18 minute read
Why Ghana?
GHANA? WHY
REIDsteel is a trading name of John Reid & Sons (Strucsteel) Ltd - Company Registration No: 617773. The business was established in 1919 by Colonel John Reid and to date, remains family owned with a dynamic and progressive management team. We design, fabricate and erect high quality steel framed structures including cladding, glazing and door systems. The company has strong financial foundations, an excellent credit rating and has earned a very good reputation within the industry both in the UK and overseas.
Advertisement
We have currently shipped to over 140 countries worldwide.
We study your requirements, structural, functional and architectural: and propose efficient, safe, rapid and cost effective designs and methods to achieve your goals. We like to sit around the table with our clients and their advisors to achieve the optimum solutions.
One of our customers summed it up nicely . . . “By placing multiple elements with REIDsteel, you mitigate many of the risks that are associated with multi-subcontractor management”. Every project is unique, so if you do have a job that you would like to discuss, please get in touch with us for a chat. First point of contact is one of our experienced Sales Team professionals:
T: +44 (0) 1202 483333 E: sales@reidsteel.co.uk REIDsteel are experts in the design and build of the following:
Bridges
Car parks
Church and community buildings
Cranes
Environmental structures
Grandstands and stadia
Housing, hospitals and schools
Hurricane and earthquake resistant buildings
Industrial and warehouse buildings
Leisure and sports buildings
Security gates, barriers and defensive structures
Whether you need a clear span hangar to accommodate a fleet of the world’s largest aircraft or a smaller hangar for more modest needs, it is something we can design, fabricate, ship and erect. We build our own hangar doors as we believe there is a great advantage in having the hangar and doors from the same company.
Top: 280m maintenance hangar, Malta Far left: 55m Royal Air Force hangar, UK Near left; 89m MRO hangar, UK
Bridges (vehicle & pedestrian)
Steel bridges designed, fabricated and shipped worldwide. Our bridge designs can range from utilitarian to architectural, with a range of decking/roadway options and can be hot dip galvanised or have a paint finish. A bridge can be given a more architectural look with a range of cladding or glazing options.
Left: Covered and open pedestrian bridges. Below: Vehicle Bridge, Sudan
Grandstands, stadia and sports/leisure buildings
Whether a practical, cost effective grandstand/sports stadium which fully complies with the latest safety and viewing standards or a sports hall for a single primary sport or a multi-sports complex, we can design and build a versatile steel framed superstructure to fit your needs and the needs of the sports to be played.
Top: Civic Centre Sports Complex, Belize Far left: Racing Hospitality Centre, UK Near left: Grandstand, Anguilla
Hospitals, housing and schools
Steel frames make building houses, apartment blocks, dormitories, hospitals and schools safe and economic.
Once the frame is in place, brickwork and/or cladding can quickly be added to the steel frame to produce the finished structure.
As part of the steel framing we can include staircases, handrails etc and supply windows, doors, curtain walling and solar shading.
Top right: Hospital, Ghana Right: Steel framed housing, Nigeria
Industrial and warehouse buildings
We offer bespoke design and construction of specialist industrial steel buildings and warehouse buildings. We can include roller shutter or up & over doors, hangar doors, ventilation, windows, staircases, gantries and overhead cranes. We have specialist knowledge if the building needs to withstand high wind speeds or seismic loads.
From left to right: High bay warehouse, Dominica; High bay automated storage & retrieval warehouse, UK; Wheat Mill, Madagascar.
Steel is an ideal medium for offices and showrooms. With an in-house glazing department we can also supply the windows, curtain walling and solar shading that will make your building look attractive on the outside while creating a very good work environment on the inside. You can benefit from our experience in producing clear span structures to reduce internal support columns and create large clear areas.
Photos: Various office, showroom & superstore projects in the UK, except for bottom right - office in Belize.
REIDsteel
John Reid & Sons (Strucsteel) Ltd, Strucsteel House, 3 Reid Street, Christchurch, Dorset BH23 2BT England Tel: +44 (0) 1202 483333 • Fax: +44 (0) 1202 470103 Email: sales@reidsteel.co.uk • Web: www.reidsteel.com
ESTABLISH E D 1919 • ESTABLISH E
D 1919
• Over a Century of structural steel design experience
Why Ghana?
