A stable economy

Over the last two decades Ghana has prospered under a stable democratic system of government.

The economy has grown annually by around six percent each year, making it one of the undisputed successes in Africa.  Nevertheless, some parts of the country remain extremely poor, particularly in the north.

With improved economic stability and transparency, Ghana now qualifies for substantial debt relief measures, including assistance from the World Bank, the International Monetary Fund and the debt ‘forgiveness’ plan agreed by the Group Eight leading industrial countries in 2005.

Agriculture is the major sector

The most important sector for Ghana is agriculture, which employs over half the population.  The country is the second largest producer of cocoa beans in the world, netting earnings of nearly one billion dollars each year from the global market for chocolate.  A large part of the government’s revenue comes from various taxes and duties on this crop.

Other key agricultural exports include sugar, cashew and shea nuts, palm oil, cocoa butter and rubber.  Historically, wood was also an important export material.  But the conservation of Ghana’s forests is now a key concern and tougher restrictions are reducing the number of trees which can be felled.

Yellow Gold and Black Gold

Gold mining in Ghana has a history dating back to the 15th century and to this day the country remains Africa’s second largest producer of the metal.  However, much of the gold wealth goes to the foreign mining companies and duties on gold look set to increase.

In 2008, gold exports were valued at 2.2 billion dollars, but Ghana’s government received only around 116 million dollars – five percent of that wealth.

Other mineral resources mined in Ghana include diamonds, manganese and bauxite.

Ghanaians were delighted when significant new oil reserves were found off the coast in 2007.  This oil discovery is likely to earn the country 1.2 billion dollars each year, providing an important boost to the economy.  Ghana’s government is determined to ensure profits go to the state and the country does not fall prey to the ‘curse of the black gold’, where a few get rich while most live in poverty. Because these oil reserves will only last a couple of decades, there is also a plan for revenues to be put aside in a ‘heritage fund’ for when the oil begins to run out.