Oslo Ghana A new world of Opportunities There is a new Africa opportunity emerging with Ghana spearheading development …the bad perceptions of Africa are being replaced by amazing stories of recovery and opportunity Ghana Unleashed Unleashed Ghana Overview Population GDP 29.0m US$ 51.6B Growing young population with an Diverse and robust economy rich in emerging middle class resources including gold, cocoa and oil GDP Growth GDP Per Capita 2nd Largest % (2018) economy in West Africa 6.1 US$ 2,003 (2018) One of the fastest growing economies in the world US$51.6 billion GDP (2018) Inflation Trade Balance Land Area: 238,535 sq km % US$ B (2018) US$3.3 billion 9.1 1.5 Language: English Headline inflation dropping for the last 4 FDI inflows (2018) Improved Trade Balance Position Currency: Ghana Cedis (GHS) consecutive quarters 1st Trade Surplus after a decade of deficits Source: IMF WEO Oct 2018; Ghana Budget Statements ; Bank of Ghana, World Bank Data; World Investment Report 2018; Press releases 5 Why Ghana Key Investment Pillars 1 Stable political climate and business friendly reforms ▪ Stable democracy with 26 years of uninterrupted rule ▪ One of the most peaceful and hospitable countries ▪ Ranked best place for doing business in West Africa ▪ We are in the middle of the world ` 2 Strong macroeconomic prospects and government commitment ▪ Fastest growing Anglophone sub-Saharan country in the medium term ▪ Diversified economy with strong resources backbone ▪ Favourable demographics and skilled labour 3 Robust policy initiatives to ensure stability ▪ Prudent debt management and fiscal consolidation ▪ Relative Stabilisation of local currency and inflation under control ▪ Improvement of external sector and capital market 4 Attractive investment opportunities ▪ Financial services, ICT and Fintech ▪ Energy and Infrastructure, agriculture ▪ FMCGs, Manufacturing and Others Source: SG Research 6 Ghana Economy Prospects of Economy The 3 O’s Opportunity Openness Optimism 7 Ghana Economy Political Stability and Business Friendly Reforms 26 5 3 Years of uninterrupted democratic Democratically elected Successful presidential transitions rule, one of the longest in SSA presidents since 1992 between political parties in the 4th republic Ranked in West Ranked in West Ranked in West Africa Africa Africa # for rule of law #1for ease of doing # for peace 1 business 2 Based on Rule of Law Based on Ease of Doing Business Based on Global Peace Index Index(Measures 8 factors including: Index(Measures 8 factors (Measures level of safety, the extent Order & Security, Regulatory including: Order & Security, of conflicts and the degree of Enforcement, etc) Regulatory Enforcement, etc) militarization) Source: The Economist; Transparency International; Institute of Economics and Peace; The World Justice Project; 8 8 8 A conducive and safe Political and Business Environment Rule of Law #1 Measures 8 factors including (Order & Rank in West Africa Security, Regulatory Enforcement, etc.) Ghana remains a model for Global Peace Index stability in #2 Measures level of safety, the extent of Rank in West Africa Sub-Saharan conflicts and the degree of militarization. Africa, with a strong democracy, a Ease of doing Business in Sectors that Investment history of 25 Democratic Rule Sub-Saharan Africa Incentives cover relative One of the longest uninterrupted peacefulness Years democratic rules in Sub-Saharan Africa. as compared to its neighbors and Elected Presidents relatively low 5 5 leaders democratically elected through crime rates in Rulers fair and peaceful elections since 1992. its urban centers 3 Change of administration Successful Successful presidential transitions between Tax for Companies listed on Transfer of profits and dividends under th the Ghana Stock Exchange Transitions political parties in the 4 Republic. Ghanaian investment laws 9 Ghana Economy High investor confidence Key Highlights ▪ As per 2017 performance, Ghana is ranked 4th in Africa in terms of FDI inflows and 7th with regards to FDI projects ▪ Total FDI inflows of ~US$6.7bn in two years of current administration. FDI in 2018 was in the region of $3.4bn ▪ Majority of FDI inflows from Europe and Asia Ghana’s Position in Africa FDI Inflows FDI Projects Country Share % Rank Share % Rank +168 Egypt 17.7% 1 7.8% 6 ~US$8.2BN Total Number of projects Ethiopia 8.6% 2 8.6% 5 registered as at end of Total FDI inflows under 2018. Wholly foreign Nigeria 8.4% 3 8.9% 4 current administration owned – 74% and JVs – (2017 – 2018) Ghana 7.8% 4 6.0% 7 26% . 