Summary
Area:
238,533 km2
Population:
30.78 million
GDP per capita:
US $2,222.9
Annual inflation rate:
9.9%
Urban population:
56.7%
General government gross debt:
78% of GDP
Population growth rate:
1.634% change
Capital city:
Accra
Official language:
English
Currency:
Ghanaian Cedi (GHS)
Nominal GDP:
US $68.4 billion
Fiscal balance:
-16% of GDP
Current account balance: -3.3% of GDP/US $-2.3 billion
Exports of goods to UK:
£291 million
Exports of services to UK:
£207 million
Imports of goods from UK:
£421 million
Real annual GDP growth:
0.9%
Imports of services from UK:
£301 million
[Source – FCDO Economics Unit (August 2021), FCDO Overseas Business Risk: Ghana]
In West Africa, Ghana is a politically stable country with an English-speaking population, making it a suitable choice for UK companies and institutions to set up their regional headquarters.
Ghana is a regional entry and exit point on trade routes due to its well-positioned location, as well as its two large ports which are undergoing continuous expansion. The country’s air links mean that there is quick and direct access for imports and exports from Ghana to Europe and the US, and vice versa.
Ghana is seen as a valuable investment base for the West African region by British businesses, even though challenges do occur. A number of UK companies have already set up business within multiple market sectors and are seen as flourishing flagships.
[Source – FCDO Overseas Business Risk: Ghana]
Geography
Ghana is a mineral rich West African country, situated between Burkina Faso to the north, Togo to the east, Côte d’Ivoire to the west and the coastline lying on the Gulf of Guinea in the Atlantic Ocean to the south. It is 238,533 km2 and has a population of 30.78 million, 56.7% of which live in urban areas.
The climate is tropical, with a warm and dry southeast coast, a hot, humid southwest and a north that is predominantly hot and dry. The savannah country experiences two clear seasons, with November to March being the dry season and a wet season that peaks during August and September.
There are numerous sandy beaches dotted along Ghana’s coastline, including Labadi Pleasure Beach, Kokrobite Beach, Coco Beach Resort, White Sands Beach Resort, Dixcove, Busua and Ada.
The country consists of predominantly low plains, although plateaus of up to 2,000 feet high run through the north and south of the country. Ghana is also home to Lake Volta, the world’s largest artificial lake by surface area, which is 8,482 km2 .
[Source – FAO: Food and Agriculture Organization, DIT, Ghana Investment Promotion Centre, CIA World Factbook]
Government
Ghana’s democratic foundations and track record set it apart from many of its West African neighbours. The country has a number of political parties with leaders of each able to express their opinions. It has been suggested that Ghana’s political climate is ‘winner-takesall’, however, there is a stable political settlement around two major parties: the National Democratic Congress (NDC) and the New Patriotic Party (NPP). Ghana saw a third change of power at its seventh peaceful election since the 1992 restoration of democracy, which was held on the 7th December 2016. At the latest election, that took place on 7th December 2020, Incumbent President Nana Akufo-Addo was re-elected.
Nana Akufo-Addo is the current president of the Republic of Ghana. He is the leader of the NPP, the centre right, liberal conservative party. The main concerns of Akufo-Addo’s Government are to improve Ghana’s investment climate, to bring about economic reform, and to tackle corruption. The current government has also shown commitment to the IMF Extended Credit Facility programme that aims to restore macroeconomic stability. Ultimately, the government wants to enable private sector-led job creation in order to tackle the chronic unemployment currently facing the country’s predominantly young population.
Akufo-Addo is also continuing to carry out his vision for Ghana to be “Beyond Aid”.
[Source – FCDO Overseas Business Risk: Ghana]
Economic overview
In the Economic Community of West African States (ECOWAS), Ghana is a major economy. According to ECOWAS, Ghana accounts for 9.2% of trade carried out by the 15 member states, for more information visit: https:// www.ecowas.int/ecowas-sectors/trade/.
Numerous UK companies currently operate within Ghana, including Standard Chartered, Vodafone, Tullow, Blue Skies, British Airways, G4S, Prudential, GlaxoSmithKline, AstraZeneca, and Diageo.
Ghana has experienced strong growth over the most recent decade, however due to the Covid-19 pandemic, Ghana’s real annual GDP growth dropped to 0.9% in 2020. This is a significant fall from the 5.8% growth the country was expected to have that year. In 2020, The country had the highest fiscal deficit in SubSaharan Africa at around 16.4%. The IMF has classified Ghana as a country at high risk of debt distress due to the economic strain the pandemic has put on the country. Ghana’s economy, however, is predicted to recover in 2021 as growth is expected to reach 4.2%. Since 2014, however, there have been a number of challenges concerning macro-
economic stability as well as in the power sector which has slowed growth considerably. A US $918 million three year Extended Credit Facility was agreed by the government in 2015 in order to restore debt sustainability and macroeconomic stability. This was extended for an additional year and was seen to have made significant improvements to the country’s economy, although more progress was found to be needed.
Despite the improvements made by the Extended Credit Facility, Ghana is still considered a country at high risk of debt distress. Its budget deficit and high government debt to GDP ratio pose significant macroeconomic challenges for the country. However, inflation is slowly decreasing, falling from 13.3% in January 2017 to 7.9% in December 2019.
