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Country Profile 2005 Country Profile 2005 Ghana This Country Profile is a reference work, analysing the country’s history, politics, infrastructure and economy. It is revised and updated annually. The Economist Intelligence Unit’s Country Reports analyse current trends and provide a two-year forecast. The full publishing schedule for Country Profiles is now available on our website at http://www.eiu.com/schedule The Economist Intelligence Unit 15 Regent St, London SW1Y 4LR United Kingdom The Economist Intelligence Unit The Economist Intelligence Unit is a specialist publisher serving companies establishing and managing operations across national borders. For over 50 years it has been a source of information on business developments, economic and political trends, government regulations and corporate practice worldwide. The Economist Intelligence Unit delivers its information in four ways: through its digital portfolio, where its latest analysis is updated daily; through printed subscription products ranging from newsletters to annual reference works; through research reports; and by organising seminars and presentations. The firm is a member of The Economist Group. London New York Hong Kong The Economist Intelligence Unit The Economist Intelligence Unit The Economist Intelligence Unit 15 Regent St The Economist Building 60/F, Central Plaza London 111 West 57th Street 18 Harbour Road SW1Y 4LR New York Wanchai United Kingdom NY 10019, US Hong Kong Tel: (44.20) 7830 1007 Tel: (1.212) 554 0600 Tel: (852) 2585 3888 Fax: (44.20) 7830 1023 Fax: (1.212) 586 0248 Fax: (852) 2802 7638 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] Website: www.eiu.com Electronic delivery This publication can be viewed by subscribing online at www.store.eiu.com Reports are also available in various other electronic formats, such as CD-ROM, Lotus Notes, on-line databases and as direct feeds to corporate intranets. For further information, please contact your nearest Economist Intelligence Unit office Copyright © 2005 The Economist Intelligence Unit Limited. All rights reserved. Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of The Economist Intelligence Unit Limited. All information in this report is verified to the best of the author's and the publisher's ability. However, the Economist Intelligence Unit does not accept responsibility for any loss arising from reliance on it. ISSN 0269-4549 Symbols for tables “n/a” means not available; “–” means not applicable Printed and distributed by Patersons Dartford, Questor Trade Park, 151 Avery Way, Dartford, Kent DA1 1JS, UK. Comparative economic indicators, 2004 Gross domestic product Gross domestic product per head (US$ bn) (US$) Nigeria Cte d’Ivoire Cte d’Ivoire Senegal Ghana Benin Senegal Nigeria Burkina Faso Mauritania Mali Guinea Guinea Ghana Benin Togo Niger Burkina Faso Togo Mali Mauritania Gambia Gambia Niger Guinea-Bissau Guinea-Bissau 0 1020304050607080 0 200 400 600 800 1,000 Sources: Economist Intelligence Unit estimates; national sources. Sources: Economist Intelligence Unit estimates; national sources. Gross domestic product Consumer prices (% change, year on year) (% change, year on year) Gambia Guinea Mauritania Nigeria Nigeria Gambia Senegal Ghana Ghana Mauritania Burkina Faso Guinea-Bissau Guinea-Bissau Cte d’Ivoire Benin Benin Guinea Senegal Mali Togo Togo Niger Niger Burkina Faso Cte d’Ivoire Mali -1012345678 -5 0 5 10 15 20 25 Sources: Economist Intelligence Unit estimates; national sources. Sources: Economist Intelligence Unit estimates; national sources. Country Profile 2005 www.eiu.com © The Economist Intelligence Unit Limited 2005 Ghana 1 Contents Ghana 3 Basic data 4 Politics 4 Political background 5 Recent political developments 9 Constitution, institutions and administration 10 Political forces 12 International relations and defence 13 Resources and infrastructure 13 Population 15 Education 16 Health 18 Natural resources and the environment 18 Transport, communications and the Internet 22 Energy provision 24 The economy 24 Economic structure 25 Economic policy 29 Economic performance 31 Regional trends 31 Economic sectors 31 Agriculture 35 Mining and semi-processing 38 Manufacturing 39 Construction 40 Financial services 43 Other services 44 The external sector 44 Tra d e i n go od s 45 Invisibles and the current account 46 Capital flows and foreign debt 49 Foreign reserves and the exchange rate 51 Regional overview 51 Membership of organisations 55 Appendices 55 Sources of information 56 Reference tables 56 Population and labour force 57 Electricity generation and consumption 57 Gross domestic product by sector 57 Nominal gross domestic product by expenditure © The Economist