economy tourism in ghana

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Ghana Tourism Sector

Ghana’s tourism sector is emerging steadily from the Covid pandemic. It remains a significant contributor to Ghana’s GDP and continues to attract foreign investment. Ghana has the potential to further develop tourism infrastructure and services near its well-known historical sites, 334 miles of Atlantic coastline featuring some of West Africa’s most attractive beaches, national parks, and wildlife reserves. There are also opportunities in niche sectors such as water sports, such as surfing, water parks and other entertainment complexes, and ecotourism. 

The Ghanaian Ministry of Tourism, Arts and Culture (MoTAC) projects an increase in international tourism arrivals into Ghana in 2022 to one million visitors. Attracting international visitors is key to recovery of the hotel sector, in particular. Domestic tourist activity remains steady at around 800,000 visits annually. The MoTAC anticipates $2.3 billion in revenue for the sector this year, up from $2.1 billion in 2021 during the height of Covid travel disruptions and restrictions.  

President Akufo-Addo launched a new tourism marketing campaign called Destination Ghana in London to attract European and international tourists to Ghana. Local hotels and other tourist sector actors are working to renew their individual marketing strategies, as well. Destination Ghana follows the successful 2019 Year of the Return campaign, a year-long program of activities to recognize the 400th anniversary of the arrival of the first recorded enslaved Africans in the state of Virginia.  The second phase of the Year of the Return campaign, which is called Beyond the Return, was planned for 2020, but was postponed due to the Covid pandemic.  Ghana’s historical sites along the Cape Coast in particular, remain an important destination for U.S. and other international diaspora visitors.  

The Government of Ghana announced the removal of several Covid-related travel requirements. Negative rapid PCR tests are no longer required prior to flying to Ghana and a $150 antigen test upon arrival in Ghana has been phased out, as well.  (As in most countries, these measures, are subject to change depending upon future Covid-related developments).  Now, the only requirement for tourists to visit Ghana is proof of full vaccination with a COVID-19 vaccine that has been approved by Ghana’s Food and Drugs Authority (FDA). 

There are a number of specific opportunities that U.S. companies can explore such as: 

• The development of tourist entertainment complexes, including water parks, water sports, and surfing complexes. 
• The development of a waterfront promenade in Accra.
• Refurbishment of key historical sites, including the Cape Coast and Elmina castles as well as the Kwame Nkrumah Memorial Park. 
• Hotels and infrastructure leading to hotel resorts along Ghana’s extensive coastline.  
• The development of tourist facilities and infrastructure along Ghana’s Volta delta and Volta lake, the world’s largest artificial lake. 
• The development of ecotourism in Ghana’s lush, mountainous, eastern region along the border with Togo, which features hiking, coffee plantations, and waterfalls.  
• Infrastructure, tourist services, and accommodations near Ghana’s national parks and wildlife reserves. 

For more information about the tourism sector in Ghana, contact the Rita Adubra-Asante in the Commercial Section of U.S. Embassy Ghana at [email protected] , Tel: +233(0)30-274-1870.     

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Ghana Travel & Tourism Economic Impact Report

Discover the direct and total economic contribution that the Travel & Tourism sector brings to Ghana in this comprehensive report.

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This latest report reveals the importance of Travel & Tourism to Ghana in granular detail across many metrics. The report’s features include:

• Absolute and relative contributions of Travel & Tourism to GDP and employment, international and domestic spending
• Data on leisure and business spending, capital investment, government spending and outbound spending
• Tables ranking Ghana against other competing destinations and benchmarked against the world and regional average across various metrics
• Charts comparing data across every year from 2014 to 2024
• Detailed data tables for the years 2018-2023 plus forecasts for 2024 and the decade to 2034

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Ghana seeks to transform its tourism offering to attract investment and increase visitor numbers

Ghana | Tourism

Ghana’s tourism sector is playing an increasingly important role in the country’s development, contributing to both economic growth and job creation. The results of the World Economic Forum’s “Travel and Tourism Competitiveness Report 2019” indicate that Ghana has significant opportunity to build competitiveness through its history, culture and abundance of natural sites, raising the country’s international profile as a tourism destination.

Performance

Tourism provides a significant source of foreign exchange in Ghana, contributing to the government’s tax revenue, economic growth and job opportunities. The Ministry of Tourism, Arts and Culture (MoTAC) estimated that the sector accounted for 4.9% of GDP in 2018, making it the fourth-largest contributor after cocoa, gold and oil. Tourism supported 602,425 direct and indirect jobs that year, up 10% compared to 2017, when the sector employed 550,000 people. The World Travel & Tourism Council (WTTC) estimates that by 2029 around 746,400 people will work in Ghana’s tourism sector.

The Ghana Tourism Authority (GTA) anticipated significant growth in 2019 on the back of the Year of Return initiative, marking 400 years since the first enslaved Africans arrived in Jamestown, Virginia (see analysis). The GTA estimated that 500,000 Africans from the diaspora would visit Ghana in 2019, up from 350,000 the previous year. As a result, revenue was projected to reach $925m, up 50% on 2018. According to the GTA, average tourism expenditure in 2018 was $2708 per person, unchanged from 2017 but up 50.3% compared to $1802 in 2016. The main source of public funding is the tourism levy, a 1% tax introduced in October 2012, which applies to all licensed tourism enterprises. The tax generated over $2.5m in 2017 and funded the entire budget of the GTA, as well as other state entities operating in the sector.

Visitor Numbers

According to MoTAC, international tourist arrivals grew by 5%, from 980,141 in 2017 to slightly over 1m in 2018. The WTTC estimated that Ghana saw a total of 1.1m visitors in 2019. The recent growth in tourist numbers has been largely attributed to the increase in business travellers. The latest figures from the GTA found that business travellers accounted for 46% of visitors to Ghana in 2016 and leisure tourists accounted for 13%, while other forms of tourism collectively made up the remaining 41%.

Despite this, the majority of revenue is generated by leisure tourism. According to the WTTC, leisure tourists accounted for around 69% of sector revenue, while business spending made up the remaining 31%. Both are expected to grow in the years ahead: leisure travel spending is predicted to increase by 4.7% per year to $2.1bn by 2028, while business travel spending is expected to grow by 2.6% per year to approximately $569.6m over the same period. “As business travellers generally use the same services and facilities and engage in leisure tourism during their trip, there is significant potential to expand this segment,” Nutifafa Attah, commercial manager of local corporate travel agency Stellar Travel, told OBG.

Source Markets

Data from the Ghana Airports Company (GAC) found that out of a total international passenger volume of 478,621 in March 2019, Europe accounted for the largest share, at 37.9%, followed by West Africa (19.8%), East Africa (14.3%), the Middle East (10.1%), Southern Africa (8.7%), North Africa (4.8%) and North America (4.1%).

In the same period, 153,629 domestic passengers passed through Ghana’s airports. This segment is expected to grow significantly in the next decade. According to the WTTC, domestic spending accounts for 65% of sector revenue, with international spending contributing the remaining 35%. These figures are supported by the country’s growing middle class, higher purchasing power and a series of recent initiatives to promote domestic tourism. “Demand from regional, expatriate and local leisure tourists is increasing, particularly as economic conditions in West Africa improve,” Ernestina Abroquah, managing director of local travel services company Litina Tours, told OBG.