45 (27%) in manufacturing Morocco 6.3% 5 13.4% 1 Source: EY 2018 Africa Attractiveness; UNCTAD World Investment Report 2018; Press Releases 10 10 10 Ghana Economy Achievements and Expectations of Current Administration ▪ 2nd Largest economy in West Africa (2018) Macro Economy ▪ High GDP growth of 8.1 % achieved in 2017 from a low of 3.4 % in 2016. ▪ Medium term growth of 5%-8% (top 5 in SSA region) ▪ Revenues growth of 39% (GHS51bn in 2018 vs. GHS34bn in 2016) ▪ Fiscal deficit halved to 3.7% in 2018 (9.3% in 2016) ▪ Improvement in debt burden (73.1% debt to GDP in 2016 vrs 69.2% in 2017 and below 50% in 2018) ▪ Positive trade surplus since 2017 first in about 10 years ▪ New Aker oil find bigger than TEN field(108%) means a doubling of output to some 400,000 bpd ▪ S&P ratings upgrade from B- to B, first time in 10 years Foreign Direct Investment ▪ Largest FDI recipient of West Africa 2018 and top 4 in SSA ▪ FDI of US$8.2 bn inflow (2018 &2017) ▪ 168 projects in 2018 ▪ Partnership with Japan, China UK on industrialization agenda ▪ MOUs signed with multinational companies(Volkswagen, Renault, Nissan, and Sinotruk) ▪ Joined the Africa Trade Investment Agency ▪ Highest number of investment projects in manufacturing followed by services ▪ Significant investment and business sector reforms to remove bureaucratic bottlenecks ▪ Last sovereign bond for US$3 billion was oversubscribed by 7 times Sources:Gov’t of Ghana 2019 budget, Ministry of Finance, GIPC, press releases 11 Ghana Economy Achievements and Expectations of Current Administration Power ▪ Load shedding eliminated ▪ Over 4,000 MW installed capacity with 3,000 MW to be added by 2020 ▪ Privatization of management of power distributor ▪ Energy debt restructuring via ESLA ▪ Gazprom led consortium to supply LNG gas to boost power supply by 1,000MW ▪ MOU with Equatorial Guinea for supply of 150mft3 of gas for next 15 years ▪ Industry & Infrastructure Rapid growth in industry (9.7% target for 2019 vs. 5.9% 2018) ▪ One District One Factory Initiative & establishment of industrial parks ▪ ~US$2bn port expansion in Tema and Takoradi to be biggest in West Africa ▪ Ultra modern airport terminal and new carrier (in partnership with Ethiopia Airlines) ▪ Over 450km of railway development ongoing (out of planned 4,003km of new lines) ▪ US$2bn Sino-hydro barter for development of key road infrastructure ▪ Establishment of automotive assembly plants (VW and Nissan) Sources:Gov’t of Ghana 2019 budget, Ministry of Finance, GIPC, press releases 12 Ghana Economy Achievements and Expectations of Current Administration Education ▪ Free Senior High School program ▪ Tax relief for private universities ▪ Double track system ▪ Upgrade of school infrastructure under “Model Schools Project” ▪ Revamping curricula and teacher training ▪ High adult literacy rate in sub-region of ~77% ▪ Financial Services Recapitalization of the banking sector ▪ Over 143% 5-year CAGR in mobile money transactions ▪ Total transactions value of US50bn in 2018 ▪ ~1.5 billion in transaction volumes in 2018 (highest payment option) ▪ Private pension reforms with over US$2bn under management ▪ Expected recapitalization of insurance sector ▪ Inauguration of Ghana Commodity Exchange in 2018 to boost commodity trading Sources:Gov’t of Ghana 2019 budget, Ministry of Finance, GIPC, press releases 13 • President Nana Addo Dankwa Akufo-Addo on Ghana Beyond assumption of office on the 7th January 2017 made his desire known to prudently manage Ghana’s natural Aid resources. • President as co-Chair of the Group of Eminent Persons of the SDGs “My vision for Ghana is of an optimistic, self-confident and prosperous nation with a strong and thriving democratic society in which mutual trust and economic opportunities exist for all, irrespective of their background. “prosperous and self-confident Ghana that is in charge of her economic destiny; a transformed Ghana that is prosperous enough to be beyond needing aid, and that engages competitively with the rest of the world through trade and investment.” 'I promise to build a Ghana that works and gives each and every one of us the opportunity to improve our lives... we are determined to forge a new Ghanaian and African, who is neither a victim nor a pawn of the world economic order, but who will be a dignified member of a successful, thriving, prosperous society.' 14 GhanaGhana BeyondBeyond AidAid ….building….building the the…… Society 15 Ghana Beating the Big Drums of the African economic renaissance 16 Empowering the economy with investment capital, partnerships and linkages……. Macro economic stability, Reforms to improve the investment and business climate. Infusing SDGs into policy 17 The Ghanaian government is committed to executing on its plans to drive growth Simplifying Aligning budgets to requirements and their priorities, fiscal the registration discipline and macro process for economic stability and businesses growth Improving the Improving access to current tax finance for Driving a stable environment to be businesses,