1

A

GLOBAL COUNTRY STUDY AND REPORT ON

“GHANA”

Submitted to

Gujarat Technological University

(Marwadi Education Foundation’s Group of Institutions)

In

Partial fulfillment of the

Requirement of the award for the degree of Master of Business Administration

Batch: 2011-13

MBA SEMESTER III-IV

(DIV: B)

Marwadi Education Foundation’s Group of Institutions

MBA PROGRAMME

Affiliated to GUJARAT TECHNOLOGICAL UNIVERSITY AHEMADABAD

2

3

LIST OF THE STUDENTS WITH ENROLMENT NUMBER:

Enrollment

No

Student Name

117340592002 JANKI HARSHADBHAI PAREKH

117340592008 TANVI JAYESHKUMAR PUJARA

117340592010 JANKI VRUJLAL VAJA

117340592013 NIDHI RAJESHBHAI VAMJA

117340592014 JAYDEEP NANALAL PANCHANI

117340592016 DEVANSHI NIKHILBHAI SACHADE

117340592017 NANDISH PARESHBHAI CHANDARANA

117340592021 DHAIRYA KIRITKUMAR VYAS

117340592022 PURAV PRAFULBHAI PATADIA

117340592024 RONAK DILIPBHAI DOSHI

117340592028 MANAN BHUPENDRA PANDYA

117340592031 RIDDHI NARENDRABHAI SANCHALA

117340592032 MANTHAN KAMLESHBHAI LAKHANI

117340592033 PRATIK NAYANKUMAR SHAH

117340592035 JALPESH KANUBHAI KOTECHA

117340592039 BHARAT KARSANBHAI CHASIYA

117340592047 DHAIRYA KIRANBHAI CHHAYA

117340592048 VIKAS RAJESHBHAI MAKADIYA

117340592049 JYUPIL GIRADHARLAL CHAPANI

117340592050 KISHAN MADHUKUMAR GOKANI

117340592051 VEENA VENUGOPALAN NAIR

117340592060 GEETA NARANBHAI SORATHIYA

117340592064 PRITESH DINESHBHAI VISHANI

117340592066 GAURANG RAMESHBHAI VYAS

117340592067 MANISH MANSUKHBHAI PANKHANIYA

117340592072 PALLAV HARISHBHAI CHANDRANI

117340592077 SWATI BHIMSHIBHAI KANARA

117340592079 AAKANKSHA KANAIYALAL THAKKAR

117340592080 NISHA JAYANTIBHAI NAKUM

117340592082 PRAGNA VIRAMBHAI KARGATHIYA

117340592083 BHAVIN KANUBHAI SARVAIYA

117340592086 SWARANGI V. PANCHAL

117340592087 RIDDHI JAI TRIVEDI

117340592092 UMESH VALLABHBHAI KANDOLIYA

4

117340592095 MAYURI HARSHADBHAI LIKHIYA

117340592099 PRATIKSHA G. DANGAR

117340592100 VIRENDRASINH SUKHDEVSINH JHALA

117340592101 MAYUR RASIKBHAI JAT

117340592103 MAHESH D. DOBARIYA

117340592111 HARSHIT C. KHAKHKHAR

117340592112 JANKI MUKESHBHAI SURELIYA

117340592113 PARTH RAJESHKUMAR KOTECHA

117340592148 KHUSHBU CHAMPAKBHAI PABARI

117340592150 BHAVESH D. SORATHIYA

117340592151 PARAS NITIN PAREKH

117340592156 BHAVYA VIJAYBHAI PATEL

117340592159 NISHA NAVINCHANDRA PEDHADIYA

117340592160 PRATIK SANJAYBHAI VYAS

117340592120 SANGITA KANUBHAI KHOKHAR

117340592122 GRISHMA RAJUBHAI PATEL

117340592137 MEERA VIJAYBHAI KAPURIYA

117340592141 HIREN HASHMUKHBHAI VORA

117340592142 KHYATI MAHESHBHAI TRIVEDI

117340592146 SANJAY DHIRUBHAI TALPADA

117340592168 DHARMESH BATUKLAL DHADUK

5

PREFACE

The Global Country Study and Report on “GHANA” is an attempt to study various

aspects of this selected country and Industrial scenario existing in the country. This

report is a part of comprehensive study done by MBA students to explore Export-

import opportunities with respect to various industries selected by them.

Due to increased integration and globalization of world economies, business activities

across the globe have increased. Students have been able to acquire the knowledge

of the Global / Country Markets, which would help them do business or manage

investments successfully across national boundaries.

This report also serves a purpose of knowledge resource on one country and helps

many researchers, academicians, industry persons to draw conclusion on global trade

and commerce.

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TABLE OF CONTENT:

SR.NO TOPIC PAGE NO.

1

Part-I (Sem-3)

Introduction to Ghana

7

2 Political overview of Ghana 9

3 Economic overview of Ghana 16

4 Social overview of Ghana 26

5 Technological overview of Ghana 32

6 Ecology of Ghana 43

7. Legal System of Ghana 48

8 Financial Market of Ghana 60

9 Major trade partners of Ghana 75

10 Major industries of Ghana 93

Part-2 (Sector Analysis)

11 Agriculture Sector 99

12 Mining Sector 117

13 Financial service sector 127

14 Energy Sector 151

15 Tourism Sector 165

16 Education Sector 176

17 Textile Sector 190

18 Fishery sector 203

19 Automobile Sector 210

7

INTRODUCTION:

Ghana was late in coming under European control, it was also the first African nation

to win back its independence, in 1957. However, corruption and internal military

strife proved to be apparently intractable problems, and Ghana went through an

extended period of instability in the 1960s and 1970s marked by military rule. The

country has been since then been moving steadily toward political stability and

economic prosperity, and seems today to possess one of the most promising futures

of any of the West African nations.

Most of Ghana's 17 million people practice either Christianity or Islam, which are

prevalent depending on the region. Christianity prospers in the south, while Islam

dominates the rural north. Local religions also endure in Ghana, and are often

practiced syncreticaly with the mainstream religions. The country's main holiday,

Akwasidee, comes from the Ashanti religious calendar, and features an ornate

ceremony involving the Ashanti king, known as the Asantehene.

8

Capital: Accra.

Population: 18.9 Million1

Population Estimate (2010): 24.22 Million

Population Growth Rate: 2.4% Per Annum3

Geographic Location: Latitude 4o 44’N And 11o 11’N;

Longitude: 3 O 11’ W and 1 O 11’E

Coastline: 550 Km Long

9

Executive Summary on Political Scenario of Ghana:

Enrollment

No

Name of the Students Faculty Guide

117340592032 MANTHAN K. LAKHANI Prof Jitendra Patoliya

117340592033 PRATIK NAYANKUMAR SHAH

117340592035 JALPESH KANUBHAI KOTECHA

117340592039 BHARAT KARSANBHAI CHASIYA

117340592047 DHAIRYA KIRANBHAI CHHAYA

117340592048 VIKAS RAJESHBHAI MAKADIYA

10

Political Overview of Ghana:

1) Economic System:

The economy of Ghana, Africa, has a diverse and rich resource base, and as such,

has one of the highest GDP per capita in Africa. Ghana is one of the top–ten fastest

growing economies in the world, and the fastest growing economy in Africa. Ghana

remains somewhat dependent on international financial and technical

assistance as well as the activities of the extensive Ghanaian Diaspora. Gold, timber,

cocoa, diamond, bauxite, manganese, and many other exports are major sources of

foreign exchange.

Ghana's economy has been strengthened by a quarter century of relatively sound

management, a competitive business environment, and sustained reductions in

poverty levels. Ghana is well endowed with natural resources and agriculture

accounts for roughly one-quarter of GDP and employs more than half of the

workforce, mainly small landholders. The services sector accounts for 50% of GDP.

Gold and cocoa production and individual remittances are major sources of foreign

exchange. Oil production at Ghana's offshore Jubilee field began in mid-December,

2010, and is expected to boost economic growth.

2) Taxation Policy:

Income Taxes:

The top personal income-tax rate is only 30 percent, but that rate is

encountered at an income threshold of $5,400 per year. The 20 percent rate hits at

$2,700 and the 15 percent rate hits at $270 per year.

In addition, Ghanaians pay a 12.5 percent Value Added Tax - VAT. There is also a

"wealth tax," currently suspended, but which could come back at any moment. Even

the cloud of a wealth tax discourages the accumulation of wealth.

2005 Budget:

Corporate tax reduces from 32.5 per cent to 28 per cent.

2004 Budget:

11

Increase in the minimum tax free threshold from 1.2 million to 1.5 million

Reduction in corporate income tax rate from 32.5 percent to 30 percent

effective next financial year.

Special tax rate of 25 percent for companies listing on Stock Exchange for the

first time

5-year tax holiday for new agro-processing firms

Revised taxes for agro-processing as follows:

o Accra and Tema - 20 percent

o Other Regional Capitals - 10 percent

o Outside Regional Capitals - zero

For 3 Northern Regions zero tax rates for Agro-processing firms irrespective

of location

7-year tax holiday for waste processing enterprises

5-year tax holiday for companies investing in production of cocoa industrial

by-products

3) Trade Regulations:

Planning and Strategy:

Create a comprehensive international business plan for entry or expansion into

Ghana.

Get ideas and cost-effective solutions to help achieve your business goals.

Legal and Regulatory Issues:

Determine export licensing needs for shipping your products.

Understand and comply with global product standards, certification requirements,

electricity regulations, and packaging laws.

Learn how to avoid intellectual property rights issues and legal disputes.

12

Documentation and Product Requirements:

Learn about export documents, including Electronic Export Information filing,

invoices, packing lists, and certificates of origin.

Verify the tariff rate for your product, as well as any import fees for a

particular market.

Determine your product’s Schedule B and HS numbers.

Trade Problems:

Get assistance with customs-related issues.

Obtain advocacy support if your company’s exports or Ghanaian bids are

adversely affected by a trade barrier or by market access issues.

Learn how to limit the risk of non-payment, and receive counseling if

problems arise.

Trade Finance and Insurance:

Formulate an export finance strategy leveraging loan programs provided by the

Export-Import Bank of America, the Small Business Administration, and other trade

finance organizations to reduce risk and enable your company to offer competitive

terms of sale in Ghana.

Get guidance on pricing your products and services to ensure competitiveness in

the Ghanaian market while maximizing your profits.

4) Government Stability:

Though located in a region notorious for political instability and armed conflicts,

Ghana remains an oasis of peace. The country has had a consolidated multi-party

constitutional democracy since 1992, after more than ten years of military

dictatorship. In 2001, the then ruling party peacefully handed over power to the

opposition party that had won the general elections of 2000. This feat was celebrated

worldwide for many reasons, not least including the fact that it is a rarity in the

developing world, particularly Africa.

13

The country has a pluralistic media landscape, representing the diverse

political and social opinions and ideologies in the country. There are over 200 radio

stations throughout the country and one interesting feature about this is the

opportunity given to listeners to phone-in and either complain about inefficiencies in

the provision of public services or question the policies of government. This

environment of free speech is guaranteed by the constitution and the government

has largely refrained from either interfering with the editorial content of the media or

stifling criticisms. Ghanaians therefore debate political issues in a climate free of

intimidation and coercion. Several political parties exist and they are free to

propagate their ideologies without harassment from the state. Human rights are well

respected in Ghana including freedom of expression, association and religion.

Though several religions are practiced in Ghana and the people belong to diverse

ethnic groups, tolerance is relatively high.

5) Political System:

Ghana's struggle towards democratization has gained a stronger ground with the

success of its 1996 multiparty elections. Today Ghana is a welcome African example

of legitimate democracy and successful economic reform. In an unusually peaceful

transfer of power, a civilian government that grew out of a military regime has

accepted an election defeat and surrendered power to the opposition

People talk about a newly relaxed atmosphere here. The military presence has

steadily decreased in the past ten years. There's less fear of criticizing the

government. Tourists and their dollars are welcome. Ghanaians are well known for

their friendliness.

The quest for transparent and effective elections stirred the efforts of political parties,

nongovernmental organizations and donors, all of who m had immensely

contributed to the electoral process. The road towards democracy in Ghana has not

been an easy task, and the struggle continues as the nation furthers its efforts of

instituting more political, social and economic reforms Ghana is a key U.S. ally in

promoting economic and political reform and respect for human rights in West Africa.

14

Ghana plays a constructive role as a stabilizing influence in the region and is

committed to helping resolve regional conflicts and promoting regional security.

Ghana has taken a lead role in supporting the African Crisis Response Initiative, and

is also in the forefront of African countries that have made positive steps toward

consolidating democracy. Trade links between Ghana and the United States are

expanding: U.S. exports to Ghana grew from $53 million in 1985 to $295 million in

1996, boosting Ghana to third place (after South Africa and Nigeria) among African

markets for U.S. exports. The United States has a strong commitment to encourage

these positive efforts and supports the development of African leadership in

promoting economic growth and political stability.Many donors are involved in

promoting democracy and good governance objectives in Ghana. The United

Kingdom, Denmark, Germany, and Netherlands as well as the European Union and

World Bank have active programs in supporting decentralization of government

services to local level district assemblies. Germany also has an active media and

journalism support program.

In close cooperation with the World Bank and the International Monetary Fund,

Ghana emerged as a model for free market innovations in Africa, and now spends

five times as much on education and health as on its military.

6) Employment Policies:

The National Employment Policy

National Plan of Action for the Elimination of the Worst Forms of Child

Labor in Ghana (2009-2015)

West African Cocoa and Commercial Agriculture Program to Combat

Hazardous and Exploitative Child Labor (WACAP)

National Program for the Elimination of the Worst Forms of Child Labor in the

Cocoa Sector (NPECLC) 2006

Livelihood Empowerment against Poverty Program (LEAP)

15

ILO Decent Work Pilot Program (DWPP) and Decent Work Country Program

(DWCP) for Ghana

Savannah Plan for Accelerated Growth

Political

Factors

India

Ghana

Economic

System

Mixed Economy

( Combination of Capitalist

Economy & Socialist Economy )

Mixed Economy

( Capitalist Economy with

Support of Socialist Economy

)

Taxation

Policy

Authorized by Union Government

Regulated by Government of

Ghana

Trade

Regulations

Foreign Exchange Management

Act

( FEMA )

Regulatory and Administrative

Cost Survey

( RACS )

Government

Stability

Stable Government but with

many

Political parties

Stable Government with just 2

Political parties

Political

System

Sovereign, Secular, and

Democratic Republic with a

Parliamentary system of

Government

Legitimate Democracy

Employment

Policies

Policies created by Employment

Exchanges, Legislative

Authorities and other industrial

trade unions

National Employment Policy

and other policies launched by

Government of Ghana

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EXECUTIVE SUMMARY ON ECONOMIC FACTORS OF GHANA:

Enrollment

No

Name of the Students Faculty Guide

117340592067 MANISH M. PANKHANIYA Prof. Falguni Shelani

117340592072 PALLAV H. CHANDRANI

117340592077 SWATI B. KANARA

117340592079 AAKANKSHA K. THAKKAR

117340592080 NISHA JAYANTIBHAI NAKUM

117340592082 PRAGNA V. KARGATHIYA

17

ECONOMIC OVERVIEW OF GHANA:

The economy of Ghana, West Africa, has a diverse & rich source base & as such,

has 1 of highest GDP per capita in Africa. Ghana remains somewhat reliant on global

financial & technical assistance and activities of extensive Ghanaian Diasporas.

Gold, timber, cocoa, diamond, bauxite & manganese exports are major sources of

foreign exchange. An oilfield which is reported to contain up to 3 bn barrels (480×106

m3) of light oil was discovered in year 2007. Oil exploration is continuing and,

amount of oil continues to increase.

The domestic economy continues to revolve around survival agriculture, which

accounts for 35% of GDP & employs 55% of work force, mainly small landholders.

On negative side, public sector wage increases & regional peacekeeping

commitments have led to continued inflationary deficit financing, depreciation of Cedi

& rising public dissatisfaction with Ghana's austerity measures. Furthermore,

according to World Bank, Ghana's per capita income has hardly doubled over past

45 years. Even so, Ghana remains 1 of more economically sound countries in all of

Africa.

The nation has, since July 2007, embarked on a currency re-denomination exercise,

from Cedi (¢) to new currency, Ghana Cedi (GH¢). Transfer rate is 1 Ghana Cedi for

every 10,000 Cedis. Ghana has embarked upon an aggressive media campaign to

educate public about what re-denomination entails. New Ghana Cedi is now

exchanging at a rate of $1 USD =Gh¢ 0.93.

VAT is a consumption tax administered in Ghana. Tax government which started in

1998 had a single rate but since September 2007 entered into a multiple rate regime.

In 1998, rate of tax was 10% & amended in year 2000 to 12.5%.

Country Overview:

Ghana is a maturing democracy and continues to be held up as an example for its

African peers, having held fruitful elections in 2008 and 2004. Ghana‟s stability has

been demonstrated by the smooth political change when the previous president,

John Atta Mills, suddenly passed away in July 2012. Presidential and governmental

18

elections are to be held in late 2012 and either of the two main parties could win.

Newly installed President John Mahama will seek election under the NDC banner

and he will face Nana Addo Dankwa Akufo-Addo of the NPP. One of the most

noticeable election issues is the citizenry‟s perception of how effectively oil incomes

are being used by the government. Ghana‟s political stability has been matched by

remarkable economic output, focused by oil production in recent years. GDP growth

is prediction to be in the 6-8% range this year and into the medium-long term.

Ghana‟s economy remains largely dependent on supplies including gold, cocoa

and now oil. As such, it remains uncovered to swings in product prices. Government

spending is expected to increase in the lead-up to 2012 elections; however, the

overall government debt load is expected to remain controllable over the medium-

long term.

Trade and Investment Environment: Ghana offers a stable investment

environment, demonstrated by an increase in foreign direct investment (FDI), rising

from USD550 million in 2009 to USD1.1 billion in 2010. The World Bank has noted

continued improvement in strengthening the investment environment since 2005.

Although Ghana‟s investment environment is considered one of the strongest in sub-

Saharan Africa, it is not without its challenges. Corruption remains a problem and

investment procedures can absence transparency. Additionally, operational

challenges associated with emerging countries (weak organization, untrustworthy

power supply, etc.) are present. The advent of oil production in December 2010 has

changed the investment environment. The lead-up to production was not as smooth

as originally expected as disputes occurred between government, company, and

local parties. As expected, these disputes have mostly been resolved reflecting

Ghana‟s ancient favorable investment environment and the government‟s continued

need for foreign investment.

Outlook: While the elections could lead to some short-term political and/or policy

uncertainty, it is expected that the winning applicant and party will continue

supporting Ghana‟s business-friendly environment; Ghana will remain a top regional

performer in terms of political and investment stability over the medium-long term.

19

Ghana's economy has been supported by a quarter century of comparatively

complete management, a competitive business environment, and constant

reductions in poverty levels. Ghana is well able with natural resources and

agriculture accounts for roughly one-quarter of GDP and employs more than half of

the workforce, mainly small landholders. The services sector accounts for 50% of

GDP. Gold and cocoa production and individual payments are major sources of

foreign exchange. Oil production at Ghana's offshore Celebration field began in mid-

December, 2010, and is expected to improvement economic growth. President Mills

faces challenges in managing new oil income while maintaining monetary discipline

and resisting debt accumulation. Assessed oil funds have jumped to almost 700

million barrels. Ghana signed a Millennium Challenge Corporation (MCC) Compact

in 2006, which aims to assist in converting Ghana's agricultural sector. Ghana

chosen for debt relief under the Heavily Indebted Poor Country (HIPC) program in

2002, and is also promoting from the Multilateral Debt Relief Initiative that took effect

in 2006. In 2009 Ghana signed a three-year Poverty Reduction and Growth Facility

with the IMF to improve macroeconomic constancy, private sector competitiveness,

human resource development, and good governance and civic responsibility. Sound

macro-economic management along with high prices for gold and cocoa helped

sustain GDP growth in 2008-11.

The economy of Ghana is seen to rise rapidly in 2011

Ghana has had one of the toughest economic growth rates in West Africa before and

during the crisis. The growth continues, and now, Ghana is

preparing for rapid growth that is predicted next year. The Ghanaian economy has

been among Africa's top ten performers during the last decade and will also be so

during 2010, according to an analysis from the African Development Bank (AfDB).

Also the latest data from the International Monetary Fund (IMF) authorizes this AfDB

analysis. Peter Allum, who led an IMF team in Accra last week, accomplishes that

the Ghanaian "economy grew by 4.1 percentage in 2009, with a pick-up to the 5–6

percentage range projected for 2010."

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The IMF even has improved its GDP growth forecast since its last analysis, in June.

At that point, Ghana's GDP was estimated to grow by around 4.5 percentages this

year. Allum said that the strong growth was "led by a recovery in construction and

strong business services activity" ahead of the projected start of oil production in

Ghana around end of 2010.

The comprehensive growth, considerably higher than population growth, means that

the Ghanaian per capita economy also has grown. Even in 2009, GDP per capita

grew by 1.6 percent, and in the typical year, it grows by 3 percent. The IMF analysis

is fairly hopeful for Ghana in the forthcoming oil economy, predicting substantial GDP

per capita growth and poverty reduction. With a new Petroleum Law and Oil

Revenue Management bill, Ghana was preparing for this new era.

Especially state incomes were foreseen to increase, and public spending could be

extended to new areas. But the IMF already was seeing negative tendencies of

overspending by Accra authorities. Allum had observed "substantially larger budget

deficits and public borrowing than envisaged" in the 2011 budget.

OVERVIEW OF INDUSTRIES, TRADE & COMMERCE

Industry in Ghana-

Industry deals with alteration of raw resources into a more processed form.

Processing involves several stages which are meant to give more value to raw

material & prevent it from going bad. Value added & processing makes industry. For

instance, alteration of cassava into or starch goes through some stages before it

comes out as starch & starch has more value as compared to cassava in its raw

form. Further, an excess cassava which would have gone waste has been preserved

& treated. The industrial sector of Ghana of nation is comparatively small &

mainly govt. owned. It‟s in this light that President of nation introduced

President‟s Special Creativity to expand industrial sector of Ghana to employ some

of unemployed & encourage private sector investment. Again, most of firms in

industrial sector of Ghana of nation are not involved in exports. Considerably,

industrial sector of Ghana in Akuapem North District is not different from that of

nation as its size is basically small. A detail look at industrial sector of Ghana of

district is given in report.

21

1) Type of Industry

A look at exiting industrial types in district was also done. Industrial sector of

Ghana‟s district can‟t be talked about without looking at forms of industrial activities

involved in by people of district. A critical observation of industrial sector of Ghana of

District shows that manufacturing industry is 1 which employs most of people

engaged in that sector employing over 50%. It involves carpentry, bakery, pottery &

blacksmithing. Agro industry includes oil palm production, rice mill, com mill, floor

mill, mushroom cultivation, beekeeping & carbolic soap production.

2) Size of Industry:

The sizes of industries in District are small. This is no different from what exists

nationally that is most industries in nation are functioned on small scale level.

Number of people employed in industrial sector of Ghana range from 1 to nine. From

survey it came out that all industries are small scale firms & are mostly sole

proprietorship endeavours. Sole proprietors do not mostly have enough funds for

development to increase their size to larger ones. Size of industries regulates their

output & influence to economy. As was observed in structure of District economy it

could be determined that, industrial sector of Ghana‟s contribution to employment is

very low.

3) Source of Finance

Capital is basic obligation for development. It‟s therefore important to look at source

of capital available to industrialist. With this knowledge, it can be drawn as to

whether expansion can take place or not. It could be assumed from Table that,

personal source of finance for industrialists are most leading source in industrial

sector of Ghana accounting for about 59.4%. This further accounts for small size of

industries in district since amount that is produced personally cannot be compare to

that generated from a bank.

4) Income Levels:

For industrial sector of Ghana income levels were also measured. Income levels

bring to stand an considerate of levels of income among people engaged in that

specific sector of production. By analysis of income levels, average income per

sector is subtracted to know every sector‟s influence to economy. Based on this,

22

moving sector of economy could be known. The quantity of work force industry who

earns incomes above 700,000 is 27.1%. Around, 43.1% of people involved in

industrial sector of Ghana earn income below 0100,000. Average monthly income is

0493,000. from a proportional analysis of size of present industries in District with

average monthly income 1 could perceived that industrial sector of Ghana is

profitable since its size is small but its income is good associated to that of

agricultural sector.

5) Development Problems of Industrial Sector of Ghana

Development problems are predictable in man‟s life. There are some existing

expansions problems in industrial sector of Ghana.

6) Inadequate credit facilities

Industry is a sector that includes much capital especially in purchasing of modern

machinery. There is high cost of credit & question of securities demanded by bank

has always been a problem. Implications from survey show that of those who have

access to credit services does largely absence strong security base to enable them

get long term loans from financial institutions. This has implications for fast track

industrial development of District.

7) Lack of skills

For one to be employed in this sector involves achieving necessary skills. Illiteracy

as one of relevant problems in district donates to problem. Small scale nature of

sector makes it difficult to admit more of youth to train them to achieve requisite skills

to be working in sector.

8) Use of inappropriate tools

The use of elementary tools in sector makes it difficult to increase production. A

typical example is use of elementary tools in carpentry like plains, saw machines &

drills which makes them unable to manufacture more at a faster rate. Most of

processing is artisanal type using very elementary technology. Technology has

remained basic because trade has been dominated by mostly illiterate resource-poor

who traditional are responsible for protection.

23

Trade & Investments

Ghana‟s trade & investment section which is situated in Washington DC who has the

responsibility to endorse trade & Investment sector. It gives guidance to companies

regarding expansion of market of Ghana & companies of Ghana which are looking

for probable associates & contact to market of US.

Objectives that make Ghana an eye-catching place of business:

Ghana is the innate West Africa‟s gateway which is exception for economic &

political success of the community of Africa. After many changes in the structural

change recognition matter Ghana has recognized a economic development in

extraordinary manner, escalating sell to other countries, a upward stock market &

swiftly escalating private investment prospect.

In past many years Ghana which involves 11 developed countries representatives

and joint institutions comprising of Global Monetary fund, UNDP (United Nations

Development Program) and World Bank has conventional support of consultative

Group for economic health of Ghana.

Having a constant political atmosphere & an average yearly GDP growth rate of

nearly 5 % over past 10 years‟ time duration they have decided to focus on

economic wealth & stability of Ghana lead Africa into a new century.

Natural prosperity of a nation:

Ghana is gifted with profuse natural prosperity, mining and man power, together with

vast agricultural & also with the key sector i.e. agricultural sector and production

sector of the economy. Agrarian sector employs 60 % of Ghanaian workforce &

makes up almost 44 % of country's GDP. Cocoa is second-largest export & new

exports such as wood products, textiles; jewellery, pineapples, tuna fish & cotton are

rapidly diversifying Ghana's agricultural export profile. Nation has over 13.6 mn

hectares of arable land suitable for crops or livestock & a potential yearly production

of 655,000 metric tons of fisheries products.

In addition to agricultural wealth, Ghana is also rich in mineral resources. Gold

recently replaced cocoa as country's primary export, with diamonds, aluminum &

bauxite accounting for a large part of country's exports. Mining industry was

24

liberalized in 1987 & strategic investors such as de Beers, Lonrho & others from

United States, Canada, Australia, South Africa & Britain have already taken

advantage of new business opportunities. Gold output rose to some 1.6 mn ounces

in 1995 & Ghana Minerals Commission estimates that 1996 output will reach 1.84mn

ounces. Diamond production rose by an estimated 60 % in 1994 & a continued rise

is expected.

Ghana's industrious, well-educated workforce is 1 of country's most valuable

resources. There is a strong primary, secondary & higher education infrastructure &

literacy rates average 53 present, 1 of highest in continent. Industrial growth, led by

mining, food processing & textile sectors, reached about 7 % by end of 1995.

According to Economist magazine, performance of Ghana's agricultural & mining

sectors combined should lead to 5.5 % GDP growth in 1995 & 5 % GDP growth in

1996.

Gateway to Growing West African Region

Ghana is a member Economic Community of West African States - ECOWAS, a

regional economic organization comprising a thriving market of 250 mn people in

West Africa. Formed in 1975, ECOWAS allows for free movement of goods & people

across borders of its 16 member nations. Since its creation, implementation of

ECOWAS protocol on trade has greatly enhanced intra-regional trade and Ghana's

status as an economic force in sub-region.

Ghana's trading access to other African nations is expected to increase significantly

in coming years, especially as African nations move toward implementation of

African Economic Community, established by African heads of state & govt. in 1991.

AEC will take effect in year 2025.

Recent Foreign Direct Investment

Recent divestments have encouraged multinationals, medium & small-sized foreign

companies and Ghanaian nationals residing overseas to expand their business

interests in Ghana. In September 1995, Coca-Cola initiated a $19 mn investment in a

new bottling plant & training facilities & Heinz recently invested $20 mn in a tuna

25

canning operation, through its Star-Kist subsidiary. The govt. is also emphasizing

development of non-traditional export sectors.

American firm, Coleman, has invested $23 mn in freshwater fish farming for export.

As other recent investments & new investment plans show -- by Caterpillar, Unilever,

Guinness, M&W Pump, IBM, Lazar Kaplan, Deloitte & Touché, AT&T, South-western

Bell, Pryor, McClendon & Counts, Eveready & more -- time has never been better for

doing business in Ghana, Africa's new beacon of economic opportunity.