Tourism Assets

Ghana boasts a rich network of historical landmarks, cultural attractions, national parks and reserves. The traditional leisure tourist circuit is a triangular route from Cape Coast to Kumasi via Accra, with visits to Kakum National Park and the beaches along Cape Coast. The main attractions for leisure visitors from overseas are the forts and castles, beaches and national parks. Ghana has two UNESCO World Heritage sites: the forts and castles in the Volta Region, and the Asante traditional buildings in the Kumasi area. In June 2019 the Forestry Commission announced that Mole National Park, the country’s largest national park, was also to be given UNESCO status.

Ghana’s tourism assets have the potential to deliver significant economic growth and boost state revenue, but many require extensive maintenance. For example, of the country’s 64 slave trade exit points, lodges and castles built between 1480 and 1760, 32 remain standing and 18 are in good condition. There is a pressing need for renovation work on those in disrepair. Ghana also needs to develop tourism infrastructure at some of its natural attractions; there are five resource reserves in Ghana, but Shai Hills is the only reserve that currently has specific visitor facilities.

Hotel Infrastructure

With a range of new projects announced by both the government and private operators, hotel room capacity in Ghana increased significantly between 2015 and 2019. Growth has been driven by the arrival of several large hotel chains such as Kempinski in 2016 and Marriott in 2018, following on the heels of global companies such as Holiday Inn, Mö venpick and Golden Tulip. Recent developments include a Protea Hotel at Kotoka International Airport (KIA), announced in November 2018, and the construction of a Hilton hotel in Ada Foah on the south-east coast.

According to global hospitality research firm STR, hotels in Accra have the second-highest average daily rate (ADR) in Africa, after Addis Ababa. STR estimated that the highest ADR between July 2018 and June 2019 was $160.34. This is a significant factor hindering the rise of occupancy rates in Accra, which stood at around 60% in the same period. “Hotels in the capital remain expensive, even within the region,” Roman Krabel, general manager of Accra City Hotel, told OBG. “This is a deterrent to expanding domestic tourism.”

The government continues to encourage large-scale hotel construction projects. An incentive package was introduced under the Investment Promotion Act in 2013, providing hotel companies with reduced value-added tax, five-year tax breaks, and duty exemptions for specific equipment such as air conditioners and refrigerators. However, these benefits are limited to projects worth at least $50m, which does not encourage smaller firms to enter the market. “Government support has been limited in terms of investment opportunities and incentives for smaller and new operators,” John Mason, founder of Ghana EcoLodge Company, told OBG. “This is especially true for some segments of the tourism industry, such as rural tourism and ecotourism, which would ideally be limited to an investment range of $2m-5m.”

Niche Markets

Indeed, the potential to expand niche tourism segments in Ghana is significant. A World Bank report published in 2018 showed that high-end leisure and ecotourism has already had a positive impact on local income and job creation around key sites including Mole National Park, Kakum National Park, and coastal areas such as Takoradi and Elmina. According to the Global Business Travel Association Foundation, demand for ecotourism, cultural attractions and adventure tourism is expanding faster than traditional segments such as wellness, business and cruise tourism, both in Africa and globally. Importantly, tourists in these niche segments often spend more time and money on their trip.

Ghana’s community-based ecotourism offering, in particular, has expanded in recent years. The segment aims to foster a close relationship between tourists, tourism operators and communities. The country’s main ecotourism sites include Mole National Park, Kakum National Park and the Buabeng Fiema monkey sanctuary. Although the segment is still in its early stages, Ghana has made significant progress in developing ecotourism facilities at some of its main nature reserves. The country’s first eco-hotel – accommodation designed to be environmentally sustainable and have minimal impact on the natural environment – opened in 2018 at Mole National Park, and a second is under construction at the Shai Hills resource reserve.

Competitiveness

Despite improvements in the country’s economic outlook in 2018, the sector still has some way to go to improve its competitiveness and attract the investment needed for it to expand. According to the World Bank, Ghana’s tourism sector is held back by municipal government regulations, and high costs of access and doing business. Tellingly, the cost of credit and energy tariffs are estimated to be four times higher than the regional average. In addition, more than 15 different permits, taxes and levies must be paid by tourism operators to various government agencies each year.

Nevertheless, Ghana has improved its international standing in recent years. The country ranked 115th out of 136 countries in the 2019 World Economic Forum’s travel and tourism competitiveness index, compared to 120th in 2017. However, Ghana still scored behind Rwanda (107th), Senegal (106th) and the Gambia (111th), demonstrating the need to improve tourism infrastructure and reduce accommodation prices. “Attracting private sources of financing and ensuring sustained spending and investment in infrastructure remains a priority. Addressing high prices and low competitiveness is also important,” Krabel told OBG. “Allowing Ghana to become a more affordable destination is crucial to expand the country’s tourism base and attract revenue by targeting individual segments.”

According to the GAC, a total of 2.4m passengers travelled through Ghana’s airports in 2018, a slight increase on 2.3m in 2017. The majority of passengers in 2018 were international travellers, making up almost 2m, while the remaining 483,261 were domestic passengers.

Ghana has six airports located in the major cities of Accra, Ho, Kumasi, Takoradi, Tamale and Wa. In October 2019 Wa Airport officially launched its first commercial flight, operated by Africa World Airlines (AWA). It is hoped that the new airport will open up the Wa region to tourism and investment. The country’s only international airport, KIA, is located in Accra. In recent years KIA has expanded to support rising visitor numbers: in 2014 the Terminal 2 arrival hall was expanded by 5148 sq metres and a number of new facilities were added, including up-to-date security systems and two new baggage-handling stations. In September 2018 the new Terminal 3 building opened, positioning KIA as one of the region’s major airports. The $250m terminal is designed to welcome up to 5m passengers per year and 1250 passengers per hour (see Transport chapter).

The growth of air travel has also been supported by the liberalisation of the air service market across Africa, in accordance with the Yamoussoukro Declaration of 1999 – allowing open skies between most African countries – and the creation of the Single African Air Transport Market in 2019. As a result, there has been a growing tendency to promote the participation of private sector operators to meet the market’s needs. Despite this, the high cost of access and fuel, landing fees and airport taxes, which are reflected in the price of airline tickets, continue to limit Ghana’s ability to attract price-sensitive international visitors.

AWA is the only indigenous regional airline connecting Accra to various capital cities in West Africa, and is the main operator offering a daily service from Accra to Lagos, Abuja, Freetown and Monrovia. It also launched a new service from Accra to Abidjan in 2019. Air Peace and Asky Airlines are the other major regional operators in Ghana.

In August 2019 Joseph Kofi Adda, minister of aviation, announced plans to launch a new home-based carrier. According to local media, the airline will connect several cities in the region with affordable airfares in order to target price-sensitive travellers and make Ghana a regional air transport hub.

