Doing Business In Ghana: Challenges and Opportunities

240 Pages·2017·12.872 MB·English

by  John E. Spillan, Domfeh Obed King (auth.)

Doing Business In Ghana
JohnE.Spillan(cid:129)DomfehObedKing
Doing Business
In Ghana
Challenges and Opportunities
JohnE.Spillan DomfehObedKing
UniversityofNorthCarolinaat Kumasi,Ghana
Pembroke
Pinehurst,NorthCarolina,USA
ISBN978-3-319-54770-1 ISBN978-3-319-54771-8(eBook)
DOI10.1007/978-3-319-54771-8
LibraryofCongressControlNumber:2017937941
©TheEditor(s)(ifapplicable)andTheAuthor(s)2017
This work is subject to copyright. All rights are solely and exclusively licensed by the
Publisher,whetherthewholeorpartofthematerialisconcerned,specificallytherightsof
translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on
microfilms or in any other physical way, and transmission or information storage and
retrieval,electronicadaptation,computersoftware,orbysimilarordissimilarmethodology
nowknownorhereafterdeveloped.
Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthis
publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesare
exemptfromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse.
Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformation
in this book are believed to be true and accurate at the date of publication. Neither the
publishernortheauthorsortheeditorsgiveawarranty,expressorimplied,withrespectto
thematerialcontainedhereinorforanyerrorsoromissionsthatmayhavebeenmade.The
publisherremainsneutralwithregardtojurisdictionalclaimsinpublishedmapsandinstitu-
tionalaffiliations.
Coverillustration©JakeLyell/AlamyStockPhoto
Printedonacid-freepaper
ThisPalgraveMacmillanimprintispublishedbySpringerNature
TheregisteredcompanyisSpringerInternationalPublishingAG
Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland
C
ONTENTS
1 IntroductiontoDoing Business inGhana 1
2 Current BusinessEnvironment 13
3 HistoricalPerspective onDoing Business inGhana 67
4 CulturalIssuesAffecting Business Activitiesin Ghana 81
5 ThePolitical Climate andEntrepreneurship inGhana 103
6 TheEconomic Climate ofGhana 133
7 EstablishingBusiness inGhana 177
8 Commercialization 201
9 Conclusion 227
Index 233
v
L F
IST OF IGURES
Fig.1.1 MapofGhana 2
Fig.2.1 TrendsinEconomicStructure 16
Fig.2.2 TrendsinGDPGrowth 17
Fig.4.1 MajorLanguages 83
Fig.4.2 MajorReligions 84
Fig.4.3 Ghananationalflag 86
Fig.4.4 Ghana’scoatofarms 87
Fig.4.5 MajorEthicsGroups 93
Fig.6.1 Ghana’seconomicstructure2015 135
Fig.6.2 ThetrendofGhana’sGDPgrowth2007–20161Qin% 136
Fig.6.3 ThetrendofGhana’smonetaryPRFebruary2015–January
2016 140
Fig.6.4 Inflationtrends,June2015–June2016 142
Fig.6.5 ThetrendofGhana’spopulation1960–2010 147
Fig.7.1 Photo1–PortofTema–SupplyChainEntry 185
Fig.7.2 Photo2–ContainerShip–PortofTema–SupplyChain
Process 186
Fig.8.1 MassmarketincentralpartofGhanaiancity 205
Fig.8.2 Thisisanexampleofamajorsection
oftheCentralOpenInformalMarket 206
Fig.8.3 MapofGhana.TheregionalsectorsofGhana 210
Fig.8.4 Themarketingmixcircularflow 215
Fig.8.5 InformalMarketinTema,Ghana 221
vii
L T
IST OF ABLES
Table1.1 SummaryofcoupsinGhana–1966–2004 5
Table2.1 SomefamouswaterfallsinGhana 32
Table4.1 AcademicinstitutionsinGhana 98
Table6.1 ThetrendofGhana’sfutureGDPcontributions2015–2017 168
Table8.1 Ghana’sInternetusageandpopulationgrowth 213
ix
CHAPTER1
Introduction to Doing Business in Ghana
1.1 INTRODUCTION
Globalization has changed the way business is conducted around the
world. Changes in the exchange of ideas, information and technology,
and the political process have served in many cases to improve and
expand the market systems in Ghana. As such, the potential opportu-
nities for business investment in the region have blossomed. While
severalareasofGhanademonstrategreatopportunities,suchpossibilities
have not uniformly occurred throughout the country. The Ghanaian
regions embracing the challenges posed by the globalized economy are
providing different business opportunities and different developmental
models.
For managers to do business in Ghana, they need to select which
region, city, and location is best suited for marketing their products or
services.BusinessopportunitiesinGhanahavedifferentpotentialdepend-
ing on the size of the economy, gross domestic product (GDP) growth,
political and governmental systems, the openness of the economy, and
theirfriendlinesstowardinvestors.Inaddition,thelevelsofpenetrationor
per-capitaconsumptiononeachindustry,sector,orproduct/servicecate-
gory needto be understood.
WhereisGhana?
©TheAuthor(s)2017 1
J.E.Spillan,D.O.King,DoingBusinessInGhana,
DOI10.1007/978-3-319-54771-8_1
2 1 INTRODUCTIONTODOINGBUSINESSINGHANA
As one can see, Ghana is a small country in sub-Saharan Africa
(Fig. 1.1). This larger map of Africa shows Ghana tucked in the Gulf of
Guinea. Africa is a large continent with 54 countries and a population
nearing 1 billion people. Ghana isa small but thrivingcountry on a large
continent withlotsof opportunitiesandchallenges.
Fig.1.1 MapofGhana
Source: Central Intelligence Agency: Regional and World Maps: Africa Map. (n.d.).
Retrieved October 26, 2016, from https://www.cia.gov/library/publications/the-world-
factbook/docs/refmaps.html
1.2 THETHRUSTOFTHEBOOK 3
The map presented here is a closer look at where Ghana is exactly
located. While it is a small country, it has a very active business environ-
ment with great access to seaports and many opportunities to grow and
develop.
1.2 THE THRUST OF THE BOOK
This book aims to provide a thorough perspective on the realities of
doing business in Ghana. Detailed information about the economic,
social, technological, and cultural dimensions of the society will be
discussed. Recommendations and suggestions regarding the paths a
businessperson can pursue in seeking a business venture in Ghana will
be provided. Additionally, this book will provide academics with a
good understanding of the major issues affecting business development
in Ghana.
Ghana is an important country in sub-Saharan Africa, whose business
opportunities and ability to create entrepreneurs have not been given
much attention. This book gives the reader a snapshot of one country in
Africa that has demonstrated significant potential for long-term success.
Ghana is one of the showcase African countries illustrating how the free
market canoperate ina developing country.
Ghana has many positive attributes. The prevailing peaceful political
atmosphere, the rich traditions and culture, the calm, hospitable attitude
of its citizens, and the enormous resources nature have endowed the
country offer huge opportunities for prospective entrepreneurs.
Additionally, its citizens have a real passion for engaging in business for
their individual survival and for the sake of the country’s long-term
stability and prosperity. Comparatively, Ghana has the strongest compe-
titive edgeamong othercountries inthe region.
This book will help readers determine which Ghanaian region and
which Ghanaian markets are more likely to prosper and thereby offer
better business opportunities for the foreseeable future. Managers, stu-
dents, scholars, future leaders, and other types of business people will be
provided with in-depth first-hand information to help them make
informed decisions and choices as to whether to engage in business in
Africa, andGhanaspecifically.