Benefits by having business with Ghana

1) Expanding stock market

2) Demonstrated commitment to market liberalization

3) On-going privatizations in key economic sectors

4) Stable, multi-party government Competitive labour force

5) On-going infrastructure development

6) Immediate access to all markets of economic community of West African States

(ECOWAS)

7) Quota-free access to U.S. & European Union markets

8) Member of World Trade Organization (WTO)

9) Official language- English

26

EXECUTIVE SUMMARY ON SOCIAL FACTORS OF GHANA:

Enrollment No Student Name Faculty Guide

117340592002 JANKI HARSHADBHAI PAREKH Prof. Viral Toliya

117340592008 TANVI JAYESHKUMAR PUJARA

117340592010 JANKI VRUJLAL VAJA

117340592013 NIDHI RAJESHBHAI VAMJA

117340592014 JAYDEEP NANALAL PANCHANI

117340592016 DEVANSHI NIKHILBHAI SACHADE

27

Social Overview of GHANA:

About Ghana:

Ghana is situated in east A frica It is ordered y Togo in the east ur ina Faso

in the north te d‟Ivoire in the west and the tlantic Ocean to the south narrow

grassy plain stretches inland from the coast, widening in the east. The south and

west are covered by dense rain forest. To the north are forested hills, beyond which

is dry savannah and open woodland. The Black And White Volta Rivers enter Ghana

from Burkina Faso and lead to the largest man-made lake in the world, Lake Volta.

Social aspects includes…

Population

Sex Ratio

Age structure

Urbanization

Literacy

Ethnic Groups

Religions

Languages

Ghanaian Economy and Business

Income Distribution

1. Population:

According to population survey of July 2012 the population is about 24658823. The

growth rate of population is 1.787%. it should be noted that estimates for this country

explicitly take into account the effects of excess mortality due to AIDS; this can result

in lower life expectancy, higher infant mortality, higher death rates, lower population

growth rates, and changes in the distribution of population by age and sex than

would otherwise be expected.

28

2. Sex ratio:

As per 2011 census, sex ratio in total population in Ghana is 1 male/female. This

shows that the male-female ratio is equal in Ghana.

3. Age structure:

The age structure in Ghana can be shown as:

0-14 years: 36.5%

15-64 years: 60%

65 years and over: 3.6%

Hence, it can be seen that most of the population belongs to the working population

and they can be employed.

4. Urbanization:

51% of total population lived in Ghana as per 2010 census. And the established rate

of urbanization for 2010-15 is 3.4% annual rate of change. As Ghana is

an underdeveloped country, the scope for urbanization is high and urban population

can further increase.

5. Literacy:

Literacy means individual of age 15 and over who can read and write.

Total population: 57.9%

male: 66.4%

Female: 49.8%

It can be seen that literacy rate is not high and Ghana has long way to go to achieve

full literacy. Ghana spends 5.4% of its total GDP on education.

6. Ethnic groups:

Ghana is extremely diversified country having more than 1000 Ethnic groups. The

major ethnic groups in Ghana are:

29

Akan (the major group) 45.3%,

Mole-Dagbon 15.2%,

Ewe 11.7%,

Ga-Dangme 7.3%,

Guan 4%,

Gurma 3.6%,

Grusi 2.6%,

Mande-Busanga 1%,

other tribes 1.4%,

Other 7.8%

7. Religions:

Due to influence of the British colonization, Christianity, s the most important religion

in Ghana and is practiced by almost 70% of the population. The second most

popular religion is Islam practiced by around 15% of the population. Many customs in

the Ghanaian society are influenced by both traditional tribal beliefs and

Christian or Muslim traditions.

Christian 68.8%

Muslim 15.9%

traditional 8.5%,

other 06.8%,

30

8. Languages:

In Ghana more than 100 languages and dialects are spoken. as a result of the

country's colonial past, and, in view of these linguistic and associated cultural

differences, English has become Ghana's official language. It is used for all

government affairs, educational instruction, in national radio and television

broadcasts and large-scale

business transactions.

Asante 14.8%,

Ewe 12.7%,

Fante 9.9%,

Boron (Brong) 4.6%,

Dagomba 4.3%,

Dangme 4.3%,

Dagarte (Dagaba) 3.7%,

Akyem 3.4%,

Ga 3.4%,

Akuapem 2.9%,

other (includes English (official)) 36.1%

9. Economy and Business:

• Ghana is rich in natural resources however almost 30% * of the population still

lives under the international poverty rate and the Ghanaian economy relies heavily

on financial and technical support from other countries.

• Ghana exports a significant amount of natural resources such as cocoa,

timber, fish, fruits and vegetables manganese, (palm) oil, rubber, aluminum

31

• Agriculture is the main focus of the domestic economy and provides work for

more than half of the population.

Working practices in Ghana:

• Punctuality in Ghanaian usiness culture is not seen as a main priority The concept

of time in Ghana is looked at in a relaxed and flexible way. This could cause

difficulties with someone who is used to a more Western way of planning and

organizing.

• Although Ghanaians have a flexible approach to time, it is necessary to make

appointments before doing business in Ghana. These should be scheduled in

advance and preferably between September and April.

• Typical wor ing hours are generally from 8am to 5pm from Monday to Friday with

an hour taken over lunch. Stores tend to be open on Saturday too.

Ghanaian Business Etiquette ( Do’s an d Don’ts) :

• DO develop an understanding of how religion and indigenous beliefs influence the

Ghanaian working practices.

• DO take time to ask questions about the health and/or the family of your

business partner. It is seen as rude to get down to business right away.

• DO address your Ghanaian counterpart with their academic title as it is used

to show respect.

32

EXECUTIVE SUMMARY ON TECHNOLOGY IN GHANA:

Enrollment

No.

Name of the Students Faculty Guide

117340592017 NANDISH P. CHANDARANA Prof. Viral Toliya

117340592021 DHAIRYA KIRITKUMAR VYAS

117340592022 PURAV PRAFULBHAI PATADIA

117340592024 RONAK DILIPBHAI DOSHI

117340592028 MANAN BHUPENDRA PANDYA

117340592031 RIDDHI N. SANCHALA

33

Overview of TECHNOLOGY in Ghana:

Mass media can potentially close the gap between the rich and the poor because

they provide access to information for Ghanaians. Information and education are

very important needs in Ghanaian culture because education through language,

storytelling, proverbs and other forms of indigenous communication, is what has

allowed traditional socialization to take place. Socialization is a recurring theme

throughout this thesis. It is defined as the “process by which a person

acquires…, the knowledge of the kinds of behaviour that are understood and

acceptable in that society, and the attitudes and values that make conformity with

social rules personally meaningful, even gratifying” In addition, the major concepts,

technological predisposition and technological advancements, discussed in this

thesis deals with the underlying question of how advancing technologies are

challenging and affecting these traditional forms of communication, which are

primary modes of socialization in Ghana. It is for this reason that it is very important

to understand Ghana’s technological predisposition and technological advancement

with respect to socialization

Development of Science and Technology in Ghana

Since the establishment of our public universities (University of Ghana, University of

Science and Technology, University of Cape Coast) decades ago, there has been

very little discussion about redesigning the curricula at the universities to specifically

meet the demands of Science and Technology development in Ghana. Essentially,

the same content of science syllabi has been taught over decades and may partially

explain our present level of development in Science and Technology. The university

graduates who have been produced by this system are not well suited to provide the

necessary inputs for the Science and Technological development of our nation. In

other words, they are unable to contribute effectively in that direction and the

situation is not peculiar to Ghana, but to many other African countries. We need to

take a critical look at the academic content of our science syllabi at the universities

and restructure them to solve the problems of our country. To achieve this, academia

and our local industry should foster good relationships so as to be able to identify

specific problems in Science and Technology that need to be addressed in Ghana.

34

The scientific and technological problems identified should then be reorganized and

translated into a significant part of the lab and project work done at the universities.

Such lab and project work will give room to students and professors alike to research

and come up with solutions. A student who has graduated with such expertise is

relevant to the economy because his or her skills can be directly employed or

deployed to contribute to the Science and Technology development of the country.

This brings into question the state of funding at the universities to pursue Research

and Development (R&D). Currently sources for funding R&D at the universities in

Ghana mainly come from the government subvention, the GET fund and local

industries. But contributions from these sources have not been enough to kick-

start vigorous R&D in Ghana. I am suggesting here that a Research and

Development Fund (RDF) is set up by the Ghana government and the government

must be committed to contributing a reasonable percentage of the Gross Domestic

Product (GDP) of Ghana into it annually. This must be seen by the government as

building the capacity and capability for Science and Technology development in

Ghana. The rest of the contributions to the fund must come from local industries, the

African development bank, universities and countries with economic interest in

Ghana as well as philanthropists. Researchers will have access to funds from the

RDF by developing research proposals (which should contain among others, the

objectives of the research, methods to pursue the research, expected outcomes and

amount of funds needed for that purpose) and submitting them to an independent

body for consideration. Such a body should be made up of varied professionals such

as science professors, entrepreneurs and social scientists who are

knowledgeable in their field. One key requirement for awarding grant money to

an applicant will be that the proposed research should seek to address some of the

key problems of our country. To efficiently manage the funds, it will be the duty of

government, policy makers and fund administrators to have a scale of

preference in place to determine which areas of Science and Technology

need urgent funding and/or more funding. Establishment of a robust RDF will be one

of the few but effective ways of creating an enabling environment for research

into Science and Technology in Ghana.

Funding is not the only factor that limits research. In fact adequate time is also a

requirement for research. Where the student: faculty ratio is large (that is a large

35

student population compared to the number of professors), professors have little time

to engage in research. This is because the professor spends most of his or

her time meeting with students who need assistance and the rest of the time for

marking/grading papers. To partially alleviate the situation so as to be able to create

some time for research, I recommend the following: first, conditions should be

created such that professors teach continuously and intensively for at most two

semesters and then the third semester is devoted to intensive research – that is,

alternating two semesters of teaching and one semester of research. Second, I

recommend that we de-emphasize the essay question format. This is because the

essay question format usually requires the experience and knowledge of only the

lecturer to mark/grade and can involve a great deal of time if it is to be done

objectively, whereas other formats like multiple -answer question could be graded by

the Teaching Assistants (TAs). Thus, in any examination we can limit the essay-type

questions to about 50 % or less, the professor then provides answer keys for the rest

so that TAs can mark/ grade them.

Generally, because of the fast pace of research discoveries in Science and

Technology in the developed world, there could be a gap in scientific/technological

knowledge between professors in the developing and developed countries – with the

professors in the developing countries being at a disadvantage. This calls for several

measures. The most basic is that the universities must subscribe to leading journal

publications from America and Europe. These publications must be made available

in electronic form so that both students and professors can have easy access to

them, and it is important that both of them read the material. Seminars must be

regularly organized to give room to both students and professors to discuss latest

information they have read and gathered from the journals. This will partially

bridge the information gap. I am also proposing that, it is about time we look

into making some of our professors in the developed countries adjunct

professors in our local universities. What that means is that, such professors in the

developed countries will be attached to our local universities and they will spend

about a month or so annually teaching at our universities.

The adjunct professors will help build syllabi, teach and give seminars in areas they

think are “new” in their field. This is intended to bridge the science information and

technology gap between the developed and developing nations like Ghana. After all,

36

this is not a new concept in other fields – especially soccer. When Ghana and other

countries are going to play international games, they invite seasoned professionals

playing in other countries to join the national team so as to increase their chances of

winning. So we can employ the same technique here with our skilled science and

technology professionals in the developed countries

It is not clear whether the universities in Ghana (and for that matter other African

countries) have a reward system in place for the professors teaching and

researching on Science and Technology. Here, it is suggested that a well formulated

reward system be put in place to acknowledge professors who are able to

contribute to the development of Science and Technology in Ghana. Specifically, the

system must identify and reward professors who are able to develop innovations

which can lead to or has led to better technologies to teach science, process food

and medicinal plants, increase the yield of animal and crop farming, tap into wind,

solar and biomass energy… just to mention a few. And the reward should come in

the form of good salary, research funding, equipment and larger laboratory space.

These factors are likely to attract and retain good professors, and catalyze the

Science and Technology development in Ghana and other African countries. Please

look out for the next article.

Problems Of The Technology Faced By Ghanaian People

1. Frequent power outages

2. Dependence on rain-fed agriculture and use of hoes, machetes for farming

3. Lack of capacity to process raw materials including maize, cassava, tomatoes

and the like

4. Poor health care

5. Heavy dependence on imported goods including food, second-hand clothing

and shoes

6. Many parts of the country are still underdeveloped and live in darkness

7. Lack of creativity among many science graduates

8. Dependence on cement for building, with hardly any alternatives

37

Statistics: Science & technology:

Technology Indicators for Ghana 1995 1998 2001-2

Computers per 100 people 0.12 0.30 -

Telephone lines 63,067 179,594 240,000

Mobile-phone subscribers 6,200 42,343 -

Public telephone booths 30 1,814 -

Satellite dish subscribers 0 15,000 -

Internet host sites 6 253 -

Radios per 100 people 23.1 68.2 -

TVs per 100 people 4.04 35.2 -

Internet subscribers - 10,000

400,000

Technology and Agricultural Development in Ghana

Techiman Tomato Factory Commissioned

A 2 metric tonnes per hour capacity tomato processing factory aimed at reducing

post-harvest losses of tomatoes in Techiman and its environs has been

commissioned at Techiman in the BrongAhafo Region of Ghana. The Factory, which

was started in 2004, is collaboration between the Ministry of Food and

Agriculture and Italian Government

Israel to Make Agriculture Technology Available to Ghanaian Farmers

The Israeli Ambassador to Ghana, Sharon Bar-Li, will lead discussions on the

usefulness, utilization and innovations to advance and transform Ghana’s agriculture.

The Ambassador who is due to speak in one of the seminar sessions of the 4th

National Food and Agricultural Show (FAGRO), scheduled for August 23-25, 2012

38

at the Efua Sutherland Park in Accra will focus on spreading Israeli technologies that

will improve food production, increase Ghana’s agricultural output and fulfill the

Ghanaian right to food.

Israel is a world leader in agricultural research and development; this has led to

dramatic increases in the quantity and quality of the country’s crops. The drive to

increase yields and crop quality has led to the development of new seed and plant

varieties. A statement issued by the organizers of the show quoted the ambassador

as saying that, with an increasing population, Ghana was faced with the challenge of

satisfying rapidly growing food demand. She said the recent global food, fuel and

financial crisis have demonstrated the need for Ghana to fully utilize technology to

address its food needs. “It is possible to increase food production in Ghana that

represents the basis of the country’s food security system; adopting new and

improved crop and food management practices can increase food production

substantially,” she said.

Madam Bar-Li said: “Technology is always for the people, by the people, of the

people; Israel is committed to introduce economically viable and socially acceptable

technology to Ghanaian farmers”.

FAGRO Chairman and Executive Head of Retail Banking of ADB, Sulley Adam said,

other speakers drawn from civil, government and non-profit organizations such as

GIZ, ADB, Africa Lead, Embrampa and the African Aurora Business Network would

highlight on the theme of the event, ‘Linking farmers to the appropriate

market: a value chain process’.

The speakers he said would also discuss issues of women participation in agric,

farmers’ access to funds, fertilizer accessibility and efficient use, the role of farming

organizations in linking farmers’ to markets.

He said FAGRO hopes to use the seminar series to strengthen and deepen Ghana’s

existing relation with Israel and other development partners and find areas of further

collaboration and support.

39

Agricultural Engineering Services

Agricultural Engineering Services Directorate (AESD) is one of the seven (7)

technical Directorates of the Ministry of Food and Agriculture. It operates under four

(4) units namely:

Farm Power Machinery and Transport

Post Harvest Management

Soil and Water Conservation Engineering

Rural Technology Information

Ensure the availability of farm power and other engineering technologies with sound

and sustainable environmental practices for all the categories of farmers, fishermen

and agro – processors in Ghana for agricultural production and related activities.

Its Functions includes

Advice the Hon. Minister and Chief Director of MOFA on all agricultural

engineering related issues in the country (ie, agricultural machinery needs of the

country, strategies for comprehensive mechanization of agricultural production along

the value chain).

Initiate, formulate and review agricultural engineering policies in the country

Coordinate, monitor and evaluate the implementation of all engineering

programmes, policies and projects

Provide technical backstopping to MOFA staff in the Regions and Districts on

Agricultural engineering related issues.

Current programmes and activities being pursued by AESD

1. Establishment of Agricultural Mechanization Services Centers (AMSEC)

As part of government’s Accelerated Agricultural Modernization Policy to address the

challenges confronting the comprehensive mechanization of agricultural production.

Government through AESD has conceived and initiated the concept of Agricultural

Mechanisation Services Enterprises Centers to assist the private sector to take a

40

lead role in the provision of well-organized and commercially viable agricultural

mechanization services.This was due, in part, to the high initial capital investment in

farm machinery and equipment procurement and high cost of borrowing seemed

highly unattractive for private sector to invest in.

This therefore underscored the need for the government to support the private sector

with some agricultural machinery and equipment for the establishment of

mechanization services centers if targeted levels of agricultural production are to be

achieved. It is against this background that AESD facilitated the establishment and

operation of eighty

– four (84) AMSEC companies to make agricultural mechanization services readily

available in a timely and affordable manner to majority of rural poor farmers who

cannot acquire their own machines. The machinery/equipment allocated to AMSEC

operators included tractors and its matching implements, maize shellers, and water

pumps.

The allocations were based on machinery requirements of the AMSECs operators

and their ecological locations. It is planned that all districts in the country will have at

least one functional AMSEC in future.

Deployment of Combine Harvesters to Rice Growing Areas

Harvesting of crops in general has extensively been carried out using low technology

and particularly in the case of rice harvesting has been done using tool such as

sickle and to some extend obsolete combine harvesters in the country. Government

as part of its efforts to modernise agriculture in a holistic manner and cut down rice

importation, through AESD continues to introduce and deploy combine harvesters

from the Republic of Korea, Peoples Republic of China and Thailand to rice growing

areas to support rice farmers in reducing the drudgery involved in rice harvesting and

inferable increase rice productivity Since 2009 MOFA through AESD has introduced

and deployed over 45 combine harvesters including maize and rice harvesters.

Currently, AESD is expected to take delivery of 120 combine harvesters from China

for onward deployment to farming districts. Out of this number 60 units of the

harvesters have been fully assembled by the local agents awaiting the harvesting

season.

41

Japanese Grant Assistance Programme (2KR Programme)

AESD in its effort to improve the machinery needs of rice farmers in 2005 re-

negotiated with the Japanese Government to reactivate the 2KR Japanese Grant

Assistance programme to assist underprivileged rice farmers. Subsequently, based

upon good ex – post evaluation performance of 2KR – 2005, AESD qualified to

receive other agricultural machinery package under 2KR – 2007 and 2KR – 2009.

In total agricultural machinery/equipment worth 11.4 Million USD has been received

for distribution to rice farmers in specific regions. The machinery/equipment deployed

to beneficiary farmers include; agricultural tractors and accessories, power tillers,

rice mills, water pumps, combine harvesters, rice reapers, and rice threshers.

Presently, agricultural machinery/equipment under 2KR – 2009 are being cleared

and assembled at AESD premises. Some of the agricultural machinery supplied

under 2KR programme is received in semi – knocked down forms and assembled

using local technicians and mechanics in order to build local capacity. Capacity of

Farm Machinery Operators/Mechanics/Engineers/Technicians built To ensure the

efficient and effective use of farm power machinery and in addition, reduce the rate

of breakdown of machinery/equipment over 100 beneficiaries of agricultural

machinery, operators/mechanics/technicians and engineers in the private and public

sectors are trained annually on the proper selection, operation and handling of

agricultural tractors, combine harvesters, power tillers, boom sprayers, etc.

Debt Recovery of Subsidized MOFA Machinery/Equipment sold on Hire

Purchase

To improve on the debt recovery of subsidized MOFA machinery/equipment sold to

farmers and agro processors on high purchase basis a number of reminder letters

have been issued to beneficiaries requesting them to pay up their respective

balances to the ministry. In furtherance to that a number of debtors notice and

defaulters list have been published in some newspapers. The outcome of this

exercise has improved the recovery rate. Machinery/equipment allocated to

beneficiaries under 2KR – 2005 in the year 2006 have seen a recovery rate of about

70%. This activity is ongoing.

42

EXECUTIVE SUMMARY ON ECOLOGY OF GHANA:

Enrollment

No

Name of The Students Faculty Guide

117340592120 SANGITA KANUBHAI KHOKHAR DR. S. Chinnam

Reddy 117340592122 GRISHMA RAJUBHAI PATEL

117340592137 MEERA VIJAYBHAI KAPURIYA

117340592141 HIREN HASHMUKHBHAI VORA

117340592142 KHYATI MAHESHBHAI TRIVEDI

117340592146 SANJAY DHIRUBHAI TALPADA

117340592168 DHARMESH BATUKLAL DHADUK

43

ECOLOGY OVERVIEW OF GHANA:

Ghana West Coast is a nature lover‟s heaven. The area is full of hills, valleys,

evergreen forests, bamboo forests, conservation areas, forested islands, lakes,

ponds, ocean, beaches, rock formations, monkey sanctuaries, and bird sanctuaries.

Various crops are grown on a commercial scale hence; there are many

pntations of oil palm, coconut palm, rubber and cocoa, in the area. There are also

numerous smallholder farms, development crops such as corn, sugarcane,

pineapple, tomatoes and pepper.

GHANA FOREST:

Ghana is recognized as one of the most advanced tropical African countries in

established forest policy, legislation, forest inventory, management planning, and in

having a National Forest Standard and principles, criteria and indicators for judging

the quality of forest management and usage.

INDIA FOREST:

The 'jungles' of India are ancient in nature and composition. They are rich in

variety and shelter a wide range of mammals and insects.

The fact that they have existed for very long time is proved from the

ancient texts all of which have some mention of the forests.

The people valued forests and a large number of religious ceremonies centered

on trees and plants.

Even today in parts of India the sacred groves exist and are worshipped

LENGTH OF GHANA COASTAL BELT

Size: The total land boundaries that Ghana shares with her immediate

neighbors is 2,093 km, with (548 km) for Burkina Faso, Togo with (877 km) and Ivory

Coast with (668 km).

44

The length of the coastal belt is 539 Km.

Area: The total area of Ghana including water bodies is approximately 239,460 sq

km. Its geographic coordinates are 800 N, 200 W.

LENGTH OF COASTAL LINE IN INDIA:

Length of coastline of India including the coastlines of Andaman and Nicobar

Islands in the Bay of Bengal and Lakshadweep Islands in the Arabian Sea is 7517

km.

Length of Coastline of Indian mainland is 6100 km.

Coastline of Indian mainland is surrounded by Arabian Sea in the west, Bay of

Bengal in the east, and Indian Ocean in the south.

length of total coastline of India: The long coast line of India is dotted with several

major ports such as Kandla, Mumbai, Navasheva, Mangalore,

Cochin, Chennai, Tuticorin, Vishakhapatnam, and Paradip

WATER CAPACITY IN INDIA:

The water management challenges in India are far many. As on 2008, nearly 88%

of the population has access to improved water supplies, with the percentage

being below 84% in rural areas.

But, as per the data from 2001 census, the number of “tap” connections, which is

indicative of good access to safe water, was as low as 24.2% in rural areas in 2001.

In urban areas, however, the number of tap connections was 66.65%.

In the 35 metros of India, water supply is available only for a few hours in a day.

As regards tariff, nearly 62% of the urban consumers in metros having more than

one million population have metered connections, the percentage being 50% in

smaller towns. In many cities and towns, the domestic connections are not metered

at all. In order to achieve 100% water security, India has to make significant progress

in terms of strengthening the sector agencies.

45

WATER CAPACITY IN GHANA

The importance of water as a resource to improve the social well -being of a

people and for national development cannot be over emphasized. That is why the

quality and quantity of water supplied to a community is crucial in determining their

health status, standard of living and level of development.

Ghana with a current estimated population of 1,820,000; growing at a rate of 5.5

% per annum using the 2000 Population Census.

This rate is much higher than the regional and national averages of 2.8% and 2.7

% respectively.

GHANA MINING

The Mining industry of Ghana accounts for 5% of the country's GDP and

minerals make up 37% of total exports, of which gold contributes over 90% of the

total mineral exports.

Thus, the main focus of Ghana's mining and minerals development industry

remains focused on gold.

Ghana is Africa's 2nd largest gold producer, producing 80.5 t in 2008.

Ghana is also a major producer of manganese and diamonds. The country has

23 large-scale mining companies producing gold, diamonds, bauxite and

manganese, and, there are also over 300 registered small scale mining groups and

90 mine support service companies

MINING in India

The tradition of mining in the region is ancient and underwent modernization

alongside the rest of the world as India gained independence in 1947.

The of economic reform of 1991 and the 1993 National Mining Policy further

helped the growth of the mining sector.

India's minerals range from both metallic and non- metallic types.

46

The metallic minerals comprise ferrous and non-ferrous minerals, while the

non-metallic minerals comprise mineral fuels, precious stones, among others.

COST IMPLICATIONS OF AGRICULTURAL LAND DEGRADATION IN GHANA

• An economy wide, multimarket model is constructed for Ghana and the effects

of agricultural soil erosion on crop yields are explicitly modeled at the sub national

regional level for eight main staple crops.

• Impact of that comes that poor farmer cannot come under this policy so

poverty will increase at 5.4.

COST IMPLICATIONS OF AGRICULTURAL LAND DEGRADATION IN INDIA

• In several regions of India, especially the dry and semi-dry

regions, environmental degradation is nearing permanent levels even as

replacement costs continue to rise.

• This paper seeks to measure the extent of damage due to land degradation of

various types and their expected trends in the future.

• Besides examining trends in land-use pattern across states and estimating the

extent and costs of degradation, it also explores the linkages between degradation

and policy and institutional environment in the context of agro- climatic regional

planning.

47

EXECUTIVE SUMMARY ON LEGAL SYSTEM OF GHANA:

Enrollment

No.

Name of the Students Faculty Guide

117340592049 JYUPIL GIRADHARLAL CHAPANI Prof. Jitendra Patoliya

117340592050 KISHAN MADHUKUMAR GOKANI

117340592051 VEENA VENUGOPALAN NAIR

117340592060 GEETA NARANBHAI SORATHIYA

117340592064 PRITESH DINESHBHAI VISHANI

117340592066 GAURANG RAMESHBHAI VYAS

48

LEGAL OVERVIEW OF GHANA:

The executive summary presented here consists of a brief account of the project

report prepared on the legal environment of Ghana.

MAJOR ASPECTS OF LEGAL ENVIORNMENT

These are certain aspects of the Ghana‘s Legal environment which are described as

below.

ASPECTS DESCRIPTION

Religions

Followed

Majority of Muslims are Maliki. Other major religions are

Christianity and indigenous religions. Constitutional

Status of

Islamic Law

Constitution approved 28th April 1992. Adopts no official religion.

Article 11 identifies sources of Ghanaian law as: Constitution;

legislation; existing law; and common law. Existing law defined as

written and unwritten laws of Ghana predating current Constitution,

as adapted to conform to Constitution.

Article 270(1) provides recognition of institution of chieftaincy,

together with its traditional councils under customary law and

Article 272 states that National House of Chiefs shall undertake

progressive study and codification of customary law to establish

unified rules and evaluate such laws with aim of "eliminating those

customs and usages that are outmoded and socially harmful"

Court System Higher courts: Supreme Court (highest court of appeal in civil and

criminal matters), Court of Appeal, High Court, and ten Regional

Tribunals.

Lower courts: circuit courts and tribunals, community tribunals,

juvenile and family tribunals;

Traditional courts: National House of Chiefs, Regional House of

Chiefs, and Traditional Councils.

Islamic law applied by customary courts under broader category of

customary law.

Relevant

Legislation

Marriage of Mohammedans Ordinance 1907

Matrimonial Causes Act 1971

49

Wills Act 1971

Chieftaincy Act 1971

Courts Act 1993

Law/Case

Reporting

System

Law reporting through Official Gazette. Decisions of Supreme

Court, Court of Appeal and High Court published in The Ghana

Law Reports Digest.

LEGAL SYSTEM OF GHANA

According to the constitution of Ghana, justice emanates from the people and shall

be administered in the name of the Republic by the Judiciary, which shall be

independent and subject only to this Constitution. Ghanaian courts have acted with

increased autonomy under the 1992 constitution

The Supreme Court of Ghana

The Court of Appeal

The High Court and Regional Tribunals

Lower Courts

50

INDIAN LEGAL SYSTEM

51

The Indian Judicial System is one of the oldest legal systems in the world today. It is

part of the inheritance India received from the British after more than 200 years of

their Colonial rule, and the same is obvious from the many similarities the Indian

legal system shares with the English Legal System. The frame work of the current

legal system has been laid down by the Indian Constitution and the judicial system

derives its powers from it. The Constitution of India is the supreme law of the

country, the fountain source of law in India .An important feature of the Indian

Judicial System, is that it‘s a ‗common law system‘. In a common law system, law is

developed by the judges through their decisions, orders, or judgments. Another

important feature of the Indian Judicial system is that our system has been designed

on the pattern of the adversarial system.

COMPARISON BETWEEN INDIAN AND GHANAIAN LAWS

GHANA FOREIGN EXCHANGE ACT, 2006 v/s INDIAN FOREIGN EXCHANGE

REGULATION ACT, 1973

GHANA FOREIGN EXCHANGE ACT, 2006:-

Ghana has a new Foreign Exchange Act, 2006 (ACT 723) which became effective

on December 29, 2006. Bank of Ghana, the central Bank of Ghana, has since

notices providing guidelines on the new Foreign Exchange Act.

Under the new Foreign Exchange Act of 2006 (Act 723):-

7. The ten percent (10%) limit placed on non-resident foreign investors‘ holdings in

securities listed on the Ghana Stock Exchange has been lifted. The 74% limit on the

holdings of all non-resident foreign investors in any listed security has also been

lifted.

8. Investors both local and foreign are however to note that the acquisition of a ten

percent (10%) stake in any listed banking stock requires prior approval by Bank of

Ghana under the Banking Act, 2004.

52

9. Non-resident foreigners are now permitted to invest in money market instruments

of a tenor of three years or above. For the avoidance of doubt, the Government of

Ghana‘s 5-Year Bond due December 2011 and listed on the market is

available to non-resident foreigners.

