real sector

THE REAL SECTOR OF THE GHANAIAN ECONOMY

Real Sector The real sector of an economy refers to the economic sector which brings about the productions of goods and services through combined utilization of raw materials and other production factors such as labour force, land and capital.

The Ghana Statistical Service classifies the economy of Ghana into three sectors:

Agricultural Sector Industrial Sector Services Sector


1984-88

1989-82

1993- 96

1997-00

2000-05

2006-10

2011

2012

2013

Agriculture

49.0

43.5 40.9 40.2

39.7

28.2

25.3 23 22.0

Industry 13.0

14.0 10.2 10.1

27.4

21.7

25.6 28.6 28.6

Service 37.9

42.5 31.2 32.1

32.9

50.1

49.1 48.4 49.5

Source: Ghana Statistical Service (GSS)

Distribution of Gross Domestic Product (at Basis Prices) by Economic Activity.


The Agricultural SectorAgriculture has always been the dominant sector in the Ghana economy. Prior to the discovery of precious minerals and oil in the country, it contributed more than 60 per cent of domestic gross domestic product (GDP). Currently, it contributes about 30% to GDP, employs almost 60% of the population on a formal and informal basis and contributes about 45% of all export earnings.

Agricultural Sub-sectorsThe agriculture sector is made up of five major sub sectors; food crops, livestock, fisheries, cocoa and forestry.


2009 2010 2011 2012 2013

1. AGRICULTURE 31.8 29.8 25.3 23.0 22.01.1 Crops 23.6 21.7 19.1 17.3 16.9 with cocoa 2.5 3.2 3.6 2.6 2.2 1.2 Live Stock 2.0 2.0 1.8 1.6 1.5 1.3 Forestry and Logging

3.7 3.7 2.8 2.6 2.2

1.4 Fishing 2.5 2.3 1.7 1.5 1.4

Source: Ghana Statistical Service (GSS)


Characteristics of the Agricultural sector This section identifies and discusses the salient

features of the domestic agricultural industry.

Land Area Ghana’s total land coverage area is 23,853,900

hectares, of this, agricultural land is about 13.6 million hectares representing 57.1 percent of the country’s land area.

Of the total agricultural land, about 4.32 million hectares or 31.7 percent were cultivated in 1990 and 5.3 million or 38.9 percent in 1994.


Demographics of FarmersAgricultural activities are mainly concentrated in rural areas or the countryside with farmers that are generally illiterate or semi-literate.

About 85 % of rural households are engaged in crop and/ or animal keeping compared to only 28% of urban households (Ghana Statistical Service, 2008).

Individuals engaging agriculture are mostly older than 40 – 50 years. The general perception by the youth is that it is not a career for those seeking a high social status.

Another feature of the sector is the fact that majority of those living at or below the poverty line, are employed in the agricultural sector.


Size of Farms Agriculture is predominantly practiced on a smallholder basis in Ghana. Majority of the small farmers involved in subsistence agriculture, or semi-subsistence in that some of their produce is for home consumption and any excess is exchanged or sold for other commodities not produced by the farmer.

Nature of Farming Entities Most farms are informal concerns. Some are wholly family-owned, whereas the general case is that the land belongs to the family but a member or group of the family use it for farming. Only a few farms are legal entities. Some are co-operatives. These may be organized on different underlying agreements and objectives.


Types of Farming MethodsFamily-operated farms using rudimentary technology such as hoes and cutlasses to produce about 80% of the total output.

Method of land preparation remains slash and burn methods. The small holders farmers especially embark shifting cultivation, mixed cropping and bush fallowing to restore soil fertility.

The use of fertilizers is very low because they are expensive or unavailable, and also the effort involved in drying, turning and caring for the compost or mulch discourage its use.

THE REAL SECTOR OF THE GHANAIAN ECONOMY The Agricultural production is primarily rain-fed

with less than 1 percent of the cultivated area irrigated. The unpredictable nature of the rainfall pattern makes agricultural production very unstable and insecure.

