| ||||||||||||
| ||||||||||||
| ||||||||||||
| ||||||||||||
|
Country Commercial Guides for FY 2000:
|
CHAPTER V: Leading Sectors for U.S. Exports and Investment
A. Best Prospects for Non-Agricultural Goods and Services
- Telecommunications Equipment
- Electrical Power Systems
- Computers and Peripherals
- Automobiles/Light Trucks/Vans
- Construction and Earth Moving Equipment
- Mining Industry Equipment
- Food Processing and Packaging Equipment
- Hotel/Restaurant Equipment
- Travel and Tourism Services
The data below are estimates based on Ghana Statistical Service figures. Estimates for 1998 and 1999 take into consideration the direction of government policies, economic and political conditions and the views of market participants. All data are in millions of U.S. dollars.
1 - Telecommunications Equipment (TEL)
As a result of the GOG's liberalization of its telecommunications sector, annual growth has been significant. Imports are mainly for landline projects and private mobile telephone services. Major imports include switching and transmission equipment, telephone, fax machines, radio and television equipment, and cellular radio telephones.
The national network operators have programs underway to meet their performance targets under their licenses. The key competing countries are Japan, Malaysia, France, and the U.K.
1997E 1998E 1999E $M $M $M a. Total Market Size 44 70 80 b. Total Local Production 0 0 0 c. Total Exports 0 0 0 d. Total Imports 44 70 80 e. Imports from the U.S. 5 10 12The above statistics are unofficial estimates.
2 - Electrical Power Systems (ELP)
The 1998 energy crisis brought in its wake the need to prepare to meet present and future energy demands. Present demand deficit is about 600MW. The GOG plans to double generating capacity to 2600MW by 2001, primarily through gas-fired plants financed by independent power producers. Capital investment by the utilities is expected to help stimulate the market for generation, transmission, and distribution equipment.
Demand for electric generators is expected to decline owing to the improvement in the reliability of power supply from the electric utility. However, there is still some demand for generators since they now form part of many households as well as industry contingency plans.
1997E 1998E 1999E $M $M $M a. Total Market Size 40 61 64 b. Total Local Production 0 0 0 c. Total Exports 6 8 6 d. Total Imports 46 69 70 e. Imports from the U.S. 20 28 303 - Computers and Peripherals (CPT)
The market for computers continues to expand as government and businesses try to facilitate work and improve productivity. The main imports are desk-top personal computers, floppy diskettes, printers, and monitors. The U.S. remains a major supplier in the computer equipment market in Ghana. Other suppliers are Japan, U.K. and, lately, East Asian countries owing to their currency depreciation.
A growing number of firms serve the Ghanaian hardware and software markets. Demand is spurred by improved local servicing capacity coupled with growth of offshoot activities including shareware, software design, computer graphics, and systems consulting. There is a rising demand for used pentium computers.
1997E 1998E 1999E $M $M $M a. Total Market Size 15 20 25 b. Total Local Production 0 0 0 c. Total Exports 2 3 3 d. Total Imports 17 23 28 e. Imports from the U.S. 6 10 12 The above statistics are unofficial estimates.4 - Automobiles/Light Trucks/Vans (AUT)
Ghana has no domestic assembly of motor vehicles and thus relies exclusively on imports of these products. Used vehicles (5-10 years old) constitute about 70 percent of vehicles imported into Ghana. Effective June 1998, the GOG banned the importation of motor cars and commercial vehicles which are more than 10 years old, abolishing the penalty on older vehicles.
Low-income levels make older cars more attractive. The general trend is toward vehicles with smaller engine (1200-1800cc) capacity and those that can run on liquefied gas. Under the new tax rates, they attract import duty of 10 percent plus a 10 percent VAT.
In the new vehicles market, U.S. cars are becoming very popular, as it is increasingly easier to obtain replacement parts. Right-hand steering motor vehicles are forbidden in Ghana.
1997E 1998E 1999E $M $M $M a. Total Market Size 275 285 290 b. Total Local Production 0 0 0 c. Total Exports 0 3 3 d. Total Imports 275 288 293 e. Imports from the U.S. 28 32 33The above statistics are unofficial estimates.
5 - Construction and Earthmoving Equipment (CON)
Earthmoving equipment is in demand for use in road construction, mining operations and in commercial and residential property development. Price and financing terms are key considerations for buyers where sales are not linked to external assistance programs. Reconditioned equipment has very good prospects, especially that which has easily-obtainable replacement parts. Non-U.S. producers of construction and earthmoving equipment have been somewhat slow to enter the Ghanaian market, but there are indications that they are becoming more aggressive.