INDIAN FOREIGN EXCHANGE REGULATION ACT, 1973

Except with the previous general or special permission of the Reserve Bank,

e) no person other than an authorized dealer shall in India, and no person resident

in India other than an authorized dealer shall outside India, purchase or otherwise

acquire or borrow from, or sell, or otherwise transfer or lend to or exchange with,

any person not being an authorized dealer, any foreign exchange: Provided

that nothing in this sub-section shall apply to any purchase or sale of foreign

currency effected in India between any person and a money-changer.

f) no person, whether an authorized dealer or a money-changer or otherwise,

shall enter into any transaction which provides for the conversion of Indian currency

into foreign currency or foreign currency into Indian currency at rates of exchange

other than the rates for the time being authorized by the Reserve Bank.

INDIAN NEGOTIABLE INSTRUMENT ACT ,1881 v/s GHANA BILL OF EXCHANGE

ACT,1961(ACT 55)

INDIAN NEGOTIABLE INSTRUMENT ACT ,1881

A negotiable instrument is a document guaranteeing the payment of a specific

amount of money, either on demand, or at a set time. Negotiable instruments are

often defined in legislation. For example, according to the Section 13 of the

Negotiable Instruments Act, 1881 in India, a negotiable instrument is a promissory

53

note, bill of exchange or cheque payable either to order or to bearer. Cheque also

includes demand draft [Section 85A].

More precisely, it is a document contemplated by a contract, which (1) warrants the

payment of money, the promise of or order for conveyance of which is unconditional;

(2) specifies or describes the payee, who is designated on and memorialized by the

instrument; and (3) is capable of change through transfer by valid negotiation of the

instrument.

Since a negotiable instrument is a promise of a payment of money, the instrument

itself can be used by the holder in due course as a store of value; although

instruments can be transferred for amounts in contractual exchange that are less

than the instrument‘s face value (known as ―discounting‖).

GHANAIAN BILL OF EXCHANGE ACT,1961(ACT 55)

(1) When a bill contains words prohibiting transfer or indicating an intention that it

should not be transferable, it is valid as between the parties thereto, but is not

negotiable.

(2) A negotiable bill may be payable either to order or to bearer.

(3) A bill is payable to bearer which is expressed to be so payable or on which the

only or last endorsement is an endorsement in blank.

(4) A bill is payable to order which is expressed to be so payable or which is

expressed to be payable to a particular person, and does not contain words

prohibiting transfer or indicating an intention that it should not be transferable.

(5) Where a bill either originally or by endorsement is expressed to be payable to the

order of a specified person, and not to him or his order, it is nevertheless payable to

him or his order at his option.

GHANA FREE ZONES ACT, 1995 (ACT 504) v/s INDIAN SPECIAL ECONOMIC

ZONE ACT 2005

GHANA FREE ZONES ACT, 1995 (ACT 504)

54

The GHANA FREE ZONES ACT, 1995 (ACT 504)as amended states that laws

relating to importation and exportation of goods and services other than consumer

goods for commercial purposes do not apply to goods brought directly from outside

Ghana into a free zone or goods exported from a free zone to a country outside

Ghana. By implication imports by a free zone developer, subcontractor or enterprise

into a free zone are exempt from indirect taxes and duties.

INDIAN SPECIAL ECONOMIC ZONE ACT 2005

The SEZ Act, 2005, was an important bill to be passed by the Government of India in

order to instill confidence in investors and signal the Government's commitment to a

stable SEZ policy regime and with a view to impart stability to the SEZ regime

thereby generating greater economic activity and employment through their

establishment, a comprehensive draft SEZ Bill prepared after extensive discussions

with the stakeholders.

The objectives of SEZs can be clearly explained as the following:-

(f) Generation of additional economic activity;

(g) Promotion of exports of goods and services;

(h) Promotion of investment from domestic and foreign sources;

(i) Creation of employment opportunities;

(j) Development of infrastructure facilities.

GHANAIAN INTELLECTUAL PROPERTY ACT v/s INDIAN INTELLECTUAL

PROPERTY ACT

GHANAIAN INTELLECTUAL PROPERTY ACT

b. Patents

55

Nature of right:To be patentable, an invention must (i) be new, (ii) involve an

inventive step,(iii) be industrially applicable, and (iv) not be excluded from patent

protection by statute.

Enforcement: The patent owner can commence court proceedings against an

infringer. The remedies available are injunctions, damages and any other remedy the

court considers appropriate.

Length of protection: Protection lasts for 20 years, subject to the payment of

annual fees.

b. Trade Marks

Nature of right: A sign or combination of signs capable of distinguishing the

goods or services of one undertaking from another.

Enforcement: A trade mark owner can seek to enforce his rights by

commencing court proceedings. Apart from the remedies of injunctions and

damages, the offender is liable to a fine of GHS6,000 (about US$6,594) or a term of

two years imprisonment. The goods are forfeited to the state.

Length of protection: The registration of a trade mark is for a period of 10

years from the filing date of the application.

c. Registered Designs

Nature of right: An industrial design is registrable if it (i) is new, (ii) significantly

differs from known designs or is a combination of known design features, and (iii) is

not contrary to public order or public morality.

Enforcement: The registered owner can bring court proceedings against any

person who infringes the industrial design or who performs an act that makes it likely

that infringement will occur. The remedies available are injunctions, damages or any

other remedy the court considers appropriate. The offender is liable to two years

imprisonment and/or a fine of 2000 penalty units, which is GHS24,000 (about

US$26,376).

Length of protection: Protection lasts for 15 years, subject to renewal.

56

d. Copyright

Nature of right: Copyright subsists in the following works created by

Ghanaians or persons resident in Ghana: literary; artistic; musical; sound recording;

audio-visual; choreographic; derivative; computer software programs.

Enforcement: The copyright owner can seek relief through the courts. The

remedies available are the same as for patents (see above, Patents).

Length of protection: The moral right attached to copyright and copyright in

folklore lasts indefinitely. Broadcasting corporations enjoy 40 years of

copyright protection. All other forms of copyright enjoy 70 years protection

INDIAN INTELLECTUAL PROPERTY ACT

Introduction

The general laws in relation to Intellectual Property Enforcement in India are mainly

the following:-

The Code Of Civil Procedure

The Indian Penal Code

The Civil and Criminal Rules of Practice

The Intellectual Property Laws do provide for statutory enforcement mechanisms.

The most important of the Indian Intellectual Property Laws are:-

The Patents Act, 1970

The Trade Marks Act, 1999

The Copyright Act, 1957 &

The Designs Act, 2001

57

Trade Marks

Under Trade Marks Act, 1999 both civil and criminal remedies are available for

taking action against infringement of your client‘s trademark.

Civil Remedy

The Act provides that no action can be taken for infringement of an unregistered

trademark in India. However, registration of a trademark does not affect any rights

acquired under common law by the use of such mark. Therefore, in case of an

unregistered trade mark, common law rights have been protected whereby the

proprietor of a trade mark, whether registered or unregistered, may sue for passing

off arising out of the use by the defendant of any trade mark which is identical with or

deceptively similar to the plaintiff‘s trade mark, in the appropriate Court in India.

Further it has to be established that the acts, actual or threatened, of the defendant

are such that they are likely to result in passing off the goods of the defendant as the

goods of the plaintiff.

Copyright:

Infringement of copyright in respect of an artistic work consists in doing or

authorizing the doing of any of the following acts without the consent or licence of the

copyright owner:

To reproduce the work in any material form including the depiction in three

dimensions of a two dimensional work or in two dimensions of a three dimensional

work;

To communicate the work to the public;

To issue copies of the work to the public not being copies already in circulation;

To include the work in any cinematographic film;

To make an adaptation of the work ;

To do in relation to an adaptation of the work any of the acts specified.

58

The companies Act,

INDIA:

The Companies Act 1956: It is an Act of the Parliament of India, enacted in 1956,

which enabled companies to be formed by registration, and set out the

responsibilities of companies, their directors and secretaries.

The Companies Act 1956 is administered by the Government of India through

the Ministry of Corporate Affairs and the Offices of Registrar of Companies, Official

Liquidators, Public Trustee, Company Law Board, Director of Inspection, etc. The

Registrar of Companies (ROC) handles incorporation of new companies and the

administration of running companies. It also extends to the whole India except State

of Jammu and Kashmir.

GHANA:

The Companies Act 1963: Except otherwise provided the Code applies to all

companies formed in Ghana and thus the Code recognizes sector specific laws

including those on insurance, banking, mining etc. A company under the Code may

limited or unlimited or a guarantee company (non-profit making). Both limited or

unlimited companies may be private or public. With regard to companies operating

under the Ghana Investment Promotion Centre, the minimum foreign capital

requirements must be satisfied and reflected in the regulations. Other regulations

may apply together with the Companies Code depending on the sector one is

involved in. A Company is formed by delivering to the Registrar of Companies its

proposed Regulations in compliance with the provisions

of Act 179.

59

EXECUTIVE SUMMARY ON FINANCIAL MARKET OF GHANA:

Enrollment

No

Name of the Students Faculty Guide

117340592148 KHUSHBU CHAMPAKBHAI PABARI Prof. Siraj Bloch

117340592150 BHAVESH D.SORATHIYA

117340592151 PARAS NITIN PAREKH

117340592156 BHAVYA VIJAYBHAI PATEL

117340592159 NISHA NAVINCHANDRA PEDHADIYA

117340592160 PRATIK SANJAYBHAI VYAS

60

FINANCIAL MARKET OVERVIEW OF GHANA:

Generally, a financial system embraces a network of financial institutions and

financial markets which use a variety of instruments for money transmission for

settlement purposes or for financial intermediation purpose. The financial system

includes payments, banking and non-banking, and monetary and credit systems

which provide financial services to their clientele.

Like most African countries, the financial system in Ghana was virtually

underdeveloped before independence. There were only two expatriate banks, which

catered for the needs of expatriate merchants, and therefore failed to advance

loans to local peasants and entrepreneurs, because they lacked collateral

securities. Thus credit circulated only among the big expatriate commercial houses,

which could afford to provide ‗good‘ collateral including life insurance policies,

stocks, shares, bills and other financial instruments which could not be ‗found‘ in the

portfolio holding of natives (Sowa, 2002).

The inadequate lending policies of the two existing expatriate banks favoured

well- established foreign firms while they ignored indigenous farmers and small

entrepreneurs. It was therefore deemed politically and economically desirable to set

up national banks (Ernest Aryeetey 1996.

Ghana Commercial Bank was established in 1953 and throughout the 1960s and

1970s, various development banks, namely, National Investment Bank, Agricultural

Development Bank and the Bank for Housing and Construction were set up to meet

the financing needs of specific sectors of the economy. Furthermore, banks such as

Cooperative Bank, National Savings and Credit Bank, Social Security Bank and later,

unit rural banks were set up. The banks were encouraged to expand their

branch network, and in addition, the Government, in 1970, put in place credit

allocation policies to direct credit to selected priority economic sectors.

61

OVERVIEW OF FINANCIAL SECTOR OF GHANA

In the late 1970s and early 1980s the economy of Ghana was in a state of collapse.

In April 1983 the Government, in collaboration with the World Bank and the

International Monetary Fund (IMF), embarked on a comprehensive Economic

Recovery Program (ERP) to reverse Ghana‘s poor economic performance.

The various policy initiatives adopted include massive devaluation of the Ghanaian

currency, removal of controls on foreign exchange transactions, decontrol of

domestic prices, tighter fiscal management and other measures to increase the free

market system. The impact of the macroeconomic, policy change include reduction

on inflation and improved growth in GDP. Despite the positive changes, the financial

sector remained weak and could not mobilize significant resources to sustain the

reform program. By 1987, the cumulative effect of the devaluation, excessive

regulation of the banks and high default rates in the banks rendered most of their

assets non performing with the consequent heavy losses resulting in financial crisis.

High inflation rates wiped out the capital base of most of the banks and further

pushed them into the state of bankruptcy or technical insolvency.

By the late 1980s the World Bank and the Ghana Government had agreed that a

reform and restructuring of the financial system was indispensable to a successful

economic recovery program. Consequently, in 1988, the government embarked on a

comprehensive Financial Sector Adjustment Program (FINSAP) with Financial

support from the World Bank to address the endemic problems of Ghana‘s

financial sector. The program was implemented in three phases during specified

period as follows:

FINSAP I (1988 – 1991)

FINSAP II (1992 – 1995)

FINSAP III (From 1995)

MAJOR PLAYERS ON THE MARKET

62

Comparatively the equity and the bond markets in Ghana are small with less foreign

or private participants. The major players in the capital markets are the government,

investment banks and Corporations. The bond market is dominated by corporate and

government bonds. Currently apart from the government bonds the other bonds

available on the market are the corporate bonds from Standard Charted, Barclays

bank and Home Finance Company. Governments plan to lift restriction on borrowing

by metropolitan and municipal authorities (AMA, KMA & TMA) and also to launch

their own bonds on the market to fund their medium and long term financial needs

would be a plus to the market. This would create access to cheaper and long-term

funding for these local authorities. Besides the proposed revision of the SSNIT law to

allow other private pension funds to compete with SSNIT is likely to boost the bond

market if it is implemented.

Growth & challenges of Ghana country

The Bond Market

One remarkable achievement of the restructuring is creation and growth of the bond

market in Ghana. According to R E Bailey (2005) a bond is a contract that commits

the issuer to make a definite sequence of payments until a specific time. He further

explained that bonds are special forms of loans, which is commonly an agreement

between a borrower and a lender (R. E Bailey- 2005 p282.) The bond market in

Ghana has shown a tremendous improvement since the first trading of Ghana Stock

Exchange Commemorative Registered Stock of 1990. These bonds were a 5-Year

debt instruments issued to provide a foundation for active bond trading on the newly

created Ghana Stock Exchange. This was followed by the by HFC dollar Housing

Bond Series. The government's aim of developing the bond market in Ghana cannot

be over emphasis. Every attempt was made to sustain the market. In recent times

the government inundated the market with forty-eight, 2, 3 & 5-year bonds worth a

little over GH¢1 billion. This acts as boost to the primary market and was described

by the GSE as 'a significant landmark in the history of the Exchange'.

The government's listings enhanced the bond market in Ghana and also showed the

government's commitment to the development of the bond market. As of December

2006, total outstanding government bonds stood at GFC 2,400 bn (USD 260 mn).

Another major boost to the market was the listing of Standard Chartered Bank's three

63

year Medium Term Notes worth ¢350billion as well as preference Shares. The

introduction of government of Ghana's golden Jubilee bond in 2008 also signified a

major transformation in the financial markets as well. This 5-year bond was listed in a

bid to enhance the secondary trading on the market and to ensure liquidity. This has

been viewed as a positive development in the market. (Bank of Ghana Consultation

Paper October 2007)Finally one other major boost to the bond market is the issuing

in October 2006 of cedi dominated Africa Development Bank (AfDB) Bond. This is a

two year bond linked to the Ghanaian cedis and its worth GHC 414.9 billion.

THE DERIVATIVE MARKET

A derivative instrument according to (Glen Arnold 1998) is an asset whose

performance is based on (derived from) the behaviour of the value of an underlying

asset (usually referred to simply as the underlying). The most common underlying

are the commodities (e.g. tea pork bellies), shares, bonds, share indices. Glen

Arnold explained that derivatives are financial contracts, which do not represent

ownership rights in any asset, but have their values based on the value of some

other underlying commodity or other asset. This underlying variable can be referred

to as underlying asset. These may include crude oil, bond, equities, exchange rate,

interest rate gold, wheat, just to mention a few. Usually, derivatives are contracts to

buy or sell the underlying asset at a future time, with the price, quantity and other

specifications defined in the present. Contracts are binding for both parties or for one

party only, with the other party reserving the option to exercise or not. Derivatives

contracts include futures, options, swap, forward rate agreement (FRA), and

forwards. Derivatives are traded in organized exchanges as well as over the counter

(OTC derivatives). (Glen Arnold1998)

Ghana has a fairly new derivative market, which is developing steadily. The swap

was introduced in 1997. At its inception it had only CAL merchant bank and Barclays

bank of Ghana engaging in Forward Rate Agreements (FRA). Ashanti Goldfields

Company Ltd. also used options, futures and FRA to hedge against price fluctuations

in gold on the commodity market. For example Ashanti Gold sold 4.1m ounces

forward at an average of $432 an ounce and also sold call options covering 1.1m

ounces to expire over 5 years at an average strike price of $459. Total hedging

64

position of 5.4 represented less than 2.5 of its gold reserve. (Glen Arnold, 1998) The

situation is differently today with more companies involved in the derivative market.

According a Bank of Ghana report (Bank of Ghana WP/BOG-07/02) the derivative

market would improve the capital structure and profit-making ability of the

commercial banks, as well as corporate bodies in Ghana. It would strengthen the

effect of monetary policies and absorb more international capital into the country,

thus accelerating the economy's future growth prospects. Derivative contracts

provide an easy and straightforward way to both reduce risk (i.e. hedging), and to

bear extra risk (i.e. speculating). Derivatives could also be used by equity investors

to serve as protection against risk (i.e. insurance against price volatility) in the

market. With the establishment for instance credit derivatives market in Ghana,

whose primary purpose is to enable the efficient transfer and repackaging of credit

risk that otherwise would have been borne by commercial banks and other entities.

In their simplest form, credit derivatives could provide banks and other users with a

more efficient approach to replicate in a derivative form the credit risks that would

otherwise exist in standard cash instrument. In their more exotic form, credit

derivatives can enable the credit profile of a particular asset or group of assets of

participating banks and other end-users to be split up and redistributed into a more

concentrated or diluted form that appeals to the various risk appetites of investors.

(Bank of Ghana reports 2007 WP/BOG-07/02).

THE EQUITY MARKET

Government and Institutional shareholders dominate the equity market. For example,

as of 2003, four of the six bonds listed on the Ghana stock exchange belonged to the

Home Finance Company and the remaining two belonged to the government. Also in

2007, two of the three shares offer on the Ghana Stock Exchange belonged to the

Government. The remaining one belongs to Ghana Star Resources. The only right

issue for the period was offered by Ghana commercial bank, which is owned by the

government. For the market to expand government must encourage more private

participation just like any market in the developed world.

The size of capital market in Ghana in the 1990s in terms of instruments traded and

the number of participants was small relative to that of other developed markets.

However the market has leap frogged from its embryonic state since its creation into

65

a force in the sub region. From 2000 onwards there were significance increase in

trading on GSE. A study conducted by IMF in 2006 revealed the stock market under

performed in the first 4 years of its establishment. In the mid 1990s the story was

different. In 1994 the stock market capitalization in proportion to GDP reached a

record peak of 35 percent. This, according to the study is close to the world

average of 38.2 percent. (I MF Working Paper 2006 WP/06/201)

CHALLENGES OF GHANA

The above achievement not withstanding, fluctuations in interest rates, high rate of

inflation and instability of the cedi, have made it difficult for traders to predict the

long- term effects of the capital market and as a result find it difficult to either invest

or borrow from the market. According to Bank of Ghana report, for the fifth

consecutive month, headline inflation went up from 12.8 percent in January 2008 to

13.2 percent in February 2008.This was attributed to price increases in the first two

months of the year. This increase the report said is driven by surges in food prices

and rising crude oil prices. (Bank of Ghana Monetary Policy Report: Vol. 3 NO. 2:

2008 1)

This condition one would argue flies in the face of the argument put forward by

Samuelson and Mandelbrot in their ―Efficient Market Hypothesis‖ (EMH): They are

argued that when markets are working properly, then all public information regarding

an asset will be channelled immediately into its price. If price changes seem random

and thus unforecastable it is because investors are doing their jobs: The investment

theory that states that it is impossible to ―beat the market‖ because stock market

efficiency causes existing share prices to always incorporate and reflect all relevant

information. According to the EMH, this means that stocks always trade at their fair

value on stock exchanges, and thus it is impossible for investors to either purchase

undervalued stocks or sell stocks for inflated prices

RECENT DEVELOPMENTS IN THE FINANCIAL MARKETS IN GHANA

A number of changes have taken place in the financial markets in Ghana with the

aim of ensuring efficiency in the financial system and the banking system. One major

change or development that has taken place recently is the establishment of the

Home Finance Company that has brought about a great change in the loan portfolios

66

of banks in Ghana. Since the introduction of Banks in Ghana, their loan portfolios

have consisted of short- term facilities granted to their customers who were mostly

international traders. But since the mid 1980?s, most of the banks have started to

expand their loan portfolios by granting mortgage facilities to customers. In order to

provide a secondary markets for the banks in this direction, the Home Finance

Company Ltd. was established in 1987 to provide secondary mortgage finance

(SMF) to the banks. "The SMF scheme is designed to enable Decree 225 banks

(foot notes) to grant mortgage facilities which can in turn be sold to Home Finance

Company to improve the liquidity of the participating banks The SMF scheme apart

from providing liquidity, also helps the banks generate more income and also help

them diversify their risk portfolio of assets. Secondly, it also enables the banks to

grant long- term loans and reduce their risk exposures to default. Thus it can be said

that, the SMF scheme provides the banks with the opportunity to manage their asset-

liabilities and liquidity efficiently thereby preventing failures in the banking system.

In addition to the above, until 1992 the discount houses remained the main

institutions providing intermediary function (secondary market) between the local

banks and the bank of Ghana. The Banks could only buy or sell securities to the

discount houses. They provided the daily liquidity needs of the banks. They were the

only institutions that served as the primary market for the Bank of Ghana and

secondary market for the commercial banks and other institutions for government of

Ghana stocks and bonds, bank of Ghana bills, cocoa bills and bank acceptances. In

1992, there was a great change when the wholesale market was established to

enhance competition in the secondary market for these instruments. Under this

scheme, the banks are now allowed to deal directly with the Bank of Ghana through

the establishment of the REPO MARKET. The scheme also encouraged the

establishment of the inter - bank market to compete with the discount houses for

short -term funds. In addition, selected brokerage firms have also been allowed to

participate in the weekly wholesale auction. The consequence of the above

institutional changes has been an increased competition in the money market and

led to the development of new instruments like the REPO in1992. This new change

and development has provided a means for the banks to manage their liquidity better

than before because they can now trade directly with the bank of Ghana. They can

67

also trade among themselves in the inter-bank market, brokers, and the discount

houses.

CAPITAL MARKET

Ghana‘s capital market, since its establishment has gone through various stages of

developments. Today the market is highly regarded as the best performing markets

on the African Continent. Not with standing these, government and the private

institutions have not taken advantage of the capital market to raise long-term capital

to optimize their operational activities. The 2012 Budget statement as presented by

the Minister of Finance and Economic Planning clearly stated this in paragraph 198

on page 55 ―Madam speaker, for the past 20 years the Ghana Stock Exchange has

enjoyed tax holidays yet total capitalization of the stock market has not met the

country‘s expectation. To improve the capitalization, the government is extending the

stock market tax holiday for another five years.

In addition, the exemption form capital gain tax has been extended for further five

years to promote investment and deepen activities on the stock market. Mutual funds

and unit trust funds that invest in stocks on the stock market will also be exempted

from VAT on financial services‖.

The Ghana stock market cannot be developed on these lines alone. It takes more

effort and deliberate government policy to widen and deepen the growth of any stock

market. Apart from having the macro-fundamentals right to create that platform, there

must be a deliberate and conscious government policy to grow the market.

There are only 34 companies listed on the Ghana stock market with one depository

and preference shares each. The total market capitalisation of the market as at the

close of business on Friday July 6 stands at GH¢55,199.06 million. Government is

still holding to its chest a good number of state enterprises and public organisations

which should have been by now be listed on the Ghana Stock Exchange.

These organsiations include Graphic Communication Group Ltd, Agricultural

Development Bank, National Investment Bank, Vodafone Ghana, GHICO Distilleries,

Tema Development Corporation among others.Most of the medium scale banks in

the country are currently struggling to meet the Bank of Ghana minimum capital

requirement. Surprisingly these banks are shying away from the capital market

68

without any apparent reason. If the government has been using the market more

often, most of these enterprises would have reverted to the market. Again most of

these local oil marketing companies need to develop and expand their operations

and yet they are refusing to use the market to raise long-term capital for their own

benefit.

Government must always set the pace for the private sector to follow. the

Government unwillingness to let go some of its shares through the stock market

would never ever encourage the private sector to let go what they have created and

nurtured over the past years. There are big institutions such as Barclays Bank,

Nestle, Ghancem, MTN

The stock market is a perfect means of mobilization of savings from the

economy. It mobilises funds from people for further investments in the

productive channels of an economy. In that sense it activates the ideal monetary

resources and puts them in proper investments.

Capital formation is net addition to the existing stock of capital in the economy.

Through mobilisation of ideal resources it generates savings; the mobilised savings

are made available to various segments such as agriculture, industry, manufacturing

among others. This helps in increasing capital formation.

Capital market raises resources for longer periods of time. Thus it provides an

investment avenue for people who wish to invest resources for a long period of time.

It provides suitable interest rate returns also to investors. Instruments such as bonds,

equities, units of mutual funds, insurance policies, etc. definitely provides diverse

investment avenue for the public. The system also enhances production and

productivity in the national economy. As it makes funds available for long period of

time, the financial requirements of business houses are met by the capital market.

It helps in research and development. This helps in, increasing production and

productivity in economy by the generation of employment and development of

infrastructure.Capital markets not only help the in fund mobilisation, but it also helps

in proper allocation of these resources. It can have regulation over the resources so

that it can direct funds in a qualitative manner.

69

1) PRIMARY MARKET

A primary market facilitates the issuance of new securities to the public. Their

transaction provides funds to the initial user of securities. In primary markets,

investment bankers act as brokers; they seek for investors to purchase securities

directly from the 19issuing company. The issuance of new corporate stock is an

example of a primary market transaction.

2) SECONDARY MARKETS

Secondary markets facilitate the trading of existing securities among investors. This

implies an established security exchange or an over-the-counter market. The sale

of existing corporate stock by any business or individual is an example of a

secondary market transaction.

MONEY MARKETS

A Money market is a sub sector of the bond market. It consists of very short-term debt

securities that are usually highly marketable. They have a maturity of less than one year

and a higher degree of liquidity. Many of these securities are traded in large

denominations and so are out of the reach of individual investors. However, money

market funds are easily accessible to small investors. Here, mutual funds pool the 20

resources of many investors and purchase a wide variety of money market securities on

their behalf. Examples of money market funds are treasury bills, bank discount yields,

commercial paper etc

STOCK EXCHANGE

The Ghana Stock Exchange (GSE) is the principal stock exchange of Ghana. The

exchange was incorporated in July 1989 with trading commencing in 1990. It currently

has around 36 listed companies and 2 corporate bonds. All types of securities can be

listed. Criteria for listing include capital adequacy, profitability, spread of shares, years

of existence and management efficiency. The GSE is located in Accra.

70

History and operations

Since its inception, the GSE's listings have been included in the main index, the GSE

All- Share Index. In 1993, the GSE was the sixth best index performing emerging stock

market, with a capital appreciation of 116%. In 1994 it was the best index performing

stock market among all emerging markets, gaining 124.3% in its index level. 1995's

index growth was a disappointing 6.3%, partly because of high inflation and interest

rates. Growth of the index for 1997 was 42%, and at the end of 1998 it was 868.35 (see

the 1998 Review for more information). As of October 2006 the market capitalizationof

the Ghana Stock Exchange was about 111,500 billion cedis ($11.5 billion). As of

December 31 2007, the GSE's market capitalization was 131,633.22 billion cedis. In

2007, the index appreciated by 31.84% (see the "Publications" section on the GSE's

website for more information).

The manufacturing and brewingsectors currently dominate the exchange. A distant third

is the bankingsector while other listed companies fall into the insurance, mining and

petroleumsectors. Most of the listed companies on the GSE are Ghanaian but there are

some multinationals.

Although non-resident investors can deal in securities listed on the exchange

without obtaining prior exchange control permission, there are some restrictions on

portfolio investors not resident in Ghana. The current limits on all types of non-resident

investor holdings (be they institutional or individual) are as follows: a single investor

(i.e. one who is not a Ghanaian and who lives outside the country) is allowed to hold

up to 10% of every equity. Secondly, for every equity, foreign investors may hold up to a

cumulative total of 74% (in special circumstances, this limit may be waived). The limits

also exclude trade in Ashanti Goldfieldsshares. These restrictions were abolished by the

Foreign Exchange Act, 2006 (Act 723).

Government Securities

The bond market is nascent, and there has been a conscious effort on the part of the

Bank of Ghana (BoG) and Ministry of Finance and Economic Planning (MoFEP) to

effect a change by promoting bond market development. The government is the main

71

issuer of debt securities. As of March 2009, total outstanding government securities

stood at GHS 3,440mn (USD 2,529mn) comprising mostly of short term bills, and to a

smaller extent notes and longer term bonds.Bonds listed on the local exchange

comprise of longer‐dated government securities (maturities of two years and above)

and a few corporate bonds (including issues under HFC Bank shelf registration program

and Standard Chartered Bank MTN Programme). The legal framework of the capital

markets is defined by the Securities Industry Law of 1993 (amended in 2000) and the

Securities and Exchange Commission (SEC) Regulations (2003). The SEC acts as the

primary regulator of capital market activities in Ghana. The Ghana Stock Exchange

(GSE) has its own separate regulations that govern admissions to listing securities on

the stock exchange.The Bank of Ghana holds weekly auctions on Fridays for the sale of

BoG treasury bills and bonds to 17 primary dealers, known as Government Securities

Dealers. There is no set issuance calendar for the longer‐term treasury bonds. Issuance

of treasury bills is via a multiple price auction while treasury bonds are issued via a

uniform price auction

The following BoG securities are issued in the debt market:

• Treasury bills (91‐, 182‐day)

• 1‐year note

• 2‐year fixed rate

• 2‐year floating rate

• 3‐year fixed rate

• 3‐year floating rate

• 5‐year fixed rate

72

GHANA STOCK MARKET:

Capital markets are developing quickly in Ghana and are regulated by the Ghana Stock

Exchange (GSE) which started operations in 1990. As of March 2009, the GSE had 31

listed companies, with a market capitalization of approximately GHS 14.54bln (USD

10.6bn). The GSE sets the rules and regulations for companies and other entities

seeking to be publicly listed on the GSE.

