WT/TPR/S/194/Rev.1 Trade Policy Review 
Page 44 
 
 
IV. TRADE POLICIES BY SECTOR 
(1) INTRODUCTION  
1. Agriculture remains the backbone of Ghana's economy.  Cocoa is the dominant cash crop and 
single most important export product;  its output has increased strongly over the past years.  The 
Ghana Cocoa Board has monopoly rights over cocoa e xportation.  Other cash crops include oil palm, 
cotton, and coconut.  The production of food crop s, predominantly on a smallholder basis, has 
increased in recent years, but is still characterized by low productivity.  Forestry and logging account 
for some 4% of GDP, but are important in terms of  merchandise exports.  Fisheries also contribute 
some 4% to GDP, but production is mainly for the national market.  The average tariff on agriculture 
products (major division 1 of ISIC Rev.2)  is 15.7%, with maximum tariffs of 20%. 
2. The contribution of mining and quarrying to GDP has fallen below 5%, but gold remains 
Ghana's second most important export product.  Othe r minerals include diamonds, which are mostly 
produced by small-scale mining operators, bauxite, and manganese.  New legislation on the mining 
subsector entered into force in 2006.  Mining rights are subject to fees and royalties;  in addition, the 
state acquires a 10% stake in each mining company at no cost.  Mining and quarrying products face an 
average tariff of 11.2%. 
3. Manufacturing activities centre around the processing of agricultural goods, but also include 
the production of textiles, pharmaceuticals, and electronics.  The average tariff on manufacturing 
products (major division 3 of ISIC Rev.2) is 12.6 %;  Ghana's tariff displays marked escalation for 
subsectors such as food and beverages, textiles a nd apparel, chemicals, and non-metallic products.  
The resultant high effective protection negativel y affects the competitiveness of these products.  
Activities in the energy subsector remain  dominated by state-owned enterprises. 
4. Ghana has traditionally been a net importer of services.  New legislation has entered into 
force in the insurance and banking subsectors.  Grow th rates have been particularly high in transport 
and communications, while tourism has emerged as an important generator of foreign exchange.  
Ghana's specific commitments under the GATS cove r several service areas, including tourism, 
financial services, and telecommunications.  State-owne d enterprises play an important role in postal 
services and telecommunications;  in addition, Ghana's two main commercial seaports are state-
owned. 
(2) AGRICULTURE , FORESTRY , AND FISHERIES  
(i) Overview 
5. Ghana's agriculture sector is important in terms of contribution to GDP, employment, and 
export earnings (Chapter I(1)).  The recent good performance of the sector has resulted entirely from strongly growing cocoa production;  the GDP shares of other agricultural subsectors have remained 
either constant (forestry) or have even decreased (fi shing, livestock, and other crops).  Agriculture is 
predominantly based on smallholder, familial e xploitation, with rudimentary technology for the 
production of some 80% of total output.  It is es timated that over 2.7 milli on households operate a 
farm or keep livestock.
1  In general, Ghana is a net exporter of  agricultural products (Chapter I(3)(i)). 
6. The Ministry of Food and Agriculture (MOFA) is  responsible for formulating policies in the 
sector.  In line with the Government's overall economic policy and development goals, the main 
objectives are:  food security;  production of agricultural raw materials for industry, and agricultural 
                                                      
1 Ministry of Food and Agriculture (2007). Ghana WT/TPR/S/194/Rev.1 
 Page 45 
 
 
commodities for export;  and efficient input supply, output processing, and marketing.2  In addition, 
the Government's objective is to transform Ghan a into a leading agri-industrial nation by 2015. 
7. Specific objectives and strategies are laid down in the Revised Food and Agricultural Sector 
Development Policy (FASDEP II).3  The main areas for policy intervention in the sector, as outlined 
by FASDEP II are:  (i) infrastructural development to provide enhanced marketing opportunities, in 
particular through the construction of feeder ro ads and storage facilities, and the improvement of 
irrigation;  (ii) the provision of appropriate tec hnology through agricultural research and development;  
and (iii) the provision of public extension services. 
8. Total public expenditure for agriculture was GC  632 billion in 2006, including GC 343 billion 
of donor support.  Ghana's last notification to  the WTO Committee on Agriculture, submitted in 2001 
indicated that it was not granting export subsidies to agricultural products.4 
9. The tariff is the main trade policy instrument in the agriculture sector.  The average applied 
MFN tariff on agriculture products (major division 1 of ISIC Rev.2) is 15.7% (Table AIV.1).   
Average MFN tariffs are relatively high on meat (20%), live plants (20%), and dairy products 
(19.5%);  while they are lower on oil seeds and oleag inous fruits (9.4%), and fish and fishery products 
(11.1%).  Machinery, plant, apparatus, and spare parts for agricultural purposes are exempt from the 
payment of import tariffs and value-added tax.  In the Uruguay Round, Ghana bound all agricultural 
tariffs, mainly at a final ceiling rate of 99%;  a bound rate of 40% was set on live poultry, milk and 
cream, wheat, and oil cake, while the rate on tea was bound at 50%.   
10. All imports of live plants and animals require a permit issued by the MOFA.  SPS measures 
are under the responsibility of the Directorates of Plant Protection and Regulatory Services, and of 
Veterinary Services of the MOFA (Chapter III(2)(vi)(b)). 
11. Agricultural research is undertaken by numerous  public institutions.  The Animal Research 
Institute aims to provide solutions to problems in the livestock industry in Ghana, and advises on 
livestock policy matters.  The Crops Research  Institute focuses on breeding and production 
technologies, crop protection, and water management, ma inly in relation to maize, rice, and legumes.  
Agricultural research is also undertaken by the Oil Palm Research Institute, the Savannah Agricultural 
Research Institute, the Food Research Institute, the Plant Genetic Resources Centre, the Water 
Research Institute, and the Soil Research Institute.  All these institutions are grouped under the 
Council for Scientific and Industrial Research (CSIR)  and are required to generate at least 30% of 
their operational budget.  
12. About 30% of Ghana's total land area is under cultivation.  Much of the agricultural land is 
"stool land", owned by communal or customary authorities.  This may deter investments in 
agricultural land and limit the availability of credit to  farmers due to the lack of collateral.  A national 
land policy and a land administration project, both la unched in 1999, attempt to capture the problems 
associated with land ownership, tenure, and develo pment.  New legislation on land administration is 
also under preparation.  As established by the Cons titution, foreigners are not  allowed to own land in 
Ghana.  However, they may lease land for renewable periods of up to 50 years.   
13. Together with other Members, Ghana submitte d a negotiation proposal on agriculture in 
2003.5  The proposal calls for an exemption of tariff reduction commitments for poor and highly 
                                                      
2 Ministry of Food and Agriculture (2002) and (2007). 
3 Ministry of Food and Agriculture (2007). The initial Food and Agricultural Sector Development 
Policy was formulated in 2002. 
4 WTO document G/AG/N/GHA/2, 21 August 2001. WT/TPR/S/194/Rev.1 Trade Policy Review 
Page 46 
 
 
indebted (IDA-only) countries, and guaranteed acces s to a new special safeguard mechanism for all 
agricultural products to address emergency situa tions deriving from import surges and steep price 
drops.   
14. Emergency reserve stocks of maize and rice, which had been managed by private companies 
under supervision of the National Strategic Buffer St ock, were dissolved in 2005.  Since then, the 
Government encourages the private sect or to hold sufficient stocks. 
(ii) Key subsectors  
(a) Cocoa 
15. Cocoa is Ghana's dominant cash crop and single most important export product.  In 2006, 
exports of cocoa butter, powder, beans, paste, and waste totalled US$1,241 million, equivalent to 
more than 33% of Ghana's merchandise exports.  The contribution of cocoa production and marketing 
to GDP was 8.5% in 2006, up from 4.9% in 1998.  The EC is the main export destination for cocoa produced in Ghana. 
16. Cocoa is cultivated on some 1.6 million hectares in Southern and Central Ghana.  About three 
quarters of output is produced by some 700,000 sm all-scale farms.  Improved agronomic practices 
and mass spraying have been key factors in boosting cocoa production, leading to record outputs in 
2003/04 and 2005/06 (Table IV.1).  Fluctuations in cocoa output have mainly been caused by irregular rainfalls and various diseases. 
Table IV.1 
Production and exports of cocoa, 1997-07 
(Tonnes) 
 Production Exports Revenue from export 
duty on beans (GC)  F.o.b. value 
(US$ million) 
1997/98 409,360 315,109 390,487,000,000 639,35 
1998/99 397,363 354,260 209,931,000,000 558,05 
1999/00 436,947 360,250 178,814,000,000 354,35 
2000/01 389,771 306,125 299,612,000,000 366,95 
2001/02 340,562 290,495 335,266,000,000 404,36 
2002/03 496,272 357,150 783,903,000,000 839,71 
2003/04 736,629 596,190 1,247,200,000,000 930,63 
2004/05 599,318 524,366 641,190,000,000 1,103,01 
2005/06 740,458 623,630 616,000,000,000 981,44 
2006/07 641,000 .. 920,552,050,000 .. 
.. Not available. 
Source:  Ghana Cocoa Board. 
17. The Ghana Cocoa Board, COCO BOD, a semi-autonomous institution under the Ministry of 
Finance and Economic Planning, with a staff of so me 5,500, is responsible for cocoa research and 
marketing.  Through its subsidiary Cocoa Mark eting Company (Ghana) Limited (CMC), COCOBOD 
has monopoly rights over the export of cocoa beans.   The Cocoa Processing Company Limited (CPC) 
processes cocoa beans for export and the national mark et.  CPC was partly privatized in 2002;  the 
Government holds a 60% stake.   
                                                                                                                                                                     
