Ghana: The Next

Frontier
Ian Lee
Centre Director
Ghana Overseas Centre

May 2013
Agenda
Agenda

• WHERE : Defining the market canvass

• WHY Ghana

• HOW to Do Business in Ghana

• What to look out for:

• Tax regulations
• Free zones benefits
• Company experience sharing

• WHEN to go
 Facts about Africa
• The size of the African economy has more than tripled since 2000.

• GDP expected to grow by 4% for 2013 and 4.6% for 2014.

• Africa’s share of global foreign direct investment (FDI) has grown over the
past five years. The continent’s global share of FDI has also grown from
3.2% in 2007 to 5.6% in 2012.

• By 2035, the continent will have the world’s largest workforce, with over
half of the population currently under the age of 20.

• ECOWAS has a population size of over 330 million people.

Ghana and Nigeria figures
Nigeria
Population: 174.5 million
GDP: USD 450.05 billion
Per capital: USD 2700
Land Size: 924,000 sq. km
Labour Cost : USD113.92 ( per month)

Ghana
Population: 25.28 million
GDP: US$40.6 billion
Per capital: USD1,570
Land Size: 238,533 sq. km
Labour cost : USD 2.91 daily
(USD 87.3 monthly)
Malaysia and Indonesia figures
Indonesia
Population: 242.3 million
GDP: USD 846.8 billion
Per capital: USD 3,563
Land Size: 1,904,569 km2
Labour Cost : USD 232 ( per month)

Malaysia
Population: 28.86 million
GDP: USD 287.9 billion
Per capital: USD 8,617
Land Size: 329,847 km2
Labour Cost : USD 259 ( per month)

In 1986 , Malaysia
GDP/capita =$1,741
Similar to Ghana today
1986

What was life in 1986?

• Alex Fergurson became manager of Man United.
• Internet was not invented yet.
• Mobile phones was the “brick”.
• Singapore was just recovering from recession.
• No MRT trains in Singapore.
• No property & stock market boom (early 90s).

Were you doing business in 1986?

Can you turn back the economic clock to 1986?
1986 in Malaysia = Ghana now

Ghana offers you the economic opportunities that you

missed in Malaysia/Indonesia then.

Malaysia
• Political Stability
Mahathir & Suharto was in power
• Oil production
Production in 1986~ 504k bpd
• Agriculture & Minerals
Palm oil, tin
Ghana
• Political Stability
Most stable govt in ECOWAS
• Oil production
~ 120k bpd
• Agriculture & Minerals
Cocoa (2nd top producer), gold

Imports 90% of FMCG

Why Ghana?
Why Ghana?

Socio-economic profile
• Political stability, together with a low crime rate,
competitive wages, solid fiscal indicators and a qualified
labour pool, the republic has emerged as an increasingly
alluring destination for foreign investors looking to move
into West Africa.
• Ghana’s relatively high GDP is poised to increase in the
coming years as the country begins to see revenue from
its modest oil reserves.
Why Ghana?

Economic parameters at a glance

• Ghana is the world’s second-largest cocoa producer
after Ivory Coast accounting for more than one-fifth of
the global cocoa market making cocoa a crucial export
earner.
• Agriculture accounts for 23.7% of GDP, the industrial
sector around 27.3% and services about 50%.
• GDP is forecast to rise more than 7% in 2013,
according to the African Economic Outlook.
Why Ghana?

FDI profile
• In 2012, direct investments into Ghana by non-residents
had an estimated total of USD 4.90 billion. This was
according to the GIPC.
• Oil has become one of Ghana’s top commodity exports,
generating $ 541 .07 m in 2012.
• However, with a population of 25m, growing at 1.8% per
year, the country still faces challenges such as
unemployment and poverty.
Thank You
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