The GSE is governed by a Council (Board of Directors) with representation from

licensed dealing members, listed companies, banks, insurance companies and other

persons of the Ghanaian finance and public service sectors. The All share Index of the

Ghana Stock Exchange has grown at a 10‐ year compounded annual growth rate of

30.6% while the 10‐year average annual return is 37%. The manufacturing, brewery

and banking sectors dominate the exchange. The market currently has 31 listed

companies with total capitalization of GHC 14.5bln or 105% of GDP. The top 10 firms by

capitalization represent 95% of total market cap. The top 3 firms represent 81% of total

market cap. It is important to note that the two largest listings are multinational

corporations simultaneously listed in other stock markets, hence their relatively large

capitalization compared to the other listed companies. In 2008, 546 million shares worth

GHC 381mln traded on the exchange, an increase of 90% and 170% respectively over

2012.

73

EXECUTIVE SUMMARY ON MAJOR TRADE PARTNERS OF GHANA:

Enrollment

No.

Name of the Students Faculty Guide

117340592100 VIRENDRASINH SUKHDEVSINH JHALA Prof. Siraj Bloch

117340592101 MAYUR RASIKBHAI JAT

117340592103 MAHESH DULLABHAJI BHAI DOBARIYA

117340592111 HARSHIT CHANDRAKANT KHAKHKHAR

117340592112 JANKI MUKESHBHAI SURELIYA

117340592113 PARTH RAJESHKUMAR KOTECHA

74

MAJOR TRADE PARTNERS OF GHANA:

Details Year 2006 Year 2007 Year 2008 Value in Billion

US $ CAGR

over 5yrs (%age)

Ghana's Total Trade with the world 8.94 10.81 13.09 21.00

% growth Over Previous Year - 20.92 21.09

Ghana's Total Imports from world 5.33 7.28 9.06 30.38

%age Share of imports in Total Trade 59.61 67.34 69.21

%age Growth Over Previous Year - 36.60 24.44

Ghana's Total Exports from world 3.61 3.53 4.03 5.66

75

%age Share of exports in Total Trade 40.39 32.66 30.79

%age Growth Over Previous Year - -2.22 14.16

Ghana's Total Trade with India 0.26 0.39 0.60 51.80

India's %age Share in Ghana's Total 2.94 3.67 4.63

Trade

% Growth Over Previous Year - 50.95 52.64

Ghana's Total Imports from India 0.20 0.31 0.39 38.28

India's %age Share of imports in Total 3.85 4.38 4.33

Imports

%age Growth Over Previous Year - 55.610 22.88

Ghana's Total Exports to India 0.058 0.078 0.21 92.08

76

India's%age Share of exports in Total 1.61 2.21 5.31

Exports

%age Growth Over Previous Year - 34.48 174.36

GHANA’S TRADE RELATIONS AND STATISTICAL FACTS

Currants Account Balance

Item 2008 (US$m) 2009 (US$m) 2010 (US$m)

Exports 5 269. 73 5 839. 71 7.326

Imports 10 268. 50 8 046. 26 10.180

Trade balance (4 998. 77) 2 206. 55 (1.871)

77

Ghana’s Members hip to Economic Blocs and International Organizations

Ghana has benefited from the Economic Partnership with the European Union (non

reciprocal market access), and Generalised System of Preferences and AGOA. Besides

an active member of the ECOWAS and the African Union (AU), Ghana participates in

the following other international organizations: ACP, AfDB, FAO, G-24, G-77, IAEA,

IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol,

IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURCAT, MINURSO, MONUC, NAM,

OAS (observer), OIF (associate member), OPCW, UN, UNAMID, UNCTAD, UNESCO,

UNHCR, UNIDO, UNIFIL, UNITAR, UNMIL, UNOCI, UNOMIG, UNWTO, UPU, WCL,

WCO, WFTU, WHO, WIPO, WMO, WTO.

Product Description US$`000

All Products 5 233 390

Gold 2 990 899

Cocoa beans 847 415

Aluminium 111 481

Cocoa butter 86 461

78

Manganese ores and concentrates 77 307

Veneer 38 599

Polysters 31 395

Lumber 2 520

Composition of the main export destinations (2010)

79

Ghana’s Imports from the World (2010)

Product Description US$`000

All Products 8 057 141

Automobiles 295 623

Cement clinkers 183 001

Refined sugar 181 377

Diesel powered trucks 165 912

Rice 137 733

Rubber tubes, pipes and hoses 125 106

Wheat 110 206

Fowls 98 586

80

Composition of the main export destinations (2010)

81

1.6 Present Trade Relations and Business Volume of different products with India

Top 20 Product Groups of Ghana's Global Imports, major supplier countries and India's

%age share. (Year 2002)

S.No. HS Product Description Global Imports Top Supplier India's

code Imports from Countries Year % Share

India 2000

All products 2,053.80 105.14 5.119

1 84 Nuclear reactors, 263.54 10.06 UK, USA, 3.817

boilers, machinery, etc Germany

85 Electrical, electronic 183.19 1.55 UK, Netherlands, 0.846

Equipment USA

2

3 87 Vehicles other than 182.38 1.51 Germany, 0.829

railway, tramway Belgium,

Netherlands

4 10 Cereals 74.06 8.30 USA, Canada, 11.201

Thailand

82

5 27 Mineral fuels, oils, 64.81 0.04 Nigeria, Spain, 0.054

distillation products, etc Cote D' Ivoire

6 28 Inorganic chemicals, 62.47 0.62 USA, UK, Italy 0.999

precious metal

compound, isotopes

7 39 Plastics and articles 61.76 3.14 Korea Rp, UK, 5.087

Thereof USA

8 25 Salt, sulphur, earth, 57.71 0.64 S. Arabia, Togo, 1.109

stone, plaster, lime and S. Africa

cement

9 30 Pharmaceutical 54.77 13.71 India, UK, 25.034

products Belgium

10 73 Articles of iron or steel 54.12 7.49 USA, S. Africa., 13.840

Senegal

11 17 Sugars and sugar 47.87 2.11 Brazil, Niger, 4.402

confectionery France

12 63 Other made textile 47.75 4.84 Italy, USA, UK 10.126

83

articles, sets, worn

clothing etc

13 72 Iron and steel 47.03 6.47 Russia Fed, 13.763

84

Japan, UK

14 99 Commodities not 45.43 0.59 Turkey, 1.297

elsewhere specified Thailand, Togo

15 38

Miscellaneous

chemical 45.13 0.24 UK, France, 0.525

products Netherlands

16 48 Paper & paperboard, 42.37 1.79 S. Africa, UK, 4.222

articles of pulp, paper France

and board

17 15 Animal, vegetable fats 38.49 0.03 Netherlands, 0.070

and oils, cleavage Malaysia, France

products, etc

18 40 Rubber and articles 38.19 3.71 Netherlands, UK, 9.710

Thereof Germany

19 52 Cotton 34.00 13.68 China, Togo, 40.218

Netherlands

20 90 Optical, photo, 31.51 1.23 Netherlands, 3.909

technical, medical, etc China, UK

85

Apparatus

Principal Commodities of India's Bilateral Trade with Ghana

India's Export of Principal Commodities to Ghana

Rank Commodity Value in Value in % Share % Age growth

US$ Million US$ Million in April - / decline Apr -

April - Dec., April - Dec., Dec., 2003 Dec 2003 / Apr

2002 2003 - Dec 2002

Total 75.03 129.40 100.00 72.46

1

Drugs, Pharmaceuticals

& 14.32 14.99 11.58 4.66

Fine Chemicals

2 Manufactures of Metals 6.51 14.03 10.84 115.40

3 Primery and Semi 4.39 11.57 8.94 163.51

Finished iron and Steel

4 Cotton Yarn, Fbarics, 10.91 11.13 8.60 2.02

madeups, etc.

5 Machinery & Instruments 7.52 7.18 5.55 -4.63

86

6 Sugar - 4.42 3.42 -

7 Other Jute Manufactures 2.07 4.05 3.13 95.86

8 Glass/glassware 1.53 4.03 3.11 163.03

/Ceramics/refractories

/cement

9 Transport Equipment 1.13 3.56 2.75 214.86

10 Plastic & Linoleum 3.07 3.11 2.40 1.21

Products

11 Rubber manufactured 2.31 2.54 1.96 9.99

Products Except

Footwear

12 Paper /Wood Products 3.03 2.07 1.60 -31.60

13

Cosmetics /Toiletries,

etc. 1.88 2.01 1.56 7.22

14 Machine Tools 0.40 1.44 1.11 262.73

87

15 Manmade yarn, fabrics, 1.14 1.31 1.01 14.77

made-up

16 Inorganic /Organic /Agro 0.70 1.15 0.89 64.31

chemicals

17 Misc. Processed Items 0.47 1.12 0.86 137.35

18 Other Commodities 0.51 1.07 0.82 111.02

19 Electronic goods 0.43 0.92 0.71 116.55

20 Rice – Basmati 1.49 0.60 0.46 -59.87

Total for Top 20 63.81 92.30 71.33 44.65

Product Groups

India's Import of Principal Commodities from Ghana

88

Value in US$ Million

Commodity April - April - % Share in % Age Growth / Decline

Dec., 2002 Dec., 2003 April - Dec., Apr - Dec 2003 / Apr -

2003 Dec 2002

Total 15.8295 29.3858

Cashew Nuts 3.2132 19.0486 64.82 524.48

Metalifers Ores and 5.8290 6.9627 23.69 25.83

Metal Scrap

Wood and Wood 5.6223 2.6510 9.02 -50.33

products

Pearls Precious Semi 0.4227 0.2668 0.91 -33.51

Precious stones

Other Commodities 0.1692 0.2348 0.80 46.20

Cotton Raw: Comb/ 0 0.1469 0.50 -

Uncomb/ waste

Oil Seeds 0.5731 0.0617 0.21 -88.66

Spices 0 0.0133 0.05 -

89

2.1 Major trading partner of Ghana

Major trade partner of ghana are in described in below table

Rank Partners Mio euro %

- Extra EU27 3 215053,0 100,0%

1 United States 444 708,0 13,8%

2 China 428 287,8 13,3%

3 Russia 306 627,1 9,5%

4 Switzerland 212 894,7 6,6%

5 Norway 140 059,6 4,4%

6 Turkey 120 176,0 3,7%

7 Japan 116 415,1 3,6%

8 India 79 676,2 2,5%

9 Brazil 73 481,3 2,3%

10 South Korea 68 475,6 2,1%

90

11 Saudi Arabia 54 328,8 1,7%

12 Canada 52 459,6 1,6%

13 Singapore 46 068,8 1,4%

14 Algeria 44 739,0 1,4%

15 South Africa 43 412,9 1,4%

16 Australia 42 559,7 1,3%

17 United Arab Emirat 41 384,3 1,3%

18 Hong Kong 40 322,4 1,3%

19 Taiwan 40 124,2 1,2%

20 Mexico 40 071,8 1,2%

91

EXECUTIVE SUMMARY ON MAJOR INDUSTRY OF GHANA:

Enrollment

no

Name of the Students Faculty Guide

117340592083 BHAVIN KANUBHAI SARVAIYA Prof. Falguni Shelani

117340592086 SWARANGI VINODCHANDRA PANCHAL

117340592087 RIDDHI JAI TRIVEDI

117340592092 UMESH VALLABHBHAI KANDOLIYA

117340592095 MAYURI HARSHADBHAI LIKHIYA

117340592099 PRATIKSHA GHANSHYAMBHAI DANGAR

92

MAJOR INDUSTRY OF GHANA:

Well endowed with natural resources, Ghana has coarsely twice the per capita

output of the poorest countries in West Africa. Even so, Ghana remnants

heavily dependent on international financial and technical assistance. Gold and

cocoa production and individual remittances are major sources of foreign exchange.

Oil production is predictable to expand in late 2010 or early 2011. The domestic

economy continues to revolve around agriculture, which accounts for more than a

third of GDP and employs more than half of the work force, mainly small landholders.

Ghana signed a Millennium Challenge Corporation (MCC) Compact in 2006, which

aims to assist in transforming Ghana's agricultural sector. Ghana opted for debt relief

under the Heavily Indebted Poor Country (HIPC) program in 2002, and is also

advancing from the Multilateral Debt Relief Initiative that took effect in 2006.

Thematic priorities under its current Growth and Poverty Reduction Strategy, which

also affords the framework for development partner assistance, are: macroeconomic

stability; private sector competitiveness; human resource development; and good

governance and civic responsibility. Sound macro-economic management along

with high prices for gold and cocoa helped sustain GDP growth in 2008 and 2009.

Ghana is well endowed with natural resources. Gold-cocoa manufacture and

individual remittances, are chief sources of foreign exchange. The domestic

economy motionless rotates around sectors like agriculture and accounts for about

35% of GDP and employs about 55% of the work force, mainly small landholders.

Ghana has signed a Millennium Challenge Corporation (MCC) Compact in 2006,

which aims to assist in transforming Ghana's agricultural sector. The country opted

for debt relief under the Heavily Indebted Poor Country (HIPC) program in 2002,

and is also benefiting from the Multilateral Debt Relief Initiative that took effect in

2006. The priorities under the Growth and Poverty Reduction Strategy, which also

provides the framework for development partner assistance, are: macroeconomic

stability, private sector competitiveness, human resource development and good

governance and civic responsibility. Sound macro-economic management along with

high prices for gold and cocoa helped sustain GDP growth in 2008

93

Agriculture Sector

Agriculture is the considered as the backbone of Ghana’s economy accounting for

about 40 percent of the country’s gross domestic product, employing 60-70 percent

of the labour force and generating more than 55 percent of the foreign exchange

earnings. The Ministry of Food and Agriculture (MOFA) is the one responsible for the

development and growth of agriculture in the country with the exception of the

Cocoa-Coffee and Forestry sector. These two sectors fall under the Ministries of

Finance and Lands and Forestry. MOFA’s role is the formulation of appropriate

agricultural policies, planning & co- ordination, monitoring and evaluation within

the overall national economic development

Many challenges are being faced by the agricultural sector of Ghana which are

access to credit, poor infrastructure including lack of irrigation development,

insufficient and inadequate storage facilities, high transport cost, land acquisition

and tenure issues and social and environmental problems. The country’s major

exports commodities include cocoa, timber and pineapples. The emerging

industrial sector's products include cassava, fruits, and cocoa by-products.

The sector of seafood is rapidly emerging as one of Ghana’s most important

industries. The processing sub-sector is one of the attractive sectors for investment.

The Ghana Free Zone can boast of one of the major fish processing firms in West

Africa, processing about 170 tons of seafood (tuna) a day.

Mining Sector

The mining accounts for around 5% of the GDP and the minerals take up 37% of

total exports. The major share of exports of minerals which is around 90% is taken

up by gold. Thus, the main focus of Ghana's mining and minerals development

industry remains focused on gold. Ghana is Africa's 2nd largest gold producer. Gold

production reached 2,143 Moz in 2005. The majority of mining is done in the

homegrown Ashanti Gold Fields, which produced nearly half at 37 t from its five

mining operations. Ghana is also a major producer of bauxite, manganese and

diamonds.

94

The country is at present got thirteen large-scale mining companies producing

gold, diamonds, bauxite and manganese and there are also over three hundred

registered small scale mining groups and ninety mine support service companies.

Several other organisations are also involved in producing building and industrial

minerals in the country. Ghana's economic geology is centered on Proterozoic rock

types,majorly the Birimian and Tarkwian systems. The Birimian belt in West Africa

hosts nearly all of the known gold deposits in Ghana, Burkino Faso and Cote De

Ivoire. Ashanti Gold Belt of South West Ghana, part of the volcano sedimentary

Birimian Belt, includes seven producing mines. The Gold deposits in the Birimian are

mainly in the form of auriferous quartz veins of 'reefs' and as sulphide ore. The

Tarkwian system rocks consist of a thick series of argillaceous sediments resting

unconformably on the Biriman. Gold is found in these sediments, occurring as

blanket reefs or conglomerate beds, similar to those of the Witwatersrand in South

Africa. Alluvial diamonds, about 80% of industrial grade, are produced on a large

scale. Primary kimberlites have yet to be found.

Tourism:

The available statistics records show that Ghana’s tourism sector annually makes

almost $1.1bn in foreign exchange earnings, contributes about four percent of the

national Gross Domestic Product and generates about 220,000 direct formal

employments nationwide. The spending of a tourist as in 2006 averaged to about

$1,985 while the average length of stay was 10 days. In that year, the country

attracted 497,129 tourists. Ghana's Tourism Ministry, is aiming to help the country to

attain a per capita income of $1,000 by 2015 through the realization of the sector’s

full potential in contributing to economic wealth creation, employment generation,

poverty reduction, environment conservation as well as national and international

cohesion.

The government further seeks to attract about a million tourists into Ghana annually

with a corresponding growth in the expansion of tourism plants across the country

including restaurants, pubs, night clubs and tourist receptacles.

95

Financial Services

The financial sector in Ghana encompasses a broad range of organizations that deal

with the management of money. The financial services industry is categorized into three

main sectors:

∑ Banking and Finance (including Non-Bank Financial Services and Forex Bureau)

∑ Insurance and

∑ Financial market/capital marke

The Ghanaian government has shown their strong commitment towards the

development of the financial sector. In 2003, the Financial Sector Strategic Plan

(FINSSP) got the approval from the government and came into power with the aim to

broaden and deepen the financial sector. Improved governance in the financial markets

remains an important focus for the continued reform agenda.

Through FINSSP the Government of Ghana intends to promote the evolution of a

financial sector which is appropriate for the needs of a country moving towards middle

income status. The vision is one of a financial sector which is responsive to the needs of

the 21st century, particularly given the prospect of greater international and regional

competition and opportunity for Ghanaian financial market participants.

The Banking Act has made way for the establishment of the International Financial

Services Centre (IFSC) by the government. This was setup to increase the

competitiveness of the Ghanaian banking sector.

96

Part-2

(Industry Analysis of Ghana)

97

Executive Summary of Agriculture sector of Ghana

Enrollment

No Student Name Faculty Name

117340592002 JANKI HARSHADBHAI PAREKH

Prof. Viral Toliya

117340592008 TANVI JAYESHKUMAR PUJARA

117340592010 JANKI VRUJLAL VAJA

117340592013 NIDHI RAJESHBHAI VAMJA

117340592014 JAYDEEP NANALAL PANCHANI

117340592016 DEVANSHI NIKHILBHAI SACHADE

98

Executive Summary of Agriculture sector of Ghana

Importance of agriculture in Ghana:

Agriculture is Ghana's most important economic sector, and it helps to give

employment to more than half the population and accounting for almost half of GDP and

export earnings. Ghana produces a variety of crops in various climatic zones which

range from dry savanna to wet forest and which run in east west bands across the

whole country. Agricultural crops, including yams, grains, cocoa, oil palms, kola nuts,

and timber, are the base of Ghana's economy.

Land Area of Ghana:-

The Land area (sq. km) in Ghana was last reported at 227540 in 2010, according to a

World Bank report published in 2012. Land area is a country's total area, excluding area

under inland water bodies, national claims to continental shelf, and exclusive economic

zones. In most cases the definition of inland water bodies includes major rivers and

lakes. This page includes a historical data chart, news and forecasts for Land area (sq.

km) in Ghana.

Land Area of India:-

The Land area (sq. km) in India was last reported at 2973190 in 2010, according to a

World Bank report published in 2012. Land area is a country's total area, excluding area

under inland water bodies, national claims to continental shelf, and exclusive economic

zones. In most cases the definition of inland water bodies includes major rivers and

lakes.This page includes a historical data chart, news and forecasts for Land area (sq.

km) in India.

Climate of Ghana:-

Ghana climate is a tropical one because of Ghana's location, a few degrees above

the earth's equator. It varies across the entire country and solely dependent on the

temperature, rainfall and humidity.

99

Temperatures are high all year round, except on the hills and mountainous areas,

like the Aburi and the Kwahu mountains. Temperatures drop in the wet seasons but

remain relatively humid. The annual mean temperature is about 28 C(82.4F)

Ghana has two seasons: wet and dry.

Macroeconomic Outlook:

The economy of Ghana, West Africa, has a diverse & rich source base & as

such, has 1 of highest GDP per capita in Africa. The domestic economy continues to

revolve around survival agriculture, which accounts for 35% of GDP & employs 55% of

work force, mainly small landholders.

AGRICULTURE PRODUCTS:

1. Crops:

Cocoa and oil-palm are the main crops in the wetter southwest of the country and

groundnuts, sorghum, millet, and maize in the drier north. Cassava is found between

north, southwest and in the southeast.

2. Livestock Production :

The livestock sub-sector is maintained by small scale operators who are mainly crop

farmers keeping livestock to supplement to their incomes and/or for security purposes.

There are few well-organized commercial poultry and pig operations found in Ghana.

3. Fishery:

The fishery sector in Ghana principally encompasses marine fishery, inland (fresh

water) fishery and aquaculture fishery as well as related activities in fish storage,

preservation, marketing and distribution. Fisheries constitute an important sector in

national economic development. The sector is estimated to contribute 3 % of the total

GDP and 5 % of the GDP in agriculture. About 10 % of the country’s population is

engaged in various aspects of the fishing industry.

100

4. Forestry:

Ghana’s forests make up part of the Guineo-Congoleanphyto ecological region.

There are six main types of forest; dry semi-deciduous, upland evergreen, moist semi-

deciduous, moist evergreen, and wet evergreen, southern marginal, and southeast

outlier.

Forests cover about one-third of Ghana's total area, with commercial forestry

among the southern parts of the country i.e. 21.7% according to the U.N. FAO. Out of

this 8.0% (395,000) is classified as primary forest, which is the most bio diverse and

carbon-dense form of forest. Ghana had 260,000 ha of planted forest. Timber was

among the country's third largest foreign exchange earner which is produce in Ghana’s

forest.

Changes which took place in Forest area: During 1990 to 2010, Ghana lost an

average of 125,400 ha or 1.68% per year. In total, between 1990 and 2010, Ghana lost

33.7% of its forest cover or around 2,508,000 ha.

FARMING METHODS AND PRACTICES:

The farming systems

Under a relatively low population density until the beginning of this century, the

main system of farming was shifting cultivation, which involves the intermixing of the

drought resistant principal crops, millet (Panicum miliaceum) and guinea corn (Sorghum

guineense), with yam (Dioscorea), pulses, vegetables and other crops to minimise soil

erosion, maintain ecological stability, optimise utilisation of the different soil nutrients,

and enhance food security and a balanced diet. This migratory farming system is now

modified into the more sedentary bush fallow and compound farming systems in

response to the growing pressure on the land.

A. The bush fallow system

B. Compound farming

C. Mixed farming widespread

101

Three Agricultural Research Centres of the University of Ghana

• a) Livestock and Poultry Research Centre (LPREC)

• b)Soil and Irrigation Research Centre(SIREC)

• c)Forest and Horticultural Crops Research Centre(FOHCREC)

GHANA’S AGRICULTURAL RESEARCH & DEVELOPMENT:

The Institute of Agricultural Research (IAR) comprises the following three Agricultural

Research Centres of the University of Ghana.

a) Livestock and Poultry Research Centre, Legon (LPREC, Legon)

b) Soil and Irrigation Research Centre, Kpong (SIREC, Kpong)

c) Forest and Horticultural Crops Research Centre, Kade (FOHCREC, Kade)

Agricultural research

The rapid growth of roots and tubers owes both to a rise in yields – from around 8

tonnes/ha in the early 1980s to 12 tonnes/ha in the mid-2000s – and to an increasing

area under cultivation – more than tripling since 1980. These have stemmed in large

part from the widespread adoption of varieties of cassava that are resistant to disease

and that yield well with low inputs, thanks to regional research and extension

coordinated by the International Institute of Tropical Agriculture (IITA).

INVESTMENT OPPORTUNITIES:

• Short-Term Investment Opportunities :

Short-term opportunities include investments that provide capital to currently

operating agribusinesses seeking to expand the production or processing of key

commodities. Three such commodities have been identified as strong areas of

opportunity for near-term investment: cassava, rice, and maize.

102

• Medium-Term Opportunities :

Medium-term opportunities include green-field investments in the primary

production and processing of commodities with significant potential to become

competitive with imports. Opportunities in these value chains may require additional

development in order to be commercially viable in the long term.

• Long-Term Investment Opportunities :

The Government of Ghana has made the modernization of commercial

agriculture a key development priority particularly the transformation of the smallholder

who is responsible for 80% of agriculture production. In the long term, public sector and

donor initiatives will assist investors and agribusinesses in scaling up inclusive business

models that improve farmers’ and businesses’ commercial potential, while also

promoting viable investment opportunities to interested investors.

Major strengths of the sector are:

Diversity of commodities due to diverse agro-ecological zones; this allows for

easy diversification of farm production systems

Well-endowed network of water bodies which can be tapped for irrigation

Comparative advantage in the production of roots and tubers can be built on to

enhance food security and increase agricultural trade

A well-established agricultural research system, which has been successful in

crop improvement (e.g. cassava, maize, and cowpea)

Relative proximity to Europe as an export destination compared to competitors in

Southern Africa and Central and South America

A flourishing horticultural sector with a knowledgeable private sector

103

Crops

1. Principal agricultural crops

The major agricultural crops produced in Ghana may be grouped as shown

below.

Simulated land use map of Ghana

Source: FAO, 2004.

Cocoa and oil-palm are the main crops in the wetter southwest of the country and

groundnuts, sorghum, millet, and maize in the drier north. Cassava is found

between north, southwest and in the southeast.

104

Crop groups

Group Crops

Cereals Maize, millet, rice, sorghum

Industrial crops Cocoa, coffee, tobacco, oil-palm, cotton, sheanut, cola nut

Legumes Cowpea, groundnut, bambara nut, soybean

Fruits Papaya, , mango, avocado, watermelon, plantain, cashew,

Vegetables Tomato, carrot, onion, eggplant, cabbage, okra, pepper, lettuce

Roots and tubers Yam, sweet potato ,cocoyam, cassava

4.1.1 Production of Selected Food Crops (‘000 Mt)

Crop 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Maize 1,01

3

938 1,40

0

1,28

9

1,15

8

1,17

1

1,18

9

1,22

0

1,47

0

1,62

0

1,87

2

Millet 169 134 159 176 144 185 165 113 194 246 219

Rice

(paddy)

215 253 280 239 242 237 250 185 302 391 492

Rice

(milled)

129 152 168 143 145 142 150 111 181 235 295

Sorghu

m

280 280 316 338 287 305 315 155 331 351 324

Cassav

a

8,10

7

8,96

6

9,73

1

10,2

39

9,73

9

9,56

7

9,63

8

10,2

18

11,3

51

12,2

31

13,5

04

Cocoya

m

1,62

5

1,68

8

1,86

0

1,80

5

1,71

6

1,68

6

1,66

0

1,69

0

1,68

8

1,50

4

1,35

5

Plantai

n

1,93

2

2,07

4

2,27

9

2,32

9

2,38

1

2,79

2

2,90

0

3,23

4

3,33

8

3,56

3

3,53

8

Yam 3,36

3

3,54

7

3,90

0

3,81

3

3,89

2

3,92

3

4,28

8

4,37

6

4,89

5

5,77

8

5,96

0

105

Total 16,8

33

18,0

32

20,0

93

20,3

71

19,7

04

20,0

08

20,5

55

21,3

02

23,7

50

25,9

19

27,5

59

Cereals

Maize, millet, rice and sorghum are the major cereals produced in Ghana. Maize

production increased considerably due to increase in area. Sorghum and millet

production is affected by seasonal droughts in the northern savanna.

Industrial crops

The table below shows the production of five industrial crops.

About 25 percent of Ghana’s population has the cocoa industry as the source of

income and livelihood. The industry contributed an average of 12 percent of total

annual government revenue and an average of 31 percent of total foreign

exchange earnings annually between 1990 and 1999. Though the relative

proportion has tended to decline, it still represented a high percent of total export

earnings.

106

TABLE 7: Production of industrial crops (‘000 tonnes)

Year Cocoa1 Coffee1 Rubber Sheanut Oil Palm2

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

322,490

409,360

397,675

436,634

389,591

340,562

496,846

736,975

599,318

740,458

614,532

680,800

710,638

903,646

2,880

8,370

3,965

1,956

1,379

1,464

338

477

270

164

304

2,024

516

n.a.

n.a.

n.a.

n.a.

11,080

9,784

10,240

10,924

12,347

13,619

13,618

15,318

14,132

19,134

n.a.

21,504

34,886

17,465

30,771

19,882

27,160

n.a.

n.a.

n.a.

n.a.

n.a.

698

31,386

n.a.

955,505

1,022,010

1,031,919

1,066,426

1,586,500

1,612,700

1,640,100

1,686,800

1,712,600

1,737,900

1,684,500

1,896,760

2,103,600

2,004,300

Sources: 1. COCOBOD, 2. Oil Palm Companies (GOPDC, TOPP, BOPP, NOPL)

and Individual Plantations. n.a.: Not Available

107

About 28 percent of the cropped land is covered by the cocoa crop. The major

growing areas are in southwest and central Ghana. Cocoa is produced mainly on

about 700,000 small "crop tree" farms. The average cocoa farm covers 1.2 ha

but there are a few large plantations.

To open up new cocoa land, farmers normally burn small parts of the secondary

forest. After clearance, they intercrop the cocoa with cassava, plantains, yams

and maize. Plantains grow fast and provide shade in the early years. After five

years, the cocoa plants have developed a closed cover and farmers then grow

the crop as a monoculture. Most farmers do not apply fertilizer on cocoa. Without

fertilization, yields reduce after 20 years, but manufacture is possible for up to 50

years. The average cocoa yield is about 300 kg/ha compared with the possible

yield of 1.0 to 1.5 tonnes/ha.

