Ghana’s Biggest Industries

Ghana is one of the largest economies in Africa, with a GDP of around $76 billion. Although the country’s fortunes took a hit in 2022 due to some fiscal and public debt issues, Ghana’s economy is starting to bounce back.

According to the World Bank, Ghana’s GDP is expected to grow by up to 5% by 2026 – matching the peak growth rate recorded in 2021. But which sectors are driving Ghana’s economic recovery? Keep reading to find out, as this article will explore the major industries that contribute significantly to Ghana’s economy.

Agriculture

Agriculture is one of the most critical sectors of Ghana’s economy, contributing up to 21.1% of the country’s GDP. It also accounts for about 40% of the nation’s export earnings. As of 2013, more than 50% of the Ghanaian labour force was employed in the agricultural industry. Ghana has vast arable land and a favourable climate that supports the growth of a wide range of crops. The most common food crops planted in Ghana include maize, yam, plantain, banana, pineapple, mango, sweet potato, and cocoyam. Ghana also produces cash crops like cotton, rubber, oil palm, kenaf, and sugar cane in commercial quantities, but the major one is cocoa, which can be found in the Ashanti, Brong Ahafo, Volta, Central, Western, and Eastern regions. In 2023, Ghana earned $2.1 billion from the export of cocoa beans and cocoa products alone.

Mining

The mining industry is another central pillar of Ghana’s economy. It contributes over 5% of the country’s GDP, with minerals accounting for nearly 40% of the total exports. Ghana is blessed with various solid minerals, including diamonds, manganese, bauxite (the principal ore of aluminium), and gold. It also has significant deposits of silver, petroleum, salt, and natural gas. However, gold is the major mineral exported by the country. Ghana is the number one producer of gold in Africa and the sixth in the world. In 2021, the West African nation produced 117.6 tonnes of gold, which brought the country about $5.6 billion in revenue. Ghana has about 20 large-scale mining companies that employ up to 34,363 people as of 2020.

Tourism

Tourism is also one of the largest industries in Ghana. In 2023, this sector generated up to $3.8 billion – about 5% of the country’s GDP that year. Ghana is one of the top travel destinations in Africa. It is home to many beautiful beaches, exotic waterfalls, mountains, lakes, wildlife, and extremely friendly people. Although the majority of tourists come from neighbouring West African countries like Nigeria, Ghana also receives thousands of visitors from English-speaking nations like Canada, the UK, and the United States. In fact, the country welcomed nearly 134,000 people from the US alone in 2023. Most tourists visit major cities like Accra, Kumasi, and Tamale, which host some of the best hotels, restaurants, and entertainment spots in the country. The tourism sector is also a big employer of labour in Ghana, providing over 700,000 jobs in 2021.

Telecommunication

Ghana’s telecommunications sector was valued at $1.9 billion in 2022. Ghana is one of the first African countries to have access to the internet and has some of the highest numbers of mobile phone users in the region. There were about 38.9 million mobile connections in Ghana as of January 2024, and almost every household in Ghana owns a mobile phone. Although there were up to 54 authorized internet service providers (ISPs) in the country, the most common ones include MTN, Vodafone, Airtel Tigo, and Surfline. A report from the Ghana Chamber of Telecommunications showed that telcos paid over GH¢6 billion (about $664.1 million) in taxes and other payments to the country in 2022. It also claimed that the industry employed over 2,600 people and created over 1.2 million jobs.

Energy

A significant portion of Ghana’s GDP also comes from the energy sector. The country produces electricity from water (hydropower), natural gas, and renewable energy sources, such as wind and sun. It also exports electric power to its African neighbours, like Benin, Togo, Ivory Coast, and Burkina Faso. Ghana has three hydroelectric power stations, five thermal stations, and five solar stations. Several projects are also being developed to harness the country’s wind resources for power generation, such as the Ayitepa Wind Farm. In 2023, Ghana produced over 24,270 gigawatt hours of electricity and earned around $135 million from the power sector.

iGaming

The online betting industry also contributes to Ghana’s economy. According to a TMG sports betting survey, over 41% of the Ghanaian population participates in betting activities. The growth of the iGaming sector in Ghana can be ascribed to the country’s friendly gambling laws, the increase in internet access, and the high number of mobile phone users. The presence of online betting and casino platforms that offer great bonuses and allow you to withdraw winnings that you make with free spins also helps attract new players. Ghana is projected to generate revenue of up to $57.42 million from its online gambling market in 2022.

Conclusion

Ghana has many important economic sectors. The most significant ones include agriculture, mining, tourism, telecommunication, energy, and iGaming. These industries not only create jobs for millions of Ghanaians but also help boost the country’s GDP and revenue. However, each sector has its own challenges the government needs to address so that Ghana can regain in its position as one of the leading economic powers on the African continent.

Source: peacefmonline.com

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Szarlot

I am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry.

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Szarlot

I am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry.