMENT                      NA         NA          NA 
-AVERAGE EXCHANGE RATE       
  (CEDIS/1 US DOLLAR)             696        989       1,250 
-EXTERNAL DEBT (BILLIONS/USD)     4.7        5.0         5.3 
-GDP PER CAPITA (US DOLLARS)      430        430         435 
-U.S. ECONOMIC AND MILITARY 
 ASSISTANCE (MILLIONS/USD)         33       35.6         40 
 
APPENDIX C:   MERCHANDISE TRADE DATA (MILLIONS OF US DOLLARS) 
 
-TOTAL MERCHANDISE EXPORTS:  1993 - 1,064 
                             1994 - 1,227 
                      (EST.) 1995 - 1,400 
 
-TOTAL MERCHANDISE IMPORTS:  1993 - 1,888 
                             1994 - 1,724 
                      (EST.) 1995 - 1,650 
 
-U.S. EXPORTS TO GHANA:      1993 - 214.5 
                             1994 - 124.2 
                      (EST.) 1995 - 150.0 
 
-U.S. IMPORTS FROM GHANA:    1993 - 208.5 
                             1994 - 198.5 
                      (EST.) 1995 - 195.0 
 
APPENDIX D:  INVESTMENT INFORMATION 
 
GHANA IS COMPARATIVELY RICH IN NATURAL AND HUMAN RESOURCES.  IT 
POSSESSES LARGE MINERAL DEPOSITS, NOTABLY ONE OF THE WORLD'S LARGEST AND 
RICHEST RESERVES OF GOLD, SIZABLE STANDS OF TROPICAL HARDWOODS AND 
FAVORABLE CONDITIONS FOR CERTAIN EXPORT CROPS (E.G., COCOA, COFFEE AND 
TROPICAL FRUITS).  GHANA HAS ABOUT 20,000 MILES OF MAIN ROADS (ONE-THIRD 
OF WHICH ARE PAVED), TWO MAIN PORTS (TEMA AND SEKONDI-TAKORADI) AND A 
TRIANGULAR 800-MILE RAIL SYSTEM LINKING KUMASI, TAKORADI AND ACCRA-TEMA. 
 
ECONOMIC REFORMS CARRIED OUT IN GHANA SINCE THE ADOPTION OF THE ECONOMIC 
RECOVERY PROGRAM (ERP) IN 1983 HAVE BEEN WIDELY PRAISED.  BROAD REFORMS 
IMPLEMENTED WITH THE SUPPORT OF THE IMF AND THE WORLD BANK INCLUDED A 
FLOATING EXCHANGE RATE, RELATIVELY EASY ACCESS TO FOREIGN EXCHANGE, AND 
MARKET-DETERMINED DOMESTIC PRICES.  THE ERP WAS FOLLOWED FROM 1987 TO 
1991 BY A TWO-PHASED STRUCTURAL ADJUSTMENT PROGRAM (SAP), AGAIN UNDER 
WORLD BANK AND IMF AUSPICES.  ITS GOALS WERE TO MAINTAIN AN INCENTIVE 
FRAMEWORK THAT STIMULATED GROWTH, ENCOURAGED SAVINGS AND INVESTMENT, 
STRENGTHENED THE BALANCE OF PAYMENTS AND ENSURED FISCAL AND MONETARY 
STABILITY.  ADHERENCE TO THESE REFORMS HAS ENHANCED GHANA'S 
ATTRACTIVENESS FOR FOREIGN DIRECT INVESTMENT. 
 
APPENDIX E:  KEY COUNTRY CONTACTS 
 
MINISTRY OF TRADE AND INDUSTRY 
MRS. EMMA MITCHELL, MINISTER 
P.O. BOX M47, ACCRA 
 
  TEL: 233-21-665-421/663327 
  FAX: 233-21-668-263 
  TLX: 2105 MINTRTADE GH 
 
GHANA INVESTMENT PROMOTION CENTER 
MR. KWESI AHWOI - EXECUTIVE DIRECTOR 
P.O. BOX M193, ACCRA 
 
  TEL: 233-21-665-125/9 
  FAX: 233-21-663-801 
  TLX: 2229 (INVEST) GH 
 
CUSTOMS, EXCISE AND PREVENTIVE SERVICE 
MR. ISAAC EWUN TOHMA, COMMISSIONER 
P.O. BOX 68, ACCRA 
 
  TEL: 233-21-666941/662-123 
 
MINISTRY OF TOURISM 
MRS. VIDA YEBOAH, MINISTER 
P.O. BOX 3106, ACCRA 
 
  TEL: 233-21-666-049/666314/666-426 
  FAX: 233-21-662-375 
  TLX: (94) 2143 TOURISM 
 
ASSOCIATION OF GHANA INDUSTRIES (AGI) 
DR. J. A. ADDISON, PRESIDENT 
TRADE FAIR CENTER 
P.O. BOX 8624, ACCRA-NORTH 
 
  TEL: 233-21-777-283/775-311, EXT. 697/723 
 
GHANA EXPORT PROMOTION COUNCIL 
MR. TAWIA AKYEA, EXECUTIVE DIRECTOR 
P.O. BOX 146, ACCRA 
 
  TEL: 233-21-228-813/30 
  FAX: 233-21-668-263 
  TLX: 2289 EXPORT GH 
 
GHANA NATIONAL CHAMBER OF COMMERCE 
MR. J. E. YAMSON, PRESIDENT 
65 KOJO THOMPSON 
P.O. BOX 2325, ACCRA 
 
  TEL: 233-21-662-427 
  FAX: 233-21-662-210 
  TLX: 2687 GNCC GH 
 
-U.S. EMBASSY TRADE PERSONNEL 
 
MR. JAMES F. FREUND, ECONOMIC/COMMERCIAL OFFICER 
MRS. TEETEE WEISEL, COMMERCIAL ASSOCIATE 
MRS. GRACE TAWIAH AMADU, COMMERCIAL ASSISTANT/LIBRARIAN 
 
-WASHINGTON-BASED CONTACTS 
 
THE EMBASSY OF GHANA 
3512 INTERNATIONAL DRIVE, N.W. 
WASHINGTON, D.C. 20008 
 
  TEL: 202-686-4500 
  FAX: 202-686-4527 
  TLX: 64539 
 
GHANA PERMANENT MISSION TO THE UNITED NATIONS 
19 EST 47TH ST. 
NEW YORK, NEW YORK 10017 
 
  TEL: 212-8322-1300 
  TLX: 234101 GH U.N. 
 
APPENDIX F:   TRADE EVENT SCHEDULE 
 
5TH GHANA INTERNATIONAL 
  TRADE FAIR                      MARCH 1-11, 1996 
 
2ND WEST AFRICA MINING 
  EXHIBITION AND CONFERENCE       JULY, 1996 
 
GRAND SALES '96                   JULY/AUGUST, 1996 
 
COMPUTECH '96                     SEPTEMBER 29-30, 1996 
 
GHANA INTERNATIONAL BOOK FAIR     NOVEMBER 6-12, 1996 
 
INDUTECH '97                      FEBRUARY 28-MARCH 11, 1997 
 
GRAND SALES '97                   JULY/AUGUST, 1997 
 
GHANA INTERNATIONAL HANDICRAFT 
  FAIR '97                        SEPTEMBER, 1997 
 
GHANA FASHION '97                 NOVEMBER 1997 

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