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The New Ghana – A new world of Opportunities
An Attractive Place To Invest In Africa
GHANA
Is this how you see
Africa?
There is a new Africa emerging
with Ghana spearheading development
…none of the pictures above is from Africa…….and the bad perceptions of Africa are being replaced by amazing stories of recovery and opportunity
Significant number of trade agreements and relationship with international markets
A dynamic and growing economy with focus on
private sector driven business
Strategically located to facilitate access to West Africa sub region
Investment ready economy with attractive opportunities in oil and
gas, energy, telecoms and infrastructure
Growing middle class and market with huge demand
for goods and services
Relatively well educated work force and impeccable democratic credentials
THE SELL STORY
8
Agenda
• Ghana –
• Ghana Summary
• Overview of the Ghanaian Economy
• 2017-2022 Investment Drive
• Spotlight on Some Key Sectors
• Banking and Finance • Trade and Industry • Oil & Gas • Power • Railways • Roads and Highways • Agriculture
• Testimonies
10
Ghana Beyond Aid ….building the…
Society
11
Empowering the economy with investment capital…….
Reforms to improve the investment and business climate. Infusing SDGs into policy
12
Ghana Summary
Source: *World Bank Report: Global Economic Prospects: Sub-Saharan Africa; Bloomberg Markets
GHANA ECONOMY 2017 – 2022 GOVERNMENT OF
GHANA INVESTMENT DRIVE SPOTLIGHT ON KEY SECTORS FOR
INVESTMENT DRIVE AND TARGETS
• Government is embarking on a 6yr agenda to source significant amount of investment into the country.
• Target of $20 – 40 billion over the period.
• Immediate target of $10 – 20 billion over the next four years.
• Anchor industries of banking and finance, roads and highways, power and railways, trade and industries, agriculture, and oil and gas.
• GDP: $ 42.7 Billion
• GDP Growth: 7.9% projected in 2017
− Projected to be fastest growing economy
in the world in 2018 by World Bank*
• Diversified economy underpinned by oil,
cocoa, gold, timber and other commodities
• Banking and finance: $10.5 billion
• Trade and Industry: $3 billion
• Oil and Gas: $15-19 billion
• Power and Railways: $30 billion
• Roads and Highways: $10 billion
• Agriculture: $3-4 billion
13
Ghana’s Economic Overview | Key Indicators
Diverse and robust economy rich in resources including gold, cocoa and oil.
Projected at 8.3% in 2018, the fastest growing economy in the world
Growth rebounded and growing over last 3 qtrs
Ranking in Africa 21 of 53. Globally Ranks 146th of 185
INFLATION
Headline inflation dropping for last 4 consecutive quarters
FDI
Preferred FDI destination in West Africa; Received highest percentage of West Africa FDI
Improved Trade balance position 1st Trade Surplus after 5 years of deficits
14
A conducive and safe Political and Business Environment
Rule of Law Measures 8 factors including (Order & Security, Regulatory Enforcement, etc.)
Rank in West Africa
#1
Global Peace Index Measures level of safety, the extent of
conflicts and the degree of militarization. Rank in West Africa
#2
Democratic Rule One of the longest uninterrupted
democratic rules in Sub-Saharan Africa. Years
25
Elected Presidents 5 leaders democratically elected through
fair and peaceful elections since 1992. Rulers
5
Change of administration Successful presidential transitions between
political parties in the 4th Republic. Successful Transitions
3
Ease of doing Business in Sub-Saharan Africa
Sectors that Investment Incentives cover
Tax for Companies listed on the Ghana Stock Exchange
Transfer of profits and dividends under Ghanaian investment laws
15
Key achievements of current administration and improvements in the country’s credit ratings
Improved Literacy Rate (Free Senior High School Program)
– Tuition fees abolished (Zero fee program)
– Wider access to education in line with SDGs
Strong Economic Recovery
– Economy expanded for all 4 quarters in 2017
– 2017 year end 8.5%
Reduction in Debt to GDP
– From 74% to 68%.
– Expected to hit 66.1% by the end of 2018.