Reform Agenda & Oversight

Despite underlying challenges, Ghana’s government agencies have shown a strong commitment to push through the necessary improvements in the tourism industry. In 2012 the government unveiled the 15-year National Tourism Development Plan (NTDP). By 2027 the plan aims to increase the annual number of visitors to 8m and raise sector revenue to $8.3bn per year. The 2019 budget highlighted the authorities’ commitment to boosting tourism, allocating GHS75m ($14.5m) to MoTAC, up 70% compared to GH43.9m ($8.5m) in 2017.

In 2017 Ghana joined other countries such as Mauritius, Rwanda and the Seychelles in introducing a visaon-arrival policy for visitors from most African nations, in line with the African Union’s Agenda 2063 strategy. According to the “Africa Visa Openness Report 2018”, Ghana is the seventh-most open country on the continent in terms of granting visas to other African nationals. In April 2019 Vice-president Mahamudu Bawumi announced the introduction of a new e-visa, emphasising the government’s commitment to making Ghana a business-friendly country while leveraging technology to improve service efficiency.

The GTA has implemented a series of measures to formalise the sector. In February 2019 the authority announced that all tourism sites would require licensing and certification, in order to improve overall quality and ensure that they meet international standards. Over 30 facilities in the Eastern Region, including restaurants and hotels, were closed in June 2019 following inspections to ensure compliance with the regulations.

Efforts to improve the quality of tourism facilities have also been enacted at a regional level. The African Continental Free Trade Area (AfCFTA), the Free Movement Protocol and the African Union Development Agency’s Tourism Action Plan are chief examples of initiatives to promote the industry’s development. The AfCFTA, for instance, is expected to increase intra-regional trade from 15% to 20% by 2040, with tourism identified as one of five key pillars of economic growth.

In 2019 the government and the GTA announced several promotional and branding initiatives to raise Ghana’s profile as a destination for international visitors, while also seeking to stimulate domestic and leisure tourism. In 2018 President Nana Akufo-Addo announced that the GTA had recorded more than 600,000 visitors to various tourist sites under the See Ghana, Eat Ghana, Wear Ghana and Feel Ghana campaign. The initiative sought to promote the visibility of local products, such as food, handicrafts, clothing and beverages, in order to stimulate the country’s economy.

Ghana’s commitment to supporting the development of the creative arts industry is also considered crucial to expanding business opportunities for local suppliers. The government finalised the Creative Arts Bill in 2019, which will lead to the setup of the Creative Arts Fund to build the capacity of the country’s arts and culture facilities and events.

President Akufo-Addo has identified 2019 as the Year of Return, marking 400 years since the first enslaved Africans arrived in Jamestown, Virginia. The initiative aims to capitalise on historical links with the African diaspora, as well as boost Ghana’s marketability as a tourist destination. A number of different platforms have been employed to promote the initiative, including social media, promotional shows and trade fairs. “With a growing number of promotional events under way, the government has made a dedicated push to transform Ghana into a mainstream tourism destination,” Sajid Khan, general manager of Tang Palace Hotel in Accra, told OBG.

In order to tap into new markets, the GTA has initiated partnerships with niche hobby and interest groups across the world. For example, the authority is looking to attract more Chinese tourists through exhibitions and conferences at tourism events such as China International Travel Mart, China Outbound Travel and Tourism Market and Shanghai World Travel Fair.

Ghana’s ability to transform the tourism sector, particularly the leisure segment, depends on its ability to attract private investment and maximise available resources. This means addressing underlying constraints that have held back development, such as regulatory policy, deteriorating tourism assets and infrastructure gaps. Despite the sector’s importance, Ghana has yet to develop a comprehensive strategy to capitalise on tourism as a source of foreign exchange. Creating an enabling environment will include supporting a skilled workforce, promoting Ghana as a tourism destination worldwide and implementing a parallel set of reforms to ensure long-lasting change. As the country’s hotel offerings, transport infrastructure and visitor numbers continue to improve, increased tourism flows could become a reality in the coming years.

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Ghana Travel Guide

Friendly Ghana is a West African country pulsing with energy, steeped in history and blessed with some breath-taking landscapes.

It’s easy to see why Ghana is one of the most popular destinations in West Africa. For a start there’s the beaches, golden stretches of sand fringed with palm trees. But the coast is marked by the shadows of the past – slaves were held in European-built coastal fortresses before being shipped overseas. Visit Cape Coast to learn more about this haunting legacy.

One of the first African countries to shake off the shackles of colonial rule, modern Ghana has a stable democracy, welcoming multi-ethnic population and an energetic spirit, making it a fantastic place to visit. Cities such as Kumasi are bursting with cultural museums, open-air eateries and artisanal markets. The country holds over 70 major traditional festivals every year, including Homowo, which is an exuberant celebration of a bountiful harvest, and Oguaa Fetu Afahye, unique warrior processions and rituals in honour of the 77 deities in the Fetu Afahye area.

But that’s not all. Ghana is blessed with some spectacular landscapes. Travel inland from the coast and you’ll discover a series of diverse habitats, from mountains to lush rainforest, rolling savannahs to arid plains. In the far north is the Mole National Park, Ghana’s largest wildlife reserve – it’s the only place in the country where you can see elephants in the wild. Meanwhile the Volta Region, running along Ghana’s eastern border, is all lush fields and craggy mountains, perfect for hiking.

TOURISM INSIGHTS: GHANA TOURISM FEDERATION

In 1986, the Ghanaian government chose to promote tourism as a major foreign exchange earner, helping facilitate development within the country. A designated ministry was set up in 1993, and in 1995 the Ghana Tourism Federation (GHATOF) was established as an apex organisation to collate information and articulate the concerns of the practitioners in the industry, as well as influencing growth and development of tourism.

We caught up with Emmanuel Frimpong , Executive Secretary of GHATOF, to find out more about the organisation.

Q&A WITH EMMANUEL FRIMPONG, EXECUTIVE SECRETARY, GHATOF

What are your organisation’s current goals?

Emmanuel Frimpong (EF):   Our vision is to be the primary advocate for the private sector leadership in the development of responsible and sustainable tourism in Ghana. Our mission is to cultivate and uphold commitment to the shared goals and objectives of the organisation by delivering services that enhance growth of the tourism industry.

Membership of GHATOF is voluntary and is open to any businesses or volunteer organisations residing in Ghana. To provide flexibility, we offer four different categories of membership, ranging from full to honorary.

Can you tell us a little more about 2019’s “Year of Return” and how it benefitted tourism in Ghana?

EF: The “Year of Return, Ghana 2019” is a landmark marketing campaign targeting the African-American and diaspora market. It marked 400 years since the first enslaved African arrived in Jamestown, Virginia. The Ghana Tourism Authority – under the auspices of the Ministry of Tourism, Arts and Culture – led the project in collaboration with the Office of Diaspora Affairs at the Office of the President, the Panafest Foundation and the Adinkra Group of the USA.

The Year of Return sought to make Ghana the focus for millions of African descendants interested in tracing their ancestry by returning to the country. Ghana became a beacon for African people living on the continent and further afield.

The United States Congress recently passed Act H.R. 1242, which established the 400 years of African-American History Commission (to carry out activities commemorating the first arrival of African slaves in English colonies in Virginia, in 1619). Ghana has a unique position as the location for 75 percent of the slave dungeons built on the west coast of Africa, and the current President has a policy of making it a national priority to extend a hand of welcome back home to Africans in the diaspora.

