Ghana prides itself as one of the fastest growing economies in the world with a GDP growth of 8.3% - the highest in global economy for 2018. It is therefore easy to see why Ghana has become an investor’s darling as investors confidence in the economy is very high at the moment. If you are looking to invest in Ghana, then you should consider the following industries.
Mining
Ghana is globally known for its possession of four major mineral resources, namely gold, diamonds, manganese and bauxite. Ghana is Africa’s largest producer of Gold, with a record production of 80.5 t in 2008. Other minerals that are available in Ghana are natural gas and petroleum, silver and salt. Mining is a huge area of foreign investments in the Country.
There are about 23 large-scale mining companies operating in the extractive industry in Ghana. Investment possibilities in the industry are available and growing in the areas of exploitation or production and industrial processes.
Although a large majority of large-scale mining companies are multinational, small-scale mining in Ghana is exclusively reserved for Ghanaians.
The mining industry in the Country accounts for 5% of the Country’s GDP with minerals making up about 37% of total export.
Oil and Gas
Oil and petroleum remain in high demand all over the world and there’s no sign of this reducing any time soon. Oil was first discovered oil in Ghana in 2007. This discovery was hailed as one of the biggest oil finds in the last decade offshore West Africa. According to GIPC, Ghana has been commercially producing oil since December 2010.
Imad Mesdoua, Senior Consultant for Africa at Control Risks indicated in an interview with CNBC that Ghana is about to have an oil boom. This is in line with the 8.3 economic growth that Ghana has experienced as of July 2018. In fact, oil and gas exploration in Ghana is ongoing and the amount of crude and natural gas continues to grow.
The oil and gas industry in Ghana right now is ripe for investment in both exploration and investment. The economy is fairly stable and the political landscape is one of the most peaceful in Africa. Investors would be wise to enter the market now.
Fast Food Franchises
Ghanaians really love their food and the countless restaurants sprinkled around the country is testament to that. Accra particularly has a lot of restaurants that cater to western palates and not just local menus. Interestingly, unlike most non-African countries where fast food joints are littered at every other corner, Ghana is relatively virgin terrain when it comes to fast food.
This is certainly not because the Country is a stranger to fast food franchises. In the last ten years, several global brands have entered and are prospering in the Ghanaian market space including burger king, pizza hut and KFC. Quite simply, fast food franchises should be an obvious recommendation for potential investors in Ghana.
Hotels
Hotels are generally a solid investment option. They produce predictable incomes and are a departure from traditional real estate investments such as residential properties that are merely bought and sold.
In spite of the high costs associated with major investments in projects like hotels in Ghana, there are still many reasons in favour of such investments.
In the last few years, Ghana’s Foreign Direct Investment (FDI) has steadily grown. Touted as one of West Africa’s leading democracies, Ghana has proven to be a safe investment space for many. This explains the emergence of major international hotels brands such as the Marriott as recently as 2018.
Compared to other African Countries like Nigeria or even South Africa, there is clearly more than enough room for other players to enter the market.
Industrial
Ghana is an industrial darling on the continent. It is more advanced than many other African countries. But it still nowhere near its full potential. Pipeline manufacturing for the oil & gas sector fails to meet the demand in timely fashion with quality. Sometimes you just want the basic things manufactured without hassle, says one industry insider, “but it is the small things that can slow up many projects.” Yet such lamenting should not deter foreign investors. Similar complaints have been thrown around about other industries. Every time a complaint surfaces, it encounters a group of anxious entrepreneurs waiting to solve it (a luxury of Ghana’s entrepreneurial makeup).
Imports of agro-chemicals and related agriculture products will slow over time as new companies work to manufacture agricultural inputs locally. Ghana has great potential as a car manufacturing country, possibly even electric cars. The growth potential of gas liquefaction continues to be the talk of the town as the queues at gas stations increase. Whatever the product, there is someone in Ghana at this moment discussing how to make it locally. The potential of the overall industrial sector in Ghana is unimaginable. But it can only be reached with more capital.