Of the total planted area of the industrial crops listed, the area of cocoa is

highest, accounting for 78 percent.

After cocoa, Oil-palm is the second most important industrial crop.

Starchy food crops other than cereals

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The important starchy food crops other than cereals are yam, plantain, cocoyam,

and cassava. The trends in the areas planted to these crops are shown in Table

10 below. The areas of yam and cassava have improved constantly.

TABLE 10

Edible legumes

Groundnut andCowpea are the two most significant edible legumes in Ghana.

Vegetables

Tomato is the major vegetable crop in Ghana. The other important vegetable

crops are eggplant, okra and pepper/chillies.

Fruit

Ghana produces a number of fruits, mostly for the domestic consumption.

Pineapple is the most important exported fruit. Pineapple is grown on sandy soils

as the crop needs well drained soils; hence Fertilizer use on pineapple is fairly

high.

Crops grown in the various agro-ecological zones

The major food crops grown in Ghana in the different agro-ecological zones are

given in Table 14. Rice and Maize are produced in all the agro-ecological zones.

109

The highest production of cassava is in the Semi-deciduous Forest Zone while

the highest production of maize is in the Transition Zone. The highest production

of millet is in the Sudan Savannah Zone, that of sorghum and rice in the Guinea

Savannah Zone (Table 15).

TABLE 14.Major crops grown in the agro-ecological zones

Zone Cereals Starchy

Crops

Legume Vegetables Tree crops

High Rain

Forest

Maize, rice Cassava,

cocoyam,

plantain

Pepper, okra,

eggplant

Citrus,

coconut, oil-

palm, rubber

Semi-

deciduous

Rain Forest

Maize, rice Cassava,

cocoyam,

plantain

Cowpea Pepper, okra,

eggplant,

tomato

Citrus, oil-

palm, coffee,

cocoa

Forest-

Savannah

Transition

Maize, rice,

sorghum

Yam,

cocoyam,

plantain,

cassava

Cowpea,

groundnut

Tomato,

pepper,

eggplant, okra

Citrus,

coffee,

cashew

Guinea

Savannah

Maize, rice,

sorghum,

millet

Yam,

cassava

Cowpea,

groundnut,

Bambara

Tomato,

pepper

Sheanuts,

cashew

Sudan

Savannah

Maize, rice,

sorghum,

millet

Sweet

potato

Cowpea,

groundnut,

Bambara

Tomato,

onion

Coastal

Savannah

Maize, rice Cassava Cowpea Tomato,

shallot

Coconut

Source: Gerken et al., 2001.

110

TABLE 15

Production of crops in the agro-ecological zones

Zone Maize Cassava Millet Sorghum Rice

%

Sudan Savannah 5

70 40 10

Guinea Savannah 15 10 30 50 40

Transition 50 20

10 10

Semi-deciduous forest 20 50

10

Coastal Savannah 6 10

15

High Rainforest 4 10

15

Cassava

Cassava is cultivated in eight out of the ten regions of the country by over 90% of

Ghana’s farming population -- Upper East

and Upper West excluded. It constitutes

about 22% of the country’s agricultural

GDP. The crop was declared “the crop of

the decade” by the African Union.

The growing importance of using cassava is

evident by it being considered as one of the

world’s biofuel a feed stock which ismost

cost-efficient. Experts say cassava is more efficient compared to other energy

crops such as sweet sorghum, wheat, sugar-cane and corn.

Cassava, when cultivated on one hectare of farmland can produce on an

average 6,000 kg of ethanol. Sugar-cane, which can produce 4,900 kg of ethanol

annually per hectare is the closest competitor in terms of efficiency.

Ethanol made from cassava costs US$0.68/litre while molasses-based varieties

cost US$0.87/litre. Both feedstocks beat the corn crop in terms of efficiency: one

hectare of corn produces 2,050 kg of ethanol per year, which is a little over a

third of the quantity of cassava.

111

Rationale for INVESTMENT: Demand for cassava is expected to continue to

grow strongly due to its wide-ranging applications; in addition to being a key

staple of the Ghanaian diet, it is also used by breweries and can be used as a

replacement for wheat flour. In the year 2010, Ghana produced more than 13

million metric tons of cassava, making it the most highly produced crop in the

country and the second most widely grown by area. Cassava yields in Ghana are

20 to 30% higher than regional and global averages, with potential for even

greater yields with improved agronomic practices and mechanization. In order to

increase cassava production to meet rising

demand, cassava processing capacities will

need to be developed, as the crop spoils

quickly upon harvest and post-harvest losses

constrain the potential for processing and

export.

Pepper

This study was carried out at Kwadaso in the year 1997 and 1998, on a sandy

loam Ferric Acrisol. In addition to the nitrogen treatment, basal applications of

P2O5 as TSP and K2O as MOP were made at 45 kg/ha. Ammonium nitrate (AN)

and potassium nitrate (KNO3) gave higher yields than urea and AS. In terms of

the value cost ratio (VCR), AN gave the best result followed by urea.

Cocoa

It has been found that low soil fertility is

among the major causes of decline in yield of

cocoa on has been confirmed through

fertilizer use trials on

cocoa by CRIG.

Fertilizer use trials

on cocoa by CRIG

have identified the following fertilizer combination as

ideal for cocoa fertilization: 0-18-22 plus sulphur,

magnesium and calcium. This formulation has been tried

112

on-farm and has been adopted by some farmers. It has more than doubled cocoa

yields on their farms.

The age of the plantations ranged from 9 to 27 years in particular area.

This map shows Ghana’s cocoa growing region. But can you also seeTema

andTakoradi? These are the ports from which cocoa is shipped to other countries

for export purpose. Ghana has around about 720,000 cocoa farmers. The cocoa

is grown on small family farms by small farmers. Most are about two or three

hectares (or about the size of three or four football pitches).The cocoa grows on

coco trees, otherwise known as cocoa trees, planted in the shade of taller

rainforest trees. Cocoa is a cash crop, grown for sell purpose, not to eat. So the

farmers will also grow some food crops, such as plantain, cassava and yam to

feed their families.

Rice

Rice is grown in almost in all the agro-

ecological zones of Ghana under either

flooded or upland conditions. Flooded rice

is normally produced on poorly drained

Gleysols and Vertisols. In the interior

Savannah and Transition Zones, rice is

grown on Luvisols and Cambisols. A small

percentage of rice is also produced under

irrigation. In the Forest Zones rice crop is also grown under flooded conditions in

the valley bottoms where drainage is poor.

In the Northern Savannah and Transition Zones, where extensive ground water

Laterites (Plinthosols) occur, there rice is produced on imperfectly to badly

drained soils under upland conditions. These soils, which are sandy to silty loam,

occur over flat to gently sloping topography and become waterlogged at the peak

of the rains in rainy season.

Rationale for INVESTMENT: Domestic consumption of rice is expected to grow

significantly by 2015, as consumer preference for rice over other grains

increases. While Ghana currently produces nearly 300,000 metric tons of rice per

113

year, the demand for rice necessitates the import of another 300,000 to 400,000

tons—a quantity that will likely increase as consumption further outpaces

production. In addition, production of straight-milled, aromatic rice will also need

to increase in order to meet the preferences of more sophisticated consumers.

As such, there is strong potential for investment in the rice value chain as a

means to stimulate local production.

Groundnut

Groundnut thrives the best with rainfall between

760 - 1 300 mm per annum in Ghana. It requires

coarse or fine textured sandy loam soils with good

drainage system.

Groundnut is a major crop in the Sudan Savannah

and Guinea Zones. It is also produced to some

extent in the Transition Zone.

Maize

Maize grows best on well-drained sandy loam soils,

in areas with a minimum rainfall of 1 016 mm per

year. The rainfall must be well distributed during the

growing season in all areas. In almost all the agro-

ecological zones production of Maize is done.

Based on the optimum yield, the optimum fertilizer

requirements, and the prices of fertilizers and of the crop in the year 2002, the

VCR for maize was 2.7.

Rationale for INVESTMENT:Ghana’s most widely consumed staple crop is

Maize—and its production is a key component of Ghana’s food security agenda.

While middle-class consumer preferences are shifting toward rice, continued

population growth is expected also to strengthen the already high local demand

for maize, which grew 8% per year from 2005 to 2009. And yellow maize is a

main input into Ghana’s growing poultry sector, which serves as an additional

market for local production.

114

Crops of India:

115

Executive Summary of Mining sector of Ghana

Enrollment

No Student Name Faculty Name

117340592017 NANDISH PARESHBHAI CHANDARANA

Prof. Viral Toliya

117340592021 DHAIRYA KIRITKUMAR VYAS

117340592022 PURAV PRAFULBHAI PATADIA

117340592024 RONAK DILIPBHAI DOSHI

117340592028 MANAN BHUPENDRA PANDYA

117340592031 RIDDHI NARENDRABHAI SANCHALA

116

Executive Summary of Mining sector of Ghana

BASIC INTRODUCTION TO MINING INDUSTRY

The mining sector is made up of organizations whose primary activity is the extraction of

naturally occurring mineral solids or natural resources. Examples of these types of

minerals are coal, ores and precious stones, gold. The mining industry also broadly

covers quarrying and well operations. The sector comprises two basic activities: mine

operations and mining support activities.

"Mine operations" involve setting up the mine, quarry or well for the organization, or on

behalf of another organization for a small fee."Mining support activities" are those

operations that must be carried out before mining begins; exploration and other services

(except site preparation and construction of oil/gas pipelines).

As a result, most of the world's store of metals and minerals remain undiscovered.

Moreover, as (or rather, when) the world's reserves of a particular commodity become

depleted, the price will inevitably rise (unless there is a readily available substitute).

This, in turn, will make lower-grade ore economic, boosting the available reserves.

Complicating the issue of scarcity is to what extent the extracted metal or mineral is

actually 'consumed'. With modern technology (and the increased value of the raw

material) we are able to recover commodities that have already been used. This

recycling is of increasing importance in the supply/demand balance of many metals.

Mined metals and minerals (excluding oil and gas) have an annual value of some

US$350 billion, split, roughly equally, between coal, metals and aggregates/industrial

minerals.

117

MINING INDUSTRY IN GHANA

The mining sector is an important segment of the Ghanaian economy and has played a

significant role in the country’s socioeconomic development since the colonial period.

Historically, the mining sector’s contribution to gross foreign exchange, particularly gold,

has only been paralleled by the cocoa sector. Consequently, the mining sector has

witnessed intense policy reforms and restructuring since the dawn of the country’s

structural adjustment program in the early 1980s. These reforms have led to increased

investment in the sector, increased new mines coming on-stream, ballooning minerals

output and sales value, especially the gold sub-sector.

The conclusion is that the range of capital allowances, list of mining related equipment

and items exempted from customs and import duties, the nonpayment of capital gain

taxes, value added taxes (VAT), dividend withholding taxes, corporate income taxes,

the huge offshore sales revenue retentions and the payment of royalty at the lowest

allowable rate constrain government revenue generation and resulting in less visible

contribution of the sector to national economic development. Similarly, constrained

employment capacity of modern mining methods, increased expatriate staff quotas in

the mines and the negative environmental and social impacts of mining activities on

local mining communities have contributed to dwarf the contribution of the sector to

national development and poverty alleviation.

OVERVIEW OF GHANA’S MINING SECTOR

Ghana’s mineral potential and the country’s contribution to global minerals output,

especially gold is well acknowledged. The mining sector is an important segment of the

Ghanaian economy and has played a significant role in the country’s socioeconomic

development since the colonial period. The country was one time, a leading producer of

gold in the world and accounted for about 35.5 % of total world gold output between

1493 and 1600 (Quashie et al., 1981, p38). However, the country’s share of world gold

output has since dwindled over subsequent years. Ghana currently ranks around tenth

118

in the global league of major gold producers but is still the second largest gold producer

in Africa after South Africa.

STRUCTURE OF MINING INDUSTRY IN GHANA

The mining sector of Ghana is systematically divided into large scale and small scale

industries which produce minerals considering their own capacity. The country has an

ability to produce range of minerals but some important minerals such as diamond,

gold, manganese and bauxite are only produced by large scale companies. On the

other hand, minerals like silica, limestone and kaolin are especially produced by some

small scale industries. While foreign investors are the prime owners of large mining

industries, government and private investors of Ghana account only 15% stake. On the

other hand, small scale mining activities are only limited to Ghanaians. Gold contributes

over 90% of total mineral value earned in the country and it attracts largest number of

small as well as large scale operators.

AN IMPORTANT ROLE OF MINING INDUSTRY IN ECONOMIC DEVELOPMENT OF

GHANA

The Mining industry of Ghana accounts for 5% of the country's GDP and minerals

make up 37% of total exports, of which gold contributes over 90% of the total mineral

exports. Thus, the main focus of Ghana's mining and minerals development industry

remains focused on gold. Ghana is Africa's 2nd largest gold producer, producing 80.5

tons in 2008. Ghana is also a major producer of bauxite, manganese and diamonds.

The country has 23 large-scale mining companies producing gold, diamonds, bauxite

and manganese, and, there are also over 300 registered small scale mining groups and

90 mine support service companies.

119

STATISTICS OF MINING IN GHANA

Gross Domestic Product (GDP) by Sectors (2009)

Sectors Contribution (%)

Mining & Quarrying 5.1

Cocoa Production & Marketing 4.11

Forestry & Logging 3.61

Crop & Livestock 24.59

Manufacturing 8.99

Services 31.04

Others 22.51

Analysis of GDP:-

There is in GDP we directly focus towards on mining sector. As we know that African

countries are mostly concerned with mining sector. Ghana also most contribute in

mining sector at world level but it is not contribute that much in their own country

because Mining & Quarrying contribute only 5.1%. It is 5th rank in Ghana. There is four

sector comes in GDP before mining.

CHALLENGES GHANA’S MINING INDUSTRY MAY FACE IN UPCOMING TIME

The exploration, operational and production activities of mining industry are creating

strong material and physical damage not only to environment but also to inhabitants of

Ghana. This may pose strong threat to development and expansion of mining sector

of the country.

As mining projects all around the world are surrounded by multiple controversies,

government of Ghana must bring some better negotiation terms as they open doors to

foreign investors for better growth of mining sector.

120

GOVERNMENT POLICIES AND PROGRAMS

In the industrial minerals sector, reconnaissance and prospecting licenses and mining

leases may be granted only to Ghanaian citizens unless the proposed investment

exceeds $10 million. Small-scale mining licenses are also reserved only for Ghanaian

citizens and are granted for a period not to exceed 5 years; upon the expiration of the

license, it may be renewed for a period to be determined by the Minerals Commission.

MINING LICENCES

1. Reconnaissance license

2. Prospecting License

3. Mining Lease

4. Restricted License or Lease for Building and Industrial Minerals

LEGISLATIVE OVERVIEW

The legislative framework for mining in Ghana is laid down in the Minerals and Mining

Law, 1986, PNDCL 153 (Law 153) as amended by the Minerals and Mining Amendment

Act 1993, Act 475 (Act 475) and modified by the provisions of the Constitution of 1993

(the Constitution). Within this legal framework, the State is the owner of all minerals

occurring in their natural state within Ghana's land and sea territory, including its

exclusive economic zone.

NO. Laws regarding Mining in Ghana

1 Constitution, 1993

2 Additional Profits Tax Law 1985 (PNDCL 122)

3 Diamonds Decree 1972 (NRCD 32)

4 Diamonds [Amendment] Law 1989 (PNDCL 159)

5 Gold Mining Products Protection Ordinance (Cap 149)

6 Mercury Law 1989 (PNDCL 217)

121

7 Minerals and Mining Law 1986 (PNDCL 153)

8 Minerals and Mining Amendment Act 1994 (Act 475)

9 Precious Minerals Marketing Corporation Law 1989 (PNDCL 219)

10 Rivers Ordinance (Cap 226)

11 Small-Scale Gold Mining Law 1989 (PNDCL 218)

12 State Gold Mining Corporation [Acquisition of Assets Amendment]

Decree 1968 (NLCD 218). Subsidiary

Regulation

The Minerals Commission and the Ministry of Mines and Energy oversee the industry.

In response to concerns raised by community leaders, NGO's, and civil societies, the

Minerals Commission and the Chamber of Mines organized a conference in 2004 aimed

at bringing together industry stakeholders to establish best practices and develop

corporate and environmental responsibility strategies. In 2009, the government signed

into effect a set of mining laws that put in place regulations to alleviate environmental

and public safety issues.

REFORMS IN MINING SECTOR OF GHANA

Ghana’s development during the 1980s and 1990s and the country’s policy framework

for the mining industry were strongly influenced by international trends and

recommendations from the development community. Historically low mineral prices,

high political and economic risks (expropriation of mining rights, disregard of arbitration

clauses in contracts, and generally poor investment climate), ballooning external debt,

and the pressing need to increase foreign earnings forced many resource-rich

governments to reverse course to attract foreign direct investment. In most African

countries, the sector policies shifted from excessively restrictive to very liberal. As a

result, government revenues from mining activity have been small in comparison with

the sector’s size and output.

122

INDIAN MINING INDUSTRY

Major industries-Lignite-based power plants, Bauxite-based calcinations, refractory and

abrasive units, silica sand-based glass units, Bentonite-based pulverizing units, Organo-

clay units, and China-clay & Fire-clay units, Fluorite based beneficiation plant, Marble

and Granite Industry

GOVERNMENT INITIATIVES

Awarded best state in e-governance initiatives and employment category in 2008

Urban development initiatives for high quality living

Simplification of processes and single window approach for investors

International campaigns for investment promotion across sectors

MINERAL BASED INDUSTRIES

Plant Grade bauxite is being marketed to refractory industries, chemical

industries

Large quantity production of acid grade and metallurgical grade fluorspar which

are widely used for steel, chemical and metallurgy industry

Plant grade Bauxite calcined at Gadhshisha for value addition

EMERGING CHALLENGES IN MINING INDUSTRY IN INDIA

Technological challenges

Environmental issues

Health and safety issues

CLASSIFICATION OF THE MINERALS AND MINING SECTOR

1. OIL AND GAS INDUSTRY

2. METALS AND MINERALS INDUSTRY

123

3. BUSINESS OPPORTUNITIES

The mining major has also invited players to set up 5 projects of 100 megawatts

each from the deep seated lignite deposits available in Gujarat.

"Pursuant to the investment intensions signed in the Vibrant Gujarat Summit

earlier this year, these EOIs have been invited from the interested parties," said a

top GMDC official.

The quantum of investment likely to be made through these projects could not be

confirmed immediately.

EXPORT OPPORTUNITIES IN INDIA

A Joint Trade Committee between Ghana and India was established to promote

economic co-operation and enhance bilateral trade between both countries but the

Committee has not met for several years. Efforts are underway to reactivate this as a

mechanism to address all trade concerns.A Ghana-India development Consortium was

also set up in February 2002, comprising representatives from privately owned Indian

companies, wishing to co-operate and collaborate with local entrepreneurs

List of Commodities Exported from Ghana

Aluminium, Bauxite & Alumina

Gold

Manganese

Diamond

Cement

Petroleum

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INVESTMENT OPPORTUNITIES IN GHANA

Mining and Quarrying

Past Investment

Financial Incentives

Major Companies

Infrastructure

Investment

Skilled Labor

Construction Materials

Mineral Refineries

Conclusion

The report concludes that mineral policy reforms in Ghana have contributed to an

enormous increase in mining investment but there has not been a corresponding review

of environmental policies to take account of the damage caused to the environment and

to sources of livelihood. Similarly, the increase in mining investment has resulted in a

significant increase in gold production and the generation of external earnings.

However, the wealth generated does not benefit either the national economy or

communities located near the mines. The consequences have been a deepened crisis

of health and environmental sustainability, social upheavals and economic deprivation.

There is, therefore, significant scope for Ghana’s natural resources to contribute more

through greater integration with the rest of the economy. What is required now is a

comprehensive review of the mining regime in Ghana. This must be conducted in an

open and transparent manner allowing civil society, the public and the mining industry to

debate and consider key issues at stake so that competing views will be balanced.

Investment into Ghana's mining and quarrying industries will help to make these

already lucrative industries more efficient and more productive, ultimately increasing

profits across the board. Now is a very exciting time to enter the mining and quarrying

industry as market prices are high and Ghana's gold, mineral and stone deposits run

deep.

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Executive Summary of Financial Service sector of Ghana

Enrollment

No Student Name Faculty Name

117340592032 MANTHAN KAMLESHBHAI LAKHANI

Prof. Jitendra Patoliya

117340592033 PRATIK NAYANKUMAR SHAH

117340592035 JALPESH KANUBHAI KOTECHA

117340592039 BHARAT KARSANBHAI CHASIYA

117340592047 DHAIRYA KIRANBHAI CHHAYA

117340592048 VIKAS RAJESHBHAI MAKADIYA

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Executive Summary of Financial Service sector of Ghana

Overview of economic sectors:

Manufacturing

Agriculture

Energy

Services

Others:

The other Major sectors in the economy that are major contributors in GDP are…

Mining & Petroleum,

Lumbering,

Light manufacturing,

Aluminium Smelting,

Food Processing,

Cement,

Ship Building.

COMMERCE IN GHANA: BUSINESS REPORT 2012

This report is a comprehensive research of commerce in Ghana.

The first two chapters of the report feature the country profile by giving general

information on Ghana and by thoroughly studying its economic state, (including key

macroeconomic indicators and their development trends). The third chapter covers

common business procedures in the country: from starting a project to closing a

business. This chapter explains the country’s fiscal system, existing labor practices,

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property rights regulation peculiarities and other issues vital for running business in this

country.

Further, the report analyses trade in the country by identifying key market players,

(including major producers, traders, etc), as well by evaluating foreign economic

relations within the sector in the recent three years.

Related news official statements update and add the finishing touch to an overview of

economical situation in Ghana.

The aim of this study is to provide a tool which will assist strategy group and the

management team specialists in making correct decisions as how to penetrate the

Ghana market and how to catch the maximum commercial opportunities in dealing with

business partners in this country.

OVERVIEWS OF BUSINESS AND TRADE AT INTERNATIONAL LEVEL

Overview:

Ghana is an independent republic with a democratic government which lies on

the Gulf of Guinea and forms part of the West African Region.

John Atta Mills is the third and current President of the Fourth Republic of

Ghana. He was inaugurated on 7 January 2009.

100 native languages are spoken in Ghana. The local currency is the cedi. (US$ /

Cedi - current exchange rate)

The international time zone for Ghana is GMT. The international dialling code for

Ghana is +233.There are 63 airlines currently operating in Ghana.

Climate is tropical. Natural resources include gold, timber, industrial diamonds,

bauxite, manganese, fish, rubber, hydropower, petroleum, silver, salt and limestone.

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Economy:

In the latter half of the 1990s Ghana embarked upon a program of privatization of

state-owned enterprises and government divestiture of parastatals.

According to the US State Department, GDP in 2010 was $18.06 billion. 2010

exports amounted to $7.33 billion from gold, cocoa, timber, industrial diamonds, ore,

tuna, while Ghana spent $10.18 billion on imports of mainly petroleum, food, industrial

raw materials, and machinery. Ghana’s chief trade partners are Nigeria, China, United

States, United Kingdom, Netherlands, Cote d’Ivoire, France and India.

Oil discovery off the coast of Ghana in 2007 led to significant international

commercial interest in Ghana. Estimated oil reserves have jumped to almost 700 million

barrels, and some experts have speculated that, within the next 5 years, Ghana is likely

to be the third-largest producer of oil in West Africa. In addition to its oil industry, Ghana

has an active chemicals industry, as well as being one of the larger markets in the

lubricants industry of the West African region

Agriculture accounts for roughly one-third of Ghana’s GDP, mainly small

landholders. Ghana’s primary cash crop is cocoa. Ghana signed a Millennium

Challenge Corporation (MCC) Compact in 2006, aimed at assisting in the

transformation of the agricultural sector. The services sector accounts for 40% of GDP.

Ghana's industrial base is relatively advanced compared to many other African

countries. Industries include textiles, apparel, steel (from scrap), tires, flour milling,

cocoa processing, beverages, tobacco, simple consumer goods, and car, truck, and bus

assembly. Industry, including mining, manufacturing, construction and electricity,

accounts for about 30% of GDP.

Ghana has experienced a stable political climate and an average annual GDP

growth over the past ten years. Ghana was recognized for its economic and democratic

achievements in 2006, when it signed a 5-year, $547 million anti-poverty compact with

the United States' Millennium Challenge Corporation. Ghana is currently on track to

meet the Millennium Development goal of halving extreme poverty by 2015.

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International Trade:

Ghana is active in the United Nations and many of its specialized agencies, as

well as the WTO, the African Union (AU), and the Economic Community of West African

States (ECOWAS).

Exchange controls are liberalized and several private forex bureaus operate in

Ghana, while the Bank of Ghana Exchange Control Department administers the

allocation of exchange for payments for invisibles and capital.

Ghana maintains a liberal trade and exchange system largely free of restrictions.

A new Foreign Exchange Act has recently been passed to simplify the documentation

and approval procedures that burdened the system under the old Exchange Control Act,

effectively opening the economy to the global markets.

The Ghana Free Zones Scheme is an integrated program aimed at promoting the

processing and manufacturing of goods through the establishment of Export Processing

Zones (EPZs). As a result, the whole of Ghana is accessible to potential investors, who

have the opportunity to use the free zones as focal points to produce goods and

services for foreign markets. Completely private sector driven, the Government's role in

the program is limited to facilitation, regulation and monitoring of activities of zone

developers/operators and enterprises.

Ghana was the first place in sub-Saharan Africa where Europeans arrived to

trade - first in gold, later in slaves.

Ghana is the world's second largest cocoa producer behind Ivory Coast, and

Africa's biggest gold miner after South Africa. It is one of the continent's fastest growing

economies, and newest oil producer

International Relations:

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Ghana maintains close and friendly relations with its West African neighbors,

largely through the regional organization Economic Community of West African States

(ECOWAS), in which it is a key player.

On the wider African stage, Ghana plays a leading role in the African Union (AU)

and has been a major supporter of NEPAD, the AU’s flagship development plan. Ghana

was one of the first four countries to be subject to NEPAD’s African Peer Review

Mechanism. In January 2007 Ghana became the Chair of the African Union, a

nomination seen as fitting in the year that Ghana celebrated its 50th anniversary.

Ghana's Relations with the UK:

The UK’s relations with Ghana are warm and strong. There are wide ranging

social, economic and commercial contacts. There is an estimated 500,000 strong

Ghanaian-British community.

Trade and Investment:

Trade and investment with the UK:

Ghana is the UK’s sixth largest export market in Africa. 2011 saw UK exports

(goods) to Ghana increase by 20% to £426 million and imports to the UK of Ghanaian

goods grew by 51% compared to 2010. Key growth sectors include oil and gas,

agriculture, construction, education and skills, ICT and healthcare.

The UK is the largest investor in Ghana, with an estimated £500m of assets. One

of the biggest investments is Lonmin’s 32% share in Ghana’s largest gold mining

company, Ashanti Goldfields. Altogether, there are 141 companies with British equity

registered with the Ghana Investment Promotion Centre. The key ones are Unilever,

Guinness, British Airways, Standard Chartered Bank, Barclays, Paterson Zochonis,

Taylor Woodrow and Cadbury.

India Ghana Trade Relations:

Indo-Ghana relationships have traditionally been warm and friendly. The strong

foundation was built by India’s first Prime Minister Jawaharlal Nehru and Ghana’s first

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President Kwame Nkrumah; the two great leaders enjoyed a special kind of friendship.

Both were influential in the formation of the Non Aligned Movement in 1961.

The Ghana Investment Promotion Council recently reported that India has the

highest new large projects in Ghana. This should be good news to all Ghanaians; it

shows the confidence that India has in Ghana’s economy. There are a lot of companies

in Ghana which are owned by Indians and are doing very well on the local and

international market. Indians have investments in agricultural, manufacturing and other

sectors of the economy, most of our pharmaceutical companies are collaborating with

Indian firms to manufacture and supply quality and affordable drugs to our health sector.

The employment of Ghanaians by these companies has also helped to lessen the

burden of unemployment in the country. This amply demonstrates the level of

commitment India has in the developmental agenda of Ghana. Indians are not only

investing in the manufacturing and commercial sectors of the country, they are also

investing in the financial sector. Bank of Baroda, one of the reputable banks in India just

established a branch in Ghana and hopefully it would expand its operations in other

parts of the country very soon.

The IT sector is also one of the areas with a lot of Indian investment; India is

regarded as one of the super powers in Information Technology. Current globalization

trends have revealed that a Country would only develop when it builds the confidence of

its youth and invests a lot in manpower and Information Technology. The Electronic and

Computer Software Export Promotion Council of India for some time now has been

inviting 5-6 persons in the IT sector annually to attend their exhibitions, during these

programs ideas are shared on new technologies in the IT sector. Currently NIIT an

Indian owned ICT educational organization is training a lot of Ghanaian youth in

different IT programs. It is expected that the graduates from this school would help

place Ghana on the ICT map of the world. The contribution of the Indian Government in

the establishment of the Kofi Annan ICT centre, the award of scholarships to Ghanaians

to study in Indian through the annual Indian Technical and Economic Cooperation

(ITEC) and also scholarships for graduate and post graduate programs in India shows

the extent to which India has the development of the human resource base of Ghana at

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its heart. Every year a number of business fairs are held in India focusing on Africa.

Most reputable Ghanaian companies are invited to participate in most of these fairs.

The Indian High Commissioner to Ghana, H.E Mr. Rajinder Bhagat has revealed

that trade turnover between Ghana and India increased from US$ 537.53 million in

20010 to US$ 818.10 million in 2011.

