The African Transformation Index (ATI) ranks Ghana as a low financial transformer, with an general rating of simply 19.1 out of 100.
In line with the Africa Heart for Financial Transformation (ACET), Ghana’s progress on financial transformation has been weak and unstable for the final 20 years.
Since 2000, it stated the nation’s general rating has constantly hovered far under the African common of 30.3, solely reaching a excessive of 20.6 in 2014.
It subsequently needs the diversification of manufacturing and exports, which it describes as a vital catalyst for financial transformation.
“Over the past 20 years, the Ghanaian financial system has change into much less diversified, regardless of a shift from subsistence agriculture to providers, the banking sector restructuring and developments in ICT and monetary expertise. Whereas there have been some developments in financial actions and export markets, the nation has largely didn’t diversify or entice subtle manufacturing and value-chain linkages”.
“Since independence, Ghana’s financial system was categorised as an agrarian financial system with the agricultural sector being the best contributor. The providers sector grew to become the most important contributor to GDP [Gross Domestic Product] in 2006, accounting for about 45.5% of complete GDP. This sector has been pushed by the expansion of the monetary sector, telecommunications, and different service-oriented subsectors”, it added.
Nonetheless, ACET stated agriculture has remained a big sector, contributing virtually one-fifth of the GDP and substantial employment. The sector has been pushed by the manufacturing of cocoa, which is considered one of Ghana’s predominant exports.
It additionally stated the economic sector has been the second largest contributor since 2011, accounting for about 29% of complete GDP. That is regardless of Ghana being wealthy in pure assets, together with hydrocarbons, industrial minerals, and gold.
Exports Variety
Since 2000, Ghana’s exports have risen steadily till they dropped in 2020. After some restoration in 2021, exports marginally declined once more in 2022. The nation’s exports have been valued at roughly $20 billion in 2022 from $2.37 billion in 2000. The majority of exports consists of gold, crude petroleum, and cocoa beans and associated merchandise.
ACET stated the nation has change into ever extra reliant on these exports, with the share of the highest 5 merchandise rising from 70% in 2000 to 89% in 2020.
Nevertheless, it identified that Ghana’s poor progress in export competitiveness displays the nation’s restricted integration into world and regional worth chains, highlighting, an absence of product diversification and export sophistication constraining Ghana’s competitiveness.
It added that the decline in exports in 2020 might have been influenced by the COVID-19 pandemic.
DISCLAIMER: The Views, Feedback, Opinions, Contributions and Statements made by Readers and Contributors on this platform don’t essentially symbolize the views or coverage of Multimedia Group Restricted.
Source link
