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SPECIAL ADVERTISING SECTION

GHANA Africa's Rising Star

English-speaking country that is richly Ghana’s wealth of natural resources has made it endowed with natural resources, Ghana a major player on the export market. It is currently boasts the largest economy in West Af- the world’s 10th largest gold producer and has huge rica, with almost twice the per capita out- quantities of bauxite, diamonds and manganese. put of its regional neighbors and a string As well as minerals, it is the world’s second largest of lucrative investment opportunities producer of cocoa, and its waters are full of fi sh. that include oil and gas. John Dramani Mahama Vice President Oil coming on stream of Ghana

A beautiful With a stable, multi-party democracy and But most conversations among businesspeople in a government hugely committed to a liberal market, Ghana and beyond in recent months have been about oil. the country of 23.2 million people is widely viewed as Africa’s The discovery of oil in Jubilee Field in 2007 is one of the rising star. President John Evans Atta Mills, a 66-year-old most important offshore discoveries of the last decade, with former law lecturer who studied for his PhD in London and recoverable reserves estimated at over 600 million barrels. won a Fulbright scholarship to Stanford Law School, came to Even better is that Ghana’s oil is of premium quality, the oil of power in January 2009 and has worked hard to make Ghana choice for refi neries and professionals within the sector. Huge a model of transparency and good governance for the region. stocks of gas have also been discovered, presenting several As a member of the Commonwealth, Ghana enjoys a solid opportunities for fertilizer production and clean energies. relationship with the U.K.: The U.K. is Ghana’s most impor- Thanks to these two elements, openings in power supply tant trading and development partner, as British Prime Minis- and generation are enormous. The government wants to take ter David Cameron confi rmed at an offi cial visit to Ghana advantage of this, as well as Ghana’s unique strategic location following his election victory this year. “We look forward to in West Africa, to position Ghana as the new energy hub in the continued partnership and cooperation between the United region. All eyes will be watching closely to see if the republic Kingdom and Ghana, just as we look forward to stronger can use the wealth generated to fulfi ll its dream of becoming ties and solidarity between the New Patriotic Party and the a middle-income country by 2020 and avoid the mistakes of Conservative Party,” he said. its beleaguered, oil-producing neighbor, Nigeria. “Ghana is obviously new to this industry, and we haven’t “The Better Ghana agenda is about investing in people, built up local capacity yet, so the government is encouraging investing in jobs, investing in the economy and open and joint venture partnerships to facilitate the transfer of knowledge and technology to local companies,” Mahama says. transparent government.” Vice President John Dramani Mahama Despite the mineral and oil wealth, Ghana is still enjoying signifi cant foreign interest in agriculture and is looking to With a mandate to help implement President Atta Mills’ become a net exporter of food within the next fi ve years. The Better Ghana initiative, Vice President John Dramani Mahama government hopes that growth within this sector will reduce says: “The key pillars of that agenda are investing in people, the country’s current account defi cit, which is largely linked investing Press.pdf in jobs, investing 1 10/13/10 in the 12:57 economy PM and open and with food imports. Current government policy is making transparent government.” provision for both local and foreign companies to add value C

CMY

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to its two major commodities—gold and cocoa—while review- ing the Ghana Investment Promotion Center code to improve tax conditions for foreign investors. “Our overriding desire is to position Ghana as a gateway to the sub-region—we are champions of sub-regional integration,” Mahama says. “Knowing the competitive advantages that Ghana has over its fellow Economic Community Of West Joe Oteng-Adjei Kwabena Duffuor Charles Darku African States (ECOWAS) members, we believe we can be the Minister of Energy Minister of Finance and CEO, Ghana Grid Economic Planning Company Ltd. (GRIDCo) gateway for access. In terms of competitiveness, Ghana has advantages in terms of the resources we possess and the “By using gas-powered electricity in industry and manufac- supply and production of power. Our vision in this area is to turing, which is much cheaper than when it comes from oil, become the leading exporter of power in the sub-region.” these sectors will have more opportunity to thrive and have more value added to their products and services. A competitive economy “Our second priority is to use gas for fertilizer. We have With oil production slated to start in the last quarter of 2010, the land and farmers, but our yields are not what they could the Ministry of Energy is encouraging Independent Power be because we continue to use traditional farming methods. Producers (IPPs) and is depending on the private sector to With a fertilizer plant we should be able to price the fertilizer invest in and develop power generation facilities, while the as low as possible to make it affordable for farmers, and as a government looks after transmission. result, help them to increase their agricultural output.” Minister of Energy Joe Oteng-Adjei says: “Ghana has Minister of Finance and Economic Planning Kwabena learned a lot over the years. Everyone thought gold would Duffuor, who advocated the discipline and expertise needed be the main driver of the economy. Then came diamonds and to stabilize Ghana’s economy and bring inflation down to agriculture, but we were not able to utilize these to support single digits within 18 months, says: “The government has our economy, or, for that matter, improve the standard of prepared a petroleum-revenue-management law, which is living for our people. We are determined to properly manage currently before Parliament for approval. the revenue generated by the new oil and gas and plan to use “Through this law, we will be able to collect and manage it to fuel other sectors. the revenue to benefit all Ghanaians. We have learned from