This, he said, depicted an increase of 52% over the preceding year, with India's

exports to Ghana at US$ 658.35 million, as against an import figure of US$ 159.75

million.

Mr. Bhagat disclosed this to the Business Chronicle after he delivered a lengthy

65th India Independence Day address on behalf of the new Indian President, Mr.

Pranab Mukherjee, who took office on 25th July, this year.

Mr. Bhagat noted that the trade volume favored India, as that country's major

exports to Ghana include pharmaceuticals, telecommunication, agricultural machinery,

electrical equipment, plastics, steel, cement, while Ghana's major exports to India are

gold, cocoa and timber products.

The Indian diplomat observed that the exchange of business delegations have

led to an increase in investments by Indian companies in Ghana in sectors including

construction, manufacturing, trading, services, cement, plastics, pharmaceuticals, ICT,

agro-processing and agricultural machinery, electrical equipment, and pharmaceuticals.

Some of the Indian companies operating in Ghana include: Bank of Baroda,

Tata, Bharti Airtel the parent company of Airtel, Ashok Leyland, Mahindra & Mahindra,

Melcom, NIIT and Shapoorji Pallonji & Co.

Recently, Ghana Heavy Equipment Limited (GHEL), a state-owned company,

has tied up with BEML Limited, a Government of Indian firm, under which BEML Limited

would be supplying heavy machines to GHEL, for sale on the Ghanaian market.

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Several Indian pharmaceutical companies are operating the West African second

largest economy. According to the GIPC's foreign direct investment statistics for 2011,

India stood second in terms of numbers of projects (76) registered in Ghana.

Furthermore, Mr. Bhagat told the Business Chronicle that a draft joint venture

agreement between Ghana and India for the setting up of a $1.2 billion fertiliser plant in

the Western Region of Ghana where oil and gas are produced in commercial quantities

was in advanced stage of discussion.

In this direction, the two countries have already signed the Memorandum of

Understanding (MOU) for the setting up of the plant since 2010. Both governments -

Ghana and India - are also working hard to conclude the deal very soon, according to

the Indian High Commissioner to Ghana.

The company, Rashtriya Chemicals & Fertilizers Limited, which is India's biggest

state-run urea maker, indicated that the plant, when established, will have the capacity

to produce one million metric tons of fertilizer.

However reports said shortage of natural gas in India, the main feedstock for

making urea, is forcing companies, including Indian Farmers Fertilizer Cooperative

Limited, the nation's largest producer, to build plants overseas. India's cabinet, on May

19th, 2011, more than doubled the price of gas sold to makers of fertilizer, which is used

to grow crops, including wheat, sugar, rice and edible oils.

The fertilizer maker, based in Mumbai, plans to secure fuel for the project from

Ghana Oil Company, and India's fertilizer ministry has approved the investment

proposal, the officials said.

Mr. Bhagat also revealed that work on the US$25 million sugar plant at Komenda

in the Central Region was progressing steadily.

Earlier, the Indian High Commissioner who read the 65th Indian Independence

anniversary address on behalf of the President of India, Mr. Pranab Mukherjee said

Indian economy had achieved critical mass.

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Summarizing the political environment of Ghana and India, for doing business in

Ghana, the main factors which are affecting are economic system of the Ghana,

Taxation policy in Ghana, Trade Regulations in Ghana, Government Stability of Ghana,

Political system of Ghana, Employment policies in Ghana are mainly compared with

India

Economic system of India is mainly mixed economy which is the combination of

both capitalist and socialist economy where as of Ghana is also of mixed economy but

more importance is given to capitalist economy conditions which provides more

incentives and opportunities for doing business in Ghana.

Taxation policies are created, managed and authorized by Union Government of

India and in Ghana; taxation policies are regulated, controlled and managed by

Government of Ghana mainly.

For Trade Regulations, Foreign Exchange Management Act (FEMA) is the main

regulatory body in India where as RACS i.e. Regulatory and Administrative Cost Survey

is the main authority in Ghana for trade regulation which provide support for business

and trade with other countries.

Government stability is one of the most important factors for business

opportunities in any country. India has stable government with many political parties

where as Ghana have stable government with main two political parties which gives

support and facilities for doing business in Ghana more easily and economically.

Political system in India is Democratic Republic Parliamentary system of

Government where as Ghana has also legitimate democracy which has more socially

supportive environment for business growth and opportunities.

Employment policies are most important factor for every country. In India, employment

policies are prepared by various employment exchanges, legislative authorities and

other trade unions, where as in Ghana, National Employment Policy is the main policy

for better employment opportunities individually and for business corporate.

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Financial Services Sector of Ghana & India

BANK OF GHANA

Overview:

Brief Historical Background:

The Central Bank of Ghana traces its roots to the Bank of the Gold Coast (BCG),

where it was nurtured. As soon as local politicians and economists saw political

independence in sight in the mid 1950's the agitation for a central bank was revived. It

was argued that a central bank was one institution which would give true meaning to

political independence. It may be recalled that way back in 1947 some leading

politicians had called for the establishment of a national bank with central bank

functions to act as banker to government and to cater for the indigenous sector of the

economy.

Proposals of the advocates for a central bank were accepted and in early 1955

another Select Committee was set up by the Government to take a new look at the

Trevor Report and prepare the grounds for the establishment of a central bank in

Ghana. Fortunately, the BGC had already set the stage for central banking: all that was

needed was specially trained personnel in central banking and suitable accommodation

for the bank to take off.

By the end of 1956, all was set for the establishment of the Bank of Ghana. A new and

modern five-storey building had been put up on the High Street, adjacent to the Accra

Metropolitan Assembly (AMA) to house both the Bank of Ghana and the Ghana

Commercial Bank (GCB).

The Establishment of Bank of Ghana, 1957

On the 4th March 1957, just two days before the declaration of political

independence, the Bank of Ghana was formally established by the Bank of Ghana

Ordinance (No. 34) of 1957, passed by the British Parliament. Frantic preparations then

began to put in place an organizational structure for the new central bank. By the middle

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of July 1957, all was set for the official commissioning of the new Head Office of the

Bank on the High Street.

In his opening address at the end of July 1957, the then Leader of Government

Business (Prime Minister) stated with pleasure that the occasion marked the beginning

of independent monetary administration in the newly independent Ghana – a cherished

dream had at long last become a reality. The Leader of Government Business had put

the aspiration of the country in establishing the central bank as follows: "In the modern

world a central bank plays a very important and decisive role in the life of a country. It is

essential to our own independence that we have a government-owned bank and that

the central bank follows a policy designed to secure our economic independence and to

further the general development of our country."

The principal objects of the new central bank, as enshrined in the 1957

Ordinance, were "to issue and redeem bank notes and coins: to keep and use reserves

and to influence the credit situation with a view to maintaining monetary stability in

Ghana and the external value of the Ghana pound; and to act as banker and financial

adviser to the Government.

The opening ceremony paved the way for the Bank to commence formal banking

operations on 1st August 1957, when the Banking Department opened for business.

The Issue Department did not commence operations until July 1958.

The Bank of Ghana has since 1957 undergone various legislative changes. The

Bank of Ghana Ordinance (No.34) of 1957 was repealed by the Bank of Ghana Act

(1963), Act 182. This Act was subsequently amended by the Bank of Ghana

(Amendment Act) 1965, (Act 282).The Bank of Ghana Law, 1992 PNDCL 291 repealed

Acts 182 and 282.

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Central Depository Services

Overview

The establishment of the CSD is a vision embodied in Ghana’s Financial Sector

Strategic Plan (FINSSP) to attract Investments into the Ghanaian economy.

Under the CSD system, there is total elimination of risk such as the loss,

mutilation and theft of certificates associated with holding and trading of paper-based

securities of investors. The CSD system ensures Delivery vs. Payment (DVP) where

securities and funds are settled simultaneously. The CSD system has brought a

significant reduction in the errors and delays associated with paper-based manual

processing and as a result brought efficiency in the clearing and settlement in the

securities market.

This bring afore the primary objective of the CSD, which is to reduce risk and

improve efficiency.

There exist a signed agreement between the CSD and its participants for the

maintenance of strict confidentiality of information and also to operate with the confines

of the rules and regulations of the CSD. The CSD records are maintained form and

therefore cannot be stolen or it getting lost; with an update being done concurrently as

and when transactions are carried out.

History:

The establishment of the Central Securities Depository (CSD) is a vision

embodied in Ghana’s Financial Sector Strategic Plan (FINSSP) which sought to reform

the financial system to attract investors into the Ghanaian economy.

The National Bond Market Committee was established. Arising out of its work the

said Committee advised the Government to support the Bank of Ghana and the Ghana

Stock Exchange to set up an automated securities depository and clearing and

settlement system in Ghana. In other words, a Central Securities Depository with the

stated objective of facilitating investment activities.

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Bank of Ghana spearheaded the establishment of the Central Securities

Depository (CSD) alongside the introduction of an Electronic Auction system to handle

the issue, custody, dealing and redemption of government securities. This led to the

establishment of an implementation committee to supervise the smooth implementation

of a Central Securities Depository (CSD) to cater for all securities in Ghana.

Membership was drawn from Ministry of Finance, Bank of Ghana and Ghana Stock

Exchange.

Vision:

The CSD seeks to be among the leading global institutions providing efficient

depository services to the financial markets to promote investments and economic

growth in Ghana and the Sub-region.

Mission:

To provide secured and dependable clearing, settlement and depository services

to Government Securities and Money Markets in an efficient and cost effective manner.

OBJECTIVES OF THE CSD:

The objectives of the Central Securities Depository are;

To provide a central depository of securities in Ghana where records of beneficial

ownership of debt and equity instruments will be kept in electronic form.

To undertake clearing and settlement by book entry of equity and debt instruments.

To provide for the placement of physical certificates into the depository and the

complete changeover from physical certificates representing ownership to the book

entry format.

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GHANA STOCK EXCHANGE

Historical Background:

The idea of establishing a Stock Exchange in Ghana lay on the drawing board for

almost two decades prior to its implementation. In February 1989, the issue of

establishing a stock exchange moved a higher gear when a 10 - member National

Committee, under the Chairmanship of Dr. G.K. Agama, then Governor of the Bank of

Ghana, was set up by the Government. Other members of the Committee were:

Dr. Kobina Erbynn - Former Chief Executive, GIPC

Mr. N. K. Kudjawu - Kudjawu & Co, Accra

Nana Wereko Ampem II (Late) - Former Chairman, Barclays Bank of Ghana Ltd

Mr. Afare Donkor - Former Managing Director, CAL Bank

Mrs. S.Beata-Ansah - Ex Managing Director, HFC Bank Ltd

Mr. E. J. A. Aryee (Late) - Former Managing Director, NTHC Ltd

Dr. J. K. Richardson - Former Managing Director, BAT Ghana

Mr. S. Y. Osafo-Maafo - Former Managing Director, National Investment Bank

Mr. Yeboa Amoa - Who became the Exchange's first Managing Director

The work of the committee was to consolidate all previous work connected to the

Stock Exchange project and to fashion out modalities towards the actual establishment

of the Exchange. As a result of the work of the committee, the Stock Exchange was

established in July 1989 as a private company limited by guarantee under the

Companies Code of 1963. It was given recognition as an authorized Stock Exchange

under the Stock Exchange Act of 1971 (Act 384) in October 1990. The Council of the

Exchange was inaugurated on November 12, 1990 and trading commenced on its floor

the same day. The Exchange, changed its status to a public company limited by

guarantee in April 1994.

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Historically, the Exchange was set up with the following objects:

To provide the facilities and framework to the public for the purchase and sales of

bonds, shares and other securities;

To control the granting of quotations on the securities market in respect of bonds,

shares and other securities of any company, corporation, government,

municipality, local authority or other body corporate;

To regulate the dealings of members with their clients and other members;

To co-ordinate the stock dealing activities of members and facilitate the

exchange of information including prices of securities listed for their mutual

advantages and for the benefit of their clients;

To co-operate with associations of stockbrokers and Stock Exchanges in other

countries, and to obtain and make available to members information and facilities

likely to be useful to them or to their clients.

Ghana Investment Promotion Centre

Objectives & Functions:

The Ghana Investment Promotion Centre (GIPC) is a government agency, re-

established under the Ghana Investment Promotion Centre Act, 1994 (Act 478): To

encourage, promote and facilitate investments in all sectors of the economy except

mining and petroleum

We are the one-stop agency that facilitates and supports local and foreign investors in

both the manufacturing and services sectors as they seek more value-creating

operations, higher sustainable returns and new business opportunities.

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Objectives & Functions:

The GIPC co-ordinates and monitors all investment activities falling under Act

478 and assist both domestic and foreign investors in:

Initiating and supporting measures that will, enhance the investment climate in

the country for both Ghanaian and non-Ghanaian companies.

Promoting investments in and outside Ghana through effective promotion.

Collecting, collating, analyzing and disseminating information about investment

opportunities and sources of investment capital, and advising on the availability,

choice or suitability of partners in joint-venture projects;

Registering and keeping records of all enterprises to which this Act is applicable.

Identifying specific projects and inviting interested investors for participation in

those projects initiating, organizing and participating in promotional activities

such as exhibitions, conferences and seminars for the stimulation of

investments.

Maintaining a liaison between investors and ministries, government departments

and agencies, institutional lenders and other authorities concerned with

investments

Providing and disseminating up-to-date information on incentives available to

investors.

Assisting investors by providing support services including assistance with

permits required for the establishment and operation of enterprises.

Evaluating the impact of the Centre on investments in the country and

recommending appropriate changes where necessary.

Registering and keeping records of all technology-transfer agreements relating to

investments under this Act.

Performing such other functions as are incidental to the attainment of the

objectives of this Act.

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GSE Securities Depository Company Ltd

BACKGROUND:

GSE Securities Depository Company Ltd. (GSD), a wholly-owned subsidiary of

the Ghana Stock Exchange, was granted a license by the Securities & Exchange

Commission to operate a Securities Depository on November 5, 2008 and started

operations on November 14, 2008. The GSD has been set up to establish and manage

a Securities Depository System (SDS). The system will record, maintain and register the

transfer of securities by book-entry without any physical movement or endorsement of

certificates.

The implementation of the System by the GSE Depository Company will usher in

a new era of fast and efficient delivery and settlement system on the market. A

depository system is both a convenient and reliable medium to settle securities

transactions. The investor is therefore freed from the handling of physical certificates.

ENABLING LAW:

The GSE Securities Depository Company Ltd was formed under the Central

Securities Depository Act, 2007 (Act 733); the Securities Industry Law, (PNDC Law

333); and the SEC Regulations, 2007 (LI 1728). The GSD Rules have been approved

by the Securities and Exchange Commission.

GOVERNANCE:

The Board of Directors of the GSD comprises of two members of the Council of

the Ghana Stock Exchange (GSE), two members of the Executive Management of the

GSE and the Executive Director of the GSD.

The Executive Director together with the Depository Officers oversee the day-to-

day interface with the Depository Participants (DPs), Registrars, Custodians and the

Regulator. The staffing level of the GSD is to be kept as lean as possible since it is

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complimented by a service agreement with the Ghana Stock Exchange under which the

Ghana Stock Exchange will provide the following services to the GSD.

- Information Technology

- Legal/Company Secretary

- Accounting and Finance

- Marketing/Public Relations

- Delivery/Messenger Services

Functions and Importance:

The SDS is an electronic book-entry system to record and to register the transfer of

securities. The functions of the GSD include the following: -

• To facilitate the admittance of securities (shares, bonds, etc.) into the Depository.

Under the GSE’s new Automated Systems, an investor cannot buy or sell securities

unless he/she has registered or opened an account with the Depository through a

Stockbroker.

• To open and maintain securities accounts.

• To establish an efficient system for the verification, inspection, identification and

recording of securities in book-entry system.

• To provide facilities for the transfer of securities.

• To provide information in relation to securities in the system.

• To provide facilities for effecting pledges (i.e. using ownership of securities held in the

Depository as collateral for a loan).

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Ghana Securities and Exchange Commission

What we do at SEC

The primary Mission of the Ghana Securities and Exchange Commission

(SEC) is to protect investors and maintain the integrity of the securities market.

As more and more first-time investors begin to look upon the securities market

as an alternative investment opportunity and as a means of securing their

futures, paying for homes, and educating children, these goals are more

compelling than ever.

The world of investing is fascinating, complex, and can be very fruitful.

However, it must be borne in mind that shares, bonds and other securities can

lose value. There are no guarantees. That is why investors have to take

proactive steps to protect the money they put into the securities markets by

monitoring their investments and asking questions.

Our Mission

The Mission of the SEC is to promote the orderly growth and development of

an efficient, fair and transparent securities market in which investors and the

integrity of the market are protected through the proactive implementation of

the Securities Laws. This involves ongoing supervision and regulation of the

Ghanaian securities market, the education of market operators, policy makers

as well as investors on their respective rights and obligations.

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INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

To protect the interest of and secure fair treatment to policyholders;

To bring about speedy and orderly growth of the insurance industry (including

annuity and superannuation payments), for the benefit of the common man,

and to provide long term funds for accelerating growth of the economy;

To set, promote, monitor and enforce high standards of integrity, financial

soundness, fair dealing and competence of those it regulates;

To ensure speedy settlement of genuine claims, to prevent insurance frauds

and other malpractices and put in place effective grievance redressal

machinery;

To promote fairness, transparency and orderly conduct in financial markets

dealing with insurance and build a reliable management information system

to enforce high standards of financial soundness amongst market players;

To take action where such standards are inadequate or ineffectively

enforced;

To bring about optimum amount of self-regulation in day-to-day working of the

industry consistent with the requirements of prudential regulation.

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Pension Fund Regulatory and Development Authority:

Pension Fund Regulatory and Development Authority was established by the

Government of India on 23rd August 2003 to promote old age income security by

establishing, developing and regulating pension funds, to protect the interests of

subscribers to schemes of pension funds and for matters connected therewith or

incidental thereto.

COMPOSITION OF AUTHORITY

The Authority shall consist of a Chairperson and not more than five members, of

whom at least three shall be whole-time members, to be appointed by the Central

Government.

RESERVE BANK OF INDIA

Establishment:

The Reserve Bank of India was established on April 1, 1935 in accordance with

the provisions of the Reserve Bank of India Act, 1934.

The Central Office of the Reserve Bank was initially established in Calcutta but

was permanently moved to Mumbai in 1937. The Central Office is where the Governor

sits and where policies are formulated.

Though originally privately owned, since nationalization in 1949, the Reserve

Bank is fully owned by the Government of India.

147

Financial Supervision:

The Reserve Bank of India performs this function under the guidance of the

Board for Financial Supervision (BFS). The Board was constituted in November 1994 as

a committee of the Central Board of Directors of the Reserve Bank of India.

Objective:

Primary objective of BFS is to undertake consolidated supervision of the financial

sector comprising commercial banks, financial institutions and non-banking finance

companies.

Constitution:

The Board is constituted by co-opting four Directors from the Central Board as

members for a term of two years and is chaired by the Governor. The Deputy

Governors of the Reserve Bank are ex-officio members. One Deputy Governor, usually,

the Deputy Governor in charge of banking regulation and supervision, is nominated as

the Vice-Chairman of the Board.

BFS meetings:

The Board is required to meet normally once every month. It considers inspection

reports and other supervisory issues placed before it by the supervisory departments.

BFS through the Audit Sub-Committee also aims at upgrading the quality of the

statutory audit and internal audit functions in banks and financial institutions. The audit

sub-committee includes Deputy Governor as the chairman and two Directors of the

Central Board as members.

The BFS oversees the functioning of Department of Banking Supervision (DBS),

Department of Non-Banking Supervision (DNBS) and Financial Institutions Division

(FID) and gives directions on the regulatory and supervisory issues.

148

Functions:

Some of the initiatives taken by BFS include:

i. restructuring of the system of bank inspections

ii. introduction of off-site surveillance,

iii. strengthening of the role of statutory auditors and

iv. Strengthening of the internal defenses of supervised institutions.

The Audit Sub-committee of BFS has reviewed the current system of concurrent

audit, norms of empanelment and appointment of statutory auditors, the quality and

coverage of statutory audit reports, and the important issue of greater transparency and

disclosure in the published accounts of supervised institutions.

Current Focus:

supervision of financial institutions

consolidated accounting

legal issues in bank frauds

divergence in assessments of non-performing assets and

Supervisory rating model for banks.

SECURITIES AND EXCHANGE BOARD OF INDIA

ESTABLISHMENT OF SEBI:

The Securities and Exchange Board of India was established on April 12, 1992 in

accordance with the provisions of the Securities and Exchange Board of India Act, 1992

.PREAMBLE:

The Preamble of the Securities and Exchange Board of India describes the basic

functions of the Securities and Exchange Board of India as

"...to protect the interests of investors in securities and to promote the

development of, and to regulate the securities market and for matters connected

therewith or incidental thereto"

149

Executive Summary of Energy sector of Ghana

Enrollment

No Student Name Faculty Name

117340592049 JYUPIL GIRADHARLAL CHAPANI

Prof. Jitendra Patoliya

117340592050 KISHAN MADHUKUMAR GOKANI

117340592051 VEENA VENUGOPALAN NAIR

117340592060 GEETA NARANBHAI SORATHIYA

117340592064 PRITESH DINESHBHAI VISHANI

117340592066 GAURANG RAMESHBHAI VYAS

150

Executive Summary of Energy sector of Ghana

Introduction of the energy sector

The energy sector is one of the most fundamental catalysts to any country's rapid

industrialization and subsequent development. This report focuses on Ghana's Energy

Sector with particular reference to electrical power generation, transportation and

distribution.

In 2005, a report was published by the Resource Center for Energy, Economics and

Regulation (RCEER) which is based at the Institute of Statistical, Social and Economic

Research (ISSER), University of Ghana, Legon. It was revealed in this report that the

per capita electricity consumption of the average Ghanaian was about 358 kilowatt

hours.

Role in the economy

In Ghana, the contribution of modern fuels in the total energy mix has been

modest. Statistics from the Ministry of Energy show that hydro power and

petroleum products, together account for less than 35 percent of the total energy

use.

Wood fuel in the form of firewood and charcoal still dominate and accounts for

over 65 percent of total energy consumption.

The use of human power continues to play a significant role in providing the

mechanical energy required for construction works, farming, fishing and the

transport of food among other things.

151

The Ministry of Energy wants to see a vibrant sector that can effectively drive the

country’s economic growth. Its vision therefore is to develop an energy system

that ensures secured and reliable modern energy services for all sectors of the

economy.

If the energy sector can successfully drive the country’s development especially

the rural areas, and help address the poverty factor, then the sector must be

decisively prioritised.

Structure of energy sector

Function

Functions of the Energy Commission

1. Created by Act 541, 1997

2. Regulatory function

152

– prescribes legislative instruments and standards and technical operational rules of

performance for the regulation of the utilities

1. Advisory function

– Energy policy advisor to government

2. Promotional function

– Energy efficiency and productive uses of electricity, natural gas and petroleum

products Clean energy policies in Ghana.

1. Target of 10% renewable energy in the generation mix by 2020

2. The promulgation of Renewable Energy Law

3. Feed in tariff

4. Establishment of Renewable Energy Fund

5. Fiscal incentives for solar panels

6. Bio‐Energy Policy

Appliance standards and labelling regime

Business Activity of Energy Sector

Ghana’s energy sector can be classified into two main categories, petroleum and

power. These categories contribute significantly to the economy.

Petroleum

Ghana’s petroleum industry is divided into the upstream and downstream sector. The

upstream activities include the procurement and refining of crude oil by the nation’s only

petroleum refinery, Tema Oil Refinery (TOR). The downstream activities include the

marketing and distribution of petroleum products by Oil Marketing Companies (OMCs)

and the pre-mixing of petroleum products for other industrial uses. OMCs operating in

Ghana are mainly multinationals; however the last decade has seen an increase in the

establishment of a number of small to medium scale OMCs.

153

Power

Hydroelectricity is the primary source of Ghana’s power and is generated by the Volta

River Authority (VRA).The Electricity Company of Ghana distributes electricity mainly in

the southern sector of the country whiles the VRA is responsible for the northern sector.

The VRA has a monopoly over the generation of power in the country

The Public Utilities Regulatory Commission (PURC) is responsible for regulating the

cost of energy in Ghana. There has so far not been a major move towards privatisation

of power by the government.

154

Comparative Position of energy sector with India

While comparing the energy sources used by India and Ghana we can see that both the

countries use a mix of renewable as well as non- renewable sources of energy in order

to satisfy their energy requirement.

Ghana’s energy sector has divided these resources into two Petroleum and Power.

Both the categories contribute significantly contribute to Ghana’s economy. Ghana’s

petroleum industry is divided into the upstream and downstream sector. The upstream

activities include the procurement and refining of crude oil by the nation’s only

petroleum refinery, Tema Oil Refinery (TOR). The downstream activities include the

marketing and distribution of petroleum products by Oil Marketing Companies (OMCs)

and the pre-mixing of petroleum products for other industrial uses

The Fossil fuel energy consumption (% of total) in Ghana was 24.27 in 2011, according

to a World Bank report, published in 2012. It is the unofficial goal of the Ministry of

Energy to have 10% of Ghana’s energy mix come from renewable sources (not

counting large-scale hydro) by 2015, or at the very least by 2020

Hydroelectricity is the primary source of Ghana’s power and is generated by the Volta

River Authority (VRA). Ghana has about 5% of total electric generation potential from

wind alone. Solar power plants in progress, the Ghana facility will run on

630,000 photovoltaic panels. Landfill gas projects are also introduced.

Whereas talking about India, According to the International Energy Agency (IEA),

hydrocarbons account for the majority of India’s energy use. Together, coal and oil

represent about two-thirds of total energy use. Natural gas now accounts for a seven

percent share, which is expected to grow with the discovery of new gas deposits.

Combustible renewables and waste constitute about one forth of Indian energy use.

This share includes traditional biomass sources such as firewood and dengue, which

are used by more than 800 million Indian households for cooking. Other renewables

such as wind, geothermal, solar, and hydroelectricity represent a 2 percent share of the

Indian fuel mix. Nuclear holds a one percent share.

155

Present Trade Ghana India

Electricity – production 8.167 billion kWh (2008

est.)

835.3 billion kWh (2009

est.)

Electricity - production by

source

fossil fuel: 5%

hydro: 95%

nuclear: 0%

other: 0% (2001)

fossil fuel: 81.7%

hydro: 14.5%

nuclear: 3.4%

other: 0.3% (2001)

Electricity – consumption 6.06 billion kWh (2008

est.)

600.6 billion kWh (2008

est.)

Electricity – exports 538 million kWh (2008

est.)

810 million kWh (2009

est.)

Electricity – imports 263 million kWh (2008

est.)

5.27 billion kWh (2009

est.)

Oil – production 8,880 bbl/day (2010 est.) 954,000 bbl/day (2010

est.)

Oil – consumption 60,000 bbl/day (2010

est.)

3.182 million bbl/day

(2010 est.)

Oil – imports 68,830 bbl/day (2009

est.)

3.06 million bbl/day

(2009 est.)

Oil – exports 5,752 bbl/day (2009 est.) 825,600 bbl/day (2009

est.)

Oil - proved reserves 660 million bbl (1/1/

2011 est.)

5.682 billion bbl

(1/1/2011 est.)

Natural gas - proved reserves 22.65 billion cu m

(1/1/2011 est.)

1.074 trillion cu m

(1/1/2011 est.)

Natural gas – production 0 cu m (2009 est.) 52.8 billion cu m (2010

est.)

Natural gas – consumption 0 cu m (2009 est.) 64.95 billion cu m (2010

est.)

Natural gas – exports 0 cu m (2009 est.) 0 cu m (2010 est.)

156

Natural gas – imports 0 cu m (2009 est.) 12.15 billion cu m (2010

est.)

Electricity - installed generating

capacity

1.985 million kW (2009

est.)

189.3 million kW (2009

est.)

Refined petroleum products –

production

27,260 bbl/day (2008

est.)

3.226 million bbl/day

(2008 est.)

Refined petroleum products –

consumption

61,590 bbl/day (2011

est.)

3.292 million bbl/day

(2011 est.)

Refined petroleum products –

exports

7,275 bbl/day (2008 est.) 812,100 bbl/day (2008

est.)

Refined petroleum products –

imports

24,390 bbl/day (2008

est.)

380,900 bbl/day (2008

est.)

Carbon dioxide emissions from

consumption of energy

10.58 million Mt (2010

est.)

1.696 billion Mt (2010

est.)

157

PROCEDURES FOR AN IPP ENTRY INTO THE ELECTRICITY MARKET

IPP concludes PPA with Off-Taker

IPP obtains relevant approvals of identified relief’s from Governmental Agencies such as

(GIPC), Ministry of Energy (Renewable Energy Law) and Ministry of Finance EconomicPlanning etc.

Obtaining License from the Energy Commission

Concluding a Memorandum of Understanding between IPP and Off-Taker after securing

PURC’s No-Objection in principle.

IPP Obtains Environmental Permit from EPA

IPP obtains Site clearance by Environmental Protection Agency (EPA) & EC.

IPP interacts with relevant Regulatory Agencies, such as the Energy Commission – EC

(Licensing and Technical Regulations) and the PURC (Pricing Regulation)

Detailed feasibility studies to ascertain Technical Feasibility and Financial Viability of Project.

IPP Identifies a Buyer or an Off-Taker ( e.g ECG or any other Bulk Customers).

IPP Undertakes Pre -feasibility study

158

INVESTMENT POTENTIAL:-

Investment Opportunities in Renewable EnergySub-sector (solar, biomass, mini-

hydro and wind)

Business opportunity

Strong growth in the national economy will increase the demand for electricity

and thus, open up the power market for further development.

Enhanced sub-regional cooperation in energy will open up the sub-regional

market for electricity trading. Ghana can take advantage of this opening to

achieve the vision of becoming a major exporter of power by 2015.