Relevance of agric sector The sector is a major contributor to GDP over the

years. It’s contribution to GDP averaged 55% in the 1980s, declined to 41% in 1995, to 36.5% in 1999, 35.6% in 2010 and further declined to 22% in 2003.

THE REAL SECTOR OF THE GHANAIAN ECONOMY Though the share of agric in GDP has been on the

decline over the years, the sector still contributes more to employment generation than any of the other sectors. The Ghana Statistical Service (2008) estimates that 55.8% of the working population is involved in agricultural activities.

Agricultural sector produces raw materials for agro-based industries in Ghana, for example, the textile factories depend on local cotton and agric products are serving as raw materials for local industries which produce soap and pharmaceutical/herbal products.

THE REAL SECTOR OF THE GHANAIAN ECONOMY Agriculture contributes to government revenue

mainly through duties paid on exports of selected agricultural commodities, particularly cocoa. From 12.2% in 1990, the agric sector contribution to tax revenue declined consistently to 4.1% in 2000 and rose again to 5% in 2008.

Agriculture sector also serves as market for other sectors. The large agricultural population is capable of providing a substantial market for the output of the industrial and services sectors.

THE REAL SECTOR OF THE GHANAIAN ECONOMY The sector contributes substantially to foreign

exchange earnings as a result of export of mainly cocoa and timber, and non-traditional exports of other crops.

For instance, the agric sector exports contributed 76.2% of total export earning in 1986 but its contribution has been decreasing over the years to 35.7% in 2000, 38% in 2008 and 25.5% in 2011.

The agricultural sector also serves as the main source of food supply for the large non-agricultural and mainly urban population.


To assess how food-secured a nation is, we use the domestic production, consumption and deficit or surplus as an indicator.

According to MOFA, records on all the major staples have shown that the country has been food secured since 2008 except in the case of rice. The demand and supply of local rice for 2012 and 2013 recorded a shortfall of 359 (000mt) and 285 (000mt) respectively.

Fish landing was estimated at about 800,000 metric tons per annum in the past but this has fallen to an annual fish catch of 400,000 metric tons currently. Ghana, the has to import fish to meet demand.


Major Challenges in the Agricultural Sector The agricultural sector in Ghana faces a number of challenges. The constraints of the sector are classified under:

Insufficient access to creditMost farmers lack sufficient personal capital, to thoroughly self-finance their operations. The only source of funding therefore available to the farmers is credit.

Banks and other financial institutions are reluctant to lend to farmers mostly because they lack formal legal ownership title of their possessions especially lands. Because there is no document to indicate ownership, they cannot use these resources as collateral.


Infrastructural ConstraintsAnother major challenge in the sector is inappropriate and / or inadequate infrastructure. More than 80 per cent of agricultural concerns are located in rural areas. Some of these have no paved roads connecting them to any near market.

Apart from roads, portable water is lacking. This makes irrigation very difficult and expensive. It is therefore not surprising that only about 1 per cent of cultivated land is under irrigation. Farms that use irrigation are usually located in close proximity to water bodies such as rivers. However, insufficient rainfall in a particular year depletes these water resources.


Lack of appropriate and sufficient energy in rural localities further complicates farmers’ plight; they are unable to establish cold storage facilities for livestock products.

Furthermore, the technology to preserve other agricultural produce such as roots and tubers can also not be used due to the lack of energy.

Estimates conclude that between 30 per cent and 45 per cent of agricultural produce perishes before it gets to market causing small scale farmers to lose a substantial portion or their incomes or wealth.


Socio - Cultural ConstraintsThe lack of education or illiteracy of most farmers makes it difficult for them to learn new and improved agricultural technologies.

Even when modern farming implements and equipment are provided by government or a non-governmental organization (NGO), the farmers cannot read the attached instructions or manual.

Without actual demonstrations of how to apply or use a particular technology, the newly provided implements are of no benefit.


In addition, certain cultural practices such as how family farms and resources are made available to those desiring to enter into agriculture impede agricultural advancement.

Division of large farmlands for each family member for different purposes results in small fragmented farms for each individual. This makes large scale farming difficult, if not impossible. Such small farms cannot enjoy economies of scale.