Power Stabilization
– Scheduled power cuts completely eliminated
– 3,000 MW to be added over the next 3 years
Increased FDI inflows
– FDI of US$3.16 billion from January to June 2017
– Significant increase of 101.3% over the same period of 2016. Year end 2017 at US$4.91bn
Stabilization of the local currency
– Local currency stable from Jan 2017 to date
– Facilitated reliable financial planning and improved cost of doing business.
B - Positive
B - Stable
B3 - Stable
Improving the current tax
environment to be more
favorable for business, ease
of doing business
Simplifying requirements
and the registration process for businesses
Improving access to
finance for businesses,
especially for SMEs, by
reducing the cost of capital
Aligning budgets to their priorities, fiscal discipline
and macro economic stability
and growth
Driving a stable electricity supply and price to fuel industrial growth and value added
economy
The Ghanaian government is committed to executing on its plans to drive growth
17
2017 – 2022 Investment Drive
Government is pursuing a bold strategy for creating growth and transformation that requires Investment & Partnership across multiple sectors. The highlights include:
Banking and Finance
Trade and Industry
Oil and Gas
Power and Railways
Road and Highways
Agriculture
18
Fast Moving Consumer GoodsHousehold spending expected to reach USD20.7
billion by 2020 as the middle class increases
TransportationOver 4,007.6 km of
integrative railway
linking south and north
of Ghana and also east
and west.
…significant potential. The World Bank estimated that the Ghanaian economy may be the fastest growing in 2018 at a projected 8.3% …….. A growth rate of 8.5% was achieved in 2017 Ghana on the Go
ENERGY
• Distribution network
• Generation in renewable and sustainable energy
• Oil and Gas
INFRASTRUCTURE
• Integrative and transformative transportation, railway
• Schools
• Hospitals
• Road, bridges and airports
AGROPROCESSING
• Mechanized production
• Irrigation, One Village One Dam
• Value Addition and Processing
• Planting for Food and Jobs
TOURISM
• Ecotourism
• Culture Tourism
• Hospitality Centres and Hotels
• Theme parks
MANUFACTURING
• One District One Factory
• Bauxite, Iron ore, Gold processing
• Pharmaceuticals
• Textiles
• Cocoa processing
Manufacturing Transforming the economy from export of raw materials and resources to value added and processing and manufacturing
PRIORITY SECTORS
20
Banking And
Finance
21
Transforming and Deepening Financial Sector for Accelerated Growth
Investment Target: USD 10.0 Billion
$1.0bn Government of Ghana seeded the
fund with $250m. $2.0bn
Investment required to drive financial inclusion initiatives.
$2.0bn Allocation of capital and
management of investments with private sector participation.
$0.2bn
Opportunity for expansion of trade finance service offering for trade with standardization of port documentation.
$0.5bn Exclusive focus on long-term
finance for industrial and agricultural sectors in Ghana.
$3.0bn Housing deficit of 1.8m units.
$0.3bn Capital injection to consolidate
sector and drive penetration.
Recapitalization of banks to GHS400m requiring approximately US$1.5bn
22
Ghana’s Banking Sector | Overview
0,0100,0200,0300,0400,0500,0600,0700,0800,0900,0
Estimated Capital Position (GHS mm) Ghanaian Owned
Foreign Parent
0
10
20
30
40
50
60
70
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Aggregate Bank Assets and Deposits (GHS Bn)
Aggregate Bank Assets Industry Deposits
0%
10%
20%
30%
40%
50%
60%
Aggregate Banking Returns
ROE ROA PBT Margin
23
Trade And
Industry
24
Industrialization – A strategic focus for the current Administration to transform the Ghanaian economy
Investment Target: USD 2.80billion
Industrial Revitalization
$100m - $200m
Stimulus package to viable but distressed companies.
Export Development Programme
Facilitate businesses to explore export opportunities including AGOA and the EPA.
One District One Factory
$500m - $1bn
Focus on creation of factories and industries
Decentralize industrial development State will facilitate business set up
Retail Infrastructure
Value addition to meet global standards
Demand for retail infrastructure due to rollout of flagship.
Anchor Industries
Develop robust industries in: − Petrochemical − Integrated Aluminum − Pharmaceuticals − Vehicle assembling plants − Industrial salt architecture − Palm oil
Regulatory reforms
Ease the cost and process of doing business in the country.
