Final

Ghana’s Manufacturing
Sector Report

November 2022
Contents

01
Why invest in
02
Sector overview
03 Sector
Ghana opportunities

Page 3 Page 6 Page 30

04 Key
05
Testimonials
06
Contact us
investment
highlights
Page 35 Page 39
Page 32

07Appendix

Page 41
Your EY team

01
Why Invest in Ghana

Page 3
 Why invest in Ghana
Country overview

o Formerly known as the Gold Coast, Ghana was the Internal infrastructure
first sub-Saharan nation to gain independence from
colonial rule in 1957.
o Ghana is credited as being one of the most stable Total land Overview: Ghana has total land area of 238,537
democracies in Africa, having successfully area sq.km
conducted 8 national elections and recorded no Ghana has 16 administrative regions and 261
incidence of a coup d'état since 1992.
district assemblies.
The area is currently connected to the following
Airports
• Ghana’s electricity supply is derived from
Electricity hydropower generated from the Akosombo, Bui
► 1 international airport supply Power and Kpong dams, and 10 thermal plants
► 5 domestic airports at Aboadze in Western Region.
• According to World Bank, Ghana has an 86.63%
Railway (2021) access to electricity rate.

Water Water is provided to citizens through the Ghana

► 3 major railway networks with a supply Water Company Limited, Community Water and
total track length of 1,300 km
Sanitation Agency and private water producers.

Dry ports o Ghana is geographically closer than any other

Locational country to the center of the earth.
advantage o Ghana has 2 harbors with one being the
► Tema Port largest in West Africa, making Ghana the
► Takoradi Port gateway to West Africa.

Road network

► Main roads: 67,291 Km

► Main arteries : 12,800 Km
► Paved roads: 3,800 Km

Source: Oxford Economics, Ghana Statistical Service, UNCTAD, Bank of Ghana, Doing Business Report (2020), World Bank
Page 4
Why invest in Ghana
Investment attractions
2nd largest economy in West
Rich in natural resources Preferred tourism destination Youthful population
Africa

o Ghana has an active retail market and o Ghana was the largest (No.1) o International arrivals of tourist o Ghana is blessed with a very youthful
healthy consumption levels. Fitch producer of gold in Africa and 6th increased from 932,579 in 2016 to population, about 67% of the
reports, household spending is largest in the world in 2021. 1,130,307 in 2019, however 2020 population is within the ages of 15 to
expected to increase from US$55bn o 13,000 metric tonnes of manganese saw a reduction to 355,108 due to 64 years.
in 2021 to USD81bn in 2025. reserve. lockdown measures in response to
o 16.86 million tonnes of high-grade Covid -19. o Government initiative such as free
o AfCFTA presents an opportunity for trihydrate bauxite mined since 1997. basic and secondary has ensured a
intra-regional growth by leveraging o Newly discovered deposits of lithium o As at September 2021, international 69.8% literacy rate for citizens who
access to common markets and in 2021 amounting to 30.1million tourist arrivals increased by 18% are 6 years and older as at 2021.
knowledge transfer through labour tonnes, setting Ghana up to become while domestic tourists grew by 58%.
mobility, thereby attracting foreign West Africa’s first lithium producer.
direct investments into the region.

o The AfCFTA secretariat is located in

Ghana.

Investor-friendly government
Stable political environment Top investment destination Agrarian economy
initiatives

o Ghana is ranked the second most o Government has initiated a plethora o Foreign Direct Investment (FDI) has o Ghana is endowed with vast arable
peaceful country in Africa and the of incentives to ensure a conducive averaged $2.72b from 2017 to lands rich in agriculture.
38th most peaceful country in the and enabling business environment.
world as per the 2021 Global Peace 2021, suggesting stability in the
Index. o Government incentives include tax inflow of capital with investment o In 2020, Ghana was the 2nd largest
holidays, rebates, provision of focus in oil and gas, mining (including producer of cocoa in the world, the
o Due to provisions made in the industrial parks, provision of finance gold and manganese), and agriculture 4th largest producer of cassava in the
constitution of Ghana (article 20) and through partnering agencies and
Free Zones Act (Act 504) there is a interest subsidies. (cocoa). world.
reduced threat of nationalism of o Ghana attracted US$2.65bn in FDI
private businesses. o Ghana has double taxation o Ghana is blessed with fertile land for
agreements with the United Kingdom, inflows in 2020, one of the highest
South Africa and other EU countries. the production of maize, tomato, rice
amount in West Africa.
among many other food crops.

Page 5 Source: Oxford Economics, Ghana Statistical Service, United States Geological Service, Global Peace Index, World Bank, Visit Ghana (Tourism Report 2020), Ghana Investment Promotion Centre, Ghana Bauxite
Company Ltd
Your EY team

02
Sector overview

Page 6
Overview of manufacturing sector

Key financial highlights (2021) Manufacturing sector’s contribution to GDP

60,000 20%
The manufacturing industry falls under the industrial sector of the economy: 49,128
50,000 42,929
36,229 15%
40,000 31,229
Industry Contribution to Manufacturing contribution Manufacturing Value

GHS'M
26,680
30,000 10%
GDP to Industry Added to GDP 20,000
5%
10,000

32% 29%
0 0%

GHS 49b 2017 2018 2019

Nominal Manufacturing value Added to GDP (GHS'm)

2020 2021

Growth rate(%)
FY21 FY21 FY21

Major segments in the manufacturing sector Regulators and associations

This report provides an overview of five major sub-sectors of the manufacturing Manufacturing is very diverse and has many regulators per sector; however, the key
sector. These are: regulators and trade associations across the industry are:
:

Agro-processing Cocoa processing

Textiles and Footwear Engineering/ Machine

Tools

Electronics and Household

Appliances

Page 7 Source: Ghana Statistical Service

Manufacturing sector in Ghana : Agro-processing Agro-processing

Agro-processing involves the conversion of raw materials and intermediate products into finished goods. The report focuses on the processing and value
addition of rice, poultry, cassava, sugar, and tomatoes.
This stage involves the
storage and transportation of
This includes activities such processed products.
as land acquisition, land
preparation, animal feed and Key players include storage This involves the process of
the purchase of fertilizers, solutions, warehousing, and distributing the processed
seeds, and production logistics companies. products to wholesalers,
machinery. retailers, and end consumers.

Input supply Crop and animal Processing Storage and Distribution and
farming transportation trade

This stage includes activities

such as land cultivation, This involves
planting, harvesting, animal processing and
rearing and irrigation refining the raw
systems. produce into various
finished products.

Source: Market research

Page 8
Manufacturing sector in Ghana: Rice processing Agro-processing

Rice production in Ghana Production of rice in Ghana

1,200,000 80%
• According to the Food and Agricultural Organisation, paddy rice 1,000,000 75%

Conversion Rate
production in Ghana has grown from c.(approximately) 688,000 tonnes in 800,000 70%
2016 to c. 973,000 tonnes in 2020. The conversion rate of paddy rice to

Tonnes
600,000 65%
milled rice has consistently been 67% between 2016 and 2020.
400,000 60%
• Consumption of milled rice in Ghana has consistently exceeded the
200,000 55%
domestic production of milled rice. Consumption has increased from 1.2m
metric tonnes in 2016 to 1.6m metric tonnes in 2020. The deficit in the - 50%
2016 2017 2018 2019 2020
production of milled rice has historically been plugged through the
importation of milled rice. Rice, paddy Rice, paddy (rice milled equivalent) Conversion Rate
• Ghana has consistently run a trade deficit in the trade of rice. According to
the Observatory of Economic Complexity (OEC), Ghana exported c. US$
220,000 and imported c. US$ 391m worth of rice in 2020, indicative of a Annual rice consumption in Ghana
c. US$ 390.8m trade deficit.
1,500 1,550 1,600

1000 Metric Tonnes

1,350
1,200
Top 7 import markets in 2020

No Country Amount (US$)

2017 2018 2019 2020 2021
1 Vietnam 282 m Source: Index Mundi

2 Thailand 45.5 m Ghana’s rice trade balance

3 India 27.3 m 373 414 391
346 316
4 Pakistan 20.6 m
0.08 0.13 0.084 0.315 0.22

USD'm
5 China 5.95 m
6 Myanmar 2.22 m
(372.9) (345.9) (315.7)
(413.9) (390.8)
7 Chinese Taipai 1.96 m 2016 2017 2018 2019 2020
Source: OEC - The Observatory of Economic Complexity, Food and Agricultural Organisation Export (USD'm) Import (USD'm) Trade Balance (USD'm)
Page 9
Manufacturing Sector In Ghana: Rice processing Agro-processing

Some local rice producers include:

Some companies importing rice to Ghana include:

Source: Market research

Page 10
Manufacturing sector in Ghana: Poultry Agro-processing

Poultry production in Ghana Trade of Chicken Meat; Ghana

285
• According to Food and Agriculture Organisation, Ghana produced c. 72,138
tonnes of chicken (meat) in 2020. Chicken meat production has grown by a
compounded annual growth rate of c. (approximately) 6% between 2016 and
2020.