5 WTO document TN/AG/GEN/5, 29 July 2003. Ghana WT/TPR/S/194/Rev.1 
 Page 47 
 
 
18. The Cocoa  Research Institute (CRIG) of Ghan a, established in 1938, carries out research and 
advises on issues relating to the production of cocoa,  coffee, kola, shea nut, and other indigenous oil 
tree crops that produce fats similar to cocoa butter.  The CRIG puts a particular emphasis on the numerous diseases and pests that may affect the cocoa plant.  It is financed fully by COCOBOD;  and 
its research results are disseminated by CO COBOD's seed production and disease control units. 
19. Extension services to the cocoa subsector are provided by the Ministry of Food and 
Agriculture.  Cocoa seeds are so ld to farmers by COCOBOD's seed production unit at subsidized 
prices.  Cocoa farmers and producers are exempt from income tax.   
20. Only licensed buying companies (LBCs) may e ngage in internal trade and marketing of 
cocoa.  In October 2000, the government liberalized exports of cocoa, allowing LBCs also to engage 
in the exportation of cocoa, but this policy was discontinued in 2007.  LBC status is granted by 
COCOBOD;  licences have to be renewed annually and are subject to a nominal fee.  There are 
currently 19 LBCs.  They purchase cocoa directly from farmers on behalf of COCOBOD and bag it for delivery to COCOBOD at designated take-over cen tres, on a commission basis.   From the centres, 
CMC takes over the cocoa for export or further processing.  The producer price of cocoa is 
determined by the Producer Price Review Comm ittee (PPRC).  Membership of the PPRC includes 
representatives of cocoa farmers, LBCs, CMC, COCO BOD, the Bank of Ghana, and the Ministry of 
Finance and Economic Planning.   
21. There are five companies engaged in processing cocoa into butter, liquor, cake, and powder, 
with a combined processing capacity of some 253,000 tonnes.  The Government's medium-term 
objective is to process at least 40% of the cocoa out put locally.  According to the authorities, tariff 
escalation in major export markets is a major impediment to domestic processing of cocoa.   
22. Ghana imposes a 20% import tariff on cocoa and cocoa products.  Cocoa exports are subject 
to taxes and repatriation of export revenue and its conversion into lo cal currency.  The tax rate on 
exports of cocoa beans is determined annually by the Minster of Finance a nd Economic Planning;  for 
the crop year 2007/08, it is 11.1% of the f.o.b. pr ice.  Government revenue derived from the tax is 
used entirely to finance COCOBOD's activities:  it de pends on exports and the tax rate in place, and 
has varied strongly over the recent years (Table IV.1).   
23. All exports of cocoa beans require a fumigati on and quality assurance issued by COCOBOD's 
quality control division (QCD).  The QCD fumigates every consignment of cocoa prior to shipment;  it also disinfests cocoa storage facilities when deem ed necessary.  Once quality-graded and fumigated, 
cocoa may bear the label "Ghana cocoa". 
24. Ghana is a member of the International Cocoa Organization. 
(b) Other cash crops 
25. Production of cash crops other than cocoa incl udes cotton, coffee, shea nut, coconut, tobacco, 
and palm oil (Table IV.2).  For many of these products, output has been stagnant or even decreasing 
in recent years.  The production and marketing of  coffee and shea nuts are regulated by COCOBOD.  
26. Cotton is grown mainly in the dry regions of Northern Ghana.  Only some 10% of production 
is exported;  the bulk feeds the local textile industr y.  Total annual production is about 40,000 tonnes.  
The average applied MFN tariff on cotton is 16%, and 10% on cotton products. WT/TPR/S/194/Rev.1 Trade Policy Review 
Page 48 
 
 
Table IV.2 
Production of industrial crops, 1998-04 
(Tonnes) 
 1998 1999  2000 2001 2002 2003  2004 
Coffee 8,370 3,965  1,956 1,379 1,464 2,100  .. 
Shea nut 34,886 17,465  30,771 19,882 27,160 ..  .. 
Seed cotton 33,803 38,127  35,503 17,506 22,851 16,822  20,155 
Tobacco 2,390 2,556  2, 457 1,233 2,155 2,150  2,359 
Palm oil 1,022,010 1,031,919  1,715,250 1,768,780 1,826,860 1,889,400 1,955,270 
.. Not available. 
Source:  Ministry of Food and Agriculture.  
27. Coconut is produced mainly in the rain forest  zone of the Western and Central regions.  A 
total area of about 30,000 hectares is under cultivati on by some 30,000 smallholders.  Average yields 
are about 5,000 nuts per hectare.  The MFN import tariff on coconuts is 20%. 
28. Oil palms are cultivated on an area of some 320,000 hectares, mostly in the rain forest and 
deciduous zones of the Ashanti, Western, and E astern regions.  Production of palm oil has doubled 
since 1998.  The Government intends to increase  production through bo th area expansion and 
intensification of cultivation.  The MFN import tari ff on palm oil is 20%, with the exception of palm 
oil for soap production on which the tariff is 10%. 
29. Production and export of various non-traditional agricultural products have increased strongly 
in recent years.  Successfully exported products in clude pineapple, pawpaw, mangoes, and pepper and 
other spices.  The Horticultural Industry Export In itiative aims to support production and exportation 
of these products, mainly through the delivery of plantlets and crop-specific training to small-scale 
farmers.   
(c) Food crops 
30. Production of food crops includes maize, cassava, yam, plaintain, rice, and cocoyam 
(Table IV.3).  These crops are a major source of ener gy in Ghanaian diets and provide food to many 
farming households.  Production patte rns vary with soil factors and the amount of rainfall.  Food crop 
farming is predominantly based on smallholder rain-f ed, and traditional technique/low mechanization, 
leading to relatively low yields.  Productivity is al so hampered by land degradation, improper field 
development, use of low-yield vari eties, lack of organized seed production and distribution systems, 
and inadequate storage structures.  Nevertheless, in recent years, production has been increasing for 
all major food crops.   
Table IV.3 
Production of food crops, 1998-05 
('000 tonnes) 
 1998 1999  2000 2001 2002 2003  2004  2005 
Cassava  7,172 7,845  8,107 8,966 10,256 10,239  9,739  9,567 
Yam  2,703 3,249  3,363 3,547 3,900 3,813  3,892  3,923 
Plantain  1,913 2,046  1,932 2,074 2,279 2,329  2,381  2,792 
Cocoyam  1,577 1,707  1,625 1,688 1,860 1,805  1,716  1,686 
Maize  1,015 1,015  1,013 938 1,257 1,289  1,158  1,171 
Sorghum  355 302  280 280 316 338  287  305 
Millet  162 160  169 134 159 176  144  185 
Rice (paddy)  281 210  215 253 243 239  242  237 
Rice (milled) 169 126  129 152 168 143  145  142 
Source:  Ministry of Food and Agriculture.  Ghana WT/TPR/S/194/Rev.1 
 Page 49 
 
 
31. The Grains and Legumes Development Boar d of the MOFA is responsible for the 
development of seeds and other planting material for food production.   
(d) Livestock and poultry 
32. The average applied MFN tariff on live animals a nd products thereof is 19.4%, while all dairy 
products are subject to a tariff of 20%.  Production of all types of livestock, ex cept pigs, has increased 
in recent years (Table IV.4).   
Table IV.4 
Livestock, 1991 and 1995-05 
('000)  
 1991  1995 1996  1997 1998 1999 2000 2001 2002 2003  2004  2005 
Poultry  10,572  13,083 14,589  15,888 17,302 18,810 20,472 22,032 24,251 26,395  28,727  28,386 
Sheep  2,162  2,070 2,419  2,496 2,576 2,658 2,743 2,771 2,922 3,015  3,112  3,211 
Goats  2,194  2,156 2,233  2,659 2,792 2,931 3,077 3,199 3,230 3,560  3,925  3,923 
Cattle  1,195  1,123 1,248  1,260 1,273 1,288 1,302 1,315 1,330 1, 344  1,359  1,373 
Pigs  454  365 355  347 339 332 324 312 310 303  297  290 
Source:  Ministry of Food and Agriculture,  Veterinary Services Directorate.  
33. All imports of live animals are subject to a permit issued by the Veterinary Services 
Directorate in the Ministry of Food and Agricultu re.  Ghana currently prohibits the importation of 
poultry and poultry products from countries where avia n flue is prevalent, and of cattle and bovine 
meat from countries affected by BSE.  The sale of m eat with fat content higher than certain thresholds 
(25% for beef and poultry, 35% for mutton, and 42%  for pork) is prohibited for human health reasons. 
(e) Forestry 
34. About 35% of Ghana's land area is covered by fo rests and woodlands, mostly located in the 
south-western and southern regions.  Almost all fo rest land in Ghana is v ested in local communities 
and open to traditional activities, including the collect ion of non-timber forest products, hunting, and 
fuelwood collection.  The contribution of forestry and logging to GDP is just under 4%.  The main processing centres are Kumasi (at the northern edge of the forest zone), Takoradi (the major timber port), and Accra.  Log production has decreased c onsiderably since 2001, while export volumes have 
declined less strongly (Table IV.5).  
Table IV.5 
Forestry, 2000-06 
Year Log production (m3) Export of timber products (m3) Export value 
2000 961,418.048 498,843 US$175,243,978 
2001 1,211,840.819 476,500 US$169,003,711 
2002 1,104,351.277 472,189 €183,283,811 
2003 919,969.907 444,388 €162,992,782 
2004 756,913.978 455,180 €170,487,364 
2005 735,074.540 466,156 €184,011,323 
2006 332,837.000 451,608 €170,097,902 
Source:  Information provided by the Ghanaian authorities. 
35. The Ministry of Lands, Forestry and Mines fo rmulates policies in the forestry subsector, 
while the Forestry Commission of Ghana, established in 1999, is responsible for the regulation of 
forest and wildlife resources and the coordination of  policies related to them.  The Timber Resource WT/TPR/S/194/Rev.1 Trade Policy Review 
Page 50 
 