Industrial Parks
$100m - $300m
Creation of industrial parks Parks could be Free Zone enclaves Access to reliable energy supply.
Industrial sub-contracting exchange
Creation of useful contractual relationships between corporations and SMEs.
SME Development
$100m - $300m
Create enabling environment for SMEs Provide assistance – financial and technical Regulatory reform
Public-Private sector Dialogue
Annual evaluation of initiatives to ensure efficiency.
25
Oil and Gas
26
Ghana’s Oil & Gas Industry | Overview
2007 2010
Jubilee Field
• First Deepwater Oil & Gas
Reserves Discovery
• 628 million Oil Barrels Reserve
and 686 Billion cubic feet Gas
• Discovered by consortium led
by Kosmos Energy Ghana
TEN Field
• Offshore Oil & Gas
Discovery
• 239 million Oil Barrels
Reserve and 360
Billion cubic feet
2009
Jubilee Field
• Commercial Production
• Average oil production
increased from ~36,000 bopd
to ~103,000 bopd in 2015
• Managed by Tullow and
consortium partners
TEN Field
• Commercial Production
commences
• Initially delayed due to
ITLOS arbitration
• Managed by Tullow
2016
Jubilee Field
• 236 million Oil Barrels and
260 Billion cubic feet Gas
production
• Reserve of 392 million Oil
Barrels and 426 Billion
cubic feet Gas
2018
ITLOS Ruling
• Landmark Ruling in
unanimous favour of
Ghana over Cote
d’Ivoire
• Clear boundary giving
Ghana control of oilfields
DWCTP Field
• Exxon Mobil signed
agreement with
Government to explore
this large ultra deepwater
block, located offshore
Western Ghana
Sankofa Field
• 173 million Oil Barrels
Reserve and 1,071
Billion cubic feet Gas
• Development of oilfield
by ENI
2017
23 additional fields discovered
between 2008 and 2014
27
Ghana’s offshore Activity Map
Basin Status
Tano-Cape Three Points
• Shallow/Deepwater well explored
• Ultra deepwater to be explored
Accra - Keta • Shallow water moderately explored
• Deepwater inadequately explored
28
Voltaian Basin presents significant Onshore Exploration Opportunity
Ghana’s Onshore Voltaian Basin
• Covers area of over 100,000sqkm; ~40% of Ghana land mass
• GNPC pioneering exploration activities to unlock the untapped hydrocarbon
potential
• The 5-year reconnaissance program will cover 2D seismic data acquisition and processing, environmental impact assessment, community relations management and drilling of 2 conventional wells
Key Achievements
• Technical and financial evaluations of 2D Seismic Acquisition which are awaiting approval from Central Tender Review Committee
• Seismic Data Processing contracting and
• Explosives and Detonators Contracting
29
Key Players along the Oil & Gas Value Chain
Upstream Midstream
Downstream Service Providers
• Voltaian Onshore exploration • Additional oilfield development
Spectrum of opportunities across Value Chain
• Transport and Logistics Infrastructure
• Infrastructure to support new national LPG Recirculation Policy
• Gap exists to provide technical expertise and service
30
Investment Target: USD 15billion – USD 19billion
Onshore Farm-in Opportunities
$ 2.0bn Farm-in investments in onshore projects located on the Tano, Keta and Inland Voltaian Basin.
Natural Gas Processing
$ 1.5bn Additional natural gas processing facilities/ equipment to ensure continued supply during routine maintenance.
Development and Production of Abandoned Fields
$ 1.0bn - $ 3.0bn
Investment in the development of abandoned fields in Shelf Tano and Cape Three Points areas.
LPG Distribution
$ 1.5bn Investment in safe and standardized LPG vending and distribution facilities.
Further Exploration Opportunities
$ 3.0bn - $ 5.0bn
Further exploration in the adjoining areas and south of the Saltpond field.
Ammonia/ Fertilizer Plants
$ 1.0bn Local plants to convert gas to fertilizer.
Crude Oil Refinery
$ 3.0bn Establishing an additional oil refinery for increased processing of crude oil locally.
Oil and Gas Servicing Operations
$ 2.0bn Investment in indigenous oil and gas service companies to provide services to upstream and downstream players.