www.ghanaports.gov.gh

TO BE THE REGIONAL HUB IN WEST AFRICA As the export and entry points for most of Ghana’s trade activities, the Ports of Takoradi & Tema are well known Adding machines Aerials Albums Ampliers Answerphones Apparel Baby strollers Bags (brief cases, etc) Battery chargers Bedding Blankets Bicycles for their operational excellence. A Binoculars Boats Boat ttings Burglar alarms Calculators Calendars Cameras Caneware Carpet/rugs Cassette deck/recorders C B Units Ceramic tiles transshipment hub for the region, Chainsaws Chinaware Crockery Cigarette Lighters Clocks Clock radios Clothes Driers Coffee Percolators Compact Disc players Computers Confectionary the Ports of Ghana are currently Cosmetics Crock Pots Crops/Whips Cutlery Data Processing Machines Depth Sounders Dictaphones Dinghies Dinner Sets Dishwashers DrinkingGlasses DVD Portable Players DVD Recorders Electric Blankets Electric Can Openers Electric Hairclippers Electric Knives Electric Sharpeners Electric Shavers Electric Stoves Enlarger undergoing exciting expansion that will Equalizers Films Flash equipment Food Grinders Food Mixers Food Processors Footwear Fur Coats Furniture Garage Door Openers GasOperatedBBQ'sGlassesGolfBalls ensure Ghana’s continued growth and we Golf Clubs Groceries Guitars Hairdryers Haircurlers Handbags Handtools Hats Headphones Heaters Helmets Home Computers Inatable Dinghies Instant Coffee Intercoms invite serious investors to be a part of that. I-pods Irons Jewellery Jugs Lamps Lens (Photographic) Linen Massagers Microphones Microwave Ovens Mirrors Metal Detectors Model Engines Motor Cycle Parts Motor Vehicle Parts MP3 Players Musical Instruments Navigational Equipment: Radar navigation Radio navigation Ornaments: China Ceramic Glass Wooden Ovens (Microwave) Outboard Motors Paint Perfumed Spirits Pewter Ware Photo Albums Picture Frames: Metal Pots and Pans Prams Projectors Purses Racquets Radar and remote controlapparatusRadiosR Radio broadcast receivers Razors (Electric) Record Turntables Record Needles Record Cartridges Records (Discs) Roller Skates Roof Racks Rugs (Travel) Saddles Sandwich Makers Sewing Machines Shavers (Electric) Skateboards Skis: Snow Water Sleeping Bags Snowboards Space Heaters GHANA PORTS AND HARBOURS AUTHORITY P.O. Box 150 Headquarters, Tema Spark Plugs Speakers Stationery Stones (Natural, Unmounted) Strollers Suitcases Tel:+233 (0) 303 202631-8 | Fax:+233 (0) 303 202812 | [email protected] Sunglasses Surfboards Tapes: Audio Blank Audio Recorded Video Blank Tel:+233 (0) 303 204385-8 | Fax:+233 (0) 303 204136 | [email protected] Video Recorded Telephones Cellular Telephone Answering Sets Television Sets Tel:+233 (0) 3120 24073/24136 | Fax: +233 (0) 3120 22814 | [email protected] Tents Toasters Torches Toys Turntables Typewriters Tyres TV Games Tel: +226 50301201 | Fax: +226 50301201 | [email protected] Umbrellas Vacuum Cleaners Video Cameras Video Machines Voice Recorders (digital) Voltage Meters Wallpaper Watches Waterbed Mattresses Washing Machines (Domestic)