Ghana depends on relatively few commodities such as gold, cocoa and oil which leaves the economy unbalanced and vulnerable to global price shocks. Ghana aims to diversify its economy and to add value to its raw materials.
In 2020, Ghana’s growth was impacted by Covid-19 as airports and borders closed and temporary lock downs occurred. Although the pandemic has had a negative effect on Ghana’s economy it is expected to recover in 2021 with growth of 4.2%, after growth dropped to 0.9% in April 2021.
[Source – FCDO Overseas Business Risk: Ghana, DIT: Doing business in Ghana: Ghana trade and export guide, Ministry of Finance Ghana, Trading Economics]
Bilateral trade Ghana is a member of the World Trade Organization (WTO). The country shares strong historical, economic and political ties with Great Britain. Total bilateral trade between the two countries is roughly £1.22 billion in 2021. This is an increase from the total bilateral trade in 2020, which had fallen 23.3% to £1 billion due to the Covid-19 pandemic. Ghana currently ranks 118th out of 190 countries in the World Bank’s 2020 Ease of Doing Business Index and 13th out of 48 in the Sub-Saharan African region, making it one of the more favourable countries in Africa with which to do business.
Ghana is seen as a role model in the region as it has signed up to numerous international agreements. Ghana also acceded to Voluntary Principles for governing the mining sector and is an EITI signatory.
Ghana and the UK have a double taxation agreement. This allows some taxes paid in one country to be deducted in the other, so should prevent any double tax liability from UK and Ghanaian authorities over the same income. See: https://www.gov.uk/government /publications/ghana-tax-treaties.
Some incentives for British companies considering exporting to Ghana include:
• English is the official language of business and is widely spoken throughout the country
• the judicial system is similar to English common law principles
• there is a large consumer base and a growing middle class
• Ghana has a well-developed market for financial and legal services
• it has an efficient infrastructure relative to the rest of the West African region
• it is growing as a regional hub for opportunities that may be available in other West African markets
However, there can be some challenges when entering the Ghanaian market. These include:
• temperamental energy distribution causing frequent power cuts
• the country’s obstructive bureaucracy
• a lack of investment in infrastructure and a limited experience of PPP
• issues with corruption, Ghana is ranked 75th out of 180 countries in Transparency
International's latest 2020 Corruption
Perceptions Index (announced January 2021)
• a high level of unemployment and poverty
• the Ghanaian capital market is underdeveloped
• there is an underdeveloped agricultural base
• a lack of transparency regarding tenders, particularly in public procurement due to
‘sole sourcing’
• macroeconomic instability and IMF restrictions on government spending
Some of the top exports into Ghana from the UK include:
• textiles
• specialised machinery
• medicinal and pharmaceutical products
• beverages
• electrical machinery and appliances
• petroleum products
The top imports from Ghana into the UK include: • cocoa
• canned fish
• fruit and vegetables
• petroleum products
• metal scrap
• coffee
[Source – FCDO Overseas Business Risk: Ghana]
Business and human rights Ghana is among Africa’s best human rights performers and its track record of respecting human rights is a positive one. Freedom House has stated that ‘freedom of expression is constitutionally guaranteed and generally respected’ in Ghana. The constitution is predominantly progressive and is well respected. The country passed domestic violence legislation in 2007 and the Convention Eliminating All Forms of Discrimation against Women (CEDAW) has been ratified.
Despite these improvements, there are still some challenges for women and minorities, and there also tends to be some regional inequality. Only around 13% of seats in the Ghanaian National Parliament are held by women, whereas the Sub-Saharan African average sits at closer to 24%. Discrimination against minorities, such as people with disabilities, mental illnesses or stigmatised illnesses like HIV/AIDS, is an issue in Ghana. No legislation officially outlaws homosexuality, but there has been little progress in the country when it comes to decreasing the amount of discrimination faced by LGBT individuals.
Ghanaian punishment still includes the death penalty, although no one has been executed there since 1993. The sentence, however, is still handed out by the Ghanaian courts.
The north of Ghana faces particular problems with poverty. Rural communities across the country as a whole also tend to be more likely to require their children to work instead of attending school. Social norms are, however, slowly beginning to change, especially amongst the more progressive youth population and the urban middle class.
[Source – FCDO Overseas Business Risk: Ghana]
Contact a DIT Export Adviser at: https://www. great.gov.uk/contact/triage/location/ for a free consultation if you are interested in exporting to Ghana.
Contact UK Export Finance (UKEF) about trade finance and insurance cover for UK companies. You can also check the current UKEF cover position for Ghana. See: https://www.gov.uk/guidance/country-coverpolicy-and-indicators#ghana.