 
Management Act of 1997, amended in  2002, and its Regulations compri se the main legal instrument 
in the forestry subsector.  Under the Act, private co mpanies enter into a contract with the Government 
to utilize and manage timber resources.  Areas slated for logging are selected by the Forestry 
Commission and announced in newspapers. 
36. Timber rights are allocated through a competitiv e bidding process organized by the Forestry 
Commission.  Contractors must meet social r esponsibility requirements, such as support of local 
communities with schools or clinics, and promote the active involvement of local inhabitants in forest 
management.  A provision requiring contractors to  implement reforestation plans following logging 
has been abolished.  Total contract re venue amounted to GC 88.7 billion in 2006. 
37. The Government has taken steps to support sustai nable forestry and to address deforestation, 
in particular illegal logging.  It instituted the Fo rest Plantation Development Fund in 2000, to provide 
financial assistance for the development of privat e forest plantations and for research and technical 
advice to commercial plantations.  The Fund current ly has an endowment of GHC 4.5 million.  In 
2005, the Government initiated the Validation of Lega l Timber Programme, a log-tracking system that 
aims to demonstrate the origin of legally logged timber.  Nonetheless, illegal logging appears to 
remain wide-spread and poses a threat to Ghana's forests.6 
38. Exports of round or unprocessed  logs, and raw rattan cane and bamboo are prohibited in order 
to encourage domestic downstream processing.  E xport duties on timber products were abolished in 
2005.  The exportation of timber, wood products, and sawn lumber requires a permit issued by the 
Forestry Commission.  The average applied MFN tariff on wood and wood products is 17.2%. 
(f) Fisheries 
39. With its 540 kilometres of ma ritime coastline and 8,520 km2 of inland lakes and rivers, Ghana 
has a variety of investment opportunities in the fi sheries subsector.  The subsector comprises marine 
fisheries, freshwater fisheries, and fish farming.  The contribution of fisheries to GDP is 4%, down from 5% in 1998.  Total annual fish production has been over 400,000 tonnes in most years (Table IV.6).  The average applied MFN tariff on fish and fishery products is 11.1%. 
Table IV.6 
Annual fish production, 1992 and 1995-04 
(Tonnes) 
 1992  1995 1996  1997 1998 1999 2000 2001 2002  2003  2004 
Marine  371,000  336,000 378,000  396,000 376,000 333,000 380,000 366,000 290,000  331,412  352,405 
Inland  57,000  65,500 74,000  72,000 76,000 89,000 88,000 88,000 88,000  75,450  79,000 
Total  428,000  401,500 452,000  468,000 452,900 422,000 468,000 454,000 378,000  406,862  431,405 
Source:  Ministry of Food and Agricu lture, Fisheries Directorate.  
40. Artisanal, in-shore, and industrial methods are u sed in marine fishing.  There are nearly 
13,000 dugout canoes and about 123,000 fishermen in ma rine artisanal fisheries;  they mainly exploit 
small pelagic fish.  The in-shore fleet consists of  some 230 locally built wooden-hulled trawlers that 
operate from eight landing sites.  The industrial fleet  is made up of large-sized trawlers, tuna bait 
boats (pole-and-line) and tuna purse seiners ope rating from the ports of Tema and Takoradi. 
41. The fresh water fishing industry is located main ly along the shores of the Volta Lake, which 
is the source of about 90% of inla nd fish production.  The main species caught are tilapia, catfish, and 
                                                      
6 Sarfo-Mensah (2005). Ghana WT/TPR/S/194/Rev.1 
 Page 51 
 
 
Volta perch.  Inland fishery employs about 80,000  fishers and some 20,000 fish processors.  Inland 
fishery is mainly artisanal:  around 17,500 planked canoes are used. 
42. Fish farming is relatively new in Ghana, but may represent an option for increasing fish 
production.  There are about 1,000 fish farmers wo rking on over 2,000 ponds with a total surface area 
of 350 hectares.  Both extensive and semi-inten sive cultures are practiced, involving tilapia and 
catfish species.  Total annual production is  estimated at about 1,200 tonnes.   
43. The Fisheries Act of 2002 is the main lega l instrument governing the subsector. As 
established by the Act, ownership of artisanal, semi -industrial or industrial fishing operations is 
restricted to Ghanaian citizens.  Nonetheless, foreigners may engage in fish farming and own up to 
50% of vessels engaged in tuna fish ing.  All operations must be licensed by the Ministry of Fisheries.7  
The Fishery Product Regulations (2006) lay down general hygiene provisions for fish and fishery 
products, including requirements for landing and unloading fishery products, quality assurance, and 
production conditions.8  Fisheries companies are eligible for the tax and tariff concessions provided in 
the GIPC Law of 1994 (Chapter III(2)(iii)(d)).  
44. The main challenge for fishing is the lack of adequate cold storage facilities at landing sites.9  
In addition, weak extension services in some areas,  and inadequate supply of  good quality fingerlings, 
pose a problem for fish farming. 
(3) MINING AND ENERGY  
(i) Mining 
45. Ghana is a major producer of gold, diamonds , bauxite, and manganese, with exports of 
mineral products averaging 35% of total merchandi se export earnings (Chapter I(3)(i)).  While gold 
production has been stagnating since 2000, di amond, bauxite, and manganese production has 
increased significantly (Table IV.7).  Silver is al so produced, as a by-product of gold, as well as salt.  
Mining activities are concentrated in the Western, Ashanti, and Central regions.  The average applied 
MFN tariff on mining products (major division 2 of  ISIC Rev.2) is 11.4%;  the tariff on gold and 
diamonds is 20%. 
Table IV.7 
Production of major minerals, 1998-05 
 1998 1999 2000 2001 2002 2003 2004 2005a 
Gold (tonnes) 73.75 81.12 76.43 74.07 69.57 70.75 63.20 66.53 
Diamonds (carats) 822,563 681,576 878,011 1,090,072 963,493 904,089 905,344 1,065,923 
Bauxite (tonnes) 341,120 355,263 503,825 678,449 683,564 494,716 498,060 606,700 
Manganese (tonnes) 384,463 638,937 895,749 1,076,666 1,135,828 1,509,432 1,597,085 1,719,589 
a Provisional. 
Source: Ghana Minerals Commission. 
46. After cocoa, gold is Ghana's second most impor tant export product.  Gold exports in 2006 
amounted to US$1,327 million.  Despite stagnati ng production levels, export income has increased 
due to rising international gold prices.  Ther e are seven operational gold mines in Ghana.   
                                                      
7 Ghana Investment Promotion Centre (2006). 
8 WTO document G/TBT/N/GHA//4, 11 February 2007. 
9 Ghana Investment Promotion Centre (2006). WT/TPR/S/194/Rev.1 Trade Policy Review 
Page 52 
 
