FINANCE FORUM
GROWTH AND
DEVELOPMENT
IN GHANA
Ghana’s economy is expected to continue growing during 2019, writes
Itumeleng Mukhovha.
D
espite the many challenges affecting global
economies, economic recovery in sub-Saharan
Africa is set to continue. In particular, the Ghanaian
economy is expected to grow at 8.8% in 2019, thus doubling
the pace of emerging economies and outstripping the
growth of advanced economies.
Ghana's economic growth and development has been
heightened by a growing population, an emerging middle-
class, increased urbanisation and the achievement of significant
macroeconomic gains over recent years – with single digit
inflation, strong exports of cocoa, gold and oil, higher reserve
and capital requirements, fiscal consolidation and the banking
sector ‘clean-up’.
The World Bank Group's latest Doing Business Report regards
Ghana as the most attractive and conducive investment
destination in the West African sub-region, due to the relative
political stability and improved macroeconomic conditions,
over the last two decades.
52
African Mining October 2019
Ghana's economic growth declined to a mere 1.6% in 2015
due to a combination of declining commodity prices, energy
rationing and a fiscal crisis in 2013. On the other hand,
increased oil production, the commencement of production
in the Sankofa-Gye Nyame oilfield, the recent discovery
of oil in commercial quantities off Sekondi-Takoradi and
macroprudential policies, are expected to propel Ghana's
overall real gross domestic product. The new gross domestic
product series also present major adjustments in the agriculture,
industry and services sectors.
Ghana's 2019 half-year fiscal performance was primarily driven
by the industrial sector – especially oil, gas and mining.
Ghana is endowed with an enviable amount of minerals,
including, gold, bauxite, diamond and manganese. The
country's largest mineral deposits, particularly gold, are found in
the western, Ashanti, central, Brong-Ahafo and eastern regions.
Ghana's mining industry accounts for 5% of its gross domestic
product and 48.7% of the total exports.
www. africanmining.co.za