A GLOBAL / COUNTRY STUDY AND REPORT ON ―GHANA‖ Submitted to Gujarat Technological University IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION UNDER THE GUIDANCE OF Dr. Manish Vyas (The Director- Indu Management Institute) Submitted by (Hiren Shroff, Meha Desai, Rahul Kothari, Arun Mali, Usha Chaudhary & Komal Joshi) [Enrolment no: 117190592001-117190592006] [Batch: 2011-13] MBA SEMESTER III/IV 1 INDU MANAGEMENT INSTITUTE MBA PROGRAMME Affiliated To Gujarat Technological University, Ahmedabad. 2011-2013 STUDENTS’ DECLARATION We, Hiren Shroff, Meha Desai, Rahul Kothari, Arun Mali, Usha Chaudhary and Komal Joshi hereby declare that the report for Global/ Country Study Report entitled “GHANA” of country Ghana is a result of our own work and our indebtedness to other work publications, references, if any, have been duly acknowledged. Place: Vadodara Signature: Date: Hiren Shroff: Meha Desai: Rahul Kothari: Arun Mali: Usha Chaudhary: Komal Joshi: 2 INSTITUTE’S CERTIFICATE ―Certified that this Global /Country Study and Report Titled “GHANA” is the bonafide work of Hiren Shroff, Meha Desai, Rahul, Arun Mali, Usha and Komal (Enrolments No.: 117190592001-117190592006), who carried out the research under my supervisions. I also certify that to the best of my knowledge, the work done here is not a part of any other project report on the basis of which any degree or award was declared to these or any other students.‖ Signature of the Faculty Guide (Dr. Manish Vyas) (The Director- Indu Managemet Institute) (Certificate is to be signed by the Director Of The Institute) 3 PREFACE The Global /Country Study and Report is an integral part of the MBA programmed study and it is designed in such a way that students can get maximum knowledge, experience and can get practical as well as theoretical exposure to the corporate and the global world and scenarios. With the respect and pleasure, we have privilege to submit Global /Country Study and Report to the kind hands of eminent examination of the Indu Management Institute. MBA is a professional course, to be an MBA student is a matter of pride for all of us being a part of this kind of project work. Through MBA each student is prepared to hold the post of manager and has to work in a team and has to lead their subordinates very confidently and that helps every MBA student to develop from normal human being into a disciplined and dedicated professional. Thus, it helps every student in their future lives. 4 ACKNOWLEDGEMENT First of all, and foremost we would like to thank the authority for giving us an opportunity for making such a report of global study which would definitely enhance our skills and give us a concrete path to work ahead. Through this acknowledgement we would like to express our sincere gratitude towards all those people who have been inspirational and instrumental in drafting this Global/ Country Study and Report. We would like to thank, our internal faculty guide as well as our director sir Dr. Manish Vyas (I/c Director of Indu Management Institute). We would also like to thank Mr. Tejas Parikh (Proprietor of Anjanee Chemical Industries) for his strong support, which he offered right from the conception of this project report. We would also like to give thanks to our parents for their inspirational support and motivational behavior toward us and our study. Last but not the least, we all would like to thank our college, Indu Management Institute, for giving us an opportunity to do this project in a group as a part of our study, so that we are able to improve our team work ability and confidence for future professional career. 5 INDEX SR.NO. PARTICULARS PAGE NO. 1 Demographic Profile 8 2 General Economic & Industries overviews 9 3 General overview of Trade and Commerce 11 4 Overview Different economic sectors of Ghana 12 5 Legal aspects of trade in Ghana 16 6 Present Trade Relations of India / Gujarat with Ghana 17 7 Import- Export 19 8 Business Volume of different products 20 9 Investment 22 10 PESTEL Analysis 23 11 Conclusion 26 12 Bibliography 27 6 PART – I WORK DONE IN SEM - III The Global /Country Study Report on GHANA: COUNTRY – GHANA (Independence March 1957) (Map Reference- Africa) Currency - Ghanaian cedi (GHS) Capital - Accra Official Language – English Nationality - Ghanaian National symbol (s) - Black star; Golden eagle Area - Total – 230,460 sq km Land – 230,940 sq km Water – 8,520 sq km LOCATION: Ghana is a country in West Africa. It is bordered by Ivory Coast to the West, to the east Togo and Burkina Faso to the north & to the south Gulf of Guinea. 