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many different countries and have selected the best manage- We guarantee investors repatriation of profits. We are very ment mechanisms.” grateful to Her Majesty the Queen for her directive to the With British firm Tullow Oil leading the way in the energy Prime Minister to engage with Commonwealth countries. She sector, Duffuor sees Ghana/U.K. relations going from strength was very gracious to mention Ghana specifically. We expect to strength. “Tullow Oil has done a great job with the oil and the Prime Minister to seize the opportunity and really bring through that, we expect to see a lot more investment. We focus on our country, which will enable us to endeavor and hope to grow our trade with the U.K. in the future. We share leverage on our strengths to attract the investment needed.” a common language, and the U.K. has been responsible for building many of the institutions that stand in Ghana today.” “Ghana’s refinery is one of the stellar refineries in West Responsible for regulating, overseeing and monitoring Africa and this makes us a very attractive destination.” activities in the petroleum downstream industry, the National Alexander Kofi Mensah Mould, Chief Executive, NPA Petroleum Authority performs an important role on pricing and licensing. Alexander Kofi Mensah Mould, chief executive of the NPA, says: “Ghana has always been looked on as a Meanwhile, over at the Ministry of Information, sterling work good boy in a bad neighborhood. This has been a challenge, is being done to improve the dissemination of government as, despite our positive attributes, we have not received the information, particularly its Better Ghana agenda, by creating investment we should have. events where it can pass information on to Ghanaians inter- “We are, however, seen as an area that could become an oil actively. “This way, the Better Ghana agenda can be followed hub or a storage depot in the sub-region. Ghana’s refinery is by all people,” says Minister of Information, John Tia Akologu. one of the stellar refineries in West Africa and this makes us With Ghana’s trade and industry dependent on agricul- a very attractive destination.” ture and mining, the country is turning its attention from With the U.K. seen as a strategic investor, Minister of Foreign a factory-driven economy to a competitive economy with Affairs and Regional Integration Alhaji Muhammad Mumuni value-added goods. “There is a significant amount of produc- describes the work being done to further improve the tion taking place in cocoa already, with Cargill, ADM and Barry investment climate. Callebaut currently the major cocoa-processing multina- “We have put a lot of incentives in place, including tax holi- tionals. It is also happening in tropical fruits,” says Minister days, rebates and other guarantees that will assure investors. of Trade and Industry Hanna Tetteh. “Around 50% of our

GRIDCo, working day and night for Ghana’s future

As Ghana strives to become the business hub for the sub- region, one company will be leading by example. Through ongoing construction and renovation projects, GRIDCo is committed to expanding the country’s transmission capacity over and above its power demand, ensuring the safe, reliable and efficient transmission of electricity within Ghana and beyond.

Ghana Grid Company Limited P. O. Box CS 7979, Tema, Ghana Tel:+233-30-7011185 Fax:+233-302-676180 Backbone to Power Delivery [email protected] www.gridcogh.com