Harnessing oil and gas resources to support national industrialization
agenda
31
Power
32
Ghana’s Power Sector | Overview
Government
Public-Private Partnership
Private
Distribution Transmission Generation
Shenzhan Energy Group Ghana
CMS Energy
Sunon Asogli Power Ghana Ltd
Migration to Private Concessionaire
Potential to Partner with
GRIDCo
33
Transmission and Distribution Losses present opportunity in Ghana Power Sector
Power Demand and Supply (MW)
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Existing supply
Committed supply
Demand
• Potential to invest in the medium term in power generation to address growing demand
• Adequate current supply to meet immediate demand
“We need to reduce transmission losses ..We also need to ensure and preserve the financial health of the transmission utilities. This opens up tremendous opportunities for investments in the transmission system”. Mr. Benjamin Boakye Agyarko Minister of Energy, Ghana
2017
0
5
10
15
20
25
Transmission and Distribution Losses (Percentage)
Transmission Losses
Distribution Losses
2018 2019 2020 2021 2022
2012 2013 2014 2015 2016
• Significant losses (~$1.2bn) in transmission and distribution present investment opportunity through PPP arrangements
• Opportunistic power generation can be explored to improve transmission losses
• Government working to allocate distribution to private concessionaire
34
Railways
35
USD 21.5 Billion Rail Upgrade and Expansion underway
Phase 1: Rehabilitation of Line:
Phase 2: Eastern “A” Expansion
Phase 3: Sections
Phase 4: Trans ECOWAS Expansion
Phase 5: Western Expansion
Phase 6: Eastern B Expansion
Phases Amount Distance (km)
$ 2.8 Bn 1,335 km
$ 6.5 Bn 1,161 km
$ 2.7 Bn 484 km
$ 2.8 Bn 498 km
$ 4.1 Bn 729 km
$ 2.6 Bn 468 km
$21.5 Bn 4,675km
36
Roads and Highways
37
Ghana’s Road Development Plan
Arterial $ 2.9bn
Others $ 0.7bn
Interchange $ 0.8bn
Critical Roads $ 2.4bn
Bridges $ 0.2bn
Pavements $ 0.6bn
Inter-district $ 0.9bn
Others $ 0.1bn
USD 4.4Bn
(~1,200km)
USD 3.3Bn
(~2,100km)
USD 1.8Bn
(~6,100km)
USD 9.5Bn
Urban Highway Feeder
To Agric/Tourist sites $ 0.9bn
38
Transport infrastructure is critical to Industrialization Drive in Ghana
Railway
Rail Lines installed in 1957
940 km
Usable Rail
130km
Eastern Line
Central Line
Western Line
Ports - Aviation
Kotoka International Airport
Sunyani Airport
Takoradi Airport
Wa Airport
Kumasi Airport
Yendi Airport
Tamale Airport
Harbors Aviation
Ghana’s roads network
67,400 km
Feeder Roads
42,192 km
Urban Roads
12,400 km
Trunk Roads
11,628 km
41% in good condition
Roads
Tema Port Takoradi Port
Size: Medium; $1.5Bn Expansion underway Small; $428mm scheduled for 2018
Max. Vessel Size: > 500ft length
Type: Coastal Breakwater Coastal Breakwater
> 500ft length
Volume: 70-80% of national volume 20-30% of national volume
Ship Repairs: Limited Limited
39
Opportunities exist across all segments of the Transport sector
Railway • Strong Government commitment to revitalize the railway sector
• The Railway expansion master plan proposes over 4,007 km of
integrative railway
• Estimated capital required – USD21.0Bn
Ports • Need for a world class Dry Dock facility to provide Ship Repair and
Maintenance services
• Opportunity to build an upgraded jetty to receive LPG and crude oil vessels
Roads & Highways
• Upgrade and repair of existing road network - 39% in good condition, 32% fair and 29% in poor condition over the last 5 years.
• Priority to construct and upgrade major highways and agriculture feeder roads
• Government addressing contractor bottlenecks (e.g., late payments) to accelerate construction
Aviation
• Expansion works in Accra (USD 274mn) and Kumasi Airports (USD 29mn).