Regulatory Constraints Farmers in addition to the other challenges, are faced with regulatory constraints. An instance of this is the cost of formalizing agricultural enterprises; the offices where such registrations can be done are mainly in Accra and the regional capitals.

Farmers have to incur transportation costs of going back and forth for several days, printing documents, accessing a communication center to develop the necessary documents in hardcopy and paying the necessary fees and rates.


Political leaders and policy makers focus more on acceding to the needs of farmers in semi-urban areas. The urban and semi-urban farmers have greater access to political leaders, press and media and are able to pressure and lobby them.

Some of the formulated laws have conflicting effects on agricultural production. An instance is the law regarding distribution of premix fuel for fishermen. Such laws have loopholes through which middlemen benefit at the expense of the fishermen for whom the law was enacted.


Agriculture sector policies in Ghana Pre-Structural Adjustment EraAgricultural policy prior to independence emphasized the extraction of natural resource(cocoa, coffee, oil palm, etc.) with little attention on the production of staple foods.

The Cocoa Marketing Board (CMB), was established by the colonial government during the Second World War, and became the monopoly buyer of cocoa at a fixed price paid to producers .


The agricultural policies from the late colonial period prevailed until the country became a republic in 1960.

Large-scale state farms, known as State Farms, were established and an Agricultural Development Corporation (ADC) was set up to promote agricultural modernisation and development through the State Farms.

The ADC’s role was put on import-substituting industrialisation, mechanised agriculture and direct public intervention in production. Small-scale independent farmers were organised for mechanised agriculture through cooperative efforts.


In 1972, the programmes Operation Feed Yourself (OFY) and Operation Feed Your Industries (OFYI) were put into action to increase agricultural production to self-sufficient levels and agricultural raw materials production.

ERP/SAP EraIn 1986-88 the government drafted a new agricultural policy: the ‘Ghana Agricultural Policy: Action Plan and Strategies. The Key objectives outlined in this initiative were:

Self-sufficiency in cereals, starchy staples and animal protein food,

Maintenance of adequate buffer stocks for price stabilization and food security during shortfalls; and

Improving institutional facilities such as research, credit and marketing.


However, putting these objectives into practice proved difficult, in part due to the weak institutional capacity of the country.

The Government in collaboration with the World Bank, consequently embarked on the ‘Agricultural Services Rehabilitation Project (ASRP)’ over the 1987-1990 period.

The goal of ASRP was to enhance the Ministry of Food and Agriculture’s (MOFA’s) capacity to provide effective policy and institutional support for rehabilitation and recovery of agricultural growth.


The specific objectives of ASRP were to: Provide foreign exchange to finance imported

inputs; Build technical and managerial capacity within

MOFA; Streamline and rationalize agricultural research and

extension; Pilot-test low-cost, farmers-managed small-scale

irrigation schemes; and Privatized input markets.

The ASRP project did succeed in strengthening the institutional base of the sector.


To build on these short-term gains, the government with support from the World Bank, decided to implement the Medium Term Agricultural Development Program (MTADP) in 1991.

A number of stand-alone projects were launched under MTADP such as:

The ‘National Agricultural Research Program’ (NARP),

The ‘National Agricultural Extension Program’ (NAEP), and

The ‘Fisheries Capacity Building Project’ (FSCBP).


Current Agricultural Programmes and ProjectsIn 2003, MOFA developed a ‘Food and Agriculture Sector Development Policy’ (FASDEP). The policy was meant to provide a framework for modernizing the agricultural sector and making it a catalyst for rural transformation, in line with the goal set for the sector in the Ghana Poverty Reduction Strategy.

Infrastructure development, promotion of appropriate technologies, and improved extension services were to be implemented to achieved the aim of the policy.


After nearly four years of its implementation, the policy was not be able to achieve the desired impact because of a number reasons, including the following:

Failure to properly target the poor farmers;

Problem analysis was weak and did not sufficiently reflect client perspectives on their needs and priorities; and

The process by which the Ministry of Food and Agriculture (MOFA) was to stimulate response from other MDAs for interventions that fell outside the domain of MOFA was not specified.