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exports go to the E.U., essentially as commodities, but in the “We have come up with a strategy to carry this out: firstly next five to 10 years, we would like to move away from that.” we need to speed up the modernization of our network which we inherited from the Volta River Authority. We are also fast- Energy will power growth tracking the expansion of the network so that we can keep up The year 2020 is the target Ghana has set to become a with the projected growth in generation and demand. One of middle-income country, but in the medium term the govern- our strategic objectives is to position Ghana and GRIDCo as ment wants to assure and sustain growth through sound the West African hub for electricity supply. Our vision is to action programs under its Poverty Reduction Strategy. eventually operate one integrated network across the entire Ghana’s energy sector presents a variety of sources, includ- sub-region.” ing oil, gas, hydropower and renewable energies. The government’s vision is to ensure universally accessible energy, both “We are fast-tracking the expansion of the network for domestic use and for export by 2020. To do this, it must so that we can keep up with the projected growth in overcome challenges of infrastructure, health and safety, generation and demand.” Charles Darku, Chief Executive, GRIDCo environment, production and transport. As the electricity-transmission company of Ghana, Ghana Grid Co. Ltd. (GRIDCo) is developing a five-year plan to bring Currently connected to Cote d’Ivoire in the west, and Togo it to world standards, and is looking to position Ghana as the and Benin in the east, Ghana is leading the way in reinforcing West Africa hub for electricity supply. Established in 2006, the expansion plans in the region and providing new inter- the company has been tasked with matching electricity connections. The eventual goal is to achieve full electricity generation with demand. Charles Darku, chief executive of supply integration in the ECOWAS region. GRIDCo explains: “With the economic growth prospects of the “To achieve this we are implementing three new intercon- country, electricity demand will increase and the government nections,” Darku says. “The first one is a project which is therefore set the target of achieving an electricity output of aligned from the main thermal plant in Takoradi to Tema and 5,000 MW within the next four to five years. We are working this is nearing completion. This will create a hub starting in with the government to ensure that this goal will be achieved the west of the country, moving through to the central region by supplying the transmission infrastructure needed to evac- and then eventually on to Benin in the east. uate the power and deliver it to where it is needed. “We are also working with our neighbors Burkina Faso and Mali to construct a line heading up north to provide some of the landlocked countries with access to electricity. The feasi- bility study of the line has been conducted and funding has been mobilized, so the project has great potential to go to construction any time from the beginning of 2011.” The Volta River Authority, which is responsible solely for electricity generation, operates the Akosombo hydroelectric dam in the southeast of the country. VRA is actively seeking joint ventures with foreign companies in order to generate more power and meet the huge anticipated demand in the next five years. They are currently developing more renewable projects to become more sustainable and cost-effective. “Over the next three years, we will see at least 1,200 MW of new capacity being put into service and that capacity will be built by us solely, or with a partner,” says Kweku Andoh Awotwi, CEO of VRA. “The other 800 MW are either initiatives that are in process now or about to start where VRA will be the owners and managers of those operations. That’s 1,200 MW in the next 36 months. There are also 100-150 MW of renewables that we are looking to put in place, and we are aware of at least 500 MW of capacity being built by others. We are looking for people who have done this before and people who have a track record in dam construction.”

Leveraging international partnerships One of the original three indigenous petroleum companies licensed to run bulk oil storage in the country, Cirrus Oil Serv- ices Ltd. is the only bulk distribution company in Ghana that

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own their own infrastructure on the ground, and with the oil coming online soon, is currently looking to develop more storage capacity in the country. With local private equity scarce, Cirrus is leveraging off its international partnerships to attract the necessary funding from abroad. “We differentiate ourselves by the fact we take a more proactive, rather than reactive approach, which puts us one step ahead of the game,” executive director John Taylor explains. “We want to retain and grow our market share and capture more, and have every intention of increasing our capacity; building where we see a requirement and the potential for it, but not building for building’s sake.” Tema Oil Refinery Ltd, Ghana’s only refinery, is in the mean- time looking to close the gap in local market demand, and will look to export petroleum products within the sub-region once this is achieved. They are looking to procure an output COCOBOD... of 120,000 barrels per day by 2012/13 and are seeking Public Private Partnerships (PPPs) to achieve this. poised to maintain “First we are looking at Niger, and we are also looking at Ghana’s premium the landlocked countries because we already have pipelines running from the port here in Tema towards the north, which quality cocoa will allow us to service Burkina Faso, Mali, Togo, Benin and the Cote d’Ivoire,” says Ato Ampiah, acting managing director of TOR. “We strongly believe there is a lot of potential in these As the well-known saying goes, “Nine areas because all these countries are importing petroleum on out of ten British people like choco- a large scale, so by being competitive at the export market, late––the tenth lies.” What is not so the avenues of opportunity will be ours to take.” A wholly indigenous Ghanaian company, Sage Petroleum well known is that Ghana is the world’s Ltd. is also making huge strides. Having entered the market in second-largest producer of cocoa and 2009, it has already positioned itself as the country’s largest ranks first in quality of beans. Working petroleum trader and the third distributor of petroleum hard to encourage and facilitate the products. At 39, Emmanuel Egyei–Mensah, CEO, is the oldest production of high quality cocoa, cof- member of the company, and it is this young energy that has fee and sheanut, Ghana Cocoa Board made the success happen. (COCOBOD) welcomes investors to help us in our mission - and make “The bulk of our employees are below 30, which creates chocolate lovers everywhere happy. a dynamic work environment where everybody strives for excellence.” Emmanuel Egyei–Mensah, CEO, Sage Petroleum Ltd.