 
47. Ghana produces about one million carats of diam onds annually from alluvial deposits;  about 
85% of its production is industrial diamonds.  The bulk of diamond production is by small and 
medium-scale mines.10  The only large-scale producer, Ghana Consolidated Diamonds, stopped 
operations in mid-2007.  Diamond exports  in 2006 amounted to US$31 million. 
48. The Ministry of Lands, Forestry and Mines is responsible for formulating policies, while the 
Ghana Minerals Commission (MINCOM) is the regul atory and main promotional institution.  The 
Environmental Protection Agency is responsible for the formulation of environmental policies, 
including pollution standards and waste discharge.  Pursuant to Article 257(6) of the Constitution, all 
minerals in their natural state are the property of  the Republic of Ghana.  The Minerals and Mining 
Act of 2006 is the main legal instrument in the mine rals subsector;  regula tions under the Act are at 
the drafting stage (October 2007).  The Government has the right of pre-emption over all minerals 
raised.  However, this right has not been used in  practice.  The Ghana Chamber of Mines represents 
the collective interests of some 30 major companies involved in mineral exploration, production, and 
processing.  Moreover, it is estimated that some 500,000 people are engaged in small-scale mining. 
49. The Minerals and Mining Act provides for various  types of mineral rights (Table IV.8). In 
addition, there are licences for quarrying, salt wi nning, and sand winning.  Non-Ghanaians may not 
engage in small-scale mining;  the minimum inve stment for foreign companies is US$10 million.  
Any transfer of mining rights is subject to the approval of the Ministry.  A total area of some 30,000 km
2, equivalent to about 13% of Ghana's la nd area, is covered by mineral licences.  
Table IV.8 
Types of mineral rights, 2007 
 Reconnaissance 
licence Prospecting 
licence Mining 
lease Restricted 
lease Small scale 
mininga 
Purpose Regional exploration 
not including drilling 
and excavation Search for minerals 
and evaluation Extraction of 
minerals Building and 
industrial minerals Extraction of 
minerals 
Area Blocks of 21 hectares, 
not exceeding 
5,000 contiguous 
blocks Not exceeding 
750 contiguous 
blocks Not exceeding 
300 contiguous 
blocks .. .. 
Duration 12 months, renewable 3 years, renewable 
with reduction of area 
to not less than half 30 years or less 
depending on mine 
life, renewable 15 years or less 
depending on mine 
life, renewable 5 years, renewable 
.. Not available. 
a Granted to Ghanaians only.  
Source: Ghana Minerals Commission.  
50. A revised schedule of mineral right fees entered into force in 2005.  Royalties vary from 3% 
to 6% of the gross value of minerals produced.  Through royalties, corporate taxes, and pay-as-you-
earn payments, the mining subsector contributes signif icantly to government revenue.  In 2005, the 
subsector's contribution was GC 679.7 billion, equivale nt to 11% of income collected by the Internal 
Revenue Service.  
51. Exports of mineral ores require a permit issued by the Minerals Commission.  Exports of gold 
are subject to a foreign exchange surrender and c onversion requirement, administered by the Bank of 
Ghana.  
                                                      
10 Bermúdez-Lugo (2005). Ghana WT/TPR/S/194/Rev.1 
 Page 53 
 
 
52. The state-owned Precious Minerals Marketi ng Corporation buys gold and diamonds from 
small-scale miners and resells jewe llery and gold products for export.   The company, which does not 
enjoy any specific rights, has an annua l turnover of about US$30 million.   
53. Mining is the most important target sector for foreign direct investment in Ghana 
(Chapter I(3)(ii)).  Cumulative FDI inflows in to the mining sector between 2000 and 2005 amounted 
to US$2,823 million.  There is compulsory state pa rticipation in the mineral subsector, whereby the 
Government acquires a 10% equity in all companies at no cost.  The Government also has the option 
of purchasing an additional 20% equity at a "fair market price", but this has never been exercised.   
54. AngloAshanti Gold, Ghana's single largest co mpany and one of the world's leading gold 
producers, accounts for more than one third of natio nal gold production.  The state has reduced its 
share in this company to 3.4%.  Through foreign acquisitions and investments by AngloAshanti Gold, 
Ghana has become an important mining investor in  other African countries such as Guinea, Tanzania, 
and Zimbabwe.  
(ii) Energy 
(a) Electricity 
55. An estimated 45% to 47% of Ghana's populatio n has access to electricity, including 15% to 
17% of the rural population.11  Per capita consumption of electrical energy was estimated at 358 kWh 
in 2004.  Ghana's total installed generati on capacity is about 1,800 MW (Table IV.9).12  T h i s  
comprises the Akosombo hydro-electric power plant (1,040 MW), the Takoradi thermal power station (550 MW), and the Kpong hydro-electric power plan t (160 MW). In addition, the Osagyefo power 
plant is expected to start operations in 2008, adding another 125 MW in March and 60 MW in 
December.  About half of electricity producti on is consumed by households;  commercial and 
industrial consumers account for the rest.  In most y ears, Ghana is a net exporter of electrical energy.  
However, low water levels at the Volta dam frequen tly lead to supply shortages and electricity cuts;  
and some 25% of electricity production is accounted  for by technical and commercial system losses. 
56. Electricity, transmission, and distribution are under state monopoly.  The state-owned Volta 
River Authority (VRA), which owns the Akosombo and Kpong dams, is the only major producer of 
electrical energy in Ghana;  it is also responsible for electricity transmission.  There are also various 
smaller private-owned generators producing el ectricity only for auto-consumption.  These 
independent power producers are not currently permitte d to sell electricity, but plans to allow this are 
under consideration.  The VRA was also responsible  for power transmission until 2005;  since then, 
the state-owned Ghana Grid Company (GRIDCO) has b een in charge of electricity transmission with 
a view to unbundling the VRA's operations.  Two st ate-owned companies, Electricity Company of 
Ghana (ECG), and the Northern Electricity Depa rtment (NED, a subsidiary of the VRA) are 
responsible for distribution:  ECG delivers power to customers in southern  Ghana, and NED supplies 
northern Ghana. 
57. The Ministry of Energy is responsible for formul ating policies in the energy subsector.  It also 
supervises the operations of the Ghana National Petroleum Corporation, the Tema Oil Refinery, the Ghana Oil Company, the Bulk Oil Storage and Transportation Company, VRA, GRIDCO, and the Electricity Company of Ghana, all of which are state-owned.  The Public Utilities Regulatory Commission (PURC) is an autonomous agency that sets transmission and cons umer prices, while the 
Energy Commission licences operators. 
                                                     
 
11 University of Ghana, Institute of Statis tical, Social, and Economic Research (2005). 
12 This figure does not include off-grid power plants used e.g. by large mining companies. WT/TPR/S/194/Rev.1 Trade Policy Review 
Page 54 
 
 
Table IV.9 
Electricity, 1998-04  
 1998 1999 2000 2001 2002 2003 2004 
Installed electricity generation capacity (MW) 
Hydro 1,072 1,072 948 971 994 1,002 1,180 
Thermal 360 360 470 580 580 580 550 
Total  1,432 1,432 1,418 1,551 1,574 1,582 1,730 
Electricity generation (GWh) 
Hydro 3,830.32 5,168.72 6,608.70 6,608.54 5,035.85 3,885.20 5,280.90 
Thermal 1,182.40 755.59 613.02 1,250.55 2,259.55 201.16 757.84 
Total 5,012.70 5,924.30 7,222.70 7,859.10 7,295.50 5,900.40 6,038.70 
Trade in electricity (GWh) 
Exports 1,386.46 2,254.12 2,896.82 2,866.93 2,674.32 854.23 675.26 
Imports 573 1,031 864 462 1,146 940 878 
Source:  Energy Commission of Ghana.  
58. The Government has as an objective to increase electr ification, particularly in rural areas;  it 
plans to extend electrification to all communities by 2020.  Given the high costs of long-distance 
transmission lines to serve remote rural communities,  achieving this objective will require substantial 
investment in renewable and off-grid electricity.   
59. Ghana's electricity grid is connected to Côte -d'Ivoire, Togo, and Benin through high voltage 
transmission lines, and to Burkina Faso through a low voltage distribution network.  A high voltage 
transmission connection to Burkina Faso is under development.  There are also efforts at the 
ECOWAS level to create a West African power pool, including a regional regulatory body and 
common standards for maintaining grid stability.13 
(b) Petroleum and gas 
60. Oil and natural gas production in Ghana remains limited14;  most petroleum products are 
imported, mainly from Nigeria.  Various deep-water  discoveries of oil and natural gas have been 
made in the Gulf of Guinea in recent years and have led to an increase in exploration activities.15  A 
major offshore oil discovery in Western Ghana was announced by the Kosmos Energy and Tullow Oil 
groups in June 2007.16  However, these exploration activities have not yet led to major investments in 
production facilities.  
61. Under the Petroleum Law of 1994, the state- owned Ghana National Petroleum Corporation 
(GNPC) is responsible for procurement, storage, and bulk distribution of pe troleum products to retail 
companies.  Ghana's only refinery is the state-owned Tema Oil Refinery, which has an operating 
capacity of 45,000 barrels per day and runs on cr ude oil.  In March 2006, the private company 
Arabian Gulf Oil Ltd. announced the construction of a second refinery, with a planned capacity of 
200,000 barrels a day.  
62. Ghana maintains a fuel subsidy with a view to  redistributing income and smoothing out price 
fluctuations.  Total petroleum subsidies amounted to 2.2% of GDP in 2004, 0.4% in 2005, and 1.6% 
in 2006.  According to the authorities, the National Petroleum Authority regularly reviews the formula 
underlying the subsidy.   
                                                      
13 University of Ghana, Institute of Statis tical, Social, and Economic Research (2005). 
14 The only operational production platform is located in the Saltpond oilfields in Central Ghana.  
Production reached its peak in 1978, with some 4,800 barrels per day. 
15 Ministry of Energy (2003). 
16 Ghana Home Page, "Jubilation over oil discovery", 19 June 2007.  Viewed at:  
http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=125826 [5 September 2007] Ghana WT/TPR/S/194/Rev.1 
 Page 55 
 