It therefore became necessary to revise FASDEP to reflect lessons learned and to respond to the changing needs of the sector. The strategic objectives for the agricultural policy (FASDEP II) are as given below:

Food security and emergency preparedness. Increased growth in incomes. Increased competitiveness and enhanced

integration into domestic and international markets. Sustainable management of land and environment Science and technology applied in food an

agriculture development. Improved institutional coordination.


Some of the programmes and activities for the Agric sector planned by the government since 2010 includes:

Buffer Stock Management Provision of improved seedlings Provision of hybrid improved livestock Irrigation development and mechanization systems. Provision of requisite equipment, fertilizers and

machinery Buffer Stock Management The National Food Buffer Stock Company (NAFCO) was established to hold security buffer stocks and to Intervene in the market to ensure competitive prices at all times.

THE REAL SECTOR OF THE GHANAIAN ECONOMY The company acquired and rehabilitated two warehouses

for the storage of grains. About 6,949 metric tones of paddy rice and 416 metric

tones of maize were purchased and stored.

Improved Seedlings Provided By GovernmentIn 2011, 55 licensed rice buying firms were established to purchase rice for milling and storage by the Nasia mill, which was revived by the state. 148 tons of nerica seeds were produced and distributed to farmers at a subsidized rate.

In 2012, 44,000 improved cashew clones were provided to help establish 2,500 new cashew farms. Also, 20,000 kg of improved maize, rice and soybean seeds was distributed to 300,000 farmers.


Provision of Improved Livestock 19,300 day-old chicks were procured and distributed to farmers at subsidized prices in 2011. Furthermore, 2.5 million doses of I-2 poultry vaccines were produced and used to vaccinate poultry against Newcastle disease in the same year.

In 2012, farmers received 5,687 cockerels raised and distributed to them at subsidized rates. 206 improved breeding livestock were also supplied freely to farmers.

79 new fish ponds were constructed covering about 450.26 hectares. 36, 682, 500 fish fingerlings were distributed to farmers at reduced prices.


Agriculture Mechanization 89 mechanization service centers were established. Each of these centers was supplied with, on average, 5 tractors,, maize shellers and water pumps.

400 operators of mechanical agricultural equipment were trained in the operation, maintenance and repairing of combine harvesters and tractors.

Irrigation Projects The second phase of the rehabilitation of the Tano

irrigation dam was 90 per cent completed and currently, it has 1,850 hectares of farms under irrigation.


Additionally, the rehabilitation of dams in the three Northern Regions were 70% completed.

Fertilizer Subsidy Programme The fertilizer subsidy programme was reviewed and a more efficient waybill system was introduced.

The new system was to replace the existing coupon system, to enhance the delivery of the programme and ensure a more transparent distribution system.

GH¢ 54.9 million (114,160 metric tons) worth of fertilizer was provided to farmers at reduced prices.


The Way ForwardThe question for policy-makers is, how best can they support farmers to raise productivity and production. The following should be considered:

The government’s should invest more in irrigation facilities as it has been realized that most of the crops that did not do well or experienced a decrease was as a result of the inconsistent rainfall pattern of the year.

An improvement in irrigation facilities for farmers will therefore help reduce the effect of rainfall and climate variability.


It is also necessary that the government invests more in new improved seeds and new technologies that can perform well in poor rainfall conditions.

The government’s policy should be directed towards improving the human resource base in the agricultural sector, as that is one of the major deficiencies experienced by the sector. More extension service officers should be recruited and existing ones trained well with respect to new technologies and modern agricultural extension service methods.


The government at a national and regional level need to revise land tenure policies to encourage farmers to produce on large basis.

Industrial SectorAfter the rebasing of the national account estimates in November 2010, Ghana’s industrial sector currently consists of five subsectors, namely manufacturing, construction, mining and quarrying, electricity and water and sewerage.

The rebasing of the Ghanaian economy reflects the change in the total value of goods and services produced, growth rates, sectoral distributions and other related indicators driven by GDP from 2006.