There are still numerous imposing European forts and castles harbouring harrowing reminders of the intense, complex history of the Trans-Atlantic slave trade in our land over centuries. This alone has made Ghana the focus for millions of African descendants reacting to their marginalisation by tracing their ancestry and identity back to our shores.

The benefits of marketing 2019 as the “Year of Return” led to increased tourist arrivals, boosted the economy and put Ghana on the world map as a desirable destination.

Why is tourism important for Ghana? How can it help benefit communities and landscapes?

EF: Tourism is a key economic driver in Ghana which generates foreign exchange earnings, creates jobs and wealth as well as stimulating other sectors of the economy. Tourism is currently the fourth largest source of foreign exchange earnings, estimated at $2.7 billion.

Successful restoration generates a wide range of benefits – it aids reforestation, enhances food security, improves air and water quality, increases both climate change resilience and job creation.

Have you got any landmark projects in the pipeline?

EF: Most African countries which won independence in the 1950s and ‘60s were confronted with many challenges, including scarcity of skilled employment and infrastructural deficit. To quicken their growth, they relied on assistance from their development partners through grants, loans and technical assistance. Despite having a lot of natural resources, Ghana has relied heavily on foreign aid in the past.

The Ghanaian President, Nana Addo Dankwa Akuffo–Addo, has stated a desire to carefully manage the country’s natural resources to wean Ghana’s development agenda off from external assistance – “Ghana Beyond Aid”. Spurred on by this, GHATOF intends to hold a conference with key stakeholders aimed at preparing the foundations for a national strategy on achieving a “Ghana Beyond Aid” through tourism operations and products only, while fostering knowledge exchange and peer learning.

To further develop responsible tourism in Ghana and to give authentic kinship to tourists of African-descent, GHATOF is organising a festival aimed at bridging gaps, promoting instant connections and seeking to regulate imaginations about the continent in general and Ghana in particular. It will be an annual event known as the Marhaba Tourism Festival. “Marhaba” means “welcome” and thus provides an enabling insight and justification for the Festival in 2020. Chiefs and Queen mothers will grace the occasion as hosts amidst depictions of much pomp and pageantry. With every activity, an eloquent narrator or “Okyeame” will provide insight and cultural interpretation into the nuanced performances.

Furthermore, since the festival will attract a large section of individuals from varied socio-economic backgrounds, Marhaba will host business meetings and networking opportunities. Avenues for investment prospects will be explored and implemented during the festival.

Why, in your opinion, should someone visit Ghana?

EF: Ghana is perhaps the only African country with a stable democracy and healthy economy. It’s rich in history and cultural diversity, offers great music and food. It’s a tropical paradise with amazing tourist sites (forts, castles, and matchless mud mosques). This makes the country a safe all-weather travel destination. Crime rates are low, insurgency nil, and the country extremely hospitable to tourists. This is a country where tranquillity prevails, even during the elections.

ACCRA IN FOCUS

Accra, the country’s capital, is a busy, rapidly developing metropolis. What it lacks in iconic landmarks it makes up for with bags of colour and character. Jamestown is Accra’s oldest district, where you’ll find timeworn colonial buildings alongside colourful street art. It’s famous for its boxing schools – visit and you might chance on an open-air match.

Thanks to its coastal location, after a hot day’s sightseeing you can head to the beach. Labadi Beach is the most popular; locals come here to swim and play ball games, while the air is full of reggae music from the bars lining the sand. Bojo Beach, on the other hand, is quieter and more pristine.

For a taste of local life, head to bustling Makola Market. You’ll find vendors selling everything from unrefined shea butter to colourful dashiki print fabric, as well as street food stalls. Try crispy waagashi (fried cheese) or a plate of spicy jollof rice. Accra has the best dining scene in Ghana – as well as street food stalls you’ll everything from hip Afro-Caribbean fare to upmarket pan-Asian restaurants. 

Escape the hustle and bustle of the city in Legon Botanical Gardens, one of the city’s greenest spaces. Stroll down sun-dappled paths and around lakes fringed with greenery. The park also boasts a tree canopy walkway, a playground and an obstacle course. Scratch beneath the surface of this compelling capital and you’ll find plenty to surprise and entertain you.

OUTLOOK RECOMMENDS

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Little Havana

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Santoku Restaurant

For an airplane converted into a restaurant…

La Tante DC 10

For Ghanaian hospitality in Tamale…

Jeyad’s Lodge

For poolside comfort in Accra…

Coconut Grove Regency Hotel

For ocean-facing sophistication in Elmina…

Coconut Grove Beach Resort

For ‘Afropolitan’ luxury in Accra…

The  African Regent Hotel  bills itself as ‘Afropolitan’, or African and cosmopolitan. It offers internationally regarded facilities – such as a high-tech business centre, large outdoor pool and wellness centre – and showcases African culture to its guests. Rooms are tastefully decorated with colourful fabrics and furniture etched with traditional ‘Adinkra’ symbols. Meanwhile, the hotel’s restaurant, ‘Muyika’, throws the capital’s best Africa-themed Sunday brunch. The onsite boutique hosts pop-ups selling clothes and other handicrafts made by Ghanaian designers. The hotel offers a complimentary airport pickup service, and will help you arrange all aspects of your trip to Ghana.

For a great atmosphere…

Republic Bar and Grill

For the best live music in Accra…

+233 Jazz Bar and Grill

LANDMARK ATTRACTIONS

West Africa’s largest waterfall is located in Wli, set amid a picturesque landscape of forest, undulating hills and gurgling streams. It’s a short hike from Wli tourist office to the falls – the 143 metres of cascading water is an impressive sight.

This coastal town is one of the most culturally significant spots in Africa, as it was once the epicentre of the slave trade in East Africa. Slaves were locked in the dungeons of the austere Cape Coast Castle, before being herded onto transatlantic vessels. The castle now contains a museum, where you can learn more about this traumatic history.

MOLE NATIONAL PARK

Ghana’s oldest and most significant national park offers opportunities to spot wildlife such as antelope, warthogs, monkeys and elephants. Thanks to a lack of predators, it’s possible to go on unique walking safaris. A trip to the park can be twinned with a visit to the nearby Mognori Cultural Village and the ancient mud-and-stick Labaranga Mosque.

GETTING THERE AND AROUND

Ghana’s busiest airport is Kotoka International Airport, located just eight kilometres from Accra. It offers scheduled flights to 29 destinations in 24 countries across Africa, America, Europe and the Middle East. Visitors from Asia are advised to take an Emirates flight, connecting via Dubai.

Africa World Airlines and Starbow Airlines operate domestic flights in Ghana, from Accra to destinations including Kumasi, Takoradi and Tamale. If you only have a short holiday, flying from the south to the north of the country is recommended, as it will save you a lot of time.

It’s also possible to travel long distances by bus – reliable companies include VIP and Intercity STC. Some travellers opt to hire a car, either with or without a driver, for greater freedom of movement.

If you’re travelling shorter distances, around cities or between landmarks, taking a taxi is the recommended form of transport. They can either be booked for a single journey or for the day, depending on your needs. The locals use ‘tro tros’ or minibuses to get around – they travel along a fixed route and leave whenever they’re full.