1997E 1998E 1999E $M $M $M a. Total Market Size 78 94 100 b. Total Local Production 0 0 0 c. Total Exports 0 0 0 d. Total Imports 78 94 100 e. Imports from the U.S. 23 28 32The above statistics are unofficial estimates.
6 - Mining Industry Equipment (MIN)
Although the mining sector continues to enjoy strong growth in Ghana, the slump in the world price of gold may lead to delayed purchases of some equipment. Gold extraction is the focus of most activity, but bauxite, manganese, salt, and diamonds are also being mined in Ghana. Ghana now produces over one million ounces of gold annually and is the second-largest producer in Africa. The industry leader, Ashanti Goldfields Corporation, was partially privatized in 1994. American, Australian and South African firms are also active in the Ghanaian gold mining industry.
U.S. suppliers face strong competition from Japanese, European and South African manufacturers. U.S. products have, however, earned a reputation for high quality, reliability and good value.
1997E 1998E 1999E $M $M $M a. Total Market Size 86 99 80 b. Total Local Production 0 0 0 c. Total Exports 0 0 0 d. Total Imports 86 99 80 e. Imports from the U.S. 13 16 12The above statistics are unofficial estimates.
7 - Food Processing and Packaging Equipment (FPP)
New supermarkets and other food stores in the Accra/Tema and Kumasi areas have increased the available outlets for processed foods and thus increased demand for these items. There are numerous opportunities for the supply of equipment to canners and bottlers of beer, soft-drinks, fruit juices and locally-produced fresh produce, particularly tomatoes and pineapples. Companies are eager to produce more attractive packaging for many consumer food products. The ability of local food processors to produce quality packaging is very limited and there is much room for improvement.
Major imports include fruit, vegetable, and beverage processing equipment. Due to the relatively small market, small output capacity equipment is preferable. Local engineering firms can be good outlets for the sale of assembly components.
1997E 1998E 1999E $M $M $M a. Total Market Size 21.0 25.2 30.0 b. Total Local Production 0.1 0.2 0.3 b. Total Exports 0 0 0 d. Total Imports 20.9 25.0 29.7 e. Imports from the U.S. 7.6 9.1 10.0The above statistics are unofficial estimates.
8. Hotel/Restaurant Equipment (HTL)/Household Consumer Goods (HCG)/Consumer Electronics (CEL)
Segregation of data for these sectors under the Ghana Statistical Service's HS-based Eurotrace program is not very distinct. There is an overlap, hence the grouping of these sectors. However, industry participants generally agree that the major contributor (about 50%) to demand growth of the market is the hotel and restaurant industry.
Construction of new hotels and restaurants to cater for the growing number of tourists and businesspeople coming to Ghana is the main factor driving demand. Currently, several major hotels are under construction and will supply an additional 2000 rooms. This is expected to spur the demand for commercial refrigerators, ovens, dishwashers and display cabinets.
1997E 1998E 1999E $M $M $M a. Total Market Size 106 122 125 b. Total Local Production 8 10 12 c. Total Exports 2 3 4 d. Total Imports 100 115 113 e. Imports from the U.S. 12 18 20The above statistics are unofficial estimates.
9 - Travel and Tourism Services (TRA)
International travel and tourism is gradually emerging as a key services sector in the Ghanaian economy. Foreign exchange earnings from tourism increased from USD 81 million in 1990 to over USD 305 million in 1998. The number of tourists arriving in 1998 was about 350,000, and this is projected to rise to at least 400,000 by the year 2000. The GOG's program to market Ghana as the gateway to West Africa, and the use of Accra as host to major international conferences is expected to spur demand for airline and lodging services. To respond to the growing traffic of business travelers and holiday makers to Ghana, there is a growing need for more travel and tourism-related businesses, such as tour and travel operators and management services, as well as investments in tourism infrastructure.
1997E 1998E 1999E $M $M $M a. Total Market Size 297 306 386 b. Total Local Production N/A N/A N/A c. Total Exports N/A N/A N/A d. Total Imports N/A N/A N/A e. Imports from the U.S. N/A N/A N/AN/A - Not Available
The above statistics are unofficial estimates.
B. Best Prospects for Agricultural Products
1 - Wheat
There is no cultivation of wheat in Ghana. All the wheat consumed in Ghana is imported, with about 95% of the imports coming from the U.S. and the rest from Canada and the EU. Wheat (flour) is eaten in one form or another by almost every household in Ghana. It is eaten primarily as bread, which has recently become more of a staple food for Ghanaians. With population increases and a rising demand also for wheat bran for livestock and poultry, demand for the importation of wheat will be sustained. However, the volume of wheat imports for 1998 may decline due to power outages experienced in the country during that period. Total wheat milling capacity in Ghana is about 400,000 MT.