USD’m
120 128
104
• Domestic consumption of chicken meat is estimated to be in the region of 75
400,000 tonnes. The increasing size of the middle-class, population growth,
and re-opening of the hospitality sector, after Covid-19 lockdown, is expected 0 - 0 - 0
to increase the consumption of chicken.
2016 2017 2018 2019 2020
• Local production of poultry has largely been stymied due to the increasing cost Chicken Meat Import Chicken Meat Export
of feed, which constitutes a huge percentage of overall production cost.
• The increase of feed cost in the last two years is mainly due to the shortage of
cereals. The price of 50kg of maize, soya bean, and wheat have increased Trade of Canned Chicken Meat: Ghana
significantly between 2020 and 2022.
• In 2020, Ghana was the 24th largest importer of poultry meat. In the same 2.1
year poultry was the 6th most imported product into Ghana.
• Chicken is the most popular source of animal protein in Ghana and this has

USD'm
been adopted to proxy the local production of poultry in Ghana. 1.0
0.8 0.8
0.5
Top 6 import markets in 2020
0.0 - - 0.0 -

2016 2017 2018 2019 2020

No Country Amount (USD) Source: Index Mundi
Meat, chicken, canned Import Meat, chicken, canned Export
1 Netherlands 86 m

2 United States 55 m Prominent canned chicken brands in Ghana include:

3 Poland 54 m
4 Brazil 17 m
5 Belgium 10 m
6 United Kingdom 6m

Page 11
Source: OEC - The Observatory of Economic Complexity, Food and Agricultural Organisation
Manufacturing sector in Ghana: Cassava Agro-processing

Cassava processing in Ghana Trade of cassava starch: Ghana

0.94
• According to Food and Agriculture Organisation, in 2020, Ghana produced c.
22 million tonnes of cassava placing the country as the second-largest 0.49
0.41
producer of cassava in Africa and the fourth-largest producer in the world. 0.37

USD’m
• With about 1 million hectares of land dedicated to the growing of cassava, 0.17
engaging approximately 70% of farmers in Ghana, raw material for the 0.01 0.01 0.01 0.01 0.01
processing of cassava is in large supply.
2016 2017 2018 2019 2020
• Cassava products exported from Ghana include, but are not limited to, cassava
starch, cassava flour, cassava chips, and cassava ethanol. Starch, cassava Import (USD'm) Starch, cassava Export (USD'm)
• Data from Foods and Agricultural Organisation is indicative of Ghana running a
trade deficit in the international trade of cassava starch. The deficit, in the Source: Food and Agriculture Organisation
fourth-largest producer of cassava in the world, is evidence of a deficit in Trade of cassava flour : Ghana
production capacity.
• Trade in cassava flour recorded a trade surplus of about USD 1.18m as of
2020. Given the significant yield of cassava in Ghana, a lot more can be done 2.00
to increase the amount of foreign exchange from the export of cassava flour.
1.35

USD’m
1.14 1.18

0.56
Top 6 Export markets in 2020 0.01 0.01 0.03 0.04 0.00

2016 2017 2018 2019 2020

No Country Amount (USD) Source: Index Mundi
Flour, cassava Import (USD'm) Flour, cassava Export
1 United Kingdom 377,000
Source: Food and Agriculture Organisation

2 Canada 133,000
Prominent cassava processing companies in Ghana include:
3 Netherlands 79,900
4 Turkey 73,000
5 Austria 72,900
6 Italy 25,600
Source: OEC - The Observatory of Economic Complexity, Food and Agricultural Organisation
Page 12
Manufacturing sector in Ghana: Sugar Agro-processing

Sugar in Ghana Production of sugar cane

154,361
• Local sugar production in Ghana has been very negligible since the collapse of 153,697
153,134 153,032
the two mainstays in the sugar processing industry. Asutsuare Sugar Factory
and Komenda Sugar Factory had 2,000 tonnes and 1,000 tonnes processing

Tonnes
capacity respectively have not been functional since the 1980s.
150,621
• The Government has however revamped the Komenda Sugar Factory and is in
the process of completing an engagement with a private sector entity to
manage and operationalize the Komenda Sugar Factory.
• In the absence of Komenda and Asutsuare sugar factories, local players like 2016 2017 2018 2019 2020
OXY Industries Limited have contributed to meeting the local demand and
exporting to other countries
• Ghana’s consumption of sugar far outstrips its production of sugarcane (major Consumption of sugar
raw material) for sugar production. This deficit in local capacity has culminated
in the country importing large amounts of sugar into the country on an annual
basis. 520,000
437,000
• In addition to domestic consumption of sugar, sugar constitutes an essential 412,000
ingredient in the production process of a number of companies. These

Tonnes
companies include, but not limited to, Cocoa Cola Ghana Limited, Nestle Ghana 283,000
242,000
Limited, Guinness Ghana Brewery Limited, Nestle Ghana Limited, Ernest
Chemist and IMEXCO Group of Companies

Top 6 import markets in 2020

2016 2017 2018 2019 2020
No Country Amount (USD)

1 Brazil 98.8 m International trade of sugar in Ghana (2020)

2 Morocco 20.2 m 151

3 Guatemala 15m 0.02

USD’ m
4 France 7m
5 India 2.1 m (151)
Ghana Imports Ghana Exports Trade Balance
6 Poland 1.6 m
Source: OEC - The Observatory of Economic Complexity, Food and Agriculture Organisation
Page 13
Manufacturing sector in Ghana: Tomato Agro-processing

Tomato in Ghana Production of tomatoes

370
• Tomatoes constitute an essential ingredient in the Ghanaian catering industry.
Local consumption of tomato products is about 440,000 metric tonnes on an 369
368

Tonnes ‘000
annual basis. The rate of consumption far exceeds local supply of tomatoes. 368
The deficit in supply is catered for by the importation of tomatoes and 367
processed tomato products
• Hitherto to the collapse of Northern Star, a mainstay in tomato processing in
Ghana, Northern Star, Afrique Link, and Techiman Processing Complex
(TEPCO) together contributed processing capacity of about 900 tonnes of
2016 2017 2018 2019 2020
fresh tomato per year.
• The One District One Factory (1D1F) Initiative of Government has significantly Source: Food and Agriculture Organisation
impacted the establishment of tomato factories across the length and breadth
of the country. Trade of tomato products
• Leefound Food Stuff (Ghana) Limited, a tomato processing factory located at
Afienya, with a production capacity of about 60,000 tonnes of tomatoes was 65
58
commissioned in 2019. 40 44 47
6 9 10 8 7
• Weddi Africa Limited tomato factory, under the auspices of 1D1F, was fully

USD'm
commissioned in 2021 and boasts of a production capacity of about 40,000
tonnes of fresh tomatoes per annum.
(30) (36) (40)
(52) (56)
Top 6 Import markets in 2020
2016 2017 2018 2019 2020

Export (USD'm) Import (USD'm) Trade Balance (USD'm)

No Country Amount (USD) Source: OEC - The Observatory of Economic Complexity

1 China 39.8m
Prominent processed tomato brands include:
2 Italy 4.93m
3 United Arab Emirates 1.57m
4 United States 354,000
5 Netherlands 26,900
6 United Kingdom 24,700
Source: OEC - The Observatory of Economic Complexity, Food and Agriculture Organisation
Page 14
Manufacturing sector in Ghana: Cocoa processing Cocoa Processing

Cocoa in Ghana

• Cocoa production began to spread in Ghana from 1879 when Tetteh Quashie brought back Amelonada cocoa beans from Fernando Po (now Equatorial Guinea).
• The climatic condition in Ghana is ideal for cocoa trees; there is sufficient rain during the rainy season and enough sunshine, humidity, and warm but not too hot temperatures during
the dry seasons.
• Ghana began the export of Cocoa at the end of the 19th century and was the largest producer of cocoa between 1911 to 1976 contributing about 35% of global output.
• In 1947, Ghana Cocoa Board (COCOBOD) was established as the main government agency responsible for the development of the cocoa industry. COCOBOD’s mission is to promote the
production, processing and marketing of good quality cocoa in all forms in the most efficient and cost-effective manner.
• To increase Ghana’s foreign exchange returns from the export of cocoa, the government set up the Cocoa Processing Company (CPC) to process cocoa beans into finished cocoa
products ranging from cocoa liquor, cocoa butter, chocolate to cocoa powder. CPC currently has 3 operating factories; two cocoa processing factories and a confectionary processing
factory.
• The implementation of the Structural Adjustment Program in the 1980s, proposed by the Bretton Woods Institutions, increased institutional confidence in the Ghanaian economy and
attracted foreign capital to the country. The private sector has since contributed to the country’s drive to move from exporting raw cocoa products to the processing of cocoa beans.