• Creation of new national carrier under consideration
• Airport infrastructure (e.g., parking and transportation at airport)
40
Real estate
41
Overview of Ghana’s Real Estate Landscape
De
velo
pm
en
t D
eve
lop
me
nt
&
Man
age
me
nt
Man
age
me
nt
4. Real Estate
42
Real Estate Sector provides attractive returns on investments
This presents opportunities to real estate investors in the country.
Attractive yields averaging 10% on retail, office and industrial properties.
Retail & Office Key Stats
Type Yield Rent per Sqm
(USD)
Retail 8 – 10 % 20 - 65
Office 9 – 10 % 18 – 35
Industrial 10 – 11% 4 – 10
Residential (Prime Areas)
No. of Beds Rent (USD) Sale (USD)
1 1.2k -1.5k 200k - 250k
2 2.0k - 2.2k 280k - 330k
3 3.0k - 3.5k 425k - 500k
Source: Broll Ghana; OBG Ghana 2017; W Hospitality; JLL Accra City Report; Sentinel Global
2,35
2,41
2,47
2,53
2,59
2,66
2,10
2,20
2,30
2,40
2,50
2,60
2,70
2015 2016 2017E 2018E 2019E 2020
Housing Deficit in millions
43
Industrial Park Status: Goal of 1 in each of 10 regions
Region Project Location Size Developer Status
Greater Accra • Tema Free Zone Enclave
• Industrial Park Ghana
• Appolonia Business Park
• Dawa Industrial Park
• Tema Business Park
Tema Tema Ningo Prampram Dawa Tema Aflao Highway
200 acres 60,000 square metres 89 acres 2,000 acres 18.5 acres
ILDC Limited (ILDC) Rendeavour LMI Holdings Mobus Property Holdings Ltd
Completed Phase I – Completed Completed Under construction Completed
Western Region West Park Industrial Zone Shama 405 acre BlackIvy Group LLC Under construction
Ashanti Region Greater Kumasi City Special Economic Zone
Kumasi 5,000 acres Yet to commence
Central Region
Volta Region
Northern Region
Upper East Region
Upper West Region
Eastern Region
Brong Ahafo Region
Opportunities To
Explore
44
Residential, Retail & Office projects Over The Last 5 Years
Category Project Location Size Developer Status
Residential The Affordable Housing Project The Appolonia City Villaggio Vista
Saglemi, Prampram Accra Airport Residential
6 acres
Messrs Construtora OAS Limited Rendeavour Trasacco Estate Development Co.
Under construction Under construction Completed
Retail Junction Shopping Centre Accra Mall West Hills Mall Kumasi City Mall
Nungua Accra Weija
11,597-sq-metre 23,000 sq metres 27,000 sq metres 29,000-sq-metre
RMB Westport Actis Delico Property Development
Completed Completed Completed Completed
Office Accra Financial Centre Stanbic Heights One Airport Square The Octagon The Rhombus
Accra Airport City Airport City Accra Central West Ridge
20,000-sq-metre 6500-sq-metre
RMB Westport RMB Westport Laurus Development Partners Dream Realty
Completed Completed Under Construction Completed Completed
45
Agriculture
46
Investment Target: USD 3.3bn – USD 6.0bn
$ 200m - $ 1.0bn Establishment of fertilizer plant in Western Region.
$ 1.0bn Investment in cocoa processing and value-addition for export.
$ 300m Setup manufacturing facility for production of irrigation equipment.
$ 200m Financing for fish farming operations to increase fish supply and manage restoration of water resources.
$ 500m Investment in the growth, consumption and export of quality rice grains.
$ 200m - $ 500m Investment in poultry production to meet local consumption and reduce imports.
$ 300m Investment in entire value chain – Revival of Komenda Sugar Factory.
$ 200m - $ 500m Investment in the e-Agriculture Extension program.
$ 200m Investment in production of improved cotton varieties.
$ 200m Transformation of cashew into major cash crop and foreign exchange earner.
Comprehensive Agricultural Investment Program Across
Sub-sectors
47
Ghana’s Agricultural Landscape
[CATEGORY NAME]
[VALUE] [CATEGORY
NAME] [VALUE]
[CATEGORY NAME]
[VALUE]
GDP Contribution [CATEGORY
NAME] [VALUE]
[CATEGORY NAME]
[VALUE]
[CATEGORY NAME]
[VALUE]
[CATEGORY NAME]
[VALUE]
[CATEGORY NAME]
[VALUE]
Agriculture Sector by Segment Sector Growth Rates
5,7%
4,6%
2,8% 3,0%
4,3%
2013 2014 2015 2016 2017*
Annual Growth Rate
Sector Growth Key Facts and Figures Agricultural activities most prevalent in Ghana.