 
63. Thirteen categories of petroleum products are subj ect to specific tariffs (Chapter III(2)(iii)(a)).  
Hydrocarbons are subject to export taxes of US $0.09 per litre on aviation turbine kerosene and 
US$0.03 per litre on gas oil.   
64. The Government holds strategic fuel reserves through the state-owned Bulk Oil Storage and 
Transportation Company.  The reserve stocks, c onsisting of a two-week supply of gas oil and 
gasoline, are to be used in the event of an in terruption in the normal supply of these products. 
65. The West African Gas Pipeline Project (WAGP ) seeks to supply gas from fields in the 
Western Delta of Nigeria to Ghana, Benin, and To go.  The Government of Ghana, through the VRA, 
holds a 16.3% share in the project.  Operation of the 678 kilometre pipeline was originally planned to 
start in December 2006, but, due to construction dela ys, it is not yet operational.  Entry into operation 
has been rescheduled for April 2008.  
(4) MANUFACTURING  
66. Ghana has a relatively broad and diverse indust rial base, covering aluminium smelting, timber 
and agricultural processing, brewing, cement manuf acture, oil refining, textiles, electronics, and 
pharmaceuticals.  Nonetheless, the contribution of the manufacturing sector to GDP remains modest (Chapter I(1)).  In 2003, the year of the most recent industrial census, there were some 
23,800 manufacturing companies in Ghana, with nearly 117,000 employees. 
67. The average applied MFN tariff on manufactured products (Major division 3 of ISIC Rev.2) 
is 12.6% (Chart IV.1 and Table AIV.1).  Average tariffs are particularly high on footwear (20%), 
apparel (19.9%), furniture (19.5%), and beverages (18.9%);  and low on transport equipment (5.9%) 
and non-electrical machinery (3.2%).  Promotion of agri-industries is one of Ghana's key objectives.  
However, high prices of certain locally produced ag ricultural commodities and high tariffs on imports 
of their equivalents do not favour this objective.  Moreover, pronounced tariff escalation, and thereby 
high effective protection, in industries, including fo od and beverages, textiles and apparel, chemicals, 
and non-metallic products, negatively affects th e international competitiveness of these goods 
(Chapter III(2)(iii)(a)). 
68. After mining, manufacturing is the main target sector for foreign investors in Ghana.  
Accumulated foreign investment in manufactur ing amounted to US$2.3 billion between 2001 and 
2006, generating some 16,400 jobs.
17  Nearly 90% of foreign investment projects in manufacturing 
are located in the Greater Accra area.  Specific difficulties encountered by the manufacturing sector 
include power cuts, and access to and conditions of financing.18   
69. The publicly funded Institute for Industrial Re search undertakes applied research on industrial 
process and product technology development;  one of its main objectives is to improve agricultural 
processing machines.  The Institute is required to ge nerate at least 30% of its operational budget.  
Private-sector manufacturers' interests are represen ted by the Association of Ghana Industries. 
70. Manufacturing companies are eligible for the ta x and tariff concessions provided by the GIPC 
Law of 1994 and the benefits provided by the Free Z one Law (Chapter III(2)(iii)(d) and III(3)(v)).  In 
addition, companies located outside Accra and Tema can benefit from locational tax incentives 
(Chapter III(4)(i)(a)).  Upon the request of exporters, the Ghana Standards Board issues a "Mark of 
Conformity" certifying that goods are compliant with  national quality, safety, or health standards. 
                                                      
17 Ghana Investment Promotion Centre (2007). 
18 Association of Ghana Industries (2007). WT/TPR/S/194/Rev.1 Trade Policy Review 
Page 56 
 
 
0102030
311
312
313
314
321322
323
324331
332
341
342
351352
353
354
355356361
362
369371372381
382
383384385
390
410Chart IV.1
Tariff protection in the manufacturing sector, 2007
Percent
WTO Secretariat calculations, based on data provided by the Ghanaian authorities.AverageMaximu m
Minimu m
International Standard Industrial Classification, Revision 2
Source :311
312
313314321322323
324
331332
341
342351352353Description
Food production
Other food products and animal feeds
Beverages
Tobacco manufacturingTextilesManufacture of wearing apparel, except footwearLeather products, except footwear and wearing apparelFootwear, except vulcanized  rubber or plastic footwear
Wood and wood products, except furnitureManufacture of furniture and fixtures, except primarily of metalPaper and paper productsPrinting, publishing and allied industriesIndustrial chemicalsOther chemicals, including pharmaceuticalPetroleum refineriesDescription
Manufacture of miscellaneous petroleum and coalproductsManufacture of rubber products n.e.s.Manufacture of plastic products n.e.s.Pottery, china and earthenwareManufacture of glass and glass productsOther non-metallic mineral productsIron and steel basic industriesNon-ferrous metal basic industriesFabricated metal products, except machinery and equipmentNon-electrical machinery including computersElectrical machinery apparatus, appliances and supplies
Transport equipment
Professional and scientific equipmentOther manufacturing industriesElectrical energy354
355
356361362369371372381
382
383
384
385390410
 Ghana WT/TPR/S/194/Rev.1 
 Page 57 
 
 
71. The divestiture programme launched in 1988 h as significantly reduced the number of state-
owned enterprises;  GIHOC Distilleries is the onl y manufacturing company that remains fully owned 
by the state;  plans to list the company on the stock exchange are under considera tion.  In addition, the 
state holds minority shares of between 10% and 40% in PSC Tema Shipyard, Ghana Textile Printing, 
Bridal Trust International Paints, and GIHOC Pharmaceuticals.     
72. Together with other African Members, Ghana submitted two negotiation proposals on market 
access for non-agricultural goods in 2003.19  The submissions called for the application of a simple 
and transparent formula that would substantially reduce tariff peaks and tariff escalation and address 
the special needs of developing countries.   
(5) SERVICES  
(i) Overview 
73. Services constitute a major sector of the economy in terms of contribution to GDP and to 
employment (Chapter I(1)).  Public administrati on accounts for the largest part, followed by trade, 
restaurants, and hotels.  Individual contributio ns by other categories of services remain low. 
74. Balance-of-payments data indicate that Ghan a has traditionally been a net importer of 
services (Chapter I(3)(i)).  In 2005, it exported services worth US$ 1,066 million, while imports of services amounted to US$1,264 million.  
75. Ghana's specific commitments under the GATS cover various subsecto rs in tourism and 
related services;  maritime transport;  construc tion;  education;  financial services;  and 
telecommunications (Table IV.10).  Ghana has accepte d the Fourth and Fifth Protocols to the GATS.   
Table IV.10 
Summary of sector-specific commitments under GATS, 2007 
Modes of supply 
Cross-border 
supply Consumption 
abroad Commercial 
presence Temporary presence
of natural personsa Sector or subsector 
Market access (MA)/national treatment (NT) 
Tourism and related services 
Hotels and restaurants (including  
catering) None None None Unbound, except for 
horizontal 
commitments 
Travel agencies and tour operators None  None None Unbound, except for 
horizontal 
commitments 
Transport services 
Maritime freightb MA:  access to only 
20% of bulk and liner 
cargo; 
NT:  unbound, except 
with respect to cargo covered by MA 
commitment None MA:  unbound for 
establishment of  
registered fleet 
operating under 
Ghanaian flag  and none for presence to undertake services 
to supply an integrated 
transport service;   
NT:  none  MA:  ships crew 
unbound;   
MA and NT:  
unbound, except for 
horizontal 
commitments 
Maritime auxiliary (cargo-handling, 
storage and warehousing and container station and depots) None None State monopoly to be 
privatized within 5 to 7 years Unbound, except for 
horizontal commitments 
Table IV.10 (cont'd)
                                                      
19 WTO documents TN/MA/W/27, 18 February 2003;  and TN/MA/W/40, 11 August 2003. WT/TPR/S/194/Rev.1 Trade Policy Review 
Page 58 
 