Intelligence Unit Limited 2005 www.eiu.com Country Profile 2005 2 Ghana 58 Gross domestic product 58 Government finances 58 Interest rates 58 Money supply 59 Mineral production 59 Manufacturing production 59 Ghana Stock Exchange 60 Main trading partners 60 Balance of payments, IMF series 61 Net official development assistancea 61 External debt, World Bank series 62 Exchange rates 62 Foreign reserves Country Profile 2005 www.eiu.com © The Economist Intelligence Unit Limited 2005 Ghana 3 Ghana Basic data Land area 238,537 sq km Population 21.2m (2003, IMF estimate) Main towns Population in millions (2000 population and housing census, Ghana Statistical Service) Accra (capital) 1.65 Kumasi 1.17 Ta mal e 0. 2 0 Climate Tropical Weather in Accra Hottest months, March, April, 23-35°C; coldest month, August, 22-27°C; driest (altitude 27 metres) month, January, 15 mm average rainfall; wettest month, June, 178 mm average rainfall Languages English (official), Twi, Ewe, Fante, Ga, Hausa Measures Metric system Currency Cedi (C)=100 pesewas. Average exchange rate in 2004: C9,005:US$1. Exchange rate on June 3oth 2005: C9,074:US$1 Time GMT Holidays January 1st, March 6th (Independence day), Good Friday, Easter Monday, May 1st (Labour day), July 1st (Republic day), December 6th (Farmers’ day) December 25th-26th © The Economist Intelligence Unit Limited 2005 www.eiu.com Country Profile 2005 4 Ghana Politics Ghana is a unitary republic with a multiparty democratic system under which executive power is vested in a president who is elected by universal suffrage every four years. When John Agyekum Kufuor and his New Patriotic Party (NPP) won the presidential and parliamentary elections of 2000, this brought to an end the administration of Jerry John Rawlings, who had run the country as a military ruler from 1981 to 1992, and for the subsequent eight years as a constitutionally elected president. Mr Kufuor and the NPP went on to win the elections in December 6th 2004, largely as a result of a reasonable economic performance in their first term. The next presidential and parliamentary elections are to be held in December 2008. Political background British colonialism The British originally came as traders. However, in the late 19th century the scramble for Africa led Britain to invade the Ashanti kingdom in 1874 and declare the Gold Coast a British colony, which, after a struggle, it controlled by 1901. The Gold Coast became one of Africa’s most successful colonial economies, based on peasant cash-crop production, mainly of cocoa, and on gold mining, which was largely controlled by foreign interests. Farmers’ initiatives and local familiarity with international trade also helped to bring relative prosperity. The road to independence Lawyers and other educated elites who were excluded from politics by the colonial state dominated the early political movements. After World War Two other social groups also became involved; for example, ex-soldiers who had fought for the British in the war demanded a role in the administration and business opportunities in the colonial system. By 1949 nationalists had split into moderates and radicals, the radicals supporting Kwame Nkrumah’s Convention People’s Party (CPP). Backed mainly by young people and poorer sections of the middle class, the CPP won the country’s first election in 1951. In 1957 Ghana became the first Sub-Saharan African country to gain independence. The CPP government was ostensibly socialist, and laid down the basis of Ghana’s current industrial infrastructure, although its policies alienated cocoa farmers and influential private-sector businesses. In 1964 it introduced a one- party state. Nevertheless, the legacy of Kwame Nkrumah, as “father of the nation”, remains important: even today, several political parties lay claim to the Nkrumahist tradition. Political instability and the Ghana experienced nine changes of government, including four military coups, descent into corruption between 1957 and 1981, but escaped the violence that afflicted many other African states. Poor economic management and perceptions of corruption have been the most common sources of dissatisfaction. In contrast to much of Africa, ethnicity has played a relatively minor role in mainstream political conflicts. In 1966 an economic crisis and rumours of cuts in the military’s resources prompted Ghana’s first (bloodless) military coup, by conservative generals, who Country Profile 2005 www.eiu.com © The Economist Intelligence Unit Limited 2005 Ghana 5 formed the National Liberation Council (NLC). They handed over power to the laisser-faire Progress Party (PP) after elections in 1969. The PP, led by Kofi Busia, continued
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