Sector employs about 45% of the population both in the formal and informal sector, making up an average of 20.80% of total national output.
Sector proves to be very promising and with a lot of opportunities.
Subsectors within the Ghanaian agriculture sector include fishing, forestry and logging, livestock and crops.
Outlook and Opportunities
The agricultural sector though predominant, contributes relatively less to GDP. The thrust of the sector, however, depends on improving the value chains of the sub sectors that exists.
Government Commitment: Planting for Food and Jobs Program: the
program created 754,000 jobs in 2017. One-Village-One-Dam Initiative: provision a
sustainable irrigation system. 1 District 1 Factory campaign: 3 agro
processing plants ready under the campaign.
7,04
7,36
7,57
7,79
2013 2014 2015 2016
GDP From Agriculture (GHS billion)
48
Fast Moving Consumer Goods
Household spending to reach USD20.7 billion by 2020 Growth of 15% in USD terms
Huge potential in the West African +350m population with growing
middle class
48
Breakdown of household
spending
Source: Press Releases; BMI; Sentinel Global
49
Cocoa
50
COCOBOD Overview Company Profile
The Ghana Cocoa Board (COCOBOD) was established by ordinance in 1947 as the main government agency responsible for the development, promotion, facilitation, production, processing and marketing of good quality Cocoa, Coffee and Sheanut in all forms in the most efficient and cost effective manner, and maintain the best mutual industrial relation with its objectives.
• Currently there are 7 cocoa growing regions namely Ashanti, Brong Ahafo, Eastern, Volta, Central and Western North and Western South regions.
• COCOBOD has successfully lived up to its mandate of facilitating and promoting the growth and sustenance of the Ghanaian cocoa industry. The success story is owed to a well-structured set of agencies of COCOBOD that work together with synergy to provide most of the services and products required by various stakeholders in the industry.
• COCOBOD and its subsidiaries and divisions are involved in the following operations;
Marketing of cocoa beans and cocoa products
Cocoa Quality Assurance
Evacuation/transportation
Research and training
Crop diseases & pests control
Crop rehabilitation projects
Farmer Extension Services
0,74 0,78 0,85 0,9
1,7 1,8 1,8
1,3
14/15 15/16 16/17 17/18E
Syndicated Funding for Cocoa Output
Cocoa Output (Tonnage) Value U$D
COCOBOD Subsidiaries
Cocoa Research Institute of Ghana (CRIG)
Seed Production Division (SPD)
Cocoa Health and Extension Division (CHED)
Quality Control Company (QCC)
Cocoa Marketing Company (CMC)
51
Ghana’s Cocoa Industry | Overview (1/2)
Industry Overview
• Ghana is the world’s second largest cocoa producer after Cote d’Ivoire, with a 21% market share of global cocoa production.
• The Ghanaian economy has a reputation for superior bean quality, enabling beans to consistently command a premium on the international market.
• The country’s cocoa sector is controlled by the government through the Ghana Cocoa Board (COCOBOD). COCOBOD acts as a regulatory body for the coca industry.
• The cocoa sector accounts for 4.5 % of GDP and contributes 25% of Ghana’s merchandise export earnings.
45
65
30 32
-
29
24 26
0
45%
80% 80%
-
10
20
30
40
50
60
70
Afrotropic CPC Niche PLOT
‘00
0s
Capacity Effective Capacity Utilisation
Processing Capacity of Key Local Players in the Industry
567
773 714
649
732 780
850 900
0
100
200
300
400
500
600
700
800
900
1 000
2010 2011 2012 2013 2014 2015 2016 2017E
‘00
0s
Cocoa Exports (MT) Top 5 Producers of Cocoa
Country ‘000 MT Share
Cote D’Ivoire 1,724 40%
Ghana 888 21%
Indonesia 401 9%
Nigeria 248 6%
Brazil 226 5%
52
Ghana’s Cocoa Industry | Overview (2/2)
Outlook of Ghana’s Cocoa Industry
• The future of the cocoa industry continues to be positive, through policies to ensure the industry’s growth.