“The bulk of our employees are below 30, which creates a dynamic work environment where everybody strives for excellence,” he says. “This also provides the company with an adventurous spirit, and since establishing we attempted some very bold moves. We purchased six ailing oil-marketing companies with the intention of turning them into profitable ventures, and so far most of them are back on profitable paths. “Despite them being heavily indebted, we found an opportunity to restructure and create strong Ghanaian brands, as well Cocoa House, 41 Kwame Nkrumah Avenue P.O. Box 933, Accra as securing a distribution channel for Sage Petroleum. We Tel:+233 21 661 752/ 872/ 757/ 758 have restructured their debts, put in better management and Fax:+233 21 667 184/ 681 financial controls, and grown their volume to the point they www.cocobod.gh can now repay their debts. With Sage Petroleum, we have the trading arm, the distribution arm and then the retail arm.”

T BO Ghan v11.indd 5 12/3/10 1:13 PM GHANA SPECIAL ADVERTISING SECTION First choice for business in Africa Investor-friendly Ghana is wide open for companies seeking a stable environment

banking sector with 26 banks in operation means Ghana is setting an example for other African nations in terms of offering an enabling environment to foreign and local investors, as well as transparency, an independent judiciary, and a free-market economy. The most important recent development in the sector was the announcement from the Bank of Ghana Kweku Bedu-Addo Nestor Percy Galley Tony Fofie

A vibrant that it was raising the minimum capital requirements CEO Director General CEO Standard Chartered GPHA COCOBOD to GHc 60 million by 2012. Some of the local banks will struggle to reach this figure within the set time frame and can help them with book-keeping, and legal and tax issues.” many are therefore speculating around possible mergers and HFC recently partnered with a U.S. NGO called CHF Interna- acquisitions over the course of the next two years. tional to help the bank offer micro-business loans and micro- Inflation has hit single digits for the first time in Ghana and finance for housing. now stands at 9.38%. The assets in Ghana’s banking grew by “Even though Ghana’s economy is improving and growing, 7.8% within seven months, from 14 billion cedis in Decem- about 80% of it is still informal,” Akuffo says. “If you want ber 2009 to 15.1 billion cedis by July 2010, and the sector’s it to grow, you have to look at that and address the micro- capital-adequacy ratio, which measures the industry’s ability businesses. We wanted to address this issue but did not have to withstand unexpected losses, also increased from 14.9% the skill set to do so.” to 19.1%. Meanwhile, Standard Chartered Bank Ghana Ltd., the oldest A mortgage bank, originally founded by the government, and third best-capitalized bank in Ghana, increased its pre-tax HFC Bank (Ghana) Ltd. became a universal bank in 2003, profit by a staggering 35% between 2009/10. Focusing on risk offering commercial and investment banking as well as management, commodity hedging, interest-rate hedging and home loans. Listed on the Ghana stock exchange, HFC is well currency hedging, the bank also increased its market share equipped to serve international customers. from 10% to 12% in the first half of 2010. “We are a strong local bank, with an excellent knowledge “I think what we are seeing in Ghana is very similar to what of the market and banking practices and a global vision,” we are seeing in the Standard Chartered group as a whole. says managing director Asare Akuffo. “European banks can, Ghana has consistently outperformed its peers, and as a however, help us with their banking technology.” group, the bank is doing very well, going from strength to HFC is already established as the country’s leading home- strength, now being present in 78 countries,” CEO Kweku loan provider, but has been focusing more on helping small Bedu-Addo says. and medium-size enterprises get off the ground. Akuffo says: “We are not doing anything different in Ghana from what “We have business loan centers, where we address the needs we are doing elsewhere; our primary focus is on our clients of SMEs and where we connect them with professionals who and we are continually looking to deepen those relation-

Powering the economy of Ghana and setting the standard for public sector excellence in Africa Over fifty years of providing hydroelectricity throughout Ghana, Volta River Authority is exploring cleaner, cheaper and renewable energies, like gas, wind and solar, to ensure a sustainable energy future for its customers.