Stages in cocoa processing

8. Quality Control and Testing

1. Bean Reception
8 1 (Cleaning, dust extraction)

7
7. Packaging 2
2. Breaking and winnowing

6
3 3. Roasting and Sterilisation
6. Pressing
(Butter and Cake production) 5 4
5. Blocking 4. Grinding
(Liquor tempered) (Nibs to Liquor)
Source: OEC
Page 15
Manufacturing sector in Ghana: Cocoa processing Cocoa processing

Distribution of Cocoa Exports Revenue Principal Players in the Cocoa Processingg space Include:

• Ghana generated a total export value of USD 2.1b from the export of cocoa
beans, cocoa shells, cocoa paste, cocoa butter, and chocolates in FY20. 60%
of this total revenue was generated from the export of unprocessed cocoa
beans, which commands lower prices as compared to processed products on
the world market..

5% 1%

15%

19% 60%

0%

Cocoa Beans Cocoa Shells Cocoa Paste Cocoa Butter Cocoa Powder Chocolate

• Ghana’s cocoa industry is regulated by a state-owned board, Ghana Cocoa

Board. Ghana Cocoa Board has a monopoly, through its subsidiary Cocoa
Marketing Company, over the marketing of Ghanaian cocoa beans.

Source: OEC
Page 16
Manufacturing sector in Ghana : Cocoa processing Cocoa processing

Cocoa Beans Production (2020) Cocoa Beans Trade (2020)

0.97
0.90 2,100
0.86
0.81 0.80 1,760 1,850
2nd Largest 2nd Largest
Million Tonnes

1,640
1,280
Producer In Exporter In

USD'm
the World the World
1.66 19.1 5.62 28.7 11

2016 2017 2018 2019 2020

2016 2017 2018 2019 2020
Import (USD'm) Export (USD'm)

Cocoa Powder Trade (2020) Cocoa Butter Exports (2020)

101.00 96.80 98.90 345.00
90.20
70.90
8th Largest 7th Largest
USD'm

Exporter In Exporter In

USD'm
318.00

the World 309.00

the World
0.01 0.06 0.02 0.06 0.01

2016 2017 2018 2019 2020

2018 2019 2020
Import (USD'm) Export (USD'm)
Export (USD'm)
Chocolate Trade (2020) Cocoa Paste Exports (2020)
36.1

28.8 534 512 515

28.5

19.4 59th Largest 408 414 3rd Largest

USD'm

Exporter In Exporter In

USD'm
5.836.38 7.45 6.76 7.94 7.74 the World the World

2016 2017 2018 2019 2020

2016 2017 2018 2019 2020
Import (USD'm) Export (USD'm)
Page 17 Export (USD'm)
Source: OEC
Manufacturing sector in Ghana: Textiles and footwear Textiles and Footwear

Textiles and footwear In Ghana Household spending on clothing and footwear

5.92
• Textiles and footwear manufacturing consists of ginneries and textiles mills 4.95
5.37
producing batik, wax cloth, and fancy printed cloth. Ghana is the home of 4.12 4.18 4.36 4.61
traditional Kente and Smock textiles; however, the country consistently

USD'bn
records trade deficits in relation to the trade textiles. The sector also
includes the footwear industry; segregated into leather footwear, rubber
footwear, and textile footwear.
• In 2020, textiles and rubber footwear were the 6th and 9th most imported
products in Ghana respectively.
2019 2020 2021f 2022f 2023f 2024f 2025f

Clothing and Footwear Spending Growth Rate

Top 4 import markets for textiles in 2020 Source: Food and Agriculture Organisation

No Country Amount (USD) 2020 International trade on clothing

1,100.0
1 China 766m

USD’ m
2 India 79.6m
182.0
3 United Kingdom 76.4m 18.0 0.0 28.4 0.8 0.0 21.8 0.1 6.1
4 South Korea 16.1m Textiles Non-Woven Used Clothing Knit Men's Knit Women's
Textiles Undergarment Undergarment

Exports (USD'm) Imports (USD'm)

Source: OEC
Top 4 import markets for rubber footwear markets in 2020
2020 International trade on footwear
No Country Amount (USD) 216

1 China 211m

USD ’m
2 Turkey 3.41m
43
3 Nigeria 373,000 25
0 1 0
4 United States 335,000 Leather Footwear Rubber Footwear Textile Footwear

Imports Exports
Page 18 Source: OEC
Manufacturing sector in Ghana: Textiles and garment Textiles and Footwear

A significant number of foreign retailers are situated in Ghana, retailing Although the textiles industry is dominated by foreign players, the
imported textiles and footwear. Prominent imported brands into the domestic market is fast growing. Key players in the local market
country consist of: are:

Source: Market research

Page 19
 Household Appliances
Manufacturing sector in Ghana: Household appliances and electronics and Electronics

Semi-conductors, computers, telephones, refrigerators ,video displays, and Household expenditure on electronics Distribution of imported
radio receivers have been selected as proxies to represent the sub-sector. and household appliances is forecasted electronics and appliances
Ghana currently has a dearth of local manufacturers in the electronics sub- to grow consistently across PCs, mobile dominates the Ghanaian market.
sector; this is clearly indicated in the trade deficits in the selected sub- handsets, and audio visuals categories Key brands on the Ghanaian
sectors. from 2022 to 2025 market include:
Semi-Conductors Trade Balance Computers Trade Balance PCs Sales
32.8
32.8 132 139
25.5 150 125 15%
25.5 103 114
21.8 97
USD’ m

21.8 84 87.13 89
15.6 100 10%
USD’ m

USD'm
69

USD ’m
15.6 10.8 66 65
10.8
1 0.7 0.2 0.1 0.04 50 5%
1 0.7 0.2 0.1 0.04 0.9 0.9 0.7 0.8 0.7
0 0%
2016 2017 2018 2019 2020
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2019 2020 2021e2022f 2023f 2024f 2025f
Imports Exports
Imports Exports Imports Exports PCs Growth rate

Telephones Trade Balance Refrigerators Trade Balance Mobile Handsets Sales

900 797 16%
81 723
115 120 656
60 591
57 55 477 532
600 11%
USD’ m

USD'm
USD’ m

41 300 6%
22 30
17
5 3 1 0 0.5 0.3 0 0.3 0.4 0.1
0 1%
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2020 2021e 2022f 2023f 2024f 2025f
Unusual export data identified for 2018
Imports Exports Imports Exports Mobile Handsets Growth rate
Import data for 2018 was not available
Video Displays Trade Balance Radio Receivers Trade Balance Audio Visual (AV) Sales

118 600 411 453 20%

29 330 370
USD’ m

26
259 245 286

USD’ m
89 97 89 24 400 10%
83
USD’ m

16 14 200 0%
0 -10%
0.2 0.3 1 1 0.1 0.1 0.4 0.1 0.8 0.0

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Imports Exports Imports AV sales Growth