7 1. DEMOGRAPHIC PROFILE OF GHANA Population of country: Population Growth Rate: 24,652,402 (July 2012 EST.) 2.2% (2012 EST.) Urban Population: Urban Population Rate: 51% of total population (2010) 3.4% annual rate change (2010- 15) Birth rate: Death Rate: 32 births/1,000 population (2012 EST.) 7.7deaths/1,000 population (2012) Age Structure: (2012 EST.) 0-14 yrs.: 38.9% (Male 4,815,972 & Female 4,773,335) 15-24yrs: 18.9 % (Male 2,319,744 & Female 2,342,960) 25-54yrs: 33.5% (Male 557,545 & Female 587,915) >65 yrs: 4% (Male 463,962 & Female 529,892) Major Cities: Population (in 2009) ACCRA (capital of GHANA) 2.269 million & Kumasi 1.773 million Religions: (2010 census) Christians: - 71.2% (Pentecostal/Charismatic 28.3%, Protestant 18.4%, Catholic 13.1%, other 11.4%), Muslims: - 17.6%, Traditional: - 5.2%, Other: - 0.8%, None: - 5.2% Languages: Asante 14.8%, Ewe 12.7%, Fante 9.9%, Boron (Brong) 4.6% 8 2. GENERAL ECONOMIC AND INDUSTRIES OVERVIEW ► The economy of Ghana has a rich resource base as well as diversity. And Ghana is one of the highest GDP per capita earners of Africa. ► Economy of Ghana has been strengthened by a quarter century of relatively sound management also have a competitive business environment & sustained reduction in poverty. ► Gold, Cocoa, Timber, Diamond, Bauxite, Manganese, Palm oil and many other exports are major source of Forex. Cocoa and gold production and individual remittances are major sources of Forex. Estimated oil reserves has jumped to the almost 700 million barrels. ► Ghana is well enriched with natural resources & agriculture accounts for roughly one quarter of GDP and employs more than half of the workforce, mainly small landholders. All the policies are framed within the prescribed national macro economic objectives and related strategies which show all those opportunities which were presented by Uruguay Round Result and all other multilateral trade agreements. The main focuses of these attentions are: ► Creation of a buoyant as well as self-sustaining export sector. ► Growth of domestic trade thereby ensuring the countrywide availability of goods at reasonable prices (which helps in development of Ghana). ► Active, effective, and efficient participation in multilateral trade to secure increased rate market access for Ghana's export activities especially processed and semi- processed goods and to achieve stable, fair and better remunerative prices for commodities of export interest to Ghana. ► The force of the industrial policy is the promotion of an accelerated, strong and sustainable industrial development within a liberalized and global economic development. ► Increasing industrial share of GDP to 37% from the current level of 16% with an average growth rate of 12%. 9 The Agencies And The Departments Listed Under The Ministry Of Trade And Industry Of Ghana: ► Ghana Trade Fair Co. Ltd. ► Ghana Export Promotion Council. ► Gratis Foundation. ► National Board for Small Scale Industries (NBSSI). ► Ghana Standards Board (GSB). ► Ghana Free Zones Board (GFZB). ► Ghana National Procurement Company (GTFC). ► Ghana Heavy Equipment Limited (GHEL). ► Rural Enterprise Project (REP) 10 3. GENERAL OVERVIEW OF TRADE AND COMMERCE Ghanaian economy considered an African success story, which has enjoyed more than a decade of growth and stability. Ghana is dominated by gold and cocoa-coffee production as well as export, but the government‘s privatization program and the diversity of the economy into production of non-traditional exports has led to sustained growth and development in the country. According to the Ghanaian government, Local manufacturers could create jobs, can cut the import bills, and can provide a more diversified economic base. Ghana is the first country of Sub Saharan Africa which was chosen by Europeans for trade. Firstly, they traded in gold and then in slaves. By promoting export activities, the Government of Ghana sought to obtain Forex essential to repay debts and to cease the country's restrictions on imports. The main traditional export products viz. gold, cocoa, diamonds, timber, manganese and bauxite, etc. are now useful to semi processed and finished industrial as well as agricultural products. Further, tourism sector is the third largest sector of foreign exchange receipt after cocoa and gold. 11 4. OVERVIEW OF DIFFERENT ECONOMIC SECTORS STRUCTURE OF THE ECONOMY Most government efforts to restore the productivity of the Ghanaian economy have been directed toward boosting the country's exports. Nevertheless, prices for the goods that most Ghanaians purchase have been rising faster than the wages they receive for their work. The economy of the country is based on mainly two distinct sectors: A large, traditional Sector (principally agricultural and informal activities) A relatively small scale, labour intensive industrial and service sectors. There are different sectors of the country and the brief overview of each sectors are as follow: 1. AGRICULTURE SECTOR Agriculture sector is an important sector of Ghana‘s economy. It is considered as the backbone of Ghana‘s economy. It contributes about 35% to GDP & employs more than 60% of population. It generates more than 55% of the total Forex earnings and its growth rate is 4.8%.