Ghana’s manufacturing activities include the production of food, beverages, tobacco, textiles, petroleum refinery and cement, among others.

Construction deals with the construction, repairs, maintenance, alteration and demolition of buildings, highways, streets, bridges, roads, railways and communication systems.

The mining and quarrying subsector covers the extraction of natural minerals, in the form of either solids, liquids or gases. This subsector in Ghana produces mainly gold, diamonds, manganese, bauxite, salt, stones and sand.


The activities of the public sector-dominated electricity and water and sewerage subsectors include production and distribution of electricity and water and sewerage. Prior to rebasing, the electricity and water and sewerage subsectors had been lumped together.

In terms of industry’s contribution to GDP, it has overtaken agriculture since 2011 as the second largest sector. Tentative estimates for 2012 show that industry contributed 28.6 per cent to GDP, making it the second largest after the service sector (48.4 per cent) and exceeding agriculture (23 per cent).


The Table below shows the growth rates of the industrial sector in recent times. The performance improvement of the industrial sector in 2008 was underscored by the strong showing of the construction and the electricity subsectors which expanded 39 per cent and 19.4 per cent, respectively.

The strong showing of the construction subsector in 2007 and 2008 largely reflects the massive infrastructure projects (stadia, real estate, roads etc.) that were constructed to celebrate Ghana@50 in 2007, host the CAN 2008 tournament and the African Union Heads of State conference in 2008.

Industry’s increasing contribution to GDP also can be attributed to the commencement of crude oil mining in 2010, which quadrupled the shares of mining and quarrying to GDP


Overview of the Industrial Sector’s Performance

2009 2010 2011 2012 2013 2. INDUSTRY 19.0 19.1 25.6 28.6 28.6

Mining and Quarrying

2.1 2.3 8.4 9.5 9.8

o.w. Crude Oil 0.0 0.4 6.7 7.8 8.1

Manufacturing 6.9 6.8 6.9 6.4 5.8

Electricity 0.5 0.6 0.5 0.5 0.5

Water and Sewerage 0.7 0.8 0.8 0.7 0.6

Construction 8.8 8.5 8.9 11.5 11.8

Source: Ghana Statistical Service

THE REAL SECTOR OF THE GHANAIAN ECONOMYCharacteristics of the Industrial SectorThe industrial base of the country is characterized by the following features:

Ghana’s key industrial sub-sectors are highly import-intensive. An average of 45% of our industrial sub-sectors are highly dependent on imported inputs for production.

Underutilization of installed plant capacity as a result of obsolete plant and machinery, inadequate raw material inputs and high cost of locally produced raw materials and inadequate power supply.


Most firms and factories are urban centred because the factors, which influence location are developed there. An examination of the regional distribution of firms in Ghana shows that in 2003 the Greater Accra region, followed by Ashanti, encompassed the majority of industrial establishments, with these two regions accounting for 50 per cent of the total.

Together the Eastern, Central and Western Regions accounted for about 30 per cent of the total number of establishments .This implies an approximately 80 per cent concentration in the major cities/urban areas in five of the country’s ten regions.


The Ghanaian industrial sector primarily comprised of micro (an establishment that employs less than five people) and small firms ( between 5 and 19 people ) form close to 94% of the total number of firms in the industrial sector. Mediums firms (employing between 20-49) on the other hand make up only 4.0 percent with the remaining 2.3 per cent being large firms ( 50 employees and above).

There is also a low level of indigenous ownership and controls, because of difficulties of financing industrial projects. The total share of credit facility to sector, dwindled from 60.94% in 2000 to 59.63% in 2001 and further declined to 56.71% in 2002.


There is a high labour usage as compared to capital utilisation since many of them were established as avenues of employment.

There is high dependence upon what is termed as apprentices. Many firms have apprentices only, with no purely wage earning employees.

Industrial clusters in Ghana have either developed spontaneously or were established in response to government/public interventions or policies. Example is the industrial zones set up by the Ghana Free Zones Board (GFZB) as export processing zones (EPZs).