Page 20 Source: OEC, Fitch Solutions

 Engineering and
Machine Tools
Manufacturing sector in Ghana: Engineering and machine tools
Engineering tools and machine tools
Metal working machine parts trade Plastic and wooden machine tools trade
• There is currently a dearth in significant players in the engineering and
machine tools industry. The industry is littered with artisans in “Suame 5 936
Magasin” and other venues noted for the trade of auto tools and parts. 843
4 3 720
3 3 674
• The market is currently dominated by distributors of imported

USD’ 000
USD’ m
machinery and machinery tools. In addition, most auto companies 357
have dealerships established in the country to supply imported vehicle
parts. 0.03 0.05 0.04 0.04 0.04 1.13 7.8 4.4 2.51 0.739
• The Government has recently cut the sod for the construction of a 2016 2017 2018 2019 2020
modern machinery foundry and tooling center in Accra to plug the 2016 2017` 2018 2019 2020
deficit in domestic manufacturing. Exports
Imports (USD'm) Exports (USD'm)

Definition of selected tools Laser, light and photon beam tools

Hand tools trade trade
Hand tools include piers, Punching: punching presses are
pincers, tweezers and similar typically used to cut out metal
6
tools, files, rasps and similar shapes such as circles or 765
tools, pipe cutters, bolt squares from a sheet of metal. 578

USD’ 000
4

USD' m
croppers, perforated, punches, 464 461
Notching: notching equipment 3 3 2
metals and wire cutting shears. 224
are typically used to cut a notch
Parts, accessories, wood, or groove into flat sheet of 0.08 0.05 0.00 0.04 0.00 1.1 3.0 0.0 0.4 0.7
plastic machine tools include metals.
items used to automobiles, 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
furniture and electronics. It Punch-shears: punch share Imports (USD'm) Exports (USD'm)
Imports (USD'000) Exports (USD'000)
includes but not limited to light machines are typically used to
bulbs, rubber, drill bits, lathes cut holes in metal sheets.
and a band saws. Other hand tools trade Hand tools trade
Key distributors of machine tools incudes:
15 15 608
13 13
11

USD‘’ 000
435
USD’ m 361
290
114
0.4 0.5 0.3 0.4 0.0 11.8 0 0 0.139 0.139

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Imports (USD'000) Exports (USD'000)
Source: OEC Imports (USD'm) Exports (USD'm)
Page 21
OEC - The Observatory of Economic Complexity
Demand and supply analysis for the manufacturing sector:

Demand
Total Household Spending (2020 – 2025f) Population (2020 -2025f)
90 14% 35,000 34,409 3.00% • Determinants underlying forecasted demand for
81
80 72 12% 34,000
33,742 manufactured products include household expenditure
70 65 33,074 2.50% and population.
60 10%
55 33,000

Growth Rate
60 52 32,407 The Ghanaian economy is projected to grow at an

Growth Rate
•

Thousands
8%
USD'bn

50 32,000 31,740 2.00% average of c.3.7% in the next four years. This growth
40 6% 31,073 positively impacts household expenditure to grow from
30 31,000 USD 55 bn in 2021 to USD 81bn in 2025.
4% 1.50%
20 A forecasted 2% compounded annual growth in
30,000 •
10 2%
population from 2020 to 2025 is expected to increase
0 0% 29,000 1.00% household consumption of manufactured products
2020 2021e 2022f 2023f 2024f 2025f 2020 2021f 2022f 2023f 2024f 2025f
Population Growth
Total Householding Spending (USD'bn) Growth rate

Supply
Manufacturing Sector Contribution to GDP
12 16% • Demand exceeds supply and the deficit must be met
• Domestic supply of manufactured products in Ghana is a through imports.
9.5 14%
10 9.1 direct function of the available players in the Ghanaian
8.5 • Funding demand that is in excess of the economy’s
7.9 8.0 12% manufacturing industry.
8 7.0
production capacity through imports will have adverse
Growth Rate

10% • Production from manufacturing as forecasted by the effects. Increased imports will negatively impact the
USD'bn

6 8% Ministry of finance indicates a steady growth from trade balance and culminate in consistent depreciation
2022f to 2025f. of the Ghana Cedi.
6%
4
• Production capacity is expected to increase due to the • Government has therefore set out to provide an
4%
2
execution of various programs and policies to increase enabling environment that would encourage the private
2% local manufacturing capacity. sector’s contribution in plugging the deficit.
0 0%
2020 2021e 2022f 2023f 2024f 2025f

Manufacturing Sector Contribution to GDP (USD' bn)

Page 22 Source: Fitch, Ministry of Finance, Oxford Economics

 Key developments

AfCFTA (African Continental Free Trade Area (AfCFTA)

▪ With the ratification of the African Continental Free Trade Area (AfCFTA) agreement by 44 member countries in Africa, the full implementation of the
policy presents huge opportunities for players in the Ghanaian manufacturing industry.

Implementation of One District One Factory (1D1F)

▪ The One District One Factory (1D1F) policy is a Government of Ghana initiative to change the nature of Ghana’s economy from one solely
reliant on the export of raw materials to the international market to one focused on value addition, manufacturing, and export of processed
goods.

Business Regulatory Reforms

▪ The Ministry of Trade and Industry has launched the Ghana Business Regulatory Reforms portal that will provide a platform for constant
interaction between policymakers and business organizations. The platform provides an avenue for transparent discussions and
collaboration to create an enabling business environment.
Key
Developments Establishment of Machine Tooling Centre
▪ In September 2020, His Excellency Nana Addo Dankwa Akuffo- Addo lay the foundation for the establishment of the first major foundry and
Computer Numerical Control (CNC) machine tools centre at the Ghana Atomic Energy Commission in Accra. The completed foundry will churn out
machinery and tools for the agro-processing, auto-mobile assembling, aluminum products, and farming industries.

Establishment of the biggest steel manufacturing plant in West Africa

▪ B5 Plus has set out to establish a US$ 80 million steel factory in the Ningo Prampram constituency in Ghana. The project which sits on a 100-acre land
will be the biggest steel factory in the West African subregion after completion.
▪ In April 2021, His Excellency Nana Addo Dankwa Akuffo Addo commissioned the first phase of the project and cut the sod for phase II of the project.

Page 23 Source: Ministry of Trade and Industry and EMIS

 Overview of key players

FanMilk Ghana Limited Unilever Ghana Limited

Fan Milk Limited has been in existence since 1962 and is Unilever Ghana Limited is currently the largest quoted
currently engaged in the production and distribution of quality manufacturing and marketing company in Ghana.
refreshing milk-based and fruit-based products.
Revenue GHS 559m (2021)
Revenue GHS 468m (2021)
Total Assets GHS 380m (2021)
Total Assets GHS 572m (2021)
Ultimate Parent Danone S.A. Ultimate Parent Unilever Plc

Managing Director Ziobeieton Yeo Managing Director George Owusu-Ansah

Guinness Ghana Breweries Plc Cocoa Processing Company Ltd

Guinness Ghana Breweries Limited is currently the only

beverage company in Ghana listed on the Ghana Stock Cocoa Processing Company Limited (CPC) was established in
Exchange. 1965.

Revenue GHS 1,104m (2021) Revenue USD 14m (2020)

Total Assets GHS 883m (2021) Total Assets USD 153m (2020)

Ultimate Parent Diageo Plc Ultimate Parent Ghana Cocoa Board

Managing Director Helene Weesie Managing Director N/A

Source: Annual Financial Statement and Company Website

Page 24
Key sector investors

The Mohinani Group is a leading second-

SSNIT’s investments include: generation family business of Indian
• 62.62% stake in Aluworks Limited descent with a portfolio of investments
across various industries.
• 10.14% stake in Cocoa Processing
Company The group’s business includes:
• 7.57% stake in Guinness Ghana Poly Products Ghana Limited
Breweries Ltd
Ploy Sacks Ghana Limited
• 5.31% stake in Unilever Ghana Limited
Poly Tanks Ghana Limited
• 1.59% stake in FanMilk Ghana Limited
Poly Kraft Ghana Limited

Danone controls FanMilk Ghana Limited Diageo controls Guinness Ghana Breweries
through its subsidiary, FanMilk International Ltd by holding an 80.40% stake.
S/A, which holds a 62.11% stake in FanMilk
Ghana Limited

Verod is a private equity company that

holds investments across different
Heidelberg Cement holds c.93.1% stake in industries
Ghacem
Verod and Red Bull hold significant stake in
DTRT Apparel Limited
Source: Market research
Page 25
Key sector investors (continued)

Ghana EXIM Bank evolved as a result of a

Hitti Family started off as a family business merger of 3 Government agencies namely:
in 1973 under the name Greenplastica Export Trade, Agricultural and Industrial
Limited. The Hitti family has since grown Development Fund, Export Finance
into a conglomerate of firms across Africa. Company, and Eximguaranty Company Ltd.