Benefits for UK businesses exporting to Ghana The benefits for UK businesses exporting to Ghana include:
• having immediate access to all ECOWAS markets
• English is widely spoken and is the official business language
• 100% foreign ownership is permitted
• the judicial system is based on English common law principles
• having a large consumer base with a growing middle class
• the country developing as a regional hub for opportunities in other West African markets
• export free zones where goods traded with other countries are exempt from customs duties and some laws
[Source – DIT: Doing business in Ghana: Ghana trade and export guide]
Strengths of the Ghanaian market The strengths of the Ghanaian market include:
• the stock market is expanding
• the country’s well developed financial and legal services
• Ghana has comparatively well developed infrastructure compared to most West
African countries
• large amount of skilled and trainable workers available
[Source – DIT: Doing business in Ghana: Ghana trade and export guide]
Growth potential According to the International Monetary Fund (IMF), in 2015, Ghana’s economic growth slowed to a 3.5% growth rate, resulting from the country suffering continuous severe power shortages and fiscal consolidation.
In April 2021, the country’s real annual GDP growth was at 0.9%, lower than expected due to the Covid-19 pandemic, and the country’s GDP per capita rose to US $2,222.9, and its nominal GDP reached US $68.4 billion.
Growth is expected to be improved through:
• oil and gas production improvements
• private sector investment increase
• public infrastructure development improvements
• increased political stability
[Source – DIT: Doing business in Ghana: Ghana trade and export guide]
World rankings In addition:
• In Transparency International's latest 2020
Corruption Perceptions Index (announced
January 2021) Ghana is ranked 75th out 180 countries (the UK ranks 11th): https:// www.transparency.org/en/countries/ghana
• Ghana ranks 118th out of 190 countries in the World Bank’s 2020 Ease of Doing
Business Index (the UK ranks 8th): https://www.doingbusiness.org/en/ data/exploreeconomies/ghana
• The World Economic Forum’s Global
Competitiveness Report 2019 ranks
Ghana 111th out of 141 (the UK ranks 9th): http://reports.weforum.org/globalcompetitiveness-report-2019/economyprofiles/#economy=GHA
• Ghana ranks 101st out of 178 countries in the Heritage Foundation’s 2021 Index of
Economic Freedom (the UK ranks 7th): https://www.heritage.org/index/country/ ghana
Trade between UK and Ghana
The UK is one of Ghana’s largest foreign investors with strong economic ties. In 2018, UK imports of goods from Ghana increased by 143.7%. In April 2021, imports of goods from the UK to Ghana were valued at £421 million and imports of services from the UK to Ghana were £301 million.
In the same year, Ghana’s exporting of goods to the UK was recorded to be £291 million and its export of services to the UK was at £207 million.
In 2021, the UK and Ghana have signed an Interim Trade Partnership Agreement (TPA) which is currently in effect. The aim of this trade agreement is to increase and promote trade between the UK and Ghana. For more information regarding the Interim Trade Partnership Agreement (TPA), see: https://www. gov.uk/guidance/trade-with-ghana.
[Source – DIT: Doing business in Ghana: Ghana trade and export guide]
Following Brexit, the UK has signed a new trade deal with Ghana, strengthening the ties between the two countries. This new trade agreement, worth £1.2 billion, utilises the terms of the EU-Ghana trade agreement that previously benefited both countries. The deal was finalised on 2nd March 2021, when it was signed by Ghana’s Acting High Commissioner to the UK, Peprah Ampratwum. This agreement aims to remove tariffs on many Ghanaian goods, such as cocoa, tinned tuna and bananas, and from 2023, exports of chemical products, machinery and electronics from the UK will benefit from lower tariffs. For further information see: https://www.export.org.uk/ news/554657/UK-rolls-over-trade-deal-withGhana-with-New-Zealand-or-Australia-inline-for-next-agreement.htm.
On the 15th April 2021, a new diploma was launched in Ghana in order to help diversify and improve the way in which the country exports. The diploma in international trade is set to help expand trade between the UK and Ghana, as well as other African and developing countries. The diploma has been developed using the Institute of Export and International Trade’s (IOE&IT) Level 4 Diploma in International Trade, with the content being localised by the Ghana Export Promotion Authority.
The diploma is online based and is being managed by the United Nations-sponsored International Trade Centre. For more information, see: https://www.export.org.uk/news/ 560848/Launch-of-new-trade-diploma-inGhana-further-strengthens-partnership-withUK-after-trade-deal.htm.
[Source – IOE&IT]
GHANA
The UK Department for International Trade (DIT) provides tailored support packages for companies who are first time exporters (FTEs), small and medium-sized enterprises (SMEs) and medium-sized businesses (MSBs).