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CONTRIBUTION OF TOURISM TO THE GHANAIAN ECONOMY

Various countries develop tourism for a variety of reasons. Primarily, it is considered to be an effective vehicle for economic and social development (Roche, 1992). The tourism industry contributes considerably to Ghana's economy and demonstrates its potential as a key driver of economic growth. Receipts from tourism increased from $118.0 million (1.8% of GDP) in 1991 to $1,403.0 million (6.7% of GDP) in 2008. A comparison of foreign exchange receipts from tourism with other sources such as remittances and merchandise exports shows that income from the tourism sector is about half of total remittances and a third of foreign exchange receipts from merchandise trade

(GTB, 2009). Table 3.8 below shows the steady and positive growth trends in international tourist arrivals and receipts since 1991.

Table 3.8 International Tourist Arrivals and Receipts

Year Arrivals COOO) Annual Change % Receipts (US$ Million) Annual Change % 1991 172 18 118 46 1992 213 24 167 42 1993 257 21 206 23 1994 271 5 228 11 1995 286 6 233 2 1996 305 7 249 7 1997 325 7 266 7 1998 348 7 284 7 1999 373 7 304 7 2000 399 7 386 27 2001 439 10 448 16 2002 483 10 520 16 2003 531 10 603 16 2004 584 10 649 8 2005 429 27 836 29 2006 497 16 987 18 2007 587 18 1,178 19 2008 698 19 1,403 2009 803 15 Not available Source: GTB 2009

The needs of tourists at a destination are mainly accommodation, food, transportation facilities and entertainment services. The provision of these facilities has positive effects on the economy. The use of such goods and services by tourists increases local production and income as well as employment. The contribution of the tourist accommodation sector in Ghana to total tourism receipts over the years has been around 30 percent. In 2000 receipts from tourist accommodation was 31 percent of US$386.0 Million and 28 percent of US$1,403 Million in 2008 (GTB, 2009). Table 3.9 below shows the contribution of tourist accommodation sector to tourism receipts.

The accommodation sector serves as a catalyst and facilitates the generation of income by other sectors of the tourism industry such as local transportation, food and beverage, entertainment and recreation. Data from the Ministry of Tourism indicates that the average amount that tourists spend whilst in Ghana has been increasing. In 2002, the average tourist expenditure was US$1,125 and this has increased to US$2,010 in 2008. According to figures from the Ghana Tourist Board, the average length of stay increased from about 10 days

in 2000 to about 11 days in 2005 and this had a positive effect on tourist expenditure (GTB, 2009).

Table 3. 9 Breakdown of Tourist Expenditure (2000-2008), GTB 2009

YEAR 2000 2001 2002_[2003 2004 [ 2005j_2006 2007 2008 CATEGORY Local T ransportation 9% 9% 9% 8% 8% 10% 7% 7% 9% Shopping (Formal Market) 10% 10% 10% 10% 10% 12% 9% 10% 11% Shopping (Informal Market) 9% 9% 9% 10% 10% 12% 10% 11% 12% Food and Beverage 15% 15% 15% 16% 16% 12% 15% 14% 13% Accommodation 31% 32% 32% ' 31% 32% 27% 32% 30% 28% Entertainment and Recreation 18% 17% 17% 16% 16% 9% 9% 9% 9% Other Expenditure 8% 8% 8% 8% 8% 18% 17% 19% 18% Total Receipts 386 448 520 603 649 836 987 1,172 1,403 Source: GTB 2009

The Bank of Ghana notes that tourism in Ghana has become a major socio­ economic activity and one of the most important and fastest growing sectors of the economy. The overall prospects of the tourism industry and its socio­ cultural, political and economic values to the economy of Ghana are very encouraging (BoG, 2007). Table 3.10 below shows the contribution of tourism to Ghana’s GDP from 2002 to 2008.

Table 3.10 Contribution of tourism to the GDP (2002 - 2008)

2002 2003 2004 2005 2006 2007 2008 4.4 4.7 4.9 5.7 5.8 6.3 6.7

Source: GTB 2009

Tourism like any other service sector is highly labour dependent. The popularity of tourism as a developmental agent is attributed to its ability as a significant employment generator (BoG, 2007). The tourism industry in Ghana has been providing employment in both direct and indirect ways to a considerable number of Ghanaians. For example, figures obtained from the Ghana Tourist Board indicate that tourism provided about 19,000 direct jobs and 46,000 indirect jobs in 1996. These figures increased to about 47,000 direct jobs and 115,000

indirect jobs in 2004. These indicators imply that tourism related jobs have more than doubled in less than a decade and is on the increase. However, majority of these jobs are in the lower ranks of the industry (BoG, 2007). Figure 3.9 below shows tourisms’ contribution to employment from 1996 to 2008.

Figure 3^9 Tourism Contribution to Employment

Direct Indirect Total

In 2008, the total direct employment generated by the tourism industry reached 90,372 (GTB, 2009). The contribution of the various sectors of the tourism industry is as indicated in Figure 3.10 below.

Hotels 44% Toursit Shops

Figure 3. 10 Direct Employment by Sectors (2008)

Restaurants 9% Tour O peration 4% Car Rentals Source GTB 2009

The tourism industry is one of the industries with significant upward and downward linkages encompassing transportation, accommodation, food, shopping, entertainment, etc. The impact of tourism on Ghana's economy includes the knock-on effects of tourism-related demand on other sectors of the

economy, that is, all the macroeconomic consequences of tourism-related demand at a local or national level, from a demand-side perspective. The tourism industry generates economic effects from activities linked to tourism such as goods and services supplied directly to visitors, accommodation and transport from a supply-side perspective (Tourism Satellite Account, World Travel & Tourism Council, 2004). The multiplier effect of tourism is phenomenal and filters through the economy, stimulating other sectors. For example many small scale vegetable farmers produce to meet the needs of the hotel sector (BoG, 2007).

The tourism industry over the years has established its ability to contribute immensely towards national economic development especially in the areas of employment generation, wealth creation and poverty reduction within communities and at the national level. The development of tourism has helped in increasing the country’s foreign exchange earnings, stabilized inflation, appreciated the national currency (the Cedi) and increased economic growth, thereby contributing to reducing poverty in the country (GSS, 2008). Furthermore, the promotion of domestic tourism in general and the development of historical, cultural and natural heritage sites in particular have made tourism a major source of domestic income for majority of Ghanaians, thus improving the living conditions of many Ghanaians residing in the countryside where many of these sites are located (GTB, 2009). In Ghana where the average unemployment rate was 11.2 percent in 2008 (GSS, 2008), the tourism industry if given the right stimulus may bring improvement in the rate. On the domestic front, efforts to enhance the standard of facilities offered in terms of comfort and service, safety and security, and environmental sensitivity is ongoing (GTB, 2009). The aim of the government is to position Ghana as a prime African destination with excellent historical, cultural and natural attractions. Government hopes that these efforts will promote tourism and have cascading effects on employment generation and poverty alleviation as well as generate more foreign exchange (GPRS II).