In the Ghanaian manufacturing space, the In the Ghanaian manufacturing space,

Hitti family has investments in Duraplast, Ghana Exim Bank has assisted in securing
Ashform Limited, Suvinil, and Hitti. debt funding in Weddi Africa Tomato
Factory

Tinjian Limin Condiments Ltd is a brewing

Adenia Partners is a private equity and compound condiment production
company founded in 2002, with the aim of enterprise in China. The company belongs
investing in a variety od sectors including to the Tianjian Food Group, a wholly-owned
agribusiness and manufacturing, state enterprise.
In the Ghanaian manufacturing space, In the Ghanaian manufacturing space,
Adenia partners have investments in Cresta Tinjian Limin Condiments Ltd has an
and Kanu Equipment investment in the newly established
Leefound Foodstuff Ghana Limited.

Source: Market research

Page 26
 Regulators

Regulatory overview Standard Quality Product Standards Training Requirement

Regulatory Agency
setting assurance registration compliance
Ghana Standards Ghana Standards Authority is an agency of
Authority Government responsible for developing,
publishing and promoting standards in the
country. Ensure products for
both local
It does this through standardisation,
consumption and
metrology and conformity assessment
export are safe and
activities. Some of these activities are testing,
of good quality
inspection and certification

Ghana Export
Promotions Authority The Ghana Export Promotion Authority
(GEPA) is the National Export Trade Support
Institution of the Ministry of Trade To ensure Ghana
and Industry (MOTI) responsible for the export trade
facilitation, development and promotion of contributes to
Ghanaian exports. accelerated
economic growth.

Ghana Free Zones The Ghana Free Zones Authority (GFZA) was
Authority established by an Act of Parliament – The Free
To facilitate a well-
Zone Act 1995 (Act 504), is to enable the
integrated business
establishment of free zones in Ghana for the
environment with
promotion of economic development; to
world class capacity
provide for the regulation of activities in free
to compete.
zones and for related purposes.

Foods and Drugs FDA is the national regulatory body

Authority responsible for the regulation of food, drugs, Ensure products for
food supplements, herbal and homeopathic both local
medicines, veterinary medicines, cosmetics, consumption and
medical devices, household chemical export are safe and
substances, tobacco and tobacco products, of good quality.
blood and blood products as well as the
conduct of clinical trials protocols.
Page 27 Source: Authority’s Website
Sector Porter’s five forces

Bargaining power of suppliers Threat of New Entrants

► The bargaining power of suppliers is highly o Government policy encourages investment in the
o Minimal differentiation
dependent of inputs
on the prices to the
of alternatives manufacturing sector.
manufacturing sector. tomatoes), which
(mainly unprocessed o No regulatory minimum capital requirements to
fluctuate according
o Low switching cost of to buyers
the tomato harvest
of inputs from commence operation.
seasons in Nigeria.
suppliers in the manufacturing sector o New entrants may not have economies of scale
Therefore,
o►Low threat suppliers
of forwardhave higher bargaining
integration by suppliers enjoyed by already existing market players.
ofpower in seasons
inputs when prices of unprocessed
in the manufacturing space o Low switching cost of users of manufactured
tomatoes are higher as consumers resort to
o Local supply
processed of cocoa
tomatoes for beans and cassava are
consumption. products.
abundant; while inputs like rice, sugarcane
and tomato are met by imports

Bargaining power of buyers

Threat of substitutes
o Low switching cost for the purchase of
o Imported products come at very competitive manufactured products amongst consumers.
price when compared to locally produced
products. o Low chance of backward integration by buyers of
o Low switching cost amongst consumers of manufactured products
manufactured products in Ghana. o Wide array of brands of manufactured products
o High propensity for buyers to substitute based to choose from.
on availability and price of products. Competitive rivalry o Minimal bargaining power of buyers due to
► The Nigerian tomato processing industry is purchase of low volumes and a large market of
o The manufacturing industry is currently buyers.
relatively competitive, mainly driven
growing and expanding very fast due to state by
customer’s loyalty levels and perception of
incentives. o Buyers in the Ghanaian market a very sensitive to
quality. prices on manufactured products.
o High cost of setting up factories is indicative of
high exit barriers. High Medium Low
Source: Market research o Manufactured products are visibly branded to
Page 28 differentiate producers.
Manufacturing sector SWOT analysis

Strengths
Weaknesses
► Ghana boasts of a relatively stable business and investment ► Demand for manufactured products is concentrated in
climate driven by stable political and macroeconomic urban areas but weak in the rural areas of the country.
conditions relative to its peers in Sub-Saharan Africa.
► Low-income levels in Ghana restricts the bulk of demand
► With an urbanisation rate of 54.1% (c.15m people), Ghana is for manufactured products to essential products.
attractive for manufacturing as this indicates developing
logistics, higher spending levels and concentrated ► Price competition from imported manufactured products.
Imported manufactured products tend to be cheaper as

S W
consumers in urban areas.
compared to locally produced products.
► Ghana is rich in natural resources such as gold, diamonds,
manganese ore and bauxite, as well as in oil, and this is ► High cost of capital stifles the ability of local
expected to provide the manufacturing sector the needed manufacturers to scale operations to be competitive on
resource base to thrive. the international market.

► The median working age in Ghana is 21 years with 50%+ of ► Production inputs required for certain industrial
the population within the ages of 20 and 64. This indicates productions cannot be sourced locally e.g., in component

O T
the availability of labour and a strong working force that can manufacturing or pharmaceutical manufacturing.
drive spending and consumption. ► Access to reliable and affordable power supply required
► Supportive government initiatives aimed at transforming to run manufacturing plants especially outside of Accra.
Ghana from a largely agrarian economy to an industrial one.
Opportunities Threats
► There is an emerging urban middle class that is generating a ► Unemployment and raising inflation rate in the short
more sophisticated demand for manufactured goods. term erodes the purchasing power of households.
► Increased government focus to promote manufacturing ► Industrial activity affects the immediate surroundings
within priority sectors create opportunities particularly in and unsafe disposal of industrial waste can have
component manufacturing, and agro-processing. damaging effects on the environment. Firms found
culpable in such acts receive huge fines.
► The African Continental Free Trade Agreement will bring
greater market access to neighbouring countries. ► The number of Ghanaian households that are tech-savvy
is small; limiting the scope for e-commerce of
manufactured products.
Source: Fitch Solutions, African Centre for Economic Transformation

Page 29
Your EY team

03
Sector opportunities

Page 30
Sector opportunities

Metal Processing Raw Cashew Processing

o In 2020 Ghana was the fifth largest exporter of cashew nuts (fresh and dried)
GIADEC (Ghana Integrated Aluminum Development Corporation) in its effort to
in the world with export revenue of USD 354m. Ghana had about 14 cashew
move Ghana from a mere exporter of bauxite to an aluminum hub in Africa via
processing facilities with a total production capacity of 65,000 metric tonnes
partnerships with selected private investors plans to set up;
of raw cashew; however 10 out of the 14 facilities currently produced at 10%
• Two or three new refineries, each with a combined capacity of approximately
capacity while the other four are inactive.
2 million metric tonnes of alumina (refined bauxite),
• Retrofit of VALCO (Volta Aluminum Company Limited) to increase production o The sector provides a huge opportunity to an investor with capital to invest
capacity to 300,000 metric tonnes of aluminum; because there is the availability of inputs, and the government has lined up a
• Set up a new smelter with production capacity of up to 500,000 metric plethora of incentives to ensure the productive and profitable operations of
tonnes of aluminum. factories.