For more information, contact: Electro-Volta House, 28th February Road P.O. Box MB77, Accra-Ghana Tel:+233 302 664941-9

VOLTA RIVER Fax:+233 302 662610 AUTHORITY [email protected] www.vra.com

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ships. Furthermore, we are steadfastly following the basics tify local partners or have been invited by a local operator. of banking: we are looking to adhere to very disciplined and “They will then offer to bring the capital expenditure but robust risk management, and we are also placing a great they will need a working capital component, this is when emphasis on investment in people. If you look at our cost/ they come to ADB. The other challenge confronting potential income ratio, which is 46%, and our capital adequacy, which investors involves that of land acquisition and land ownership. is 22%, you get an idea of our level of efficiency.” It is quite fragmented because in the rural areas the lands are Covering 85% of the agricultural credit in the country, Agri- cultural Development Bank is one of only two 100% Ghana- “My vision is for us to provide a very efficient, ian-owned banks. Having put in place a Strategic Policy Coor- affordable, reliable, safe, seamless and integrated dinating Unit (SPCU) to improve communications between transport system.” Mike Allen Hammah, Minister of Transport the Ministry of Agriculture, the presidency and the bank, ADB is implementing a three-year strategic plan, starting in 2010, which will set high-level targets for financing and expansion. not registered and ownership is a bit chaotic. This is where “‘Creating awareness’ is one of the mandates of the SPCU. the foreign investor would require assistance in being able to We are at present talking to agencies like USAID and GTZ. It’s locate the real owner of the land, and this is where ADB can really up to the ADB to put itself out there,” says managing bring in its local expertise.” director Stephen Kpordzih. “One of the major challenges for agricultural funding is the lack of access to medium- to long- Transport Initiatives term financing. You cannot simply use wholesale deposits to An improved transport system is an integral part of Ghana’s finance agriculture.” development, with road and maritime transport, civil aviation The bank, which plans to have one bank branch for every and rail all earmarked for upgrades and new building projects. district in the country—equating to 140 branches—is also As Transport Minister Mike Allen Hammah says: “My vision looking to establish loan-financing agreements with foreign for the ministry is for us to provide a very efficient, afford- financial institutions. Kpordzih says: “Very often the kind of able, reliable, safe, seamless, integrated transport system to investor who comes to ADB is one who wants to undertake underpin the national development agenda. commercial transactions and they are looking for financial “With lower transport costs emanating from rail, we expect support from a local bank. Very often they will come and iden- to see a stoke in demand for our exports, and as this demand

Quality through experience One of the fastest growing independent petroleum suppliers in Ghana, Cirrus Oil specializes in the bulk trade and distribution of petroleum products. Our wide experience with international partners has shaped what we are today: a professional, results-oriented, custo- mer-focused company that puts safety first.

Cirrus Oil, 2 Gowa Close, Roman Ridge, Accra, Ghana Tel:+233 302 781522 / 781524 / 781525 www.cirrusoilghana.com

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increases so our balance of imports will improve, which will Galley, who previously worked at Sierra Leone Port Authority refl ect positively on our macroeconomic indicators and, most and pushed its ranking up from 32nd port in Africa into the top importantly, this will help us to control infl ation. 10, believes there will be further opportunities in the future, for “These changes will encourage a lot of investors to come to companies offering ship repairs as well as engineering, welding Ghana and they will establish value-added job creation, which is and construction fi rms. something much needed in our country right now.” “Our vision is to become a hub in the region in the coming fi ve Meanwhile, the country is rapidly becoming a maritime to 10 years as the development of infrastructure takes time and trading hub. The Ghana Ports and Harbours Authority (GPHA) is capital-intensive,” he says. “By then, we should have brand- is currently looking for the private sector to become involved new facilities, with a streamlined and dedicated workforce. We in the redevelopment of their Tema and Takoradi ports, as should have some higher-grade equipment in place as well. Our it plans to install an oil-service terminal in both. “Our free- goal is to become the best port in the sub-region with operational excellence. With the oil discoveries happening, there is a need for facilities and technical expertise, which we feel Ghana “Ghana has seen some positive economic indicators can certainly provide.” suggesting that trade will pick up and growth forecasts for the country will be achieved.” Nestor Percy Galley, DG, GPHA Communications backbone Communications will provide the backbone of a sustainable market economy is encouraging trade and investment in the economy for future generations, enhancing global competitive- country,” says Nestor Percy Galley, director general of GPHA. ness and putting Ghana on the map. The Ministry of Commu- “Ghana has seen some positive economic indicators suggesting nications is looking to auction a number of wireless licenses to that trade will pick up and growth forecasts for the country will foreign entities and it has a policy in place planning to move be achieved. into the digital era by 2012. “We believe fi rst and foremost that our competitive advan- “We are looking to support public-private partnerships that tage is our strategic location. Also, our procedures are more allow the people of Ghana to benefi t from the opportunities streamlined [than our competitors’] and our tariffs are also very of information and communications,” says Haruna Iddrisu, competitive. The road network and infrastructure in the country Minister of Communications. “The primary focus is to equip is also a contributing factor to the effi ciency of our ports.” our young people with the ICT skills they need to participate meaningfully in our national development and in their own development.” Ghana’s ICT landscape has changed a lot in the last decade, with the extension of affordable and effi cient connectivity solutions now being implemented by the National Fiber Optic Tema Oil Refinery (TOR) Limited. Communications Backbone Infrastructure Network. Vodafone, which acquired state-owned Ghana Telecom in 2008, is one of six mobile operators in the country and has made huge invest- ments in building the Vodafone brand. Playing a major role in outsourcing ICT in the country, Voda- Meeting the fone is also planning to build the best call center in Ghana by the end of the year. Kyle Whitehill, CEO of Vodafone says: “The telecoms market in Ghana is on the brink of massive infrastructural petroleum growth, fi rstly because population coverage in the country is 50% or less, and then also because of big industries like mining needs and petroleum, which will demand sophisticated telecoms and of Ghana and the data services. I think in the next three to fi ve years, there will be West Africa Sub-region signifi cant infrastructural growth within telecoms throughout the country.”