Strong Government commitment to private-sector led economic development will

provide an incentive for private sector to increase their participation in the power

subsector.

Evolution of the regulatory environment in Ghana, though in an early stage of

development, has led to modest progress. A transparent and strong regulatory

environment will not only provide comfort for private sector investors, but also

ensure efficient and optimal operation of the sector.

Energy Source

Exploitable

Potential(MW)

Investment Requirement US$

(million)

Medium – small Hydro 150-200 200-300

Wind 200-300 250-400

Solar 20 100-150

Modern Biomass /waste to

energy 90 90-150

TOTAL 500-600MW 640-900

159

There is great opportunity for power production by Independent Power Producers

as Ghana seeks to increase its level of domestic power production from current

2,000MW to 6,000MW in the medium term to meet increasing demand.

Oil & gas sector infrastructure development, exploration and production, refining,

technology

Present Trade barriers for import / Export of energy sector

SERVICES BARRIERS

Ghana has committed to offering access to foreign telecommunications providers for

most basic services but has required that these services be provided through joint

ventures with Ghanaian nationals. Infusion, green technologies with which to sustain the

environment all offer growth opportunities.

INVESTMENT BARRIERS

The 1994 Investment Code (Act 478) eliminated the need for prior approval of foreign

Investment projects by the Ghana Investment Promotion Center. Investment

registration, which the government undertakes essentially for statistical purposes, is

supposed to be accomplished within five working days.

ELECTRONIC COMMERCE

Barriers to electronic commerce are mainly due to a financial infrastructure that is

inadequate for electronic commerce to increase. The payment system in Ghana is

largely cash-based.

160

OTHER BARRIERS

Limited and costly credit facilities for local importers and freight rates that are

higher than those for potential European competitors.

There are frequent problems related to the complex land tenure system, and

establishing clear title can be difficult.

Non-Ghanaians can have access to land on a leasehold basis. Frequent

backlogs of cargo at the port hurt the business climate.

The Customs Service is still phasing in an automated customs declaration

system that was established in the last quarter of 2002 to facilitate customs

clearance.

It has not yet had the desired impact because complementary services from

government agencies, banks, destination inspection companies, and security

services are not up to speed.

Policies and Norms of Ghana for energy sector for import / export including

licensing / permission, taxation etc

IMPORT POLICIES

Ghana has progressively eliminated or reduced its import quotas, tariffs, and

import licensing requirements through the structural adjustment program it

initiated in the early 1980s.

The import licensing regime was eliminated in 1989. The tariff system has been

simplified and harmonized to match the four tariff levels of the Economic

Community of West African States (ECOWAS) trade liberalization program.

Under this system, there are four ad valorem import duties: 0 percent, 5 percent,

10 percent, and 20 percent. The standard rate of duty is 20 percent.

The zero-rate duty continues to apply to agricultural and industrial machinery,

solar, wind, and thermal energy, and educational materials.

161

A one percent processing fee applies to duty-free goods, except on education,

health, and agriculture sector goods. In 2002, the government increased the duty

from 0 percent to 5 percent for imported fish, selected commercial vehicles, and

selected building materials.

Also in 2002, an additional one percent examination fee was levied on imported

used vehicles. Importers are charged 0.04 percent of the sum of the free onboard

(FOB) value of goods and the value-added tax (VAT) for the use of the

automated clearing system, the Ghana Community Network (GC Net). Importers

have indicated that they would prefer a flat fee on each transaction.

In 2000, Ghana imposed an additional 0.5 percent ECOWAS duty on all goods

originating from non-ECOWAS countries. In 2001, under the Export Development

and Investment Fund Act (Act 582), Ghana instituted a 0.5 percent duty on all

non-petroleum products imported in commercial quantities. Since the end of

1998, a 12.5 percent VAT has been added to the duty inclusive value of all

imports, with a few selected exemptions.

In August 2002, Ghana abolished its 10 percent tax on selected “non-essential”

imports in an effort to bring its tariff structure into harmony with ECOWAS and

WTO provisions.

The government did increase import duties from 10 percent to 20 percent on

some imported finished products for which locally manufactured products are

available, such as cement, doors, windows and their frames, corrugated iron

sheets, and nails. In August 2002, the ban on importing used vehicles that are

more than 10 years old was replaced with a system of penalties ranging from 5

percent to 50 percent of the C.I.F. (cost, insurance, freight) value of the used

vehicles.

162

All communications equipment is subject to import restrictions. Each year

between May and October, there is a temporary ban on the importation of fish,

except canned fish, to protect local fishermen during their peak season.

In order to develop competitive domestic industries with exporting capabilities,

the Ghanaian government continues to support domestic private enterprise with

financial incentives and tax holidays.

EXPORT POLICIES

The Ghanaian government uses preferential credits and tax incentives to promote

exports. The Export Development Investment Fund administers financing on preferential

terms using a 15percent rate of interest, which is lower than market rates. Agricultural

export subsidies were eliminated in the mid-1980s.

The Export Processing Zone (EPZ) Law, enacted in 1995, leaves corporate profits

untaxed for the first ten years of business operation in an EPZ, after which the tax rate

climbs to 8 percent (the same as for non-EPZ companies); however, business

producing traditional exports, e.g. cocoa beans, logs and lumber, remain untaxed. The

tax rate for non-exporting companies is 32.5 percent.

163

Executive Summary of Tourism sector of Ghana

Enrollment No. Students Name Faculty Guide

117340592067 MANISH MANSUKHBHAI PANKHANIYA

Prof. Falguni Shelani

117340592072 PALLAV HARISHBHAI CHANDRANI

117340592077 SWATI BHIMSHIBHAI KANARA

117340592079 AAKANKSHA KANAIYALAL THAKKAR

117340592080 NISHA JAYANTIBHAI NAKUM

117340592082 PRAGNA VIRAMBHAI KARGATHIYA

164

Executive Summary of Tourism sector of Ghana

The Indian Tourism Industry played an important role in the development of the

industry, initiating advertising campaigns such as the “Incredible India” campaign,

which promoted India’s culture and tourist attractions in a fresh and memorable

way.Travelling towards the future defines the potential of tourism in India with some

facts and figures and future trend. The Tourism Ministry has also played an important

role in the development of the industry, initiating advertising campaigns

Such as the “Incredible India” campaign, which have promoted India’s culture and

tourist attractions in a fresh and memorable way The campaign helped create a colorful

image of India in the minds of consumers all over the world, and has directly led to an

increase in the interest among tourists. The tourism industry has helped growth in other

sectors as diverse as horticulture, handicrafts, agriculture, construction and even

poultry.

India is one of the most preferred destinations for both overseas and domestic travelers.

Tourism enables the international traveler to understand and experience India's cultural

diversity first hand. According to official estimates the Indian tourism industry has

outperformed the global tourism industry in terms of growth in the volume of foreign

tourists as well as in terms of revenue. Tourism has the potential to create jobs and

wealth for local communities as well as generate revenue for the Government of Ghana.

Tourism development in Ghana has been pursued since the 1960s.

In 1993 the Ministry of Tourism (MoT) was created with the mandate to develop remote

and coordinate all tourism development in Ghana. The Auditor-General within his

mandate commissioned a Performance Audit into the development of Tourism in

Ghana. The audit sought to find out why tourists’ sites were in a poor state and also

whether Ghana Tourist Board (GTB) ensured that accommodation and catering facilities

met quality standards set in the New Harmonized Standards.

165

Ghana’s travel and tourism sector is valued at $2.102 billion in 2012, the World

Economic Forum (WEF) has projected. The value of the sector is 5.2% of Ghana’s

gross domestic product (GDP) for the year 2012, the WEF reported in the 2013 Travel &

Tourism Attractiveness Index unconfined last week. According to the WEF, 255 jobs

representing 4.5% were formed in the industry out of 1000 jobs in 2012.Its predictions

that Ghana’s tourism sector will contribute 5.4% to GDP from 2013 to 2022.Ghana

received an amount of $694 million from global tourism receipts, the report designated.

Tourism also depends on other sectors such as agriculture, for the supply of food items,

and passage for swift mobility. The tourism industry is therefore multilayered in nature,

influencing the growth of connected productions as well as the socio economic life of

the societies in which they take place.

The mission of the Ghana Tourism Consultant is to ensure sustainable tourism

development through the creation of an enabling atmosphere for the facility of quality

tourism facilities and facilities for the traveling public with a well-qualified, highly

motivated and dedicated work force and thereby endorsing tourism to become the

foremost sector of the economy.

As the executing agency of tourism policies its functions include:

The regulation of tourism enterprises namely accommodation, catering, travel

and charter process through registration, inspection, licensing and classification.

The promotion and marketing of Tourism, both in Ghana and outside Ghana, with

the publication of tourism publicity and publicity materials, and participation in

\fairs and exhibitions.

Carrying out research and studies on trends in the tourism industry both at home

and abroad to aid decision and policy-making.

Facilitating the expansion of tourist services and products.

166

CURRENT POSITION OF GHANA

A fact sheet from Ghana Tourism Authority (GTA) indicated a rising trend in domestic

tourism in 2010.

A summary of 30 tourists sites arrivals and revenue showed that in January, there were

37,340 total arrivals comprising residents and non-residents which attracted a revenue

of GH¢118,824.20.

The fact sheet made available to the Ghana News Agency in Accra on Monday by Mr.

Ben Ohene-Ayeh, Director, Corporate Affairs of GTA, said by the end of the year, the

total arrivals were 659,325 recording a total of GH¢1,407,444.99. Mr. Ohene-Ayeh said

the figures for 2011 have not been released.

Ghana International tourist arrivals and receipts also indicated a rising trend within a

period of six years with 2005 recording 428,533 arrivals as against 931,224 visitors in

2010

Within the same period under review, 836.09 dollars tourists’ receipts were netted by

the country as against 1,875.0 dollars in 2010.

Mr. Ohene –Ayeh urged Ghanaians and the hospitality industry to be more responsive

towards the needs of tourists to make the country a safe haven for visitors. He said it is

the duty of the citizenry to contribute their quota to good customer service to guests in

the country “in order to promote and uphold the good name of Ghana”.

“A first impression speaks a lot about a person and a country .Therefore there is the

need for us as Ghanaians and especially those in the hospitality industry to sharpen our

customer care to visitors.”

The Corporate Affairs Director noted that the tourism industry is very competitive hence

the need for the players to live up to their responsibilities.

To improve on services in the hospitality industry which Mr. Ayeh said sometimes are

not too good, the GTA has been organizing workshops and seminars in the regions for

the operators to update their skills.

167

CURRENT TOURISM TRENDS IN GHANA AND INDIA

CURRENT TREND IN GHANA

WORLD BANK INDICATORS - GHANA - TRAVEL & TOURISM

Previous Last

International tourism; expenditures for passenger

transport items (US dollar) in Ghana

258000000.0 328000000.0

International tourism; expenditures for travel items (US

dollar) in Ghana

558000000.0 542000000.0

International tourism; expenditures (% of total

imports) in Ghana

8.1 6.9

International tourism; expenditures (US dollar) in Ghana 816000000.0 870000000.0

International tourism; number of arrivals in Ghana 587000.0 698000.0

International tourism; receipts for passenger transport

items (US dollar) in Ghana

82000000.0 51000000.0

International tourism; receipts for travel items (US

dollar) in Ghana

908000000.0 919000000.0

International tourism; receipts (% of total

exports) in Ghana

16.5 13.7

International tourism; receipts (US dollar) in Ghana 990000000.0 970000000.0

168

CURRENT TREND IN INDIA

WORLD BANK INDICATORS - INDIA - TRAVEL & TOURISM

Previous Last

International tourism; expenditures for passenger

transport items (US dollar) in India

2471000000.0 2477000000.0

International tourism; expenditures for travel items

(US dollar) in India

8219000000.0 9606000000.0

International tourism; expenditures (% of total

imports) in India

3.8 3.2

International tourism; expenditures (US dollar) in India 10690000000.0 12083000000.0

International tourism; number of arrivals in India 5082000.0 5283000.0

International tourism; number of departures in India 9783000.0 10868000.0

International tourism; receipts for passenger transport

items (US dollar) in India

504000000.0 630000000.0

International tourism; receipts for travel items (US

dollar) in India

10730000000.0 11832000000.0

International tourism; receipts (% of total

exports) in India

4.7 4.1

International tourism; receipts (US dollar) in India 11234000000.0 12462000000.0

169

Ghana has modern telecommunication facilities as well as first class seaports and a

modernized international airport in Accra. Recent development of modern hotels,

convention facilities and theatres has made Ghana Africa's newest tourist and

convention destination with Europe and the United States as its biggest markets.

Kotoka International Airport in Accra seems set to become a significant hub linking

flights between these areas with much of West, East and Southern Africa. There are

over 10, 000 hotel rooms in about 703 hotels, including 3, 4, 5 star hotels. There are top

class restaurants, wildlife parks, and safe streets.

Centuries of tradition of the people of Ghana and the diversity of the distinct ethnic

groups have created a rich culture that is the splendid legacy of modern Ghana. To the

people of Ghana, the traditions of their ancestors are still an important part of their daily

life. Traditional chiefs have historical authority over tribal and family matters. They are

also custodians of land belonging to their respective clans or groups. The nation's

diverse culture is depicted through its many exciting festivals, which are held throughout

the year. These reflect the rich history and culture of tribal life in the regions. Information

on the festivals of Ghana as well as all the heritage sites, eco-tourism locations and

recreation spots can be accessed from here.

Ghana is divided into ten regions as follows (capital towns in brackets): Ashanti

(Kumasi), BrongAhafo (Sunyani), Central (Cape Coast), Eastern (Koforidua), Greater

Accra (Accra), Northern (Tamale), Upper East (Bolgatanga), Upper West (Wa), Volta

(Ho) and Western (Sekondi-Takoradi).

The population of Ghana is about 16.8 million (1995) with a growth rate average of

3.3% per annum. About 52% of the population live in rural areas and derive their

income from agriculture and related activities. Ghana is a democratic country and it

practices the parliamentary type of Government.

170

Travel Agents and Tour Operators, licensed by the Ghana Tourist Board are available

to facilitate your travel to Ghana and provide you with ground tour services as well.

Licensed travel and tour operators can be contacted via the website. Indeed, with

traditional towns and villages, rich and distinct heritage, history and culture of our

people in all ten regions of Ghana, sandy beaches along the coastline lined with

coconut trees and resorts for the comfort of leisure tourists, community-based

ecotourism sites across the country, Ghana is a country worth exploring.

Intending travelers must note that the possession of the appropriate documents does

not confer a right of entry. Travelers may be refused entry into Ghana if they fall within

the category of prohibited immigrants and if they do not satisfy immigration

requirements at the point of entry. The Government of Ghana will not be financially

liable for their repatriation.

Immigrant Quota - Persons who enter Ghana ostensibly as visitors may not be

permitted to take employment. Indeed, no person shall be permitted to accept

employment or undertake an occupation for reward in Ghana unless such employment

is within an authorized Immigrant Quota (an immigrant quota being the number of non-

Ghanaians that a person or firm can employ).

171

Export and import act

Export and import act include total fourteen section act.

Ghana Revenue Authority introduces tax policy document

The Ghana Revenue Authority (GRA) as part of its reform programmers has launched a

new tax policy document to give tax payers the occasion to compute and submit their

own tax returns towards maximizing revenue.The Commissioner-General of the

Authority, Mr. George Blankson, launching the document, said the policy would curb the

propensity for unofficial negotiations between tax payers and administrator for self-gain.

MrBlankson said the first two years of self-assessment program would be devoted to

corporate entities and selected individuals after some grooming to enable them

recognize the processes involved. He said publication of names of chosen tax payers.

The project manager of the policy project, Mr George Lamptey, said new policy would not be

limited to a few but all individuals of all endeavors.

Ghana: Ecotourism is becoming a major revenue earner

The Ghana Tourist Board (GTB), the regulator of the tourism industry in the country,

has drawn up land use plans to guide investors to lands around 21selected attraction

spots as priorities for development.

According to Frank Kofigah, GTB’s planning and business development manager, the

land use plans are meant to ensure and control the judicious use of land around the

attraction spots. The objective is to guide investors as to what projects are acceptable in

order to avoid unplanned development around the attractions.

172

Historical and environmental tradition in Ghana is two important factors why their

tourism industry is rising. The government’s aim is to attract tourists who would show

admiration for the country’s rich environment, history and civilization. The government

not only pushes tourism but also to present Ghana’s cultural and historical tradition and

social values to international community. It also aims to educate the locals about their

own legacy. These attributes attract business and investment opportunities in

Ghana to foreign nations.

Since Ghana is a country of great cultural and natural variety, they make this as their

basis to develop their tourism campaign as well as attract investors. Ghana’s famed

tourist attractions are their immaculate beaches, historical castles that are built by

European empires centuries ago, and other historical tradition sites that highlights the

country’s promising ancient civilization. Cultural tradition like herbal medicine,

goldsmithing, pottery, beads and fabrics, fine painting, woodcarving and traditional

festivities is also one of the main products of Ghana. The distinctive ecological system

such as waterfalls, lakes and rivers, national parks and rainforest are also one of the

best tourist attractions in Ghana.

The Beaches

Game Parks

Inland Lake

Heritage Sites and Eco-Tourism

Transportation

Foods

Entertainment

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Attractive places

174

Executive Summary of Education Sector of Ghana

Enrollment

no.

Students Name Faculty Guide

117340592083 BHAVIN KANUBHAI SARVAIYA

Prof. Falguni Shelani

117340592086 SWARANGI VINODCHANDRA PANCHAL

117340592087 RIDDHI JAI TRIVEDI

117340592092 UMESH VALLABHBHAI KANDOLIYA

117340592095 MAYURI HARSHADBHAI LIKHIYA

117340592099 PRATIKSHA GHANSHYAMBHAI DANGAR

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EDUCATION IN GHANA

Education in Ghana as of nursery school up to an undergraduate degree level takes

about 20 years. The majority kids start their education at the age of three or four initial

from nursery school to play school, then primary school, junior high school, senior high

school, and finally university. The average age at which a child enter primary school is 6

years. School is easy to get to both and girls although males outnumber females in

many institutions.

The country's teaching structure at the start of the 1993-94 educational year comprise

main school, for children secondary schools, senior secondary schools, polytechnic

(technical and vocational) institutions, teacher training colleges, and university-level

institution.

In 1990-91, the newest year for which beginning administration figures were obtainable,

1.8 million pupil were presence more than 9,300 primary schools; 609,000 student were

enroll in concerning 5,200 for children secondary schools; and 200,000 students were

enrolled in some 250 senior secondary schools. In the mid-1980s, teachers on each of

these levels number about 51,000, 25,000, and 8,800, in that order. In addition, 1989-90

enrollments in Ghana's about twenty-six polytechnic schools total almost 11,500

student; the teacher group for these schools number 422. Education is free of charge,

although students have recently begin to pay textbook cost. The Education Act of 1960

foresee worldwide teaching, but the constraint of financial underdevelopment destined

that by the early 1990s this objective had not been realize. On the main level, teaching

is conduct in the local dialect, although English is trained as a second verbal

communication. Beyond primary school, however, English is the medium of instruction

in an education system that owes much to British models.

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MINISTRY OF EDUCATION

The in general objective of the Ministry is to provide pertinent and excellence teaching

for all Ghanaians particularly the underprivileged to allow them obtain skills which will

make them functionally educated and creative to make easy scarcity mitigation and

promote the rapid socio-economic enlargement of the country.

Mission Statement:

1. Expanding access to education at all level of education

2. As long as and improving infrastructural amenities

3. Raise the quality of education and learning for efficient outcomes

4. Making teaching more applicable to nationwide goal and ambition by focus on

occupational and technological teaching

5. Creation tertiary education more cost effectual.

Achievements:

Resources allocation towards the FCUBE programmed has been increased to ensure

total accomplishment. New textbook had been on paper and spread all through the

country. essential and Secondary teaching books cover the whole range of their course

outline including additional reading additional books totaling 6,762,390 of various variety

has been discrete.

• Moreover, there is an continuing programmed to supply sufficient furnishings to all

the fundamental schools. It is predictable that, by the middle of 2003, every pupil and

student in Ghana will have a desk and a chair for study.

177

• In infrastructure, the Ministry has completed the construction, rebuilding and

rehabilitation of 4254 structure counting 44.4-unit teacher somewhere to live.

• The Ministry has established 20 professional organization all through the country (2

institution in each region).

• Enrolment in all the level of teaching has greater than before considerably as a

consequence of the good strategy of the Ministry. essential schools has seen over 4.5%

increase, while the less important level between 1990-2002 saw an add to of over 4.7%

while the tertiary height has seen an increase of between 10%-100% over the period

1995-2002.

• Other intervention programmers which have helped improve effectual education and

knowledge were all winning.

GHANA- PRIVATE HIGHER EDUCATION ON RISE

Private universities have spring up like mushroom in Ghana. In 1999, there were just

two but since then 11 new private universities and 19 private polytechnics or colleges

have open their door.

In 2006, private universities enrolled 9,500 students or about 8% of all tertiary student,

while the polytechnics had 24,660 students or 20% of total enrolments.

178

There are several reasons for this fast enlargement in private higher education: first,

Ghana's education segment has been deregulated next a universal tendency of

deregulation in Africa in the wake up of a gesticulate of democratization.

Second, the huge growth in private institution is a result of the greater than before

demand for higher education. Enrolments have multiply more than 10 times over the

past two decades in answer to social and political pressure for correct of admission to

higher education.

At the public University of Ghana, 22,865 students practical for admission in 2008 but

just over a third, or 8,774 students, were finally enroll. Some young people who do not

achieve a place in institution seek admittance in private universities.

Finally, the decreased ability of public universities has sure enlargement in private

higher education. financial support of public higher education has declined significantly

since the hopeful post-independence years when Ghana's first universities were

founded - the University of Ghana in 1948 and Kwame Nkrumah University of Science

and Technology in 1952.

The rapid rush in the development of universities and colleges in Ghana has been made

possible mainly due to the joint efforts of the government and the involvement of the

private sector in the growth of education in the country.

The contribution of the private sector was made possible since during the early part of

the 1990s, the old thought and custom that the provision of higher education in Ghana

was the exclusive responsibility of the central government gradually died, as a result of

the government’s incapability to meet the demand for higher education.

179

Since the administration could not meet the growing demand for higher teaching in the

country, the private separation took advantage of the space and work together with the

government in a number of ways to provide more university and colleges in the country.

The result of the government-private sector cooperation is the look of the variety of

higher institutions of knowledge in the state.

EDUCATION SYSTEM IN INDIA

India today is the second largest higher education network in the world. Universities in

India are set up by the Central or State Governments by income of legislation, while

colleges are established by the State Governments or private bodies / trusts. All

colleges are affiliated to some university.

The different types of universities are as follows :-

Central or State Universities: while the previous are fund directly by the Ministry of

Human Resource Development, the later are set up and funded by the various state

governments.

Deemed Universities: they enjoy the similar educational rank and human rights as a

university. Examples are the Deccan College of Post Graduate and Research Institute,

Pune; Tata Institute of Social Sciences, Mumbai; Indian Institute of Sciences,

Bangalore; etc.

180

Institutions of National Importance: which are university-level institutions that are

recognized or chosen by act of meeting and funded by the Central Government? These

include the Indian Institutes of Technology, Indian Institutes of Management and the All

India Institute of Medical Sciences, etc. Most universities are 'affiliating universities',

which set down to the affiliated colleges the admission criterion and courses of study,

hold examinations and award degrees.

Universities departments pass on postgraduate education and conduct and promote

investigate in a diversity of regulation. Undergraduate and, to some extent,

postgraduate instruction is imparted by the colleges affiliated to a particular university.

181

182

Courses offered at Higher Education Level

1. Engineering and Technology

2. Computer Sciences, Information Technology, Biotechnology and Bio-informatics.

3. Medical, Dental, Nursing, Pharmacy and Paramedical.

4. Agriculture / Veterinary Sciences, Dairy Technology and Fisheries.

5. Arts & Fine Arts, Humanities, Social Sciences, Commerce, Science and

Management.

6. Hotel Management & Catering Technology, Travel and Tourism.

7. Fashion Design & Technology.

8. The academic programmes are offered at Vocational Diploma, Undergraduate,

Postgraduate and Doctoral levels.

183

DEPARTMENT OF HIGHER EDUCATION- MINISTRY OF HUMAN RESOURCE

DEVELOPMENT

The section of Higher Education is accountable for the overall growth of the

fundamental infrastructure of Higher Education sector. Under a planned development

process, the Department looks after the growth of access and qualitative development

in the Higher Education, through world class Universities, Colleges and other

Institutions.

Vision

To realize India’s human resource possible to its fullest in the Higher Education sector,

with equity and addition.

Mission:

Provide greater opportunities of access to Higher Education with equity to all the eligible

persons and in particular to the vulnerable sections.

Expand access by supporting existing institutions, establishing new institutions,

supporting State Governments and Non-Government Organizations/civil society to

supplement public efforts aimed at removing regional or other imbalances that exist at

present.

Initiate policies and programmers for intensification investigate and innovation and give

confidence institutions – public or private – to engage in stretch the frontiers of

information.

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Endorse the quality of Higher Education by invest in communications and sense,

promote academic reform, civilizing supremacy and institutional reform toward the

addition of the up till now disadvantaged community.

OBJECTIVES

To get bigger the Higher Education division in all is mode of release to enlarge

the Gross Enrolment Ratio (GER) in Higher Education to 15% by 2011-12 to 21%

by 2016-17 and 30% by the year 2020.To enlarge institutional bottom of Higher

Education (counting technical, professional and occupational education) by

creating additional ability in obtainable institutions, establish new institution and

incentivizing State Governments and Non-Governmental organization/civil

society.

To give opportunity of Higher Education to socially-deprived community and

remove disparity by promote the addition of women, minorities and differently-

able persons.

To remove regional imbalances in access to Higher Education by setting up of

institutions in scared and underserved areas.

To improve plan hold up for infrastructure and faculty growth in the institutions of

higher learning and to create a center of attention talent towards careers in

teaching and research.

To generate conditions for knowledge generation through improved research

facilities in universities and colleges.

185

To encourage teamwork with International community, foreign governments,

universities/institutions and regional and international institutions, for the

progress of universal knowledge and intellectual property rights.

To encourage development of Indian languages.

To encourage independence, innovation, academic reform in institutions of

higher learning and To undertake institutional reform for improving efficiency,

relevance and creativity in Higher Education.

FUNCTIONS

Improvement of Gross Enrolment Ratio by increasing admission through all

mode.

Promote the contribution of these section of the society whose GER is lower than

the national average.

To perk up quality and to encourage academic reform

Setting up of new educational institutions and also capacity growth and

development of the obtainable institutions.

Use of Technology in Higher Education.

Growth of occupational Education and Skill Development.

Growth of Indian Languages.

International Collaboration in the field of education.

186

CHALLENGES

Access: higher education system of India is the world’s third largest in terms of

enrollment, next only to China and the USA; its GER-currently at 13.8 considerably lags

the world average at 26%.

Equity: There is wide difference in GERs across states, urban and rural areas, gender,

and communities:

Inter-state disparity: 31.9% in Delhi vs. 8.3% in Assam

Urban-rural divide: 23.8% in urban areas vs. 7.5% in rural areas

Gender disparity: 10.6% for female vs.14.4% for male

Differences across communities: 6.6% for SCs, 6.5% for STs, 8.7% for OBCs, and

17.2% for others

Quality:

Faculty shortage: 45% of the position for professors, 51% position for readers, and 53%

positions for lecturers were vacant in Indian universities in 2007-08.

lacking physical infrastructure: 48% of universities and 69% of colleges have

infrastructure deficiency.

Poor academic standards: The system is plagued with outdated curricula and ill-

equipped libraries (average 9 books per student vs. 53 in IIT Bombay).

187

Unaccredited institutions: As of March 2011, only 161 universities and 4,371 colleges

had been accredited by the NAAC.

GOVERNMENT EFFORTS FOR IMPROVING HIGHER EDUCATIONs

National Council for Higher Education and Research Bill, 2010

The National Accreditation Regulatory Authority for Higher Educational

Institutions Bill, 2010

Prohibition of Unfair Practices in Technical, Medical Educational Institutions and

Universities Bill, 2010

Foreign Educational Institutions Bill, 2010

The Educational Tribunal Bill, 2010

188

Executive Summary on Textile Sector of Ghana

Enrollment No. Students Name Faculty Guides

117340592100 VIRENDRASINH SUKHDEVSINH JHALA

Prof. Siraj Bloch

117340592101 MAYUR RASIKBHAI JAT

117340592103 MAHESH DULLABHAJI BHAI DOBARIYA

117340592111 HARSHIT CHANDRAKANT KHAKHKHAR

117340592112 JANKI MUKESHBHAI SURELIYA

117340592113 PARTH RAJESHKUMAR KOTECHA

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Executive Summary of Textile sector of Ghana

Executive Summary Textile

The cotton-to-textile/garment sector in Ghana is far from realizing its true potential. In

summary, the most important reasons for the current situation are:

The ubiquitous inefficiencies in the agrochemicals market play a large part in cotton

farming Costs. Also there are currently no mechanisms in place in Ghana to guarantee

the quality of a crucial ingredient in cotton farming: cotton seeds. At the same time no

policies are in place to reverse a decline in labor productivity and quality. Just like in the

cotton sector, the liberalization of 1991 broke up the old production and marketing

structure but left a vacuum that damages the interests of cotton producers and ginners.