Feasibility studies are also underway in Pudo and Akpafu in the Upper West and
Oti regions respectively where significant quantities of iron ore have been
discovered. GIISDEC (Ghana Integrated Iron and Steel Development Corporation) Cassava Processing
intends to partner with the private sector in the development and manufacture
of steel. o In 2020 Ghana was the fourth-largest producer of cassava in the world but
placed 54th in terms of exports of cassava products. This is indicative of a lack
of manufacturing capacity to fully process cassava into finished products.
Construction Materials
o The sector provides a huge opportunity to an investor with capital to invest
because there is the availability of inputs, and the government has lined up a
o The government’s agenda 111 policy provides a huge opportunity for plethora of incentives to ensure the productive and profitable operations of
companies in the construction materials sector. factories.
o Cocoa Roads Improvement Programme (CRIP) provides an opportunity to
players in the construction materials to secure contracts. Machine Tooling
o Establishment of one factory in every district, one industrial park in each
region, amongst many other government initiatives also presents an The government of Ghana has cut the sod for the establishment of a machine
opportunity to players in the construction materials sector. tooling and foundry at the premises of Ghana Atomic Energy Commission
premises. The government intends for:
o The foundry and machine tooling center could be managed through a
Public-Private Partnership.

Page 31 Source: Market Research

Your EY team

04
Key investment highlights

Page 32
Key investment highlights

Availability of Policy Transportation &

inputs Incentives Logistics
o Excellent sea and air connections, which aid
o Ghana is endowed with abundant the import and export of products to and
agricultural produce such as cocoa, o Tax holidays depending on which from international markets such as Europe,
maize, cassava etc. incentive scheme an entity registers America and Asia.
under such as free trade zones, 1D1F
o Ghana has 67% of its population within and GIPC itself. o Tema port is the biggest port in west and
the ages of 20 -67 years indicating the central Africa. Ghana also boasts of a world-
availability of labor. o These incentives and tax holidays can class airport in Kotoka International Airport.
effectively make an entity or its produce o The country also has a good road and
and competitive locally and
developing rail network for delivering inputs
internationally. to production sites and imported or
manufactured products across the Ghana
and other neighbouring land-locked
countries.

Labor Force Power Supply Economic

Openness
o As of 2021, the electricity access rate o Ghana offers access to the market of the
o Ghana has a literacy rate of 69.8% as stands at 86.63% (2021), with 50% of Economic Community of West African
per the results of 2021 population rural residents and 91% of urban States ( ECOWAS).
census due its strong educational residents connected to the electricity
system. grid. o The AfCFTA provides access to the 1.3
o Low labour cost with a daily minimum o Compared to other African countries, billion market.
wage of c. USD 2. As compared to other cost of power is affordable in Ghana.
advanced economies, Ghana’s low labour o Ghana also has active trade agreements
The price of electricity for businesses
cost is very attractive for setting per Kwh US$ 0.106 which includes all with the European Union and United States
production facilities. cost of power, distribution and taxes. of America (AGOA).
o Ghana has fairly stable and reliable
power supply all year round.
Source: Market research
Page 33
Key investment highlights

Location and Accessibility and

Access to Land Consumer proximity to
Behavior Market
► Ghana provides location incentives for
manufacturing companies situated ► Ghanaian consumers of manufactured
outside Accra and Tema. projects are very price sensitive in their ► Ghana is geographically closer than any
pricing decisions. other country to the center of the earth.
► Under the Ministry of Trade and An average of 8 hours of flying time to
Industry’s 10-point agenda, the state in Europe and the Americas.
collaboration with the private sector has ► This price sensitivity affords new
developed specialized industry parks for entrants to the Ghanaian market the ► Such short commuting durations to the
litigation-free access to land. chance to succeed by affordable pricing European and American markets will
ensure the efficient supply chain
► Examples of established zones include management of exports and imports.
the WestPark, Dawa Industrial Zone and
Tema Industrial Park.

Legal System Currency Risk Political

Stability
► The Directive Principle of State Policy in
Ghana’s constitution encourages foreign ► It will expedient on the part of investors ► Reduced threat of nationalisation of
investment subject to all relevant laws in to consider foreign exchange risk for private businesses as enshrined in the
force. foreign direct investment in a frontier Constitution of Ghana (Article 20) and
► The Ghana Investment Promotion Centre economy like Ghana. Free Zone Act (Act 504)
(GIPC) Act 2013 ( Act 865) and Free Zones
Act 1965(Act 504), promote economic ► Hedging strategies to guard against the ► Enabling environment to ensure
development and regulate the activities of loss of value and increase in the cost of consistent consumer demand without
investors. imported inputs during periods of any internal or external sanctions.
currency depreciation.
► The Ghanaian legal system also provides
independent courts as avenues to request
for adjudication of thorny legal issues.
Source: Market research
Page 34
Your EY team

05
Testimonials

Page 35
Testimonials

“Kasapreko is a wholly owned Ghanaian company. The rich supply of raw materials, political
stability and ideal market size has made Kasapreko a success story.
GIPC has been a backbone to our story. Aside being a member of the Ghana Club 100, which
has increased our brand publicity, GIPC has also boosted our market penetration. When we
joined the 1D1F initiative, we were given wonderful packages that enabled us meet deadlines.
Some of these incentives included tax exemptions on equipment and raw materials needed for
production, the project also enabled us facilitate registration processes. We would like to use this
opportunity to encourage investment and partnership in Ghana to Grow in Ghana and with
Ghana.”
Kasapreko Company Limited

Page 36
Testimonials

“Keda is still expanding since establishment in 2015 with operations in various African countries
such as Tanzania and Egypt and will make Ghana it’s industrial hub for the whole of West Africa
and probably Africa as a continent.
Ghana is a good country for investors, the political environment is very stable, and Ghanaians
are very kind. Government through GIPC has also been very supportive in terms of business
procedures and policy initiatives.
I encourage all investors to choose Ghana as their preferred investment destination.”

Keda Ceramics

Page 37
Your EY team

06
Contact us

Page 38
Key contacts

Yofi Grant Edward B. Ashong-

Chief Executive Officer Lartey
Tel: +233 302 665 125-9 Director, Investor Services
Email: Tel: +233 302 665 125-9
yofi.grant@gipc.gov.gh Email
edward.ashong-
lartey@gipc.gov.gh

Yaw Amoateng Eugenia Okyere

Afriyie Head of Research
Deputy Chief Executive Tel: +233 302 665 125-9
Officer Email:
Tel: +233 302 665 125-9
eugenia.okyere@gipc.gov.gh
Email:
yaw.afriyie@gipc.gov.gh

Page 39
Your EY team

07
Appendix

Page 40
Appendix I (1/2)

Sector Specific Incentives Location Incentives for Agro-processing Companies

Tax
(after
Sector Concessionary Rate
concessionary After the initial five tax-holiday period, agro-processing enterprises which use,
period) agricultural raw materials as their main products shall be the following tax rates
1% for 10 years from start of according to their locations
Tree crops farming 25%
operation
Tax
Cash Crops or farming livestock, other 1% for 5 years from start of Location
than cattle or fish
25% (after concessionary rate)
operations
1% for 10 years from start of
Cattle Farming 25% Accra - Tema 20%
operation
1% for 5 years from start of
Processing of Agric Raw Materials 25%
operations Other Regional Capital (except Northern, Upper East,
15%
Income from a cocoa by-product 1% for 5 years from start of and Upper West Regional Capitals)
25%
business operations
1% for 10 years from start of Outside Regional Capitals 10%
Cattle Farming 10%
operations
Income for financial institution offering
20% Northern, Upper East and Upper West Regions (capitals
loans to farming enterprises N/A 5%
and other locations
1% for 10 years from start of
Income from a rural banking business 8%
operations
Export of non-traditional exports 8%
Locational Incentives for Manufacturing Companies
N/A
Income from a waste processing 1% for 7 years from start of
25%
business/company operations Location Tax
Income of a certified company into a low 1% for 5 years from start of
25%
cost housing business operations
Income of an approved unit trust 1% for 10 years from start of Manufacturing industries located in regional capitals
25% (except Accra and Tema) 18.75%
scheme or mutual fund operations
Income from a venture capital financing
25%
company 1% for the 10 years from Manufacturing Companies situated in Accra and Tema 25%
Company's listed on the Ghana Stock
22% Manufacturing companies situated outside regional
Exchange N/A
capitals and Tema 12.50%
Income from Tourism 22%
Source: Market research
N/A
Page 41
Appendix I (2/2)

Young Entrepreneurs Incentives Investment Guarantees

Young entrepreneurs who are in the business of manufacturing, information
technology, agro-processing, energy production, waste processing, tourism ❖ Constitutional Guarantees
and creative arts, horticulture and medicinal plants have five years tax
holidays and after the five years the following rates apply: ❖ Multilateral Agency (MIGA) membership
❖ Bilateral Investment Treatise (BTIs)
Location Tax ❖ Free Zones Act ( Act 504)
Accra and Tema 20%

Other regional capitals (except Northern Regions) 15% Trade Associations

❖ Economic Community of West African States (ECOWAS)
Outside Regional Capitals 10%
❖ African Continental Free Trade Area (AfCFTA)
Northern regions 5% ❖ World Trade Organisation (WTO)
❖ Trade agreement with the United Kingdom
❖ Trade agreement with the European Union
Exemptions ❖ Party to the US African Growth and Opportunity Act (AGOA)
❖ Customs duty exemption on plant, machinery and equipment (companies in
the hospitality industry enjoy a concessionary rate under Chapter 98 B of the
HS Code)

❖ VAT exemptions to a select group of products as indicated in the VAT Act.