ADB is CHANGING. Expect more. Achieve more.

For further information please call Toll Free: 080010034 Hotlines: 233 30 2224043 - 4 The Public Affairs Department, Tema Oil Refinery (TOR) Ltd. Heavy Industrial Area, P.O.Box CO 599 Tema,Ghana. e-mail: [email protected] website: www.agricbank.com Tel. 233 303 304 095/7 Fax: 233 303 311 360. www.torghana.com

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Speaking of Vodafone’s successful takeover of Ghana Telecom, Whitehill says: “The first thing we had to do was establish a brand within this country and make the brand transition as smooth as possible. We then had to increase our Soaring to mobile coverage and we managed to double that to around 50% of the population within 18 months. We have also made a huge investment in our data network, as this is an area new heights which is showing the most growth in the country. “When we took over Ghana Telecom, the culture was Your reliable partner for obviously very different to a high-performing commercial organisation. Our staff has had to adjust to the culture of oil, gas and energy projects the free market, which is driven strictly by performance. It’s in Ghana and Africa about engaging with our staff to help them improve their performance and efficiency and give them a secure future within the organization.“ The challenge now is to move into “non loss-making terri- tory,” Whitehill says. “We are making a concerted effort to be prudent and efficient. The other challenge is that the market is dominated by one other market player and without the implementation of number portability, we do not see the market share shifting much. We also have some issues about the affordability of infrastructure and I feel that is important for mobile operators to share and collaborate on this issue as it is vital for the future growth of the industry.” As well as building up Ghana’s profile as a possible outsourcing hub, Vodafone is working on the e-ghana project. “This will allow us to connect to the whole of Ghana and, with the government’s support, we are confident we can achieve this goal together and position as the telecom operator of choice.”

A benchmark for cocoa Agriculture is responsible for 35% of GDP and the employ- ment of 55% of Ghana’s workforce; the importance of agriculture to the country cannot be overstated, and the government is now urging subsistence farmers to adopt a more business-orientated approach. “At the moment, we are not satisfied with our quality of life and we do not have the SAGE Petroleum Ltd. is a leading energy company support systems in place as they do in Europe, but we can at with interests in petroleum trading, distribution and least try to reduce poverty by assisting them with the neces- the energy industries in Ghana and West Africa. A truly indigenous player, with valuable experience, local knowledge and strong relationships, SAGE is “We are aiming to move farmers into five-acre plots to now seeking to enter the growing offshore support farm, as this is the minimum area of land required to services sector. SAGE is your partner of choice for petroleum products trading, energy projects and generate enough output.” Kwesi Ahwoi, Minister of Food & Agriculture offshore support services in Ghana and West Africa.

sary resources,” says Minister of Food and Agriculture Kwesi Ahwoi. “We are aiming to move farmers from their two-acre plots to at least five-acre plots to farm, because we found this is the minimum area of land required to generate enough productive output.” Ghana is the world’s largest cocoa producer after Cote P.O. Box CT4377, Cantonment Accra-Ghana H/No. E17/9, Ablade Road, Kanda, Accra - GHANA d’Ivoire (accounting for 18% of the world’s total cocoa produc- Tel: +233 302 241642 | Fax: +233-302-242062 tion in 2006-2007) and, as in most cocoa-producing coun- [email protected] | [email protected] tries, it is grown by smallholder farmers. The cocoa industry www.sagepetroleumgh.com is vital to the strength of the formal economy and employs

