Economy of Ghana
The economy of Ghana, West Africa has a
diverse and rich resource base, and as such,
has one of the highest GDP per capita in
Africa. Ghana remains somewhat dependent
on international financial and technical as-
sistance as well as the activities of the ex-
tensive Ghanaian diaspora. Gold, timber, co-
coa, diamond, bauxite, and manganese ex-
ports are major sources of
foreign ex-
change.[1] An oilfield which is reported to
contain
up
to
3 billion
barrels
(480,000,000 m3) of light oil was discovered
in 2007.[2] Oil exploration is ongoing and, the
amount of oil continues to increase .[3] The
domestic economy continues
to revolve
around subsistence agriculture, which ac-
counts for 50% of GDP and employs 85% of
the work force,[1] mainly small landholders.
On the negative side, public sector wage in-
creases and regional peacekeeping commit-
ments have led to continued inflationary defi-
cit financing, depreciation of the Cedi, and
rising public discontent with Ghana’s auster-
ity measures. Even so, Ghana remains one of
the more economically sound countries in all
of Africa.
Makola Market, Accra
The country has since July, 2007, em-
barked on a currency re-denomination exer-
cise, from Cedi (¢) to the new currency, the
Ghana Cedi (GH¢). The transfer rate is 1
Ghana Cedi for every 10,000 Cedis. The Bank
of Ghana has embarked upon an aggressive
media campaign to educate the public about
what
re-denomination entails. The new
Ghana Cedi is now exchanging at a rate of
$1 USD =Gh¢ 0.93
Value Added Tax is a consumption tax ad-
ministered in Ghana. The tax regime which
started in 1998 had a single rate but since
September 2007 entered into a multiple rate
regime. In 1998, the rate of tax was 10% and
amended in 2000 to 12.5%.
Industries
Agriculture
The country is mainly agricultural,with a ma-
jority of its workers engaged in farming.
Mining and petroleum
Manufacturing
See also: Manufacturing in Ghana
Ghana’s industrial base is relatively advanced
compared to many other African countries.
Import-substitution