3.11 CHAPTER SUMMARY

The chapter gives an overview of how tourism has evolved since colonial era Gold Coast to the present Ghana and provides insights into the evolution of tourism in general and the hotel sector in particular. It highlights the influences of Ghanaian culture, political history and economic policies on tourism development, especially the demand and supply trends in the tourism accommodation sector. The chapter also examined the contribution of the tourism industry to the Ghanaian economy and the importance successive governments, since the colonial era, have attached to tourism development which is expressed in development policies.

Since independence in 1957, tourism has been recognised as a major contributor to the Ghanaian economy and this has been reflected in all national development plans to date. These plans have facilitated the growth of many small tourism accommodation businesses which characterise the tourism accommodation sector in Ghana. The review highlights that tourism was not a key feature of economic development in the colonial era and national development plans drawn between 1919 and 1956 (thirty-seven years) reflects this. This has currently changed and tourism is now a key focus of national development. Also, the review shows that political administrators in the country after independence in 1957 recognised tourism and this has been reflected in all national development plans to date. This notwithstanding, plans aimed at developing tourism were fraught with challenges, especially between 1966 and 1981, because of political instability experienced by the country which were fuelled by cultural (ethnic) aspirations.

The review shows that the earlier involvement by the state to kick-start tourism in 1957 with the provision and management of international rated accommodation and restaurant facilities came to a hedge because of economic challenges that resulted from political upheavals that had cultural undertones as discussed in Chapter 2. Thus, even though strategic tourism development has been on the agenda of successive governments in Ghana since 1957, the industry’s development has been sporadic due to political instability, especially between 1966 and 1981, and tourism is still in its early stages of development (Ministry of Tourism, 2009). The implementation of tourism development plans

has been fraught by culturally related challenges that manifest in political instability and stunted economic growth.

Political stability since 1981 has contributed to the general increase in tourist arrivals and has created the demand for the supply of tourism accommodation from 6 hotels in 1957 to 1510 hotels in 2008 (Handbook of commerce and Industry, and the Ministry of commerce and Industry 1951 & 1957; GTB, 2009). Even though the State is no longer involved in direct development and management of hotels and restaurants, the current wholly private owned hotel sector has been growing with most (97 percent) of the hotels being small in size (National average of 15 rooms) (GTB, 2009).

Several policies have been developed for the enhancement of the tourism industry in Ghana since 1957. However, their implementation has been erratic due to fluctuating political and economic conditions that prevailed in the country. Efforts by various governments to attract foreign investment into the tourism sector have not been very successful till 1988 when the first multinational hotel opened in Accra.

Tourism in Ghana contributes enormously to the generation and redistribution of employment and income and facilitates the improvement in infrastructure and serves as a source of government revenue. This demonstrates its potential as a key driver of economic growth in terms of employment and foreign exchange generation (GTB, 2009).

Cultural influences have impacted on how small accommodation businesses have developed and attempts by various government to guide tourism development to achieve economic objectives seems not to be working. To better appreciate the characteristics and role of small tourism accommodation businesses in the development of the tourism industry in Ghana, a review of literature on the nature of small firms in general and small tourism firms in particular in the next chapter will aid understanding of the development of small tourism accommodation businesses in Ghana and help answer the research question of whether they are a barrier to strategic tourism development.

CHAPTER FOUR

SMALL FIRMS

4.1 INTRODUCTION

The tourism and hospitality industry are dominated by small enterprises (Bastakis et al., 2004). The structure of the hospitality industry in Ghana is no different. The majority of hotels in Ghana are small in terms of the number of rooms they operate and the number of their employees (GTB, 2009). There has been a growing interest in developing countries in formulating initiatives specific to the development of their tourism industries. The extent to which these industry-specific policy interventions have been informed by an understanding of small businesses in the tourism industry is questionable (Thomas, 2000). The objective of this chapter is to examine factors that affect the development of small enterprises. There are numerous definitions of small firms and Section 4.2 examines definitional debates on small firms in general and in relation to small tourism and hospitality firms. Section 4.3 examines the characteristics of small tourism and hospitality firms in terms ownership and organisational structure, the closeness of the owner to the business and the uniqueness in size of such business. Section 4.4 examines some similarities and differences of SMEs in developing and developed countries and how this affects their operations. Section 4.5 gives an overview of SME development in Ghana form the colonial era to date.

• GHANA: LOCATION AND SOCIO-DEMOGRAPHIC OVERVIEW
• CULTURE OF GHANA
• POLITICAL HISTORY
• ECONOMY OF GHANA
• GHANA’S DEVELOPMENT POLICIES
• EVOLUTION OF THE TOURISM INDUSTRY IN GHANA
• TOURISM ADMINISTRATION IN GHANA
• DEMANDS FOR TOURIST ACCOMMODATION
• HOTEL GROWTH TRENDS
• CONTRIBUTION OF TOURISM TO THE GHANAIAN ECONOMY (You are here)
• DEFINITIONAL DISCUSSION OF SMALL FIRMS AND TOURISM FIRMS
• CHARACTERISTICS OF SMALL FIRMS
• ENTREPRENEURIAL PERSPECTIVES
• ENTREPRENEURIAL TYPOLOGY
• CULTURE, LIFESTYLE AND ENTREPRENEURSHIP
• FAMILY BUSINESS, SMALL BUSINESS AND ENTREPRENEURSHIP
• ETHICAL CONCERNS
• CHARACTERISTICS OF STABS

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Ghana Ranks Ninth On Top 10 Tourist Destinations in Africa

In Africa, South Africa takes the number one spot as the preferred destination by tourists, followed by Mauritius, Botswana, and Kenya

Ghana is ninth among the top 10 tourist destinations in Africa, but ranked the highest in West Africa, according to a recent report by the World Economic Forum .

The Travel & Tourism Development Index (TTDI) 2024 released just last month, measures the factors enabling sustainable growth in the travel and tourism (T&T) sector - ranking 199 countries based on factors such as enabling environment, infrastructure and services, T&T resources, and sustainability.

In Africa, South Africa takes the number one spot as the preferred destination by tourists, followed by Mauritius, Botswana, and Kenya.

According to the report, Sub-Saharan Africa has seen significant improvement, with the T&T sector boosting job creation and economic development.

"Sub-Saharan Africa (Africa) has shown the most substantial enhancement in TTDI performance since 2019 (+2.1%), with 16 out of the 19 regional economies covered by the index increasing their TTDI scores," it said.

In 2024, the region had the highest score for T&T Socioeconomic Impact, with the T&T industry in Africa generating, on average, over 21% more jobs with an average of over 43% of the sector workforce employed in segments that are considered relatively high wage.

Given the region's price competitiveness and natural resources for tourism, there's potential to develop the sector. However, challenges remain.

The report highlights that despite some investments by governments into the sector and unilateral and multilateral strides in policies such as the African Continental Free Trade Area (AfCFTA), the Free Movement of Persons Protocol, and the Single African Air Transport Market, implementation is usually a hurdle - making examples of visa requirements, and aviation growth.

"With the region scoring low for the number and degree of liberalization of air service agreements, this can, in particular, make it more difficult for Africa's already underdeveloped aviation sector to grow. Innovative funding solutions for air, ground, and port infrastructure also need to be found to make destinations easier to access."