 
Modes of supply 
Cross-border 
supply Consumption 
abroad Commercial 
presence Temporary presence
of natural personsa Sector or subsector 
Market access (MA)/national treatment (NT) 
Financial services 
Banking and other financial services 
(acceptance of deposits, credit facilities, financial leasing, payments, guarantees 
and commitments, trading in money and capital market instruments and other non-banking financial services) None None MA:  none, except  
prudential licensing; NT:  government may 
support local firms in  rural areas and higher 
paid-up capital for 
foreign suppliers Unbound, except for 
horizontal 
commitments 
Insurance and related services:      
Life insurance, non-life insurance 
(fire, transport, aviation, motor vehicle, 
workers' compensation and health) 
and re-insurance related to above MA:  insurance on  
imported goods 
(except personnel effects) to be placed 
with an insurer 
registered in Ghana; 
NT:  none Same as  
cross-border At least 40% of capital 
or other propriety 
interest to be held by Ghanaian nationals and 
foreign partners may 
hold management control; NT:  none Unbound, except for 
horizontal 
commitments 
Construction and related engineering services 
General construction work for buildings None None  None  Unbound, except for 
horizontal 
commitments 
General construction work for civil 
engineering None  None  None  Unbound, except for 
horizontal 
commitments 
Installation and assembly work None   None  None Unbound, except for 
horizontal 
commitments 
Education services 
Secondary and higher edu cation None  None  N one  Unbound, except for 
horizontal 
commitments 
Communication services 
Telecommunicationsc:       
Voice telephone (local, long distance 
and international)  
Private leased circuit NT:  none; 
MA:  by-pass of duopoly operators not 
permitted None NT:  none; 
MA:  regulator can license additional joint 
venture suppliers to under-serviced areas 
but only after operators 
have declined rights of 
first refusal Unbound, except for 
horizontal 
commitments 
Packet-switched and circuit-switched 
data transmission services, telexes 
and faxes NT:  none; 
MA:  by-pass of network facilities of 
duopoly operators not 
permitted None  NT:  none;  
MA:  joint venture suppliers may establish 
own network facilities; or may obtain transmission capacity, 
but only through the 
duopoly operators Unbound, except for 
horizontal 
commitments 
Mobiles (data services, paging, etc.) NT:  none; 
MA:  for voice 
services, commercial 
arrangements with 
duopoly operators required and for non-
voice services by-pass
of network facilities of duopoly operators not 
permitted None NT:  none; 
MA:  only through 
joint venture with 
Ghanaian nationals Unbound, except for 
horizontal 
commitments 
Table IV.10 (cont'd)Ghana WT/TPR/S/194/Rev.1 
 Page 59 
 
 
Modes of supply 
Cross-border 
supply Consumption 
abroad Commercial 
presence Temporary presence
of natural personsa Sector or subsector 
Market access (MA)/national treatment (NT) 
Telecommunication equipment sa les None  None  None  Unbound, except for 
horizontal 
commitments 
Telecommunication equipment rentals, 
maintenance, connection, repair and 
consulting NT:  none;   
MA:  commercial 
presence required None  NT:  none; 
MA:  only through 
joint venture with Ghanaian nationals  Unbound, except for 
horizontal 
commitments 
a Horizontal limitation on commercial presence states that mark et access for foreign-owned, incl uding joint-venture, enterprise s 
must satisfy minimum capital outlay and foreign equity requireme nts:  100% foreign-owned company requires a minimum equity 
capital outlay of US$200,000 while for a joint-venture this mini mum is US$10,000 in cash or kind.  For presence of natural 
persons, market access is based on automatic entry and work perm its for up to four expatriate senior executives and personnel 
with specialized skills as per the Investment  Promotion Law.  Approval is needed for additional expatriate workers.  Enterprise s 
must also provide training in higher skills for Ghanai ans to enable them to a ssume specialized levels. 
b Ghana made an additional commitment to make available on reas onable and non-discriminatory conditions:  pilotage, towing and 
tug assistance, provisioning, fue lling and watering, garbage coll ection and ballast waste disposal;  port captain's services, 
navigation aids, and fire fighting and ambulance. 
c Ghana accepted as additional commitments the regulatory framewor k outlined in the reference pape r.  It also listed as an 
additional commitment that the Government had granted exclusivity to the  duopoly operators for five years, and that after this  
period it would conduct a review of its policy to determine whether to license additiona l suppliers of such services. This has 
taken place. 
Source:  WTO documents.  
(ii) Financial services 
(a) Banking 
76. Ghana's GATS commitments on financial services cover various banking services, including 
acceptance of deposits, credit facilities, and leasing, and provide for no market-access or          national-treatment limitations on cross-border trad e and consumption abroad.  The only market-access 
limitation on commercial presence is prudential licensi ng.  National treatment is assured, except that 
the Government may support local financial institu tions in rural areas and apply a higher paid-up 
capital requirement to foreign suppliers.   
77. The Banking Supervision Department of the Bank of Ghana regulates and supervises the 
subsector.  Rules for the establishment of a bank  are laid down in the 2004 Banking Act.  The 
minimum capital requirement for setting up a commercial bank is GHC 7 million for Ghanaians and foreigners alike.  In the case of foreign ownershi p, at least 60% of the capital must be brought into 
Ghana in convertible currency.  Applicants must  pay a processing fee of GHC 2,000 and an annual 
licensing fee of GHC 5,000.  Applications are subj ect to an economic needs test.  The Act also 
provides for capital adequacy requirements and a new sanctions regime.  
78. As at September 2007, 26 banks were operati ng in Ghana, of which 14 were foreign-owned 
and three were state-owned.  In addition, ther e were 126 rural and community banks and 40 non-bank 
financial institutions.  Total assets of the banks amounted to GC  56,276 billion as at end-March 2007, 
equivalent to 49% of GDP.   
79. The ratio of non-performing loans in the banks' to tal loan portfolio has fallen in recent years, 
from 20.4% in March 2003 to 6.9% in March 2007.
20  The solvency of the banking industry, as 
                                                      
20 Bank of Ghana (2007a). WT/TPR/S/194/Rev.1 Trade Policy Review 
Page 60 
 
 
measured by the capital adequacy ratio, remains high;   as at March 2007, it was at 16.9%, well above 
the statutory threshold of 10.0%.   
80. Interest rates are market-determined;  the averag e inter-bank interest rate is currently 12.6%.  
The spread between deposit and lending rates remains considerable;  in December 2006, the 
maximum saving deposit rate was 9%, while le nding rates ranged between 15% and 33.5%. 
(b) Insurance 
81. The insurance industry is regulated by the National Insurance Commission (NIC), under the 
Insurance Act of 2006.  All insuran ce companies and brokers must be registered with the NIC and be 
incorporated in Ghana.  The 2006 Act abolished ow nership limitations for foreigners in the insurance 
subsector.  Insurance companies are not allowe d to engage in any other business, including 
reinsurance.  Moreover, the same company may not supply both life and non-life insurance services.  
Insurance is compulsory for (i) motor vehicles;  (ii) commercial buildings under construction;  and 
(iii) commercial buildings against collapse and natu ral disasters.  The reinsurance arrangements of all 
direct insurers must be approved by the NIC.  Until 2009, all direct insurance companies are obliged 
to reinsure 20% of their business with Ghana Re insurance Company.  Insurance and reinsurance 
companies are required to exhaust local capacity before  having recourse to foreign-based companies.     
82. The minimum capital requirement is equivalent  to US$1 million for both life and non-life 
insurance companies.  Premiums on motor vehicles are set by the NIC, while all other premiums are 
market-determined.  New insuran ce products must be approved by the NIC. Ghanaians residing in 
Ghana may buy insurance abroad only if that type of insuran ce is not available in Ghana. 
83. There are 25 insurance companies, 37 broking comp anies, and two reinsurance companies.  In 
2006, total gross premiums were GC 1.15 trillion  for non-life insurance, GC 490 billion for life 
insurance, and GC 285 billion for reinsurance.   State Insurance Company (SIC) and Ghana 
Reinsurance Company are fully state-owned;  priv atization of SIC through the stock exchange is 
under consideration.  Foreign partic ipation is still de facto limited in Ghana's insurance subsector. 
(c) Capital markets 
84. The Ghana Stock Exchange (GSE) began tr ading in corporate equities, bonds, and 
government securities in 1990.  In January 2007, 32 companies were listed.  Market capitalization at 
mid-2007 was around GHC 11,500 million, of which AngloGold Ashanti accounted for some 80%.  
Many Ghanaian subsidiaries of multinational companies are listed on the GSE.   
85. Under the Securities Industry Law of 1993, the Securities and Exchange Commission 
oversees the GSE, sets listing requirements, and licen ses dealers.  Its commissioners are appointed by 
the President of Ghana.  Share trading by non-reside nt foreigners is permitted without prior approval.  
However, the shares held by any single external re sident in a listed company is limited to 10%, and 
the maximum level of foreign ownership for each firm is 75%.  
86. Regulations on the operation of unit trusts and mutual funds, adopted in 2001, lay down 
operating conditions, reporti ng requirements and investment rules for various types of trusts and 
mutual funds.   Ghana WT/TPR/S/194/Rev.1 
 Page 61 
 