❖ Double taxation treaties with Belgium, Denmark, France, Germany, Italy,

Mauritius, Netherlands, Singapore, South Africa, Switzerland and the United
Kingdom

Page 42
Appendix II

STEP 1 : Registration with Registrar General’s Department STEP 4 : Registration with Ghana Revenue Authority

Incorporate a company at the Registrar General and obtain the following: All enterprises must register directly with the Ghana Revenue Authority for the
o Certificate of Incorporation purposes of fulfilling statutory tax obligations.
o Company regulation
o Certificate to commence business

STEP 2 : Minimum Equity Contribution STEP 5 : Environmental Impact Assessment Certificate

o Applicable enterprises must register and obtain an environmental permit
from the Environment Protection Agency.
o There is no minimum equity requirement for foreigners interested in the following o Registration with other relevant agencies: companies are to comply with
sectors: manufacturing, export trading and portfolio investment. regulatory requirements within the various manufacturing sub-sectors.

STEP 3 : Registration with GIPC STEP 6 : Product Registration

o The investor then registers with the GIPC (after paying the relevant fees) for the o Free zone investors need to obtain a license from Ghana Free Zones Authority
process to be completed. This procedure takes 5 statutory working days to complete, (GFZA).
provided the registration forms and all supporting documents are in order. o Enterprises will be required to obtain the necessary licenses and clearances
from the Foods and Drugs Authority (FDA) and Ghana Standards Authority
o Wholly owned Ghanaian enterprises are also encouraged to register with GIPC to (GSA). This is necessary before marketing and selling products to the general
benefit from the incentives provided for in the GIPC Act, 2013 (Act 865) public.
o Registration with the Ghana Export Promotion Authority (GEPA) is also a
prerequisite for exports.

Page 43
Source: GIPC
Appendix III (1/2)

The Ministry of Trade and Industry is the lead policy advisor to government on trade, industrial and private sector development with the responsibility for the
formulation and implementation of policies for the promotion, growth and development of domestic and international trade and industry.

The major functions of the ministry are:

01 Initiate and formulate policies, taking into account the needs and aspiration of the people

02 Undertake development planning in consultation with the National Development Planning Commission

03 Co-ordinate, monitor and evaluate the efficiency and effectiveness of the performance of thedrugs,
food,
In executing its mandate of regulation activities in the
Sectorcosmetics, household chemicals and
medical devices, the FDA issues licenses and guidelines
regarding the following:
The Ministry, in executing its function of ensuring continuous development of the industrial sector, has fashioned out a 10-Point Agenda to support Governments industrialization drive.

National Industrial Revitalisation Programme: in response to the rising cost of doing business in the country, the revitalization programme is to provide a package of
stimulus to industries. The package includes a stimulus fund of up to USD 200 million, providing technical and business development services to companies.

One District One Factory: The government’s industrialization drive is anchored by its 1 District 1 Factory Initiative. The initiative is designed to decentralize industrial
development to ensure an even and spatial spread of industries. The state will facilitate and assist medium to large-scale businesses to set up factories across the
country.

Strategic Anchor Industries: The government of Ghana has identified anchor industries that are key to development; these identified sectors will have industrial park
development centered around them. These industries are: agro-processing ,pharmaceuticals, integrated aluminium industry, iron and steel, automobile and vehicle
assembling, textiles, garments and apparel, industrial salt, petrochemicals, manufacturing of machines and machinery components, industrial starch and oil palm
industries.

Source: Ministry of Trade and Industry

Page 44
Appendix III : (2/2)

Industrial Parks and Special Economic Zones: this is an initiative by government to provide investors with access to litigation free lands
available for industrial activities. Government is collaborating with private to develop industrial villages centred around the selected anchor industries.

Development of Small and Medium Scale Enterprises: this is initiative is to ensure small and medium scale enterprises are given the
needed boost to thrive. The support particularly relates to ensuring access to affordable loans from financial institutions.

Export Development Programme: this initiative is related to ensuring factories established under One District One Factory are designated as
free zones entities; required by law to export 70% of their production.

Enhancing Domestic Retail Infrastructure: this initiative is to ensure the factories under 1D1F are not only competitive on the international
market but also locally. Government will ensure this by upgrading the retail infrastructure to cope with the increased level of local production.

Business Regulatory Reforms: this initiative is to reduce the cost of doing business by removing the bureaucracies associated with doing
business in Ghana.

Industrial Sub-contracting Exchange: this initiative is to ensure healthy collaboration between the larger companies and small and medium
scale enterprises (SMEs). This will be done by promoting the sub-contracting of the non-critical business activities of larger entities to SMEs

Improving Public-Private Dialogue: this initiative is to ensure regular dialogue with the private sector on the successes and challenges in the
implementation of the 10 point agenda. It is expected that one Business Summit will be held every year.

Source: Ministry of Trade and Finance

Page 45
 Appendix IV: 1D1F (1/4)

Background Gombe State

• Ghana is endowed with so many resources spanning from fertile agricultural land to
precious minerals. The country has however not optimised value from its endowed
resources. The lack of efficient utilization of these resources to obtain maximum
value is due to the reluctance of investors, local and foreign, to invest. The
reluctance stems from a lack of enabling and conducive environment to make
handsome returns on investments.
• Ghana as a country has not obtained maximum value from its natural resources
because these resources are exported in their raw state. Raw material exports do not
command high prices on the international market as compared finished products.
• The Government of Ghana is currently bent on transitioning the economy from an
agrarian one to one centered on industrialization. The government’s industrialization
drive is anchored by its 1 District 1 Factory Initiative. It is also the key component of
the government’s 10 points industrialization drive.
• One District One Factory is a government-sponsored initiative to create an enabling
and conducive environment to encourage private sector participation in its
industrialization drive. The essence of the projects is to situate at least one industrial
facility in each district of the country based on the natural resource available.
• The core objectives of the 1D1F initiative include:
i. Add value to the natural resource endowments to each district;
ii. Promote import substitution and thereby conserve scarce foreign exchange;
iii. Promote exports of finished products and foreign exchange earnings;
iv. Decentralise industrial development among all districts in the country.

On 25th August 2017, the President of the Republic, Nana Addo Danquah Akuffo Addo
launched the 1D1F program at Ekumfi in the Central Region. The launch was
accompanied by the sod cutting of the commencement of the first fruit/pineapple
processing factory in the Central Region of Ghana.

