Ghana is rich with natural resources that include gold, coco, timber bauxite, manganese, rubber, fish, hydropower and industrial diamonds Ghana has 12% arable land, 7% crops, 22% permanent pastures, 35% forests and woodlands and 24% is undefined. Because Ghana is heavy in natural resources it is more financial stable and self sufficient that most of the other countries in West Africa.
Despite its many natural resources it has a heavy dependence on international trade and financial assistance. Agriculture accounts for most of Ghana’s production and employs 60% of the workforce in that sector. 15% are in the industry sector and 25% in the services occupation. It is estimated that 31% of the people who live in Ghana are below poverty level and the unemployment rate is currently at 11%.
Gold and coco production in Ghana are a major source of foreign exchange. Partnerships with other countries are the lifeblood for much of the economy. Domestically the economy of Ghana revolves around agriculture. Agriculture employs more than half of the Ghana workforce. In 2006 Ghana entered into a Millennium Challenge Corporation contract with a goal to improve Ghana’s agricultural sector. The initiative will aim to provide strategies for continued growth and poverty reduction.
The initiative provided Ghana with strategies to improved economical management. This coupled with the high gold prices and cocoa process helped domestic growth in recent years.
In 2009 the Bank of Ghana reported alarm about the overall economy of Ghana. Ghana has a growing fiscal deficit. In order to close this deficit they would have to increase spending on their Gross Domestic Product. Prior to now the deficit has been financed through foreign reserved. The World Bank claims that they are committed to assisting the new government of Ghana improve their economy and balance the budget. According to the World Bank, Ghana’s per capital income has barely doubled in the past 50 years.
Despite this grim picture, Ghana still remains the most economically stable country in Africa. Inflation remains high in Ghana and over the years the government has instituted several economic reforms that have assisted the nation in stabilizing their economy. Because of the continued devaluation of the cedi, in 2007 Ghana began a currency re-denomination from the Cedi to the new currency which is the Ghana Cedi or (GH) The exchange rate is 1 Ghana Cedi for every 10,000 Cedis. In US terms this exchange means a rate of $1 US dollar equals .93 GH.