• Measures to strengthen the existing public-private partnership extension model by promoting Farmer Based Organizations and the training of Local Community Facilitators.
• The Government through COCOBOD is continuing the distribution of free hybrid cocoa seedlings to farmers to complement the effort of farmers in the implementation of the National Cocoa Rehabilitation Programme.
0,5
0,7 0,8
0,7 0,7 0,7 0,7
0,6
0
0,2
0,4
0,6
0,8
1
2009 2010 2011 2012 2013 2014 2015 2016
0
0,5
1
1,5
2
2,5
3
3,5
4
Contribution (GHS bn) % Contribution
Contribution of Cocoa to Ghana’s GDP
Cocoa Beans Processed by Factories (2017)
Shipment of Ghanaian Cocoa Beans by Destination (2017)
CPC 9,3%
CARGILL 25,1%
BD ASSOCIATES 0,3% BARRY
28,0%
ADM 13,3%
REAL PRODUCTS 0,4%
NICHE 12,8%
PLOT 10,8%
Europe 54,6%
North America 9,2%
Asia 25,2%
Others 11,0%
53
Global Cocoa Industry | Key Players
Industry Overview • Consumption is concentrated in Europe and America. Europe has the largest
chocolate industry in the world and purchases 58% of cocoa grindings which originate mainly from West Africa.
• Cote d’Ivoire and Ghana have maintained dominance as the leading cocoa producers in the world, producing 60% of global cocoa beans.
• A shift in global consumption of cocoa in emerging countries with strong positive growth in North America fueled a 1.01% growth in global consumption of cocoa: 3.95mn tonnes to 3.99mn tonnes1.
• Between 2016 and 2018, the prices of cocoa on the world market has experienced a decline, reducing from USD 3,162 to USD 1,714.
30
65 65
15 15
27
59 59
8
12
-
10
20
30
40
50
60
70
ADM Barry Callebaut Cargill Real Touton
‘00
0s
Capacity Effective Capacity Utilisation
Processing Capacity of Select Players in the Global Cocoa Industry
Select Companies on the Global Scene
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
2000 2002 2004 2006 2008 2010 2012 2014 2016
Average Cocoa Prices ($/kg)
54
Global Industry | Overview
Outlook of the Global Cocoa Industry
• With Olam’s 70,000-MT factory in San Pedro reaching full production Côte d’Ivoire is expected to overtake the Netherlands as the world’s top grinder once. West Africa will continue to dominate the supply of raw cocoa beans to the world market with a forecast 1.95mn MT of exports in 2017/18.
• After peaking at US$3,179/MT in mid-October 2014, international cocoa prices have been on a downward trajectory, falling to a one-year low of US$2,760/MT at the end of January 2017. The slump in prices has reflected numerous factors, including last season’s record crop in West Africa, weakening chocolate demand in the key markets of North America and Western Europe, and the strengthening of the US dollar, which has an inverse effect on cocoa prices. Cocoa prices are expected to average US$2,100/MT in 2018.
Africa 75%
America 13%
Asia & Oceanis 12%
Production of Cocoa Beans
-300
-200
-100
0
100
200
300
400
500
0
1000
2000
3000
4000
5000
6000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Surplus/Deficit Production Grindings
World Cocoa Bean Production & Grinding (in ‘000 MT)
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2008 2009 2010 2011 2012 2013 2014 2015 2016Europe Americas Asia Africa
Consumption of Cocoa Beans ( ‘000 MT)
testimonials……..
“We want to build an economy that is not
dependent on charity and handouts, but an
economy that will look at the proper management of
its resources as the way to engineer social and
economic growth in our country.”
Nana Addo Dankwa Akufo Addo, President of Ghana
Africa CEO Forum, Monday March 20 2017
56
“For those of you who needed proof
that there is a new generation of
leaders believe in a new future, you
have your proof now...There are
leaders in Africa who want a new
relationship...[and] a future for the
youth in their country.”
