Benefitting from two decades of comparatively
stable democracy and solid economic policy, Ghana was the second
fastest-growing economy in 2011. Throughout the global economic
crisis that began in 2007, the gross domestic product (GDP) of
Ghana grew each year, with a peak increase of 14.4%.
Although half of Ghana’s workforce remains employed by
agriculture, the local economy is mainly driven by the service
industry and manufacturing. Together, these sectors generate
nearly 75% of the GDP. Nonetheless, the agricultural sector is
of critical importance as it is presently the source of the
majority of Ghana’s exports.
Cocoa products alone represent over 50% of all Ghanaian exports.
All cocoa exports are controlled by the Ghana Cocoa board, who
guarantee a minimum price to farmers, and ensures taxation
compliance within the industry. Fruit and fish are also produced
for export, though in much smaller quantity. This lack of
produce diversity in the agricultural sector can be a cause of
concern. Cocoa prices have been stable or increasing over the
last twenty years; however an eventual drop in prices or a
disease outbreak could prove disastrous. For example, invasive
fungal diseases in Brazil caused a 75% reduction in national
cocoa production in the 1990s and a loss of 200,000 jobs.
The mining industry is responsible for significant revenue as
well; with manganese, gold, and diamonds representing about a
tenth of exports. As the 2nd largest gold exporter in Africa
(after South Africa), Ghana has benefitted from high gold prices
in recent years. Despite these industries, Ghana’s trade balance
usually experiences a slight yearly deficit, approximately 1% of
GDP. This trend may be about to change, in light of recent
events.
In 2011, a surge in growth was caused by the exploitation of a
massive 3-billion barrel oilfield that had been discovered in
2007. Potential oil production was estimated to exceed 100,000
barrels per day. As of October 2012, production has peaked at
only 86,000 barrels, although plans to expand production are
underway. If the original production goals are met, Ghana would
become one of the most important oil exporters in Africa, adding
significantly to the diversity of the nation’s economic
resources.
Although the recent growth in the petroleum sector is promising,
foreign companies may choose to hire expatriates rather than the
local workforce. With youth unemployment already at 25%, the
Ghanaian government passed a law in 2011 requiring locally-hired
labour to be a part of every level of petroleum operations. This
initiative is aimed at developing local skills, enabling
technology transfer, and giving locals a greater degree of
control over development of petroleum resources. In this manner,
human resources are developed that can benefit the economy of
Ghana as a whole for years to come.