# Presentation: 237428

## Commercial Opportunities in Ghana

- Presented By:
- Diane Jones
- Senior Commercial Officer
- U.S. Embassy, Accra

## Ghana, West Africa

## Overview

**Ghana is a West African country about the size of Oregon with an economy traditionally oriented toward agriculture and small scale domestic trading.  **
**A former British colony, Ghana’s official language is English.**
**In the past, Ghana conducted most of its external trade with Europe, but trade with the United States is becoming increasingly significant. **
**Major Ghanaian exports are cocoa, timber and gold.**
**Agriculture dominates the economy (about 36 percent of GDP).**
**Sustained growth in the manufacturing sector has not materialized. **

## U.S. Trade with Ghana: (Source: U.S Dept. of Commerce, Bureau of Census)

|  | 2003
($ millions) | 2004
($ millions)
 | 2005
($ millions)
 | 2006
($ millions)
 |
| --- | --- | --- | --- | --- |
| Exports | 209.4 | 309.6 | 337.5 | 289.7 |
| Imports | 81.9 | 145.4 | 158.4 | 192.1 |

**U.S. exports down 14% in 2006, most likely due to the surge of Chinese goods in the market.**

## Why Ghana ?

- Economic stability
- English as an official language
- No major market access barriers
- Infrastructure
- Two first class ports
- An International airport, with numerous connections to Europe and a direct Delta flight to JFK
- Educated, hospitable population
- World Trade Organization Member

**Why Ghana ?**

## Your Gateway to West Africa

**Your Gateway to West Africa**

- Sub-regional market  of 250 million people
- Immediate access to all markets of the Economic Community of West African States (ECOWAS)
- Quota-free access to U.S. and European Union markets

## Barriers to U.S. Exports into Ghana

- Relatively small market size
- Undeveloped market
- Limited Ghanaian purchasing power
- High cost of local credit for importer
- Poor reputation due to the proliferation of fraudulent business deals
- Low level of international trade experience of local
- 	businessmen
- Traditional ties to Great Britain

## Barriers to U.S. Investment into Ghana

- Current Energy Crisis
- No reliable supply of power
- Complex land tenure system
- Historically High inflation rate
- 2006 10.5%, down from 14.8% in 2005
- Inadequate business infrastructure
- Bureaucratic hurdles
- Limited commercial information related to traditionally informal nature of Ghanaian market

## Opportunities

- U.S. funded $547 million Millennium Challenge Account Compact with Ghana
- Export-led industrialization drive, which is focused on agro-processing and other manufacturing activities.
- Cocoa and gold: Ghana now looking at value added manufactured exports.
- Presidential vision of a “Golden Age of Business”

## Millennium Challenge Account

- The Millennium Challenge Corporation (MCC) signed a five-year, approximately $547 million anti-poverty Compact with the Republic of Ghana last year.
- The program focuses on improving the productivity of agriculture, increasing production of high-value commercial and basic food crops, and fostering greater private investment in agriculture.
- The program will also improve the physical and institutional infrastructure in this critical sector of Ghana’s economy.
**Agriculture ****	****	****$241 million**
**Transportation ****	****$143 million**
**Rural Development ****	****$101 million**
**Administrative costs****	****$62 million**
**Includes $15 million for the cost of monitoring and evaluation**

## For Additional information on Ghana’s Millennium Challenge Account Compact:www.mcc.govwww.mida.gov.gh

## Best Industry Prospects For U.S. Goods & Services 

- Travel & Tourism Services		     $ 796 m
- Electrical Power Systems		     $ 140 m*
- 	*The Government of Ghana has budgeted $470 million over the next 3 years
- Mining Equipment			     $ 1.5  billion
- Automobiles/Light Trucks/Vans        $ 591 m
- Telecommunications Equipment      $ 223 m
- Construction/Earth Moving Equip.    $ 170 m
- Food Processing & Packaging Equipment    		                        $  50 m

## 	A heightened emphasis on the Private Sector as the instrument for resolving the mass poverty facing the country through employment and wealth creation. 

- 	A heightened emphasis on the Private Sector as the instrument for resolving the mass poverty facing the country through employment and wealth creation.

## Patience

- Persistence
- Understanding of the market and it’s constraints
- Understanding of cultural differences

## www.buyusa.gov/ghana

- CS Accra Staff Listing and contact information
- CS Accra Services for U.S. Exporters
- Lists of Ghanaian Buyer Delegations
- Links to Current Market Research

**www.buyusa.gov/ghana**

## The U.S. Commercial Service Thanks These Sponsors:

**The U.S. Commercial Service Thanks These Sponsors:**