1996E 1997E 1998E MT MT MT('000) a. Total Consumption 250 250 210 b. Total Local Production 0 0 0 c. Total Exports 0 0 0 d. Total Imports 225 250 270 e. Imports from the U.S. 190 220 250Note: MT ('000) = Thousand Metric Tons
The above statistics are unofficial estimates.
2 - Rice
Rice is cultivated in all the agricultural regions in Ghana. It is grown mainly in the valley bottoms, employing traditional farming practices. Modern scientific methods of rice cultivation through mechanization and irrigation are increasing gradually, particularly in the northern savanna zones and the Accra Plains of the Greater Accra Region. A U.S.-based company, Quality Grain (GH) Limited, has acquired about 25,000 acres of land on the Accra Plains to cultivate rice. Nevertheless, local rice cultivation does not meet local demand. Rice is therefore imported to augment local production from Pakistan, Korea, India, Thailand, Japan and the USA, with imports from the USA accounting for about 65% of total imports. Ghanaian banks are usually reluctant to issue Letters of Credit to importers; hence, it is difficult to operate the USDA/CCC GSM-102 program for the importation of rice and other U.S. agricultural products from the U.S.
1996E 1997E 1998E MT MT MT(Millions) a. Total Consumption 260 300 350 b. Total Local Production 110 120 130 c. Total Exports 0 0 0 d. Total Imports 150 180 220 e. Imports from the U.S. 45 80 100Note: MT ('000) = Thousand Metric Tons
The above statistics are unofficial estimates.
3 - Frozen Beef/Chicken/Turkey
The cattle industry in Ghana is based mainly on extensive pastoral or free-range systems among subsistence farmers. The northern savanna zone accounts for the bulk of cattle production. Ineffective control of cattle diseases and the unavailability of veterinary drugs are the two major problems facing the cattle industry in Ghana. Poultry production in Ghana (about 65 percent of the total market) is mainly "BackYard/Free Range", with a high chick mortality rate. Large quantities of meat, meat products and poultry parts are therefore imported into Ghana to satisfy local consumption.
Available figures from the Ministry of Food and Agriculture (MOFA) indicate that beef and dairy products account for about 68 percent of meat and animal products imported into Ghana. Chicken forms about 13 percent of the imports. The U.S. accounts for about 9 percent of beef imports, and 11 percent of dairy products imports, after France (22 percent), Holland (21 percent) and Poland (12 percent.) This is mainly due to higher shipping costs from the U.S.
1996E 1997E 1998E MT MT MT (Millions) a. Total Consumption 80 91 100 b. Total Local Production 50 55 65 c. Total Exports 0 0 0 d. Total Imports 30 36 35 e. Imports from the U.S. 0.5 3 15Note: MT ('000) = Thousand Metric Tons
The above statistics are unofficial estimates.
C. Significant Investment Opportunities
The GOG has divested itself of more than two-thirds of the more than 300 enterprises owned by the state. Although some of the remaining companies have suffered from inadequate investment and their assets are obsolete, there may be attractive opportunities in some sectors for American firms interested in entering the Ghanaian market. Cocoa and coffee plantations, poultry farms, fishing operations, mining companies, hotels and timber companies are included among the enterprises still to be sold. The Divestiture Implementation Committee (DIC) was established by the government to implement the divestiture policy.
The gold mining industry attracts significant foreign investment to Ghana. American, Canadian, Australian and South African companies are represented. The Minerals Commission is responsible for overseeing foreign investment in the mining sector.
Telecommunications and power generation are two additional sectors that may be of particular interest to potential investors. The liberalization of Ghana's telecommunications industry has created opportunities for providers of a variety of communications services. Ghana's current shortage of electricity and the government's willingness to consider private sector solutions to this problem offers opportunities to independent power producers. Several major American companies are already active in this sector. Horticultural products, a wide range of agricultural products, electronics, value-added wood products, seafood and cosmetics could also offer significant investment opportunities to the American business community.
The Government of the United States acknowledges the contribution that outward foreign direct investment makes to the U.S. economy. U.S. foreign direct investment is increasingly viewed as a complement or even a necessary component of trade. For example, roughly 60 percent of U.S. exports are sold by American firms that have operations abroad. Recognizing the benefits that U.S. outward investment brings to the U.S. economy, the United States undertakes initiatives such as Overseas Private Investment Corporation (OPIC) programs, investment treaty negotiations and business facilitation programs that support U.S. investors.
|
[end of document] Note* International Copyright, United States Government, 1999 (or other year of first publication). All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U.S. Copyright Law, Title17, United States Code.
Next Chapter | Table of Contents
|