Globally, the Travel & Tourism (T&T) sector is expected to return to pre-pandemic levels by 2024, driven by the end of restrictions and strong demand. However, challenges such as uneven regional recovery, labor shortages, and supply-demand imbalances persist. External factors like global inflation, conflicts, and environmental issues add further pressure.

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Total contribution of the travel and tourism industry to employment in Ghana from 2005 to 2023

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Importance of Tourism in Ghana

Tourism is an important industry in Ghana; the sector has some amazing benefits. Ghanaian tourism is one of the key sources of foreign revenue, which improves its economy. Besides the country benefiting, the tourists also enjoy the wonderful experiences. There are various benefits associated with the tourism sector in Ghana. The key benefits include:

Generation of Wealth

Tourism generates money for the host country; tourists pay to access tourists’ sites and accommodations. Additionally, foreign tourists benefit the locals by purchasing traditional fabrics. Tourism is the easiest way to generate income, especially during the peak season. Tourism is among the key sources of income for Ghana.

Tourism has Stimulated the Growth of Ghana.

Tourism has stimulated the growth and development of Ghana. To motivate tourists to continue visiting the country frequently, the tourism industry is really working to ensure that the country is more secure and the crimes reports are few. It is also working to improve the status of all the infrastructures status to ensure that all the sights are easily accessible. The sector is working to ensure that all the tourists’ hotels are well-equipped with the right equipment and that they have ultra-modern facilities. Besides, they are working to ensure that all the roads, hospitals, schools, and other key facilities are in good status. The development is very significant for the country.

Creation of Employment

The Tourism sector has generated so many jobs for the locals, which has positively impacted the Ghanaian economy. The hospitality industry is among the industry that creates lots of job for the people of Ghana. Hotels, bars, restaurants, and entertainment services are the key business that greatly benefits from tourism; most hotels are fully booked during the peak season. Entertainment sites are also packed, leading to more job opportunities.

Stimulates Unity Among the Tourists and Citizens

Tourism is one industry that improves the unity between people of varied backgrounds and cultures. The tourists travel to learn the cultures and history of Ghana interact with the locals so as to learn from them; this leads to unity and friendships between them. Culture leads to building links between different people. Therefore, this improves the understanding between various tribes, people, and races, resulting in better economy, social and political relationships.

Conservation

Tourism motivates the government of Ghana to dedicate money to protect and conserve the local wildlife, historical monuments, tourists’ sites in urban and local regions. Conserving tourist attractions ensures that they remain in good conditions because tourists will be motivated to see them in good status. Since most tourist sites generate money, the money generated from such attractions can be used to conserve them.

Tourism Lays the Foundation

People see tourism from different perspectives, but the best definition of tourism is traveling to a place far from your home town or country for leisure or business purposes and spending a considerable period of time there. It is the traveling for a specific purpose and stays in the foreign city or country is not permanent.

Tourism is a very significant industry that forms a basis for other industries’ growth. It lays a foundation for wide-scale consumption, resulting in many benefits. Tourism has a positive impact on the economy, industries, and society, resulting in a country’s growth, progress, and development.

The importance of tourism arises from the various benefits and advantages it offers to any host country. The structure of tourism determines its importance. A well-structured tourism sector transforms to so many benefits and more opportunities. Besides, the management and leadership determine the level of its importance and significance. Tourism helps build a country’s brand image, image, and identity. Apart from being an attractive destination, tourism is a significant economic growth contributor.

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Ghana’s economic crisis was caused by government borrowing - the central bank did the best it could: economist

Researcher, Graduate School of Economics and Management, Tohoku University

Disclosure statement

Emmanuel Ameyaw does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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Ghana is going through its worst economic crisis in a generation. The past two years have seen record high inflation in the country. Ghana’s central bank (the Bank of Ghana) has been criticised in some quarters for its role in the country’s economic malaise, which has hit the profitability of Ghanaian banks. The Conversation Africa’s Godfred Akoto Boafo speaks to economist Emmanuel Ameyaw about monetary policy decisions made by the central bank during this period.

What was the Bank of Ghana’s role in the inflation rate crisis?

In 2002, Ghana’s parliament enacted the Bank of Ghana Act 612, Section 33(2) , granting the central bank flexibility and autonomy in the use of monetary policy to tame inflation and promote economic growth. At the time, Ghana was struggling with high inflation and low economic growth. The inflation rate averaged 28% in the decade before 2002, and real GDP growth per capita hovered around 1.45%.

The bank unofficially targeted inflation from 2002 until 2007. Inflation fell from about 30% in 2003 to about 10% by 2007. Ghana’s real GDP per capita also rose to about 2.71%. The bank adopted inflation targeting as its official monetary policy framework in 2007.

But as I show in my recent paper , the decline in the inflation rate from 2002 to 2007 was largely due to fiscal policy – that is, the government’s use of taxation and expenditure to influence the economy – rather than monetary policy which is about adjusting interest rates to affect the economy. The period 2002-2007 coincided with Ghana’s term under the joint IMF-World Bank debt relief programme (also called the Heavily Indebted Poor Countries initiative). During this period, Ghana’s public debt (as a share of GDP) declined from 58% in 2002 to 22.5% in 2007.

I argue that it is this reduction in government debt that underlies the decrease in Ghana’s inflation rate during this period. The central bank during this period maintained a passive monetary policy as it did not need to control the inflation rate.

Government debt began to climb again in 2008 after the end of the debt relief programme. It rose from 24.6% in 2008 to about 79.2% in 2021. This drove up the inflation rate because when the government borrows heavily, it increases demand for goods and services, and without a corresponding increase in the supply of goods and services, prices increase, driving up inflation.

Ghana’s public debt reached its limit in 2022, leading to a downgrade of Ghana’s credit rating from Bs to Cs for the first time since 2003, triggering the 2022 crisis.

What could the central bank have done differently?

Similar to other central banks that target inflation, Ghana’s central bank also has a dual mandate. That is to achieve higher economic growth while keeping a low and stable inflation rate. When these two objectives align perfectly, a central bank is deemed to have achieved “ divine coincidence ”.

Achieving that, however, is difficult. If the central bank, for example, raises the interest rate to lower the inflation rate, the cost of borrowing also rises, leading to a fall in investment, consumption, and economic output.

The 2022 credit downgrade limited Ghana’s government’s ability to borrow internationally, and also reduced Ghana’s international reserves, resulting in a significant depreciation of the cedi and triggering the 2022 inflation crisis. Similar to achieving a divine coincidence, Ghana’s central bank had two options . It could have stood idle, or it could have stepped in by lending to the government.

The bank lent about 37.9bn cedis (US$3.2 billion) to the government , arguing that this kept the economy going . For example, interest payments on government debt and the salaries of public sector workers were paid on time, and there were no shortages of essential items.

What could the government have done differently to avoid the crisis? Well, the answer is obvious: the government should not have borrowed excessively, leading to the downgrade – the triggers of the crisis.

There is not much the central bank could have done differently in terms of monetary policy, except raising the interest rate even more to control the inflation rate, which has its own costs. This might have reduced the capital outflows and the worsening of the exchange rate. However, it would have also hurt private investment and consumption, which would have lowered economic output. The central bank had limited scope to effectively address the crisis via monetary policy.