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1.5 million people in production and transport. Cocoa has historically been a key economic sector and a major source of export and fiscal earnings. It represents about 30% of Ghana’s total export earnings and it is the second most important export commodity after gold, as of 2009. During 2007-2008, cocoa production amounted to 674,808 tonnes, with a farm gate value of 684,501,000 cedis produced during 2007-2008. In total, 551, 626 tonnes of cocoa was exported and generated revenue of U.S.$1.2 billion.

Processing Adds Value Ghana processes between 18% and 22% of its cocoa output into liquor, paste and butter for export markets, while all other cocoa is exported in its raw state. A quarter of Ghana’s population now depends directly or indirectly on cocoa, and Port Tema the country has some of the highest-grade cocoa in the world. “The handling and treatment of the cocoa beans is funda- With European markets now saturated, COCOBOD is looking mental to producing a high-quality cocoa. Ghanaian cocoa to tap into emerging markets like the BRIC countries, although is a reference point for cocoa all over the world, and this is it will continue to supply traditional markets such as the U.K., why Japan uses 70% of Ghanaian cocoa in its factories,” Germany and Belgium. It is also looking to encourage private says Tony Fofie, CEO of cocoa regulator, Ghana Cocoa Board participation in the sector, and providing greater added value. (COCOBOD.) “Almost 5 million Ghanaians depend on this sector, either “The farmers follow a stringent set of steps; you have to directly or indirectly, so it is better for us to redirect reve- harvest at the right time, then you have to ferment at a certain nues back into rural areas,” Fofie says. “We contribute a lot level, and then the drying of the cocoa is very important. We to the farmers in cocoa-growing areas—as well as scholarship still conduct a lot of sand drying, as opposed to mechanical schemes, we are now creating a pension scheme for them.” drying, as this way, the beans have a smokier flavor.” Bank of Ghana, a trailblazer for good banking practices in sub-Saharan Africa, asks banks to increase capital

As a key player in Ghana’s sustainable development, says. “This is why Ghana is now seen as the pre- Bank of Ghana is setting high financial standards, ferred destination for investment in the region.” for the nation and for Africa as a whole. “Our banks are very profitable and we provide a Future Consolidation stable environment for them to operate in,” says The banking system has gone through significant governor K.B. Amissah-Arthur, who assumed office transformation and continues to improve, with new in October 2009. regulations to maintain financial stability. The Bank Having nurtured a transparent and competitive K.B. Amissah-Arthur of Ghana has raised the minimum capital require- banking environment, the central bank has achieved Governor ment for banks to about U.S.$40 million in anticipa- impressive results in the last year, bringing the rate Bank of Ghana tion of financing high-valued transactions as oil pro- of inflation down from 20.7% in June 2009 to 9.4% duction begins. “At present, foreign-owned banks in October this year and it is now actively working to maintain have achieved this, and we are working with local banks to do the single-digit inflation rate. same within the next two years,” the governor says. Ghana’s external position has improved with strong export With 26 banks and 126 rural banks in operation, Amissah- receipts. It has witnessed strong investor interest in the econ- Arthur, a former Deputy Minister of Finance and World Bank omy, which has led to increased private-capital inflows and consultant, expects to see some mergers and acquisitions boosted international reserves to over U.S.$4 billion. The local in the coming years as local banks comply with meeting the currency has also strengthened against the U.S. dollar. minimum-capital requirement. This level of capitalization will The governor of the Bank of Ghana cites the economic allow the banks to participate in the country’s burgeoning oil achievements and political stability, as well as strong regu- industry and play a greater role within the Ghanaian economy, latory frameworks, as Ghana’s main advantages over other although, as the governor asserts: “Ghana is not going to be- countries in the region. “People have an opportunity to make come the next Saudi Arabia so we must not lose sight of the returns that far exceed those in advanced economies,” he importance of our agricultural sector.”

Bank of Ghana One Thorpe Road, P.O. Box GP 2674, Accra Tel.: +233-30-2666174 / 6 [email protected] www.bog.gov.gh

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