Source: 1 District 1 Factory

Page 46
Appendix IV : 1D1F (2/4)

State Incentives Under 1D1F Include:

Tax Incentives: Waiver on duties and Levies on Export Market Identification and Development
imported plant, machinery, and equipment, as
well as raw materials

31 Technological Solutions Being Established to

Five-Year Corporate Tax Holidays Provide Technical Support and Technology Solutions
to 1D1F and Other Companies

Interest Subsidy on loans Granted to 1D1F Community support through the district
Companies implementation support teams

Technical Assistance provided to 1D1F 67 Business Resource Centers established to provide

Companies by Experienced Consultants business development services to 1D1F companies
Free Of Charge

Extension of infrastructure facilities to

1D1F Project Sites e.g. Electricity,
Water, and Access Roads

Government Policy to Procure Locally

Produced Products by 1D1F companies

Source: 1D1F

Page 47
 Appendix V : 1D1F (3/4)

Financing Options Under 1D1FGombe State

The financing options for programs under the 1D1F initiative include :
i. Medium to Large Scale Companies fully financed by Private Investors,
ii. Medium to Large Scale Companies owned by Private Investors but supported with loan facilities from Participating Financial Institutions
iii. Medium to Large Scale Factories financed by the African Development Bank (AfDB)
iv. Small scale Factories financed by AfDB
v. Small to medium-sized companies financed by Private Sector with Equity Contribution from Government through District Assemblies Under PPP programs.
The participating financial institutions include :

FIDELITY BANK

STANBIC BANK

Source:IDIF
Page 48
Appendix V : 1D1F (4/4)

Factory
Commissioning
@ B5 Plus
Company Limited

Factory
Commissioning
@ CH Global
Limited

Source: 1DIF
Page 49
Appendix VI : Industrial Parks (1/3)

Background Gombe State

• In line with the Industrial Transformation Agenda of the Ghanaian Government, the
Ministry of Trade and Industry is implementing the one region one industrial park
initiative.
• Over the last decade access to dedicated and litigation-free lands and other
infrastructure required for industrial development in Ghana has been a challenge. The
situation has discouraged potential investors from venturing into the industrial sector
and thereby limiting Ghana’s access to sustainable amount of FDIs needed for job
creation, income generation and poverty reduction.
• In order to address this challenge and contribute to the development of Ghana, the
government of Ghana through the Ministry of Trade and Industry as part of its
transformational agenda seeks to encourage the establishment of at least one ‘large’
park(s) in all the sixteen regions of Ghana.
• One Region One Industrial Park is a government-sponsored initiative to create
provide availability of litigation-free land to encourage private sector participation in
its industrialization drive. The industrial parks will also ensure specialization in
priority sectors of the economy
• The core objectives of the industrial parks and specialized economic zones are:
i. To develop effective industrial land banks acquisition and security systems at
national, regional and district levels to facilitate easy zones/enclave planning for
industrial development and also to promote the spatial distribution of industrial
development for job creation in order to achieve reduction in poverty and income
inequalities.
ii. To improve access to litigation free land and access to utility services whiles
spreading economic activities across the country
iii. To provide an institutional framework, modern services, and physical infrastructure
that may not be available in the rest of the country to foster development and
economic activities
iv. To encourage industrial cluster formations for networking and spill over effects.

Source: Ministry of Trade and Industry

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 Appendix VI : Industrial Parks (2/3)
Appendix VI : Industrial Parks
.
A number of private-sector developers have expressed interest in investing in the development of industrial parks and specialized economic zones in
Ghana. Prominent among these are :

• LMI Holdings Limited is the primary developer of the • The Chinese Hasan International Holding Group Co • BlackIvy is the developer of the WestPark industrial
Tema Meridian Industrial Zone in Free Zones (Hasan International) is the developer of the Sekondi area.
Enclave and Dawa Industrial Zone (2,750 acres of Industrial Park.
industrial land). • The WestPark is situated in Sekondi- Takoradi, 25km
• The Sekondi Industrial Park is located in Sekondi- from the Takoradi Port and 7km from the Aboadze
• LMI Holdings is, by far, the largest industrial park Takoradi, Ghana’s second largest port city. The Power Park, with 2,200 MW planned generating
developer in Ghana. In both parks, the Group has, Industrial park covers a total area of of 2,200 acres capacity.
over the years, invested in industrial utilities (power (890.30 hectares).
and water distribution), roads and drains—providing • The park is earmarked for the following industries:
base infrastructure for international investors • The park is earmarked for Heavy and Light food and beverage processing, vehicles and
looking to invest in Ghana. industries as well as warehousing. equipment, construction and building materials,
footwear and apparel, electronics and appliances,
• The Tema Meridian Industrial Park boasts of • The western railway line to the Takoradi Port runs and chemicals & allied products.
250,000 m2
warehousing space, 130 MVA capacity through the Sekondi Industrial Park. The park also
substation, a self contained water distribution boasts of the supply of natural gas terminal from the • Benefits provided by BlackIvy LLC, the developer,
channel, a railway link from Tema port, container Ghana Gas factory at Atuabo for use by prospective include the establishment of a state of the art
terminal and 17MW rooftop solar project. investors. vocational training center, reliable and cheap source
of power supply, 12.5% corporate tax due to the
• The Meridian Industrial Park hosts about 65 • Sekondi Takoradi also boasts of an airport with location of the industrial park, ample water supply,
companies in various manufacturing subsectors. regular flights from Accra. Flights between Accra and provision of access to BlackIvy’s global network
and Takoradi takes 30 minutes. Distance by road is to raise capital and identify new markets for
• An overview of the Dawa Industrial Park is presented 228 .2 kilometres. products.
in the next slide.

Source: Website of Sponsors

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 Appendix VI : Industrial Parks (3/3)

DAWA INDUSTRIAL ZONE OFFERINGS INCLUDE ::

Pharma Manufacturing Site Warehousing and Logistics Site

Steel Fabrication Site Food Processing Site

Garment Manufacturing Site Automotive Assembling Site

DAWA INDUSTRIAL ZONE ATTRACTIONS::

o Reliable energy supply

o High Speed Internet
o Asphalted or Blocked Paved Roads
o Available concrete products factory for tenants to put up facilities
o On-site civil engineers who offer engineering services at competitive rates
o Estate management services including security, sewage management and landscaping
o Complementary Dawa Residential Estate

Dawa Industrial Zone is a 45-minutes drive from Tema Harbour and Industrial Hub

Source: Dawa Industrial Zone

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Appendix VII :Ghana Covid-19 Revitalization of Enterprise Support ( Ghana CARES)

Staple Food Crop Processing Zones

After
DAWA the successful
INDUSTRIALcompletion of Phase
ZONE I of Ghana Cares,
OFFERINGS relieving the::hardships that Covid-19 brought in its wake, the government is implementing Phase II. The program is scheduled to
INCLUDE
be implemented between 2021 and 2023 and funded with GHS 100bn.
The Initiatives under the Phase II of the Ghana CARES program includes the following manufacturing sector-centered initiatives :.

This will involve initiatives to strengthen the agro-processing, import substitution, textiles and garments industries. This will also involve the
Building the Light retooling and recapitalization of some distressed but economically viable companies in the iron and steel, wood processing, a nd textile
Manufacturing Sector manufacturing space.

Developing the
Engineering and This initiative will involve providing needed infrastructure base to build capabilities in the manufacture of machine tools. The President has already
Machine tools cut the sod for the construction of a machine tooling center and foundry at the premises of Ghana Atomic Energy Commission
Industry

This initiative will involve the implementation of the Ghana Card System to provide economic players with a unique identifier for all transactions. The
Fast Track Digitization Government is also facilitating the establishment of a Domestic Crediting Rating Agency to improve the quality of credit information. This initiatives
will ensure the bridging of the asymmetry of information between lenders and borrowers, culminating in reduced cost of funds.

This involves leveraging on Agenda 111, the construction of 111 hospital across the country, to strengthen the capacity of the constructions
Developing Ghana’s materials industry.
Constructions The Government through the National Home Ownership Fund is working in partnership with selected commercial banks to scale up the delivery of
Industry affordable housing in Ghana.

Establishment of the Operationalization of the Development Bank Ghana (DBG) will ease the constraints of long-term financing at competitive rates for entrepreneurs.
Development Bank This will propel economic growth by providing affordable capital to manufacturing companies to scale up production.
Ghana

Source: Ministry of Finance

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Appendix VIII: List of abbreviations

AfCFTA African Continental Free Trade Area

C. Approximately
COCOBOD Ghana Cocoa Board
CPC Cocoa Processing Company
CRIP Cocoa Roads Improvement Program
ECOWAS Economic Community of West African States
FDA Food & Drugs Authority
GDP Gross Domestic Product
GEPA Ghana Export Promotion Authority
GFZA Ghana Free Zones Authority
GHS Ghanaian Cedi
GIADEC Ghana Integrated Aluminium Development Corporation
MOTI Ministry of Trade & Industry
SSNIT Social Security and National Insurance Trust
USD’b United States Dollars in billions
USD’m United States Dollars in millions
VALCO Volta Aluminium Company Limited
1D1F One District One Factory

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