The industrial sector, given the contribution it makes to GDP, continues to support the growth of the Ghanaian economy.

Industrial sector products are also crucial foreign exchange earners. Foreign exchange earnings from the industrial sector comes mainly from minerals. In 2012,, total earnings from the minerals sub-sector US$5,770.5 million and US$5,140.7 million in 2013 (BOG)

The sector also fulfils almost all of the nation’s power and water requirements at the household and industrial level


EmploymentThe industrial sector provides jobs and income for the country’s labour force, its contribution to employment since 2000 has been almost one -fifth of total employment (15.5 per cent and 14.4 per cent in 2000 and 2006, respectively).

Out of a total number of 413,603 new jobs that were created between 2001 and 2010, the manufacturing and construction subsectors were considered to have generated about 28 per cent.

It serves as a source of market for agricultural products. Agro-based industries processes raw materials produced form the industrial sector.


Challenges facing the Industrial SectorThe major problems currently facing industry are:Weak infrastructural (road, railways, harbour, power, water etc) base of the economy.

Human capital constraints: The level of education and skills of the labour force are still low. Also there is the problem of a wide gap between skills required by industry and what is turned out by training institutions.

High cost of doing business in Ghana (limited access to affordable finance, high utility tariff, foreign exchange constraints & institutional corruption)


Trade Liberalization :Ghanaian industries face stiff competition from both developed & emerging countries and are not able to penetrate into export market of developed, emerging countries & even sister countries in the sub-region.

The continuous depreciations of the cedi erodes the liquid resources, which could help firms to undertake the necessary investments.

Weak institutions: institutions established to support the sector (GSB, GIPC, CSIR, etc) have failed to live up to expectation. This is mainly because they are under-resourced and understaffed).


Key Policy Interventions in the Industrial Sector

Pre-ERP (1960s) Prior to 1957, the industrial sector was a small sector (mainly manufacturing) that contributed very little to economic growth.

The sector had been under-developed mainly because the colonial rulers were interested in extracting raw materials from the Gold Coast; and

creating an economic system heavily dependent on manufactured products from Britain.


Nkrumah led government viewed industrialization as a key factor to the modernization and development of the country. The industrialization policy was based on import substitution industrialization (ISI) to be managed through effective protection in the form of a highly restrictive trade policy regime.

The ISI strategy was centered around the development of a large-scale public sector investment that was to become the leading edge in Ghana’s industrial development.


The ISI strategy relied on administrative controls rather than market mechanisms to determine incentives and resource allocations. Policies to achieve this objective included:

Quantitative import restrictions (i.e., foreign exchange rationing; import licensing);

heavy tariffs on imported consumer goods, and domestic price controls in the form of

administrative fixing of minimum wages, rents and interest rates


Post-ERP (1983-2000) The main policy initiatives under the ERP for the industrial sector included:

The introduction of a market-determined exchange rate with minimal intervention,

Removal of price and distribution controls, Liberalization of the financial sector and interest rates, Abolition of the import licensing system,

rationalization of import tariffs and the taxation system,

Promulgation of the new investment code (PNDC law 116), Establishment of the Ghana Investment Centre (GIC) and privatization of state-owned enterprises.

THE REAL SECTOR OF THE GHANAIAN ECONOMY In addition, the SAP sought to instigate a SOEs

reform programme in order to stimulate competition within the state dominated industrial sector. This led to the privatization programme of the 1990s.

During the first half of the 2000s, there was a shift in the focus of Ghana’s industrialization strategy. The policy strategies within the industrial sector that were adopted were aimed at :

promoting agro-processing; facilitating the development of commercially viable

export and domestic market-oriented enterprises in the rural areas;

THE REAL SECTOR OF THE GHANAIAN ECONOMY improving agricultural marketing and enhancing access to

export markets; improving the competitiveness of domestic industrial

products; promoting industrial sub-contracting and partnership

exchange; and promoting the development of the craft industry for

export.

Current Industrialization StrategyGhana’s new industrialization strategy is aimed at creating an industrial architecture based on value-added processing of the country’s natural resource endowments through a private sector-led accelerated industrial development strategy.