Given that economic management is complex and full of trade-offs, I would argue that the Bank of Ghana’s actions during the crisis (that is, lending to the government) were appropriate if a collapse of the economy was indeed imminent. From the perspective of the central bank, it was facing a trade-off between avoiding a fiscal crisis (and hence lower economic growth) and avoiding a higher inflation rate. It chose the former, that is, avoiding a fiscal crisis.

What can the bank do better in future?

The Bank of Ghana appears to have fulfilled its role as a lender of last resort to the government, and prevented a situation where the government might have been unable to meet its financial obligations. On the other hand, lending to the government also worsened the inflation crisis.

As a lender of last resort, the central bank cannot be completely independent from the government. Currently, there are no laws that prohibit fiscal financing. As a result, the central bank has the discretion to not commit to zero fiscal financing, especially when a fiscal crisis is imminent.

In the future, the Ghanaian government could consider legislation prohibiting direct lending by the central bank to the government. There’s a similar policy in place at the European Central Bank . Under such legislation, the government could borrow only through bond sales from the public, but not directly from the central bank. Knowing that it won’t be able to turn to the central bank for funding, the government would likely exercise prudence in its spending to prevent the accumulation of public debt in the first place.

• Monetary policy
• Fiscal policy
• Central banks
• Debt relief
• Ghana economy
• price increases
• Consumer Price Index
• Bank of Ghana
• Inflation targets

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Bulgaria Cultural Centre opens for business, tourism

By Ernest Nutsugah

Accra, June, 26, GNA – The Bulgaria Cultural Centre opened Tuesday in Accra and will become a permanent meeting space for Bulgarians in Ghana and people of diverse nationalities.

It is located in a serene enclave at Cantoments, Kakramadu Road, operating as a standard facility with ancillary services to support business and tourism.

The interactive opening session attracted business and corporate individuals who experienced a part of Bulgarian hospitality and culture.

They were treated to savouries, beverages, and good music from the repertoire of Ghanaian musician and keyboardist, Ken Carbonu, together with a selection of Bulgarian melodies.

The Centre, which consists of a restaurant, will offer a variety of Bulgarian and Ghanaian dishes.

Mr Nico van Staalduinen, Honorary Consul for Bulgaria to Ghana, said services at the Centre represented the warm reception offered in Bulgaria.

“What you see inside here is what you see in the cities and the restaurants of Bulgaria in traditional styles…The Bulgarian culture is prominent in food and the way we dress and it is a great country for summer holidays,” he stated, and encouraged individuals to explore the country’s rich culture.

Apart from hosting Bulgarians in Ghana, Mr Staalduinen said the Centre would also be a meeting point for the over 100 Ghanaians who studied in Bulgaria and those currently studying in the country.

The Centre, he added, would conduct weekly Bulgarian classes, regular Bulgarian events, and again serve as “a place to promote business and tourism for Ghanaians”.

“The Center will in the near future be extended with a Bulgarian and Ghanaian Business incubator offices concentrating on study in Bulgaria, Bulgarian agriculture, Pharmaceutical, Wine and spirits, IT Sector and Bulgarian Tourism,” the Embassy official stated.

Mr Yanko Yordanov, Ambassador of Bulgaria to Ghana, described the Centre as “an important meeting point”, and reiterated the country’s commitment to deepening bilateral relations with Ghana.

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Bangladesh Receives $900 million World Bank Financing to Increase Economic and Urban Resilience for Sustainable Growth

WASHINGTON DC, June 21, 2024  — The World Bank’s Board of Executive Directors today approved two projects totaling $900 million to help Bangladesh strengthen fiscal and financial sector policies and improve urban infrastructure and management to ensure sustainable and climate-resilient growth.

“Decisive reforms will help Bangladesh sustain growth and strengthen resilience to climate change and other shocks,”   said Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan .  “These new financing operations will help Bangladesh in two critical areas – the financial sector and urban management — to achieve its vision of upper middle-income status.”

The  Second Recovery and Resilience Development Policy Credit ($500 million)— the last in a series of two   credits — supports fiscal and financial sector reforms to accelerate sustainable growth and build resilience to future shocks, including climate change.

The program supports the transition from trade taxes to consumption and income taxes, which will help Bangladesh strengthen competitiveness and prepare for LDC graduation. It will help institutionalize the public procurement authority responsible for the electronic government procurement (e-GP system), which will cut down the average e-GP procurement lead time from 70 days to 55 days. It supports stronger banking sector oversight and improved management of National Savings Certificates. It will also help improve the efficiency and targeting of cash-based social protection programs and scale up public and private climate adaptation and mitigation investments.

“A well-functioning financial sector is critical for Bangladesh to increase investment and improve access to finance for those left out of formal banking systems ,”  said  Bernard Haven, World Bank   Senior   Economist and Task Team Leader for the program .  “The government has adopted strong macroeconomic reforms to address external imbalances and a new legislative framework to strengthen the financial sector.”

The financing will help streamline the bank recovery framework, implementing a prompt corrective action framework to address undercapitalized banks. It will also bolster social protection programs, safeguarding the most vulnerable during economic downturns and natural disasters.

The Resilient Urban and Territorial Development Project ($400 million) will help improve climate-resilient and gender-responsive urban infrastructure and urban management capacities in seven city clusters along the economic corridor covering over 950 kilometers of the highway from Cox Bazaar in the south to Panchagarh in the north of Bangladesh.

In 2021, about 38% of the country’s population lived in urban areas. This number is projected to rise to 60% by 2050. The trend of urbanization has largely been driven by the rapid growth of manufacturing sector jobs in the Dhaka metro area, making Dhaka one of the most densely populated cities in the world. Climate resilient development in secondary cities will help absorb climate migrants while helping reduce congestion in Dhaka. The project prioritizes coordinated investment in infrastructure and planning across these cities, ensuring a holistic approach compared to individual city plans.

The project will help provide investments to support the development of strategically important corridors and city clusters. It will help create jobs, enhance rural-urban linkages and transition, and strengthen food supply chains, and link to domestic markets and global value chains. It will improve connectivity between the selected cities and surrounding Union Parishads by improving roads and bus terminals and also create new economic opportunities by enhancing facilities for tourism, open spaces, and others. The infrastructure designs will incorporate the needs of female users and green building features including rainwater harvesting.

“This will be the first in a series of projects helping build resilience to climate change and create new opportunities and jobs in secondary cities through spatially targeted investments ,” said  Kwabena Amankwah-Ayeh, World Bank   Senior   Urban Development Specialist and Task Team Leader for the project . “ Developing secondary cities as growth hubs will be critical for the country’s sustainable growth .”

Selected municipalities and city corporations will receive subgrants for investing in climate-resilient and gender responsive infrastructure. The selected cities are expected to increase revenues by 20%. They will form Town-Level Coordinating Committees, where at least one-third of the members will be women.

The World Bank was among the first development partners to support Bangladesh following its independence. Since then, the World Bank has committed about $41 billion in grants and interest-free credits to Bangladesh. In recent years, Bangladesh has been among the largest recipients of the World Bank’s interest-free credits.

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