Ghana is ranked 7th out 46 countries in the sub Sahara African region and its overall score has risen above the world average.
9th June 2013
In a major impetus to its economy, International Finance Corporation (IFC), the World Bank’s development arm has revealed plans to issue a 10 year bond to raise 2 billion cedis to support local businesses in Ghana. It has already secured the approval from the capital market regulator in the United States, the Securities and Exchange Commission (SEC), to go ahead and prepare the local prospectus for issue of bonds. Vice President and Treasurer of IFC, Jingdong Hua said the move is part of their plan to reduce the dependency of foreign aid by Ghana and for the development of their local capital market. As per sources from IFC, the proceeds from the bond will be used to support Ghanaian businesses to expand their capacity. The corporation is targeting institutional investors, pension fund managers in particular to participate in the bond issue. The bond is also expected to be listed on the Ghana Stock Exchange and trade publicly.
The 2013 edition of the economic report on Africa by the UN suggests that Ghana along with 8 other African countries can become global economic powers by increasing the volume of industries in the country. The report also mentions that African countries must individually or collectively earmark policies to aid development of their nations. The report titled “Making the most of Africa’s commodities, industrializing for growth, jobs and economic transformation” says the changes in the political and economic sector in the last fifty years have set the stage for Africa to come out as a global economic power. The research cited Ghana, Egypt, Cameroon, Algeria, Ethiopia, Kenya, Nigeria, South Africa and Zambia as the countries where large scale industrialization on the commodity sectors of these countries is important, possible and beneficial. The report also mentions that Africa’s success lies in effective industrial policies and commodity based industrialization which will strengthen industrial linkages to the commodity sector. It has also outlined designs for industrial and other developmental policies to promote value addition, economic transformation and reduce the dependence on exports. Oil and other sectors have expanded Ghana’s economy from GH ¢ 30 billion in 2008 to GH ¢ 71.8 billion at the end of 2012 as per finance ministry sources. According to its Finance Minister, Seth Terkper, “The output from all sectors of the Ghanian economy has grown in leaps and bounds”. It is also anticipated that the economy will achieve a growth rate between 8.5 and 9.0 percent by 2013. The global economy in Ghana remained static in 2012 due to the euro zone debt crisis and the uncertainty surrounding the fiscal issues in the United States. Mr. Terkper told the government has taken initiatives and achieved macroeconomic stability and growth on the basis of strong real and external sector performance, including low rates of inflation and the buildup of substantial foreign exchange reserves”. In fulfillment of government promise of improving the conditions of service and productivity in the public service, the government has undertaken to implement the Single Spine Salary Structure (SSSS). Despite significant progress, obstacles still remain, and some specific institutions need development and reform. Property rights are unprotected and high levels of corruption persist due to ineffective laws. These issues need urgent attention if rapid growth needs to be maintained. The judicial system is subject to political influence and corruption is rampant. The courts are slow in disposing the cases mainly due to resource constraints and institutional inefficiencies. The new President Mahama has called for “decency and dignity in politics”