 
(iii) Communication 
(a) Telecommunication 
87. Since Ghana's last TPR in 2001, the telecommuni cation network has continued to grow, with 
particularly strong expansion in the mobile market (Table IV.11).  As a result, the teledensity was 
over 27%.21  There are two operators of landline te lephone services, Ghana Telecom and Westel.  
Westel currently deploys only 3,000 lines as against Ghana Telecom's 400,000 lines.  Ghana Telecom is fully state-owned, but the Government is  seeking an investor for 66.7% of its shares.
22 Westel was 
fully state-owned until October 2007, when 75% of  its shares were sold to a Kuwaiti investor.23  
There are five licensed mobile operators of wh ich four (MTN, Tigo, OneTouch, and KASAPA) are 
providing mobile telephone services.   
Table IV.11 
Telecommunication indicators, 2000-06 
 2000 2001 2002 2003 2004 2005 2006 
Fixed telephones 206,000 249,000 270,000 288,000 372,000 323,000 400,000 
Mobile telephones 39,000 222,000 383,000 775,000 1,189,000 2,472,000 3,800,000 
Pay phones 3.291 4.487 4.995 4.995 8.846 11.314 .. 
.. Not available. 
Source:  Ministry of Communication.  
88. The Ministry of Communications is responsible for formulating telecom policies.  The 
National Communication Authority (NCA), established  in 1996, is in charge of regulating and 
monitoring the telecom market and issuing licences to operators.  The Government formulated a 
National Telecommunications Policy in 2004;  its main objectives are to promote universal access to telephone, internet, and multimedia services by 2 010, and to achieve fully open, private, and 
competitive markets for all telecomm services.
24  The Government also intends to increase the use of 
information and communication technologies, in pa rticular through public investment in areas 
considered under-served.25   
89. The National Communications Regulations of 2003 constitute the legal framework for the 
telecoms subsector.  Enactment of an Electroni c Communications Bill has been pending since 2005.  
The bill contains provisions on licensing, in terconnection, and universal services.   
90. Ghana endorsed the reference paper on regulat ory principles and committed itself to 
reviewing its duopoly policy after five years to de termine whether to license additional suppliers of 
basic telecommunication services.  As a result of  the review, the exclusivity licences of the two 
operators of landline telephone services ended in 2002. Since then, four new licences have been 
issued to telecom operators. 
91. All operators in the telecommunication market re quire a licence issued by the NCA.  Imports 
of communication equipment require a permit, also i ssued by the NCA.  Individual tariffs are set by 
                                                      
21 Ministry of Communications (2007). 
22 A 30% share in Ghana Telecom had been held by a Malaysian investor who decided to withdraw 
from the company for reas ons of mismanagement. 
23 Afrique en ligne, "Une compagnie koweïtienne rachète Westel Ghana", 23 October 2007.  Viewed 
at: http://www.afriquenligne.fr/actualites/economie/ une-compagnie-koweitienne-rachete-westel-ghana-200710 
2311147/ [25 October 2007.] 
24 Ministry of Communications (2004). 
25 Republic of Ghana (2003). WT/TPR/S/194/Rev.1 Trade Policy Review 
Page 62 
 
 
operators and subject to approval by the NCA;  interconnection charges are negotiated between 
operators and are also subject to approval by the NCA.  In case of disagreement, interconnection 
charges are set by the NCA. 
92. In order to promote universal access to telecommunication services, the Government 
instituted the Ghana Investment Fund fo r Telecommunications (GIFTEL) in 2004.26  GIFTEL's 
primary responsibility is to facilitate investment in information and communication technology in 
under-served areas;  priority is given to projects that seek to increase b asic rural connectivity and 
access to broadband services.  To date, GIFTEL ha s supported the establishment of 77 community 
information centers and 44 common telecommuni cation facilities in under-served areas.  GIFTEL's 
operations are financed by contributions from opera tors who must pay 1% of their net profit;  
additional resources may be allocated by Parlia ment.  Projects identified by GIFTEL are announced 
publicly and allocated by open tender.   
(b) Postal services 
93. The state-owned Ghana Post Company (GPC) provides ordinary postal services throughout 
the country.  As established by the Postal and Courier Services Regulatory Commission Act of 2003, 
the GPC has exclusive rights to convey letters, pos tcards, printed matters, and small parcels up to 
100 g;  all other areas are open to competition.  The GPC has the obligation to deliver parcels and 
letters to any postal address in Ghana within a ma ximum of three working days (one and a half 
working days within major urban centers).  Its ta riffs must be approved by the Postal and Courier 
Services Regulatory Commission. 
94. The GPC competes with private companies fo r express courier services.  There are seven 
major private courier service providers in Ghana.  In  addition, various privat e transport companies are 
involved in these services.  Courier service provide rs must be licensed by the Postal and Courier 
Services Regulatory Commission.  With a view to addressing increased competition, the GPC has 
increased its activities in, inter alia , money transfers and sale of prepaid cards and commemorative 
stamps;  establishment of a pos t bank is under consideration. 
(iv) Transport 
(a) Land transport 
95. Ghana disposes of some 32,300 kilometres of roads, of which about 6,100 kilometres are 
paved.  The Ghana Highway Authority is respon sible for the administration, development, and 
maintenance of trunk roads and related facilities.  A Road Sector Development Programme (RSDP) 
has been implemented by the Ministry of Roads and Transport and its agencies since 2002.  
96. Transit traffic to Burkina Faso, Mali, and Niger increased strongly from some 29,000 tonnes 
in 1998 to over 1 million tonnes in 2003.  This rise in transit traffic has come about mainly because of 
political instability in alternative transit corridors, but has also been further boosted by improvements 
in Ghana's port operations and hinterland connecti ons as well as by faster clearance procedures for 
goods in transit. 
97. Ghana's rail network comprises mainly a triangular 947 km narrow-gauge system linking 
Kumasi, Takoradi, and Accra-Tema.  The main cargoes are bauxite and manganese.  However, rail traffic accounts for only some 2% of freight and passe ngers land transport.  Only parts of the system 
                                                     
 
26 Ministry of Communications (2004). Ghana WT/TPR/S/194/Rev.1 
 Page 63 
 
 
are operational, and trains from Accra to Kumasi ha ve been suspended.  An extension of the rail 
network to Burkina Faso is being explored.   
98. Ghana Railways Corporation is fully state-owned.  However, the Government has embarked 
on a programme to privatize the exploitation of its  railways to improve services and efficiency.  As 
part of the privatization efforts, the Ministry of Harbours and Railways has decided to grant a          
20-year concession to a private company through a build, operate, and transfer (BOT) arrangement.  
The arrangement will leave the Government with ultimate control of the railways but operating responsibilities and delivery services will be transfe rred to the concessionaire, who will pay a fixed 
annual premium plus a percen tage of the revenue.   
(b) Air transport 
99. Air transport policies in Ghana are formulated by  the Ministry of Aviation.  The Ghana Civil 
Aviation Authority (GCAA), a semi-autonomous government agency established in 1986, is 
responsible for regulating air transportation.  In accordance with the Civil Aviation Act of 2004,  
GCAA's regulatory and management  functions were split, transmitting all tasks related to airport 
management and development to the newly in stituted Ghana Airports Company Limited. 
100. Ghana is a signatory to the Yamoussoukro Declaration
 Concerning the Liberalization of 
Access to Air Transport Markets in Africa.  In add ition, it has signed bilateral air transport agreements 
with 47 other countries.  These agreements normally c over the first four freedoms of the air:  cabotage 
is restricted to domestic companies. 
101. All international flights are handled by A ccra's Kotoka Airport, which is served by 
25 passenger and five cargo airlines, including interna tional airlines.  An expansion of the Kotoka 
airport was completed in 2003, upgrading its cap acity to 2 million passengers per year.  The 
Government hopes that the airport expansion will al low Kotoka to become a regional hub for West 
Africa.  The number of passengers at Kotoko Ai rport increased to some 900,000 in 2006, up from 
592,000 in 2000.  There are also domestic airports  in Kumasi, Tamale, and Sunyani, and various 
unpaved airstrips.  However, domestic air transport ca rries less than 5% of total passengers, and thus 
remains of minor importance.   
102. The state-owned company Ghana Airways was liqui dated in 2004.  Some of its assets were 
transferred to Ghana International Airlines (GIA),  a joint-venture between the Government, which 
holds 70%, and a U.S.-based investor.  The GIA was founded in October 2004  and began operations 
in 2005.  Ghana International Airlines' fleet c onsists of two leased aircraft serving London. 
(c) Water transport 
103. The Ghana Ports and Harbour Authority (G PHA), a semi-autonomous agency under the 
Ministry of Harbours and Railways, owns Ghana's two commercial seaports, at Tema and Takoradi, 
and various fishing harbours.  The two seaports ha ndle over 85% of Ghana's exports and imports;  in 
both ports, cargo handling has grown strongly in recent years (Table IV.12). 
104. Port services prices are based on the GPHA's tariff, which must be approved by Government.  
In recent years, the GPHA's role has shifted from a port operator to a regulator, while the operation of 
port facilities has increasingly been taken over by pr ivate companies licensed by the GPHA;  prices 
for activities such as stevedoring, freight forw arding or cargo clearance are market-determined. 
105. The development of Ghana into a maritime hub and shipping gateway to West Africa is a 
major policy objective.  Thus, the Government has initiated various projects to enhance the capacity WT/TPR/S/194/Rev.1 Trade Policy Review 
Page 64 
 