Under the national industrial policy, the industrial sector-specific policies include measures to:

strengthen the linkages between industry, and research and development institutions;

decentralization of industrial development to exploit the resource endowments of districts;

establishment of new and emerging industries such as petrochemicals, fertilizer and LPG cylinder production on the back of the new oil and gas industry;

establishment of manufacturing enterprises to process agricultural produce, especially beans, fruits and shea nuts;

THE REAL SECTOR OF THE GHANAIAN ECONOMY Exploitation of the limestone deposits in northern

Ghana for the production of cement for industry, as well as utilization of the country’s significant clay deposits for the production of bricks and other building materials to support the programme for the construction of affordable housing units;

Rejuvenation of the textile industry in an integrated manner, from seed production to spinning to ginning, and printing;

Establishment of integrated shea butter processing factories in the three northern regions, targeting the processing of 50,000 tons of shea butter per annum for both local and international markets;

THE REAL SECTOR OF THE GHANAIAN ECONOMY Rehabilitation of abandoned but viable manufacturing

enterprises, including jute factory, tomato cannery, gold refinery and ceramics production;

Establishment of a second oil refinery in the Western Region to boost the production of petroleum products for exports and for national energy security;

Establish industry support centers to assist firms become internationally competitive ;and

To seed and facilitate the creation of industrial anchors, and deploy the full benefits of existing free zone, export zone and related investment laws to accelerate industrial development


The way forward for the sector: Promotion of joint ventures by

Ghanaian/International partners. Human resource development and institutional

capacity building for key stakeholders in the public and private sectors, including attachments, study tours etc.

A well functioning infrastructure (roads, ports, telecommunications, energy etc) would be a necessary precondition for industrial development.

Learning from Best Practices around the world. E.g. learning from emerging economies such as, South Korea, China, Malaysia etc.

THE REAL SECTOR OF THE GHANAIAN ECONOMY Enhanced access to the West African sub-region and

the Sub Saharan African market with the locally manufactured products.

Strengthening industrial support institutions (Universities, Technical and Vocational institutions, Ghana Chamber of Commerce etc) to enable them provide more effective management and advisory services, including the organisation of management training programmes.

Strengthening the links between industry and other sectors of the economy.

The practice good governance in order to attract more private sector investments.


Service SectorService sector is the portion of the economy that produces intangible goods. The focus is on people interacting with people and servicing the customer rather than transforming physical goods. The service sector is also called the tertiary sector.

Since 2006, the services sector has been the highest contributor to Gross Domestic Product (GDP), taking over from the agricultural sector.


2013, of the GH¢93,461 million GDP, GH¢44,988 million (or 48%) came from the services sector This output came from the 10 subsectors:

Transport and storage Trade, repair of vehicles, household Goods Hotels and restaurants Information and communication Financial intermediation Business, real estate and others Public administration, and defence, social security Education Health and social work


2009 2010 2011 2012 2013

3. SERVICES 49.2 51.1 49.1 48.4 49.5

3.1 Trade; Repair Of Vehicles, Household

Goods

5.9 6.2 5.9 5.3 4.9

3.2 Hotels and Restaurants

6.2 6.0 5.4 4.7 4.3

3.3 Transport and Storage

10.5 10.6 10.7 10.9 11.2

THE REAL SECTOR OF THE GHANAIAN ECONOMY 3.4 Information

and communication1.8 1.9 1.8 2.2 2.4

3.5 Financial and Insurance Activities

4.3 5.2 4.4 4.8 6.5

3.6 Real Estate, Professional

Administrative & Support Service

activities

4.1 4.5 4.6 4.6 4.4

3.7 Public Administration & Defense; Social Security

7.0 7.0 7.0 6.8 6.9

3.8 Education

4.2 4.3 4.1 4.3 4.2

3.9 Health And Social Work

1.4 1.6 1.3 1.3 1.2

3.10 Community, Social & Personal Service Activities

3.7 4.0 3.9 3.5 3.4

real sector

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