Emmanuel Macron, President of France
Africa CEO Forum, Monday March 20 2017
“The people of Ghana have worked hard to put democracy on a firmer footing, with peaceful transfers of power even in the wake of closely contested elections. And with improved governance and an emerging civil society, Ghana’s economy has shown impressive rates of growth.”
Barack Obama, former President of USA
Parliament House - Ghana, Saturday July 11 2009
57
58
“Africa is on the ascent and Singapore must ride this wave.”
Tharman Shanmugaratnam, Deputy Prime Minister of Singapore
Africa-Singapore Business Forum, Wednesday 24th January 2018
58
59
“Your (Ghana) government’s approach to governance with an emphasis on efficiency, transparency, accountability, democratic and civilian oversight, coordination and professionalism is exemplary.”
Tsutomu Himenu, Ambassador from Japan
Flagstaff House - Ghana, Thursday 18th January 2018
59
60
“Chinese enterprises are very interested in investing in Ghana
because it has a lot of advantages. I think the biggest
dividend is the peaceful nature of the country and stability. There
are also abundant resources and the labour force is educated.”
Sun Baohong, Chinese Ambassador to Ghana
China-Ghana Economic and Trade Cooperation Forum, Tuesday 28th June
2016
60
“It’s a kind of model case for many
African countries and we see a lot
of potential in Ghana.”
Christophe Retzlaff, German
Ambassador to Ghana
Interview with Ghana News
Agency, Monday 19th June 2017
61
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The Chinese Exim Bank’s
confidence in Ghana is reflected
in the fact that the country (Ghana)
has received the largest amount of
money from the bank in Africa for
projects such as telecom and
agriculture.
Mr Liu Liange, President of the
China Exim Bank
Vice President Bawumia's official
visit to the People’s Republic of
China, Wednesday 21st June
2017
62
“We are very excited about what we
have been able to do in Accra, with
our store opening on Oxford Street
in Osu because this is such a
wonderful asset that's created such
fantastic opportunity for the
Ghanaian people.”
Keith Warren, Managing Director
(KFC Ghana)
Official Opening of KFC Ghana,
Friday 5th September 2011
“Accra is a bustling, connected city
that Uber is proud to be launching
in. Its rapid growth and multiple
ethnic communities make it an
exciting place to introduce our
service.”
Alon Lits, General Manager
(Sub-Saharan Africa- Uber)
Uber Ghana Launch, Wednesday
8th June 2016
63
“Total Petroleum Ghana Limited, as part of its three year investment programme between 2014-2016 said to be investing over GHC 160 million to products and services to ensure customer satisfaction.”
Olivier Van- Parys, Former Managing Director (Total Petroleum Ghana Ltd.)
Annual General Meeting of Total Petroleum Ghana Ltd., Thursday 12th May 2016
64
“We are very excited with the hotel opening. Accra is becoming the economic hub of the West African region, which offers such rich and diverse natural and economic potential.”
Stuart Chase (Mövenpick Hotels & Resorts)
Press Release on Cision PR Web, Monday 7th November 2011
64
“We will continue to make
significant contributions to the
Ghanaian economy.” $100 million
investment for new grinding plant
to provide 3,000 direct jobs and
5,000 indirect jobs.
Mr Etornam Komla Buami, Media
Relations Manager of Dangote
Cement
End of Year Program of Tema
Command of the Customs Division
- Ghana, 19th January 2017
“Ghana’s post-election upswing now is looking so strong that the country is poised to take the lead as Africa’s fastest-growing economy this year -- for the first time in at least three decades.”
Bloomberg, Monday 5th February 2018
"Star of Africa in 2018 Lenders’ Economic Forecasts Is Ghana" by Ekow Dontoh
65
“Ghana’s economy is rebounding and the major commodity exporter is poised to wean itself off bailouts through sustained fiscal discipline and a battle against corruption.”
CNBC Africa, Thursday 18th January 2018
“Ghana’s economy back on track: President” by Reuters
“We want to build an economy that is not dependent on charity and handouts, but an economy that will look at the proper management of its resources as the way to engineer social and economic growth in our country.”
Nana Addo Dankwa Akufo Addo, President of Ghana
66
……A land of endless possibilities
69
Thank you
Ghana Investment Promotion Centre
Tel: +233 302 665125
+233 302 665126
+233 302 665127
Email: [email protected]