There are no coherent, institutional linkages between the two sectors even though the

success of both sectors is very interdependent (ginneries’ key input is seed cotton and

the key customer of cotton producers are ginneries). Uncompetitive electricity prices

and expensive chemicals represent significant variable costs and hurt all players in the

value chain: the ginners, with high energy consumption because of the outdated

machinery, the textile and garments’ sector dyeing stage of production, etc. Thus,

inefficiencies filter up the value chain until the cotton-based inputs become too

expensive for the next input use, such as textile and garments producers using inputs

from ginneries, and the high value added supply chain brakes. As a result, textile mills

producing yarns and fabric for exports don’t use domestic lint cotton at all, while the one

producing for domestic markets use only around 20% of domestic cotton. The

government inability to control the imports of used cotton garments and fabrics is

hurting the domestic cotton-to-garment industry significantly. Moreover, the sector is

increasingly perceived as a high-risk one by the financial sector, which is increasing the

costs of borrowing money up to the point of making it unaffordable for small to medium

size firms that need modern equipment to improve their mills’ productivity. Undeclared

fabric imports are another major problem in the industry. It is creating a dominance of

imported, second hand garments market. This market is not only detrimental to the

domestic supply chain, but is also creating a dependency of a large number of people,

190

whose welfare is dependent on the growth of this market. This is a major risk for the

sector, as is the garment exporters’ lack of a diversification strategy for their exports,

which are almost entirely oriented.

The textiles industry has continued to expand, creating new inventions and end-uses,

as well as providing economic opportunities and new technological applications which

Include both design and fabric construction. Apparel design concerns with fashion. The

World of fashion is fascinating as it is exciting. It has a personal meaning and describes

a Life style. Fashion is what we are, how we think, and what image we want to project.

This Is achieved through the wearing of apparel. The combined producers of fabrics and

Fashion of apparel represents the largest commercial employers in the world. Textiles

and Apparel design, therefore, draws its information from related disciplines that include

the Sciences, arts, mathematics and humanities.

The textile industry in Ghana was once a very booming industry, which once employed

about 25000 workers. Most of these companies produced high quality materials,

designs and very good textile brands, which sold, so well on the local market as well as

other markets in the West African sub- region. Wax prints produced by these companies

were in high demand on the Ghanaian market because they are use in making

traditional apparels like the Kara and other exquisite wears. The Industry was not only a

source of employment to many Ghanaians but also contributed significantly to the

country’s Gross Domestic Product, (GDP).

Firms have situated themselves in Ghana to serve local and regional markets for

printed African patterned fabrics. Ghanaian textile companies prefer to settle within

designated industrial areas because of Ghana’s free zone regime and stable operating

environment within these areas.

Following different groups of Products

Export-based readymade garments

Traditional textiles like Kenta and wax prints

Custom-made garments

Ready-to-wear garments for the domestic market.

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Jute Technology Mission (JTM),

The objectives of this programmed include

Improving the yield and quality of jute fiber

Strengthening existing infrastructure for the development and supply of quality

seeds

Improving the quality of fiber through better methods of retting and extraction

technologies

Development of mega cluster schemes

Comprehensive Power looms Cluster Development Scheme (CPCDS)

To assist entrepreneurs to set up world-class units with modern infrastructure,

latest technology and adequate training and human resource development

(HRD) inputs along with appropriate market linkages.

Comprehensive Handloom Cluster Development Scheme (CHCDS)

Comparative Position of selected Industry with India and Gujarat

Strengths of Indian Textile Industry are as follows-

Huge textile production capacity

Efficient multi fiber raw material manufacturing capacity

Large pool of skilled and cheap work force

Entrepreneurial skills

192

Weaknesses of Indian Textile Industry are as follows–

Increased global competition in the post 2005 trade regime under WTO

Imports of cheap textiles from other Asian neighbors

Use of outdated manufacturing technology

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India’s Import data of textile Industry: (in last 3 years)

Articles of apparel and clothing accessories, not knitted or crocheted

Departure Countries 2010 2011 2012

India Imports

China 40.570.754 38.629.057 26.515.534

Italy 10.225.901 12.365.777 9.481.612

Spain 4.507.059 8.184.036 7.670.748

Poland 1.262.388 8.042.115 6.724.280

Slovakia 9.848.889 5.369.257 25

France 4.501.512 6.066.685 2.339.120

Germany 3.577.897 4.909.066 2.842.946

United States 2.401.281 5.000.138 3.898.778

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Denmark 851.233 2.009.945 1.765.931

Taiwan 936.513 898.677 630.063

Other 2.674.365 5.685.761 2.150.586

Subtotal 81.357.792 97.160.514 64.019.624

Total 81.357.792 97.160.514 64.019.624

India’s import data in 2012 (monthly)

Articles of apparel and clothing accessories, not knitted or crocheted

Departure Countries 2012 M03 2012 M04 2012 M05 2012 M06 2012 M07 2012 M08

India Imports

China 2.582.235 2.028.377 3.497.077 4.628.954 4.896.341 4.810.560

Italy 1.451.166 1.217.802 827.843 1.674.041 1.239.016 1.245.126

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Spain 1.131.010 440.938 340.681 875.012 1.998.874 1.167.218

Poland 1.133.819 447.847 356.732 886.228 1.009.611 1.187.956

United States 321.621 376.853 831.758 708.821 357.575 440.325

Germany 350.872 337.458 93.767 284.840 281.699 671.590

France 379.161 204.176 328.933 139.069 277.508 303.179

Denmark 285.686 250.675 27.160 140.763 120.184 453.341

Taiwan 87.626 65.109 90.235 62.142 61.918 70.562

South Korea 109.000 72.000 82.000 63.000 30.000 63.000

Other 121.782 118.726 104.169 111.570 212.253 458.745

Subtotal 7.953.979 5.559.961 6.580.355 9.574.440 10.484.979 10.871.601

Total 7.953.979 5.559.961 6.580.355 9.574.440 10.484.979 10.871.601

Ghana’s import in last three years:

Other made up textile articles; sets; worn clothing and worn textile articles

196

Departure Countries 2010 2011 2012

Ghana Imports

China 30.643.778 52.348.251 55.213.490

South Korea 24.191.000 28.688.000 13.325.000

United States 9.472.212 12.918.379 7.081.011

Netherlands 10.193.681 10.833.997 5.264.301

Germany 7.188.663 9.727.503 5.904.047

Hungary 3.948.173 5.814.711 3.017.937

Italy 6.413.351 4.113.802 2.073.447

Poland 3.039.016 3.240.148 2.378.299

Czech Republic 1.425.426 3.199.333 1.479.767

United Kingdom

4.262.827

Other 4.062.561 5.724.390 4.078.638

Subtotal 100.577.861 136.608.513 104.078.763

Total 100.577.861 136.608.513 104.078.763

Ghana’s import in 2012(monthly)

Other made up textile articles; sets; worn clothing and worn textile articles

197

Departure Countries 2012 M03 2012 M04 2012 M05 2012 M06 2012 M07 2012 M08

Ghana Imports

China 4.104.762 3.691.155 5.980.227 11.490.181 15.347.500 4.499.350

South Korea 1.940.000 1.777.000 1.745.000 1.266.000 1.239.000 1.136.000

United States 1.313.926 701.581 923.982 1.101.503 639.673 912.714

United Kingdom

4.262.827

Germany 823.759 666.899 615.899 871.634 538.462 681.414

Netherlands 835.079 650.772 858.570 794.025 498.261 516.403

Hungary 371.279 391.527 427.469 390.280 332.961 361.242

Poland 264.579 514.975 184.504 161.656 295.624 198.948

Italy 373.527 234.179 357.537 183.515 246.968 210.781

Belgium 339.287 143.156 202.827 213.667 203.129 161.488

Other 466.478 514.520 564.563 386.562 719.706 366.796

198

Subtotal 10.832.676 13.548.592 11.860.579 16.859.023 20.061.283 9.045.135

Total 10.832.676 13.548.592 11.860.579 16.859.023 20.061.283 9.045.135

Analysis of Import of India and Ghana in the year between 2010 and 2012 of the

textile

In the year 2010 the import of the textile in India is greater than Ghana from china.

But, in 2011 and 2012 the import of textile is more in Ghana than India from china.

In the year 2010 and 2012 the import of the textile in India is greater than Ghana

from Italy. But, in 2011 the import of textile is more in Ghana than India from Italy.

In the year 2010, 2011 and 2012 the import of textile in Ghana is greater than India

from Germany.

Analysis of Export of India and Ghana in the year between 2010 and 2012 of the

textile

In the year 2010, 2011 and 2012 the export of the textiles from India to the United

States of America (USA) is higher in comparison with Ghana.

In the year 2010, 2011 and 2012 the export of the textiles from India to the Germany

is higher in comparison with Ghana.

In the year 2010, 2011 and 2012 the export of the textiles from India to the

Netherlands is higher in comparison with Ghana.

Government Policies Regarding Textile Industry of India

The main elements of the new policy of Government of India are as follows.

Dismantling the scrotal approach retaining a special role only for non-power

technology.

199

A multi-fiber orientation and fiber flexibility to the entire industry.

Supply of adequate raw material at reasonable and stable prices.

Progressive reduction in duties on synthetic raw materials

Removal of entry barriers and phased removal of exit barriers.

Present Trade barriers for import / Export of Textile

Cotton textile industry is obsessed with many problems. Two main factors which

have wrecked die industry are…

(1) Government's textile policy and

(2) Updated Technology\

(3) Medium of Transportation

(4) Government Policy

(5) Language Barriers

(6) Availability of Professional

(7) Competition from the other country

The result was that many cotton mills became inefficient and uneconomic-one-

dirt of the cotton mills became sick and was closed down. By 1992 as many as 130

cotton mills were closed down. Following are some of the problems faced by the

industry.

Business Opportunities in future with Ghana

Non Availability of professionals

200

Non Availability of technical workers

Lack of skilled and trained worker

Low site lease costs for industrial land lease

Low electricity usage charge

Good country credit rating

Low country risk rating.

Amenities to foreign investors provided by Ghana

A stable political environment

A sound macroeconomic policy

Warm and friendly people

Competitive labor cost

Fast developing financial infrastructure

100% foreign ownership permitted in on-going privatization programmed.

Good and ever improving physical infrastructure:

Quota-Free access to USA & European Union markets.

Potential for import / export in India / Gujarat Market

Large Production Base

Wide Product Range

Modern Technology

Competitiveness

Unique Advantages to Importers

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Executive Summary of Fishery of Ghana

Enrollment No. Students Name Faculty Guide

117340592148 KHUSHBU CHAMPAKBHAI PABARI

Prof. Siraj Bloch

117340592150 BHAVESH DHARAMASIBHAI SORATHIYA

117340592151 PARAS NITIN PAREKH

117340592156 BHAVYA VIJAYBHAI PATEL

117340592159 NISHA NAVINCHANDRA PEDHADIYA

117340592160 PRATIK SANJAYBHAI VYAS

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Executive Summary of Fishery of Ghana

EXECUITIVE SUMMERY

Ghana has been a regional fishing nation with a long tradition of a very active fishing

industry dating back to as early as the 1700s and 1800s when Fante fishermen

embarked on ocean fishing along the coast of Ghana. Bounded on the south by the Gulf

of Guinea, Ghana has a 550 kilometre coastline and a total continental shelf area of

about 24,300 square kilometres to support a vibrant marine fishing industry. Ghana also

has a system of rivers, lagoons and lakes that form the basis of an inland fisheries

industry.

ECONOMIC CONTRIBUTION & ITS EFFECT

The importance of fish in the Ghanaian diet cannot be overemphasized. It provides

the Ghanaian consumer with about 60 per cent of his or her animal protein

needs. According to the 2007 Budget Statement, the country’s total annual fish

requirement is estimated at 720,000 metric tons (mt), while annual production

averages 400,000 mt. This leaves an annual deficit of 320,000 mt which is made

up through the importation of US$200 million worth of fish into the country yearly.

CURRENT STRUCTURE

Fleet structure

As indicated in Table 1, operational fishing vessels in 2000 were dominated by canoes

(97%)and around 58% were motorisedcanoes. Whereas industrial fishers and tuna

vessels together made up about 0.9% of the total number of operational boats (11,542).

Across the period 1996-2009, semi-industrial motor boats showed the most variation

compared to other boats.

Fish species

Ghana’s marine fisheries incorporate diverse fish species. The country’s marine catch is

dominated by pelagic fishi, Round Sardinella, Flat Sardinella, Chub Mackerel, Anchovy,

Frigate Mackerel, Seabreams, Burrito, Scad Mackerel, Cassava Fish, Tiger Fish,

203

Cuttlefish, Soles, Red Mullet, Hake, Yellowfin, Bigeye, Skipjack, Black Skipjack and

other tuna type fishes. In addition, the major demersal fish species are lujanidae

(snappers), serranidae (groupers), and polynemidae (threadfins).iiGenerally the tuna

catch is dominated by skipjack or black skipjack though the catch of Bigeye and

Yellowfin are significant.

TYPES OF FISHERIES

1) Marine fisheries

The marine fisheries are essentially dominated by artisanal agents who provided an

average of 71% of the total fish catch over the period 2000-2010. This result was

followed by tuna fisheries (21%), other industrial fisheries (5.1%) and inshore

fisheries(2.8%). The number of inshore vessels for the period of 2000-2009 is presented

in table 3, where the number of inshore vessels increased from 236 to 268 in the ten

year time.

2) Inland fisheries

Inland fisheries cover fish production from Lake Volta, aquaculture, dams, other lakes

and lagoons. However, fishery statistics are collected only from Lake Volta and

aquaculture. Stocking of water bodies by fish began in the late 1940s in connection with

the construction of community water supplies in Northern Ghana.

FISHERIES ADMINISTRATION AND MANAGEMENT

The Directorate’s of Fisheries of the Ministry of Food and Agriculture is responsible for

policy formulation and implementation, management and control of the fishing industry

under the general guidance and direction of a Minister of State for Fisheries

Commission. The Fisheries Commission advises the Minister in all matters pertaining to

the industry

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The functions of the Directorate are summarized as follows:

To prepare and keep under continual review, plans for the management and

development of Marine and freshwater capture fisheries and aquaculture;

To carry out research for the assessment for fisheries resources; and

To ensure that monitoring, control and surveillance of the fishery waters of Ghana

LEGAL AND REGULATORY FRAME WORK

Traditional legal systems especially, ways of allocating fish and days when there was no

fishing have always been implemented. In all artisanal fishing communities, every

Tuesday was a fishing holiday. In addition, in some parts of the Volta and Western

region Thursday and Sunday were included.

In terms of the fish catch, it was shared among various stakeholders according to the

laid down ratios. Thus, percentage of the catch goes to the crew, the owner of the boat,

the fishing net owner, and outboard motor owner.iii For instance the sharing ratios in

Greater Accra were 67% for the owner of the craft with its accoutrements and 33% for

the crew.

PROCEDURE FOR ACQUIRING A FISHING LICENCE TO OPERATE A FISHING

VESSEL IN GHANA

Register a company in Ghana at the Registrar General’s Department and get the

certificate of registration and company’s code. Shareholding should be 100%

Ghanaian for trawler and shrimper operation and at least 50% Ghanaian for tuna

vessel operation.

Apply for a permit from the Hon. Minister of State in charge of Fisheries, and

attach to the application, a copy of the registration certificate of the company.

(Fishing should be one of the activities to be carried out by the company), class

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certificate, survey report, tonnage certificate of the vessel intended for

importation and operation and Oil Pollution Prevention Certificate.

Gross registered tonnage (g.r.t.) of a trawler and a shrimper should not exceed

450 and 300 respectively and for a tuna vessel, should not exceed 600 for a tuna

purse seiner and 500 for a tuna pole and line.

Conditions for Renewing Fishing License Apply for renewal of fishing license to the

Director of Fisheries and attach the following documents.

1. Submit catch returns trip by trip to the Head of Marine Fisheries Research Division

(MFRD).

2. Filled MCS form duly signed and stamped.

3. Valid safety equipment certificate.

4. Valid radio and communication equipment certificate.

5. Valid Insurance covers for Hull and Machinery.

6. Valid Insurance covers for crew.

7. Licence fee paid by Banker’s Draft in the name of ‘Director of Fisheries’

8. Show receipt for payment of a log book from DOF

FISHERY PRODUCTS EXPORTS & FOREIGN EXCHANGE EARNINGS

Fishery and fishery products have gradually become the country’s most important

non-traditional export, accounting for over 50 percent of earnings from non-

traditional export.

EXPORT & IMPORT OF FISHERY:

Morocco and northwest Africa had low levels of imports and exports and had been net

exporters of fish since the 1960s (Figure 1). The Gulf of Guinea, however, was a net

importer of fish, but this area’s reliance on imports declined in the 1990s while export

values increased. Cameroon to Angola was initially a net exporter but is now a net

importer because exports declined over the past 40 years despite imports declining in

the 1980s, a possible consequence of the national conflicts and political turmoil in

countries such as Angola and Equatorial Guinea in the region.

IMPORT TRADE BARRIERS:

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TARIFFS

Ghana is a member of the World Trade Organization (WTO) and the Economic

Community of West African States (ECOWAS). According to the WTO, Ghana‟s

average most favoured nation (MFN) applied tariff rate in 2010 was 12.8 percent. For

agricultural goods, the average applied tariff is 17.4 percent, and for non-agricultural

products it is 12.3 percent. In 2008, along with other ECOWAS countries, Ghana

adopted a common external tariff (CET) with five bands. The 5 tariff bands are: zero

duty on social goods (e.g., medicine, publications); 5 percent duty on imported raw

materials; 10 percent duty on intermediate goods; 20 percent duty on finished goods;

and 35 percent duty will be charged on goods in certain sectors that the government

seeks to protect, such as poultry and rice. Ghana currently maintains 190 exceptions to

the CET, and the highest applied tariff is 20 percent.

Nontariff Measures

Importers are confronted by a variety of fees and charges in addition to tariffs. Ghana

levies a 12.5 percent value-added tax (VAT) plus a 2.5 percent National Health

Insurance levy on the duty-inclusive value of all imports as well as on locally produced

goods, with a few selected exemptions. In addition, Ghana imposes a 0.5 percent

ECOWAS surcharge on all goods originating in non-ECOWAS countries and charges

0.4 percent of the free on board (FOB) value of goods (including VAT) for the use of the

automated clearing system, the Ghana Community Network. Further, under the Export

Development and Investment Fund Act, Ghana imposes a 0.5 percent duty on all non-

petroleum products imported in commercial quantities.

EXPORT TRADE BARRIERS:

SERVICES BARRIERS

Ghana‟s investment code excludes foreign investors from participating in four economic

sectors: petty trading; the operation of taxi and car rental services with fleets of fewer

than 10 vehicles; lotteries (excluding soccer pools); and the operation of beauty salons

and barber shops.

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INVESTMENT BARRIERS

A highly regulated economy, a politicized business community, and lack of transparency

in certain government operations create risks for potential investors. Entrenched local

interests can derail or delay new entrants. The political leanings of the Ghanaian

partners of foreign investors are often subject to government scrutiny. Resisting

demands for bribes in order to ensure compliance with the U.S. Foreign Corrupt

Practices Act remains a challenge.

OTHER BARRIERS

Foreign investors have experienced difficulties and delays in securing required work

visas for their non- Ghanaian employees. The process for generating required work

permits can be unpredictable and take several months from application to delivery.

Foreign investors‟ access to land can also be challenging.

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Executive Summary of Automobile sector of Ghana

Enrollment No Students Name Faculty Guide

117340592120 SANGITA KANUBHAI KHOKHAR

Dr. S. Chinnam Reddy

117340592122 GRISHMA RAJUBHAI PATEL

117340592137 MEERA VIJAYBHAI KAPURIYA

117340592141 HIREN HASHMUKHBHAI VORA

117340592142 KHYATI MAHESHBHAI TRIVEDI

117340592146 SANJAY DHIRUBHAI TALPADA

117340592168 DHARMESH BATUKLAL DHADUK

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Executive Summary of Automobile sector of Ghana

Global Automotive Industry

The global automotive industry involves the manufacture and sales of automobiles and

other retail activities, such as gas-station retail and the sale of car parts. The industry’s

yearly growth rate is expected to exceed 5.5% from 2010 to 2015, reaching a value of

more than $5.1 trillion by 2015, according to research from Market Line.

The auto industry is a leading driver of global economic growth, says the International

Organization of Motor Vehicle Manufacturers, and it has expanded over 30% in the ten-

year period ending 2005. The industry is a leading employer throughout the world, with

9 million people involved in making 60 million vehicles, or 5% of global manufacturing

jobs. Indirect employment from automotive activity is fivefold, representing 50 million

jobs connected indirectly to the auto industry. Other industries involved in the

manufacture and service of vehicles include textiles, plastics, iron, steel, glass,

aluminum, computer chips and rubber. The industry also involves significant research

and development activity, representing investment of nearly $85 billion.

Ghana Automobile Industry

The Minister of State at the Ministry of Transport, Godfrey BayonTangu has

acknowledged the growth of the automobile industry over the past few years which he

described as remarkable.

He observed that the number of automobile companies has increased and so has

different models of vehicles in the country.

The minister therefore urged automobile companies to stress on safety and efficient fuel

consumption in modern vehicles.

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Ghana Industry policy

This Policy is set within the context of Ghana’s long-term strategic vision of achieving

middle income status by 2020, through transformation into an industry-driven economy

capable of delivering decent jobs with widespread, equitable and sustainable growth

and development.

The Policy provides clear and transparent guidelines for the implementation of

Government’s industrial development agenda, with particular respect to the growth,

diversification, upgrading and competitiveness of Ghana’s manufacturing sector.

the full spectrum of industrial policy instruments across 21 Policy Thematic Areas will be

implemented. These thematic areas have been categorized into 4 main Components,

namely:

• Production and Distribution

• Technology and Innovation

• Incentives and Regulatory Regime

• Cross-cutting Issues

DEVELOPMENT OBJECTIVES

The key development objectives of the Industrial Policy are:

1. To expand productive employment in the manufacturing sector

2. To expand technological capacity in the manufacturing sector

3. To promote agro-based industrial development

4. To promote spatial distribution of industries in order to achieve reduction in poverty

and income inequalities

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Ghana Trade Policy

The Trade Sector Support Programme (TSSP) is designed to systematically implement

the Ghana Trade Policy and deliver rapid and strategic expansion of Ghana’s

productive base. It is informed by practical experience of rapid economic change in

other countries, which has been tailored to Ghana’s context. The TSSP takes a new

approach to international trade capacity building in that it is centred on strengthening

local capacity both in the public and private sectors to deliver long-term sustained

change.

Ministry of Trade and Industry

The Ministry of Trade and Industry has overall responsibility for the formulation,

implementation and monitoring of Ghana's internal and external trade. It is the sector

ministry that ensures that Ghana derives maximum benefit from internal trade relations

and that domestic trade is conducted in a smooth and orderly manner.

The Ministry seeks to strengthen trade relations with all friendly countries on a most-

favoured nation basis consistent with her membership of the World Trade Organisation

(WTO).

Trade Sector Policies

. In the medium term trade sector policies that are the focus of attention are:-

• Creation of a buoyant and self-sustaining export sector

• Expansion of domestic trade thereby ensuring the countrywide availability of goods

at reasonable prices

• Pursuit of efficient and effective import management practices

• Adoption of anti-monopoly legislation and other regulations to protect the consumer

• Pursuit of anti-dumping policies in international trade through rationalisation of all

tariffs and the identification of all non-tariff barriers to trade

• Active and effective participation in multilateral trade to secure increased market

access for Ghana's export especially processed and semi-processed goods and to

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achieve stable, fair and remunerative prices for commodities of export interest to Ghana

industrial Sector Policies. The thrust of the industrial policy is the promotion of an

accelerated and sustainable industrial development within a liberalized and global

economic development.

• Increasing industrial share of GDP to 37% from the current level of 16% with an

average growth rate of 12%.

Indian Automobile Policies

The Indian Automobile Industry plays a major role in the economic scenario of the

country. The automobile sector in India, record sales of more than one million

passenger cars per year. The percentage of automobile exports has risen significantly

during the last few years. The government policies on Indian automobile industry have

been framed in order to aid in the expansion of the automobiles sector in India.

The policies adopted by the Indian government for the growth and development of the

automobile sector, has led to a large number of foreign investments. It has also given

rise to an increased sales rate for two wheelers and other automobiles. India is also

becoming the ultimate outsourcing destination for global automobile companies like

Ford, Mitsubishi, Toyota, Hyundai etc.

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Function of automobile industry in Ghana

VEHICLE POPULATION IN GHANA

o Ghana’s Transport Sector is made up of the following modes: air, inland water,

maritime, rail and road transport.

o The dominant mode is road transportation which accounts for over 95% of all

transport services in Ghana.

o Freight and passenger services are provided largely by private sector owners

and operators.

o Over 80% of the Government's annual budget for the transport sector is

channeled into road infrastructure investment

Automobile industry sales & service

Another growth area is that of vehicle sales and after-sales service, with companies like

PHC motors, Silver Star, VodiTechnik and Mechanical Lloyds all operating dealerships

with service centers in Ghana. In addition to car and truck sales, a number of firms also

deal in modern vehicle diagnostic systems. Hundreds of independent dealers also serve

the second-hand automobile market.

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Function of automobile industry in India

VEHICLE POPULATION IN INDIA

The Government of India has liberalized the foreign exchange and equity regulations and

has also reduced the tariff on imports, contributing significantly to the growth of the sector.

Having firmly established its presence in the domestic markets, the Indian automobile sector is

now penetrating the international arena. Vehicle exports from India are at their highest levels.

The leaders of the Indian automobile sector, such as Tata Motors, Maruti and Mahindra and

Mahindra are leading the exports to Europe, Middle East and African and Asian markets.

The Ministry of Heavy Industries has released the Automotive Plan 2006-2016, with the motive

of making India the most popular manufacturing hub for automobiles and its components in

Asia. The plan focuses on the removal of all the bottlenecks that are inhibiting its growth in the

domestic as well as international arena.

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Market research: Ghana

Business Monitor International's Ghana Autos Report provides industry professionals

and strategists, corporate analysts, auto associations, government departments and

regulatory bodies with independent forecasts and competitive intelligence on Ghana's

automotive industry. Despite the country's small size, Ghana's autos market has grown

rapidly in recent years thanks to economic growth and a developing middle class.

However, the obstacle to companies selling new cars and to domestic production is still

the country's large used car market. Regardless of the age of the car, consumers in

Ghana, and indeed many African countries, often prefer a second-hand car from a high-

end European brand to a new car from a lesser known brand and this could be a

particular threat at the entry-level end of the market.

Recent development in automobile industry in Ghana

The auto show is thus designed to help prospective car owners and those looking

forward to trade off their current cars to receive expert advice on how to go about their

purchase.

“Here in Ghana, we are in a way trying to do same and so we partner with some

financial institutions to help finance some of these purchases and so ask [prospective

buyers] to speak to their bankers. The challenge only is that the interest rates are so

high and this deters individual customers and even some corporate organizations from

going for those facilities” he noted adding that “people of good standing in reputable

firms can also have some form of flexible payment terms though only if it is guaranteed

by their companies so as to cushion the dealers in case of default. So we tell you, you

pay 45 percent and then we spread the reminder over a period of time for you” Mr.

Annan hinted.

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Market research In India

India has proven to be a frugal hub for Automobile OEMs due to its location and skill

advantage. India is a now a part of the global strategy for all major automobile

companies; every company is planning to set up their manufacturing base in the country

and are also exploiting its option as an export hub.

The luxury car market in India has registered a fair amount of growth in the last few

years and is growing at the rate of 27% per year. SCOPE OF THE REPORT

Luxury Car Market in India at a glance

Emerging trends in the industry like players diversifying their offering, companies

eyeing India as a manufacturing base and Increasing number of dealerships

Factors driving growth, Issues & Challenges

Government Regulations & Initiatives in Indian market

Major players

MAJOR PLAYER IN AUTOMOBILE INDUSTRY IN GHANA AND INDIA

Tata motors in Ghana

"Ghana has traditionally been an important market for Tata Motors. We are confident

that the passenger vehicles range will be seen to offer superior value to customers in

Ghana," Tata Motors Head International Business (Passenger Car Business Unit)

Divyendu Kumar said.

The distribution and marketing of Tata passenger vehicles in Ghana will be handled by

Tata Ghana and PHC Motors Ltd, which also distributes Tata Motors' commercial

vehicles, the statement added.

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Tata Motors in India

Tata Motors Limited is India’s largest automobile company, with consolidated revenues

of USD 14 billion in 2008-09. It is the leader in commercial vehicles and among the top

three in passenger vehicles. Tata Motors has winning products in the compact, midsize

car and utility vehicle segments. The company is the world's fourth largest truck

manufacturer, and the world's second largest bus manufacturer with over 24,000

employees. Since first rolled out in 1954, Tata Motors as has produced and sold over 4

million vehicles in India.

Tata Motors is the first company from India's engineering sector to be listed in the New

York Stock Exchange (September 2004), has also emerged as an international

automobile company.

Hyundai Motors Introduces Latest Brand in Ghana

Hyundia Motors has introduced the latest edition of Hyundai Santa-Fe Four wheel-drive

onto the Ghanaian market.

The latest edition represents the third generation to be unveiled by Hyundai Motors. The

first and second models were released in 2001 and 2006.

The all-new third generation Hyundai Santa Fe is a big step up in terms of styling and

performance of the previous editions.

Hyundai Motor in Ghana:

Hyundai Motors and Investment one of the leading automobile dealers in the country

has launched a new Hyundai Santafe model onto the Ghanaian market. The glamorous

Santafe which consumes low fuel at high speed is design for both high and upper class

customers. Santafe which is one of the most luxurious among the Hyundai models is

conceptualized urban style sports utility vehicle with a dynamic profile and crafted face

that optimizes aerodynamic superior performance at high speeds .

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Hyundai Motor India

Hyundai Motor India Limited is a wholly owned subsidiary of world’s fifth largest

automobile company, Hyundai Motor Company, South Korea, and is the largest

passenger car exporter. Hyundai Motor presently markets 49 variants of passenger cars

across segments. These includes the Santro in the B segment, the i10, the premium

hatchback i20 in the B+ segment, the Accent and the Verna in the C segment, the

Sonata Transform in the E segment.

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