 
and efficient operation of Ghana's ports.  Planned or ongoing activities include:  dredging the port at 
Tema from a depth of 9.6 meters to 11.5 meters;  upgrading the 80 km route between the Tema port 
and Akosombo;  and the constructi on of new bulk, container and mu lti-purpose berths at the harbour 
of Takoradi. 
Table IV.12 
Cargo traffic, 2000-06 
('000 tonnes) 
 2000 2001 2002 2003 2004 2005 2006 
P o r t  o f  T a k o r a d i         
I m p o r t s         
Total  1,143 1,151 1,130 1,364 1,455 1,565 1,478 
Liquid bulk 157 181 155 142 230 174 176 
Dry bulk 891 849 842 909 889 934 901 
General cargo 26 43 32 39 49 46 32 
Bagged cargo 5.7 6.8 20 186 208 327 268 
Containerized  62 70 70 84 77 83 86 
E x p o r t s         
Total 1,901 2,199 2,262 2,458 2,726 3,071 3,241 
Dry bulk 1,461 1,799 1,891 2,119 2,329 2,678 2,813 
Bagged cargo 70 34 13 34 41 27 65 
Containerized 271 281 294 250 304 324 319 
Forest products 99 85 64 55 52 40 41 
Total cargo 3,044 3,350 3,392 3,822 4,181 4,636 4,720 
P o r t  o f  T e m a         
I m p o r t s         
Total  5,308 5,379 6,020 6,553 7,264 7,959 6,561 
Liquid bulk 2,064 2,096 2,079 1,963 2,608 2,417 1,266 
Dry bulk 1,576 1,289 1,258 1,139 1,202 1,052 1,120 
General cargo 257 311 233 323 530 737 556 
Bagged cargo 493 724 1,024 1,112 737 1,069 627 
Containerized  916 958 1,425 1,997 2,185 2,683 2,990 
E x p o r t s         
Total 910 931 819 536 844 1,290 1,117 
Liquid bulk 291 335 248 215 356 385 152 
Dry bulk 37 34 38 52 64 51 44 
General cargo 162 157 159 45 59 108 122 
Bagged cargo 60 53 28 42 37 40 95 
Containerized 350 334 344 480 660 704 703 
Total cargo 6,218 6,310 6,839 7,389 8,108 9,250 7,678 
Source:  Ghana Ports and Harbours Authority.  
106. The Ghana Shipping Act of 2004 governs the regist ration of ships, while the Ghana Maritime 
Security Act of 2004 regulates maritime safety and secu rity issues.  The Ghana Shipping Act restricts 
maritime cabotage to domestic companies.  The Ghana Maritime Authority (GMA), established in 
2004, is responsible for monitoring and regulating ac tivities in the maritime industry.  It maintains a 
shipping register, which contains 298 fishing vessels, 23  cargo vessels, and 43 small craft.   Foreigners must form joint-ventur es with Ghanaians in order to regi ster.  However, the authorities are 
examining this requirement with a view to allowing more foreigners to register and operate ships in 
Ghana. 
107. The state-owned Volta Lake Transport Comp any operates cargo and passenger transport 
services on the Volta Lake and its tributaries.  There are plans to create an inland port at Boankra (near Kumasi), with storage facilities for cargo heading to neighbouring landlocked countries. Ghana WT/TPR/S/194/Rev.1 
 Page 65 
 
 
(v) Tourism 
108. Tourism is the fourth-largest foreign-excha nge earner in Ghana after gold, cocoa, and 
remittances.  Employment in tourism-related ac tivities was estimated at 47,000 direct jobs and 
115,000 indirect jobs in 2004.27  
109. Ghana's attractions include beaches, festivals, forts and castles, and small wildlife parks.  
Ghana has also targeted th e Afro-American tourist market, promoting special heritage tours          
(pan-African festivals and Emancipation-day celebrati ons) and other historical events aimed at the 
African diaspora.  
110. Tourist arrivals and receipts ha ve increased strongly in recent years (Table IV.13).  The main 
sources of tourism are the United States, Nigeria, the United Kingdom, Côte-d'Ivoire, and Germany;  
Ghanaians based overseas (largely in the United Kingdom and the United States) accounted for 14% 
of tourist arrivals in 2005. 
111. The number of hotel beds in Ghana more  than doubled between 1996 and 2006, from 
14,000 to over 28,000, reflecting an increase in one-, two-, and three-star accommodation 
(Table IV.13).  There are still only a few hotels with  a four-star rating or a bove. Hotel occupancy rates 
were around 80% for four- and five-star hotels in 2005 and 2006.  The Ghana Tourist Board is in 
charge of hotel classification, following guidelines issued by ECOWAS. 
Table IV.13 
Tourism basic indicators, 2000-06 
 2000 2001 2002 2003 2004 2005 2006 
Arrivals  399,000 438,833 482,643 530,827 583,821 428,511a 497,129 
Receipts (US$ million)  386.0 477.8 519.6 602.8 649.4 836.1a 981.3 
Number of hotels 992 1053 1,169 1,250 1,315 1,344 1,405 
Number of rooms 13,641 15,453 16,180 17,352 18,079 18,632 19,967 
Number of beds 17,558 19,648 21,442 22,909 23,538 23,915 28,006 
a Change in methodology. 
Source:  Ghana Tourist Board. 
112. An objective of the five-year Strategic Tourism Development Plan is to attract 
1 million tourists each year from 2007 and to deve lop Ghana into an internationally competitive 
tourist destination.  The Plan seeks to improve skills in the hospitality industry and to identify 
opportunities and programme developments necessary for tourism.  The Ghana Tourist Board, as 
implementing agency of the Ministry of Tourism, carries out promotional activities.  It is also responsible for the registration and licensing of tour op erators.  The Government has divested all of its 
state-owned hotels;  in a few cases, it has kept a minority share.   
113. Hotels, guest houses, and other accommodation estab lishments and tour operators licensed by 
the Ghana Tourist Board are eligible for certain ta riff and tax concessions.  As decided by the Ghana 
Investment Promotion Centre in June 2005, tariff and VAT exemptions are granted on, inter alia , 
imports of capital and office equipmen t, furniture, and passenger vehicl es.  In addition, hotels that 
have between two and five stars are exempt from corporate tax for five years. 
                                                     
 
27 Bank of Ghana (2006). Ghana WT/TPR/S/194/Rev.1 
 Page 67 
 
 
REFERENCES  
Antwi, Yaw Adarwah (2006), Strengthening Customary Land Administration:  A DFID/World Bank 
Sponsored Project in Ghana , Paper presented at the 5th FIG Regional Conference, Accra,                   
8-11 March 2006. 
Antwi-Danso, Wladimir (2007), ECOWAS' ungelöste Aufgaben , Entwicklung und Zusammenarbeit, 
Frankfurt.   
Association of Ghana Industries (2007), AGI Business Climate Survey 2007 , Accra. 
Bank of Ghana (2005), Annual Report , Accra. 
Bank of Ghana (2006), The Tourism Industry and the Ghanaian Economy , Policy Brief, January, 
Accra.  
Bank of Ghana (2007a), Financial Stability Report , Accra. 
Bank of Ghana (2007b), Monetary Policy Report – Inflation Outlook and Analysis , Accra. 
Bank of Ghana (2007c), Policy Brief – Labour Market Developments 2006 , Accra. 
Bermúdez-Lugo, Omayra (2005), "The Mineral Industry of Ghana" , United States Geological Survey:  
2005 Minerals Yearbook . Viewed at:  http://minerals.us gs.gov/minerals/ pubs/country/2005/ 
ghmyb05.pdf. 
Export Development and Investment Fund (2006), Annual Report 2005 , Accra.  
Ghana Investment Promotion Centre (2007), The GIPC Quarterly Report , January, Accra. 
Ghana Investment Promotion Centre (2006), Sector Profile:  Fisheries , Accra.  
Government of Ghana (2003), National Medium Term Privat e Sector Development Strategy , Accra. 
Ministry of Communications (2004), National Telecommunications Policy , Accra. 
Ministry of Communications (2007), Promoting the Information Society in Ghana , Accra. 
Ministry of Energy (2003), Brief Profiles of Sector Institutions , Accra. 
Ministry of Food and Agriculture (2002), Food and Agriculture Sector Development Policy 
(FASDEP) , September, Accra. 
Ministry of Food and Agriculture (2007), Revised Food and Agriculture Sector Development Policy 
(FASDEP II) , Accra. 
Ministry of Trade and Industry (2004), Ghana Trade Policy , Accra. 
National Development Planning Commission (2005), Growth and Poverty Reduction Strategy 
(GPRS II) (2006-09) , Accra. 
Republic of Ghana (2003), The Ghana ICT for Accelerated Development Policy , Accra. WT/TPR/S/194/Rev.1 Trade Policy Review 
Page 68 
 
 
Republic of Ghana (2006), The Budget Statement and Economic Policy of the Government of Ghana 
for the 2007 Financial Year , Accra. 
Sarfo-Mensah, Paul (2005), Exportation of Timber in Ghana:  The Menace of Illegal Logging 
Operationms , University of Science and Technology, Kumasi. Viewed at:  http://www.feem.it/NR/ 
rdonlyres/7B28B8FB-0D28-4FFC-95 27-B966B2A54C02/1462/2905.pdf. 
UNCTAD (2006), World Investment Report 2006 , Geneva.  
University of Ghana, Institute of Statis tical, Social, and Economic Research (2005), Guide to Electric 
Power in Ghana , Legon. 
University of Ghana, Institute of Statis tical, Social, and Economic Research (2006), The State of the 
Ghanaian Economy in 2005 , Legon. 
World Bank (2001), Regional Integration Assistance Strategy for West Africa , Report No. 22520-
AFR. Viewed at:  http://www-wds.worldbank.org /servlet/WDSContentServer/WDSP/IB/2001/07/27/ 
000094946_010717040158 82/Rendered/PDF/multi0page .pdf [17 April 2007]. 
World Bank (2007), World Development Indicators 2007 , Washington D.C.