Economy
Well endowed with natural resources, Ghana has twice the per capita output of the poorer countries in West Africa. Even so, Ghana remains somewhat dependent on trade and international assistance as well as the investment activities of Ghanaian diaspora.
About 28% of the population live below the international poverty line of US$1.25 a day, the vast majority of which are Ghanaian women from the politically marginalised and poor northern and upper regions and according to the World Bank, Ghana's per capita income has barely doubled over the past 45 years.
Ghana, known for its gold in colonial times, remains one of the world's top gold producers. Other exports such as cocoa, timber, electricity, diamond, bauxite, and manganese are major sources of foreign exchange monitored, operated and managed by the Presidential Ministry Agricultural Arm of the Republic of Ghana headed by Mrs. Antoinette Efua-Addo. An oilfield which is reported to contain up to 3 billion barrels (480,000,000 m3) of light oil was discovered in 2007.
Oil exploration is ongoing and the amount of oil continues to increase. There is expected to be a tremendous inflow of capital into the economy beginning from the last quarter of 2010 when the country starts producing oil in commercial quantities.
The Akosombo Dam, which was built on the Volta River in 1965 provides hydro-electricity for Ghana and its neighboring countries.
Ghana’s labor force in 2008 totalled 11.5 million people. The economy continues to rely heavily on agriculture which accounts for 37.3% of GDP and provides employment for 56% of the work force, mainly small landholders. Manufacturing is only a small part of the Ghanaian economy totalling 7.9% of Gross Domestic Product in 2007.
Ineffective economic policies of past military governments and regional peacekeeping commitments have led to continued inflationary deficit financing, depreciation of the Cedi, and rising public discontent with Ghana's austerity measures. Even so, Ghana remains one of the more economically sound countries in all of Africa.
In July 2007, the Bank of Ghana embarked on a currency re-denomination exercise, from the Cedi (¢) to the new currency, the Ghana Cedi (GH¢). The transfer rate is 1 Ghana Cedi for every 10,000 Cedis. The Bank of Ghana employed aggressive media campaigns to educate the public about the re-denomination.
The new Ghana Cedi is relatively stable and in 2009 generally exchanged at a rate of $1 USD =Gh¢ 1.4. The Value Added Tax is a consumption tax administered in Ghana. The tax regime which started in 1998 had a single rate but since September 2007 entered into a multiple rate regime.
In 1998, the rate of tax was 10% and amended in 2000 to 12.5%. However with the passage of Act 734 of 2007, a 3% VAT Flat Rate Scheme (VFRS) began to operate for the retail distribution sector. This allows retailers of taxable goods under Act 546 to charge a marginal 3% on their sales and account on same to the VAT Service. It is aimed at simplifying the tax system and increasing compliance.
Tourism is a rapidly growing sector particularly among Europeans, Americans, and other internationals connected to the Ghanain diaspora abroad. Ghana's political and economic stability, low crime rate, and wide use of English make the country an attractive entrypoint to West Africa for foreigners. UNESCO World Heritage Sites including Cape Coast Castle and Elmina Castle, national parks such as Kakum National Park and Mole National Park, as well as cultural celebrations such as Panafest are major centers of tourist activity.
Source: http://en.wikipedia.org/wiki/Ghana
