PESTEL Analysis GHANA

Political analysis:
There is a constitutional democracy in Ghana. Ghana is moving toward a more stable
government. It regained momentum after its first prime minister was elected. There are 2
distinct parties in Ghana: National Democratic Congress(NDC) and New Patriotic
Party(NPP). The 1992 constitution helped Ghana stabilize democracy, under this
constitution president can elect a cabinet of his own choice to help him assist in running the
state and this patronizing situation disrupts the path of development. Judiciary is free from
influence of government but process is slow.
Economic Analysis:
Ghana's economy is expanding at the highest rate in West Africa. Agriculture continues to
be a key component of the economy, contributing more than one-third of the GDP and over
55% of all formal employment. Future oil production is anticipated to increase significantly.
Ghana's economy depends heavily on the gold and cocoa sectors. In an economic research
by Economy Watch led by juan Abdel Nasser has ranked Ghana as the fastest growing
country in the world in 2001. Cocoa, gold and oil are the major revenue generating
resources for country. Cocoa and Gold together account for 70% of country exports.
Social Analysis:
Ghanaian culture values hierarchy, people with greater income, age, expertise, and status
are respected more. There are various cultural and religious groups in Ghana but fortunately
this hasn’t lead to ethnicity issues. In order to encourage different ethnic groups to mingle
government has implemented various policies like making it necessary for youth to spend
some time outside their home towns. Ethnicity is strong in villages but recently rural to urban
migration has downplayed this element as well. Majority of population is Christian leading to
better English speakers in the country.
Technology Analysis:
Mobile telecommunications in Ghana is expanding at a very fast rate. 4G services are
available in the whole country. According to latest World Bank figures, Ghana's telecoms
industry is forecast to be worth $1.1 trillion. Ghana is currently among the top 10 countries
predicted to dominate Africa's ICT sector in the next five years. For near-term growth goals
and programs, technological infrastructure advancement is evident. Due to technological
advancement, Ghanaian industries are now collaborating with international ones. Tech is not
god gifted unlike natural resources but rulers are on a mission to make it a technologically
advanced country. Literacy rate needs to improve for it to realize its true technological
potential.
Environmental Analysis:
One of the nations with an abundance of natural resources is Ghana. The livelihood of rural
households depends on the land and other natural resources; the main sources of protein in
Ghanaian diets are fisheries and wildlife. Reliable hydroelectric power and fuel are essential
for urban economic activity. The burgeoning tourism industry depends on natural and
cultural resources, as does the wood-processing industry. The majority of economic sectors
also require natural resources. Ghana's natural resources are being misused, which results
in a decline in both quantity and quality. The production of food and agricultural goods is
hampered by ongoing soil erosion and declining soil fertility. In recent years, the economy's
growing urbanization has resulted in a depletion of environmental services. WWF has made
alignment with NGO at ghana in order to preserve forests and forest life, advice on land use
planning. Some NGOS’s are helping in increasing awareness about environment friendly
activities and stating their benefits for both current and future generation.
Legal Analysis:
Ghana has the best military force in all of Africa which is of the right size. It doesn’t put a
budget restraint and thus doesn’t prevent economy from flourishing on expense of defense
and military expenditure, but is capable of preventing local inhabitants from indulging into
any civil disobedience. The voting age is 18 years old, and the legal system is a hybrid of
English common law and customary law. Ghana has opted to implement policies and
regulations that are carried out by the executive in order to create social progress. Heavy
government borrowing has resulted in extremely high long-term inflation. Judicial review is
one of the controlling executive powers. Not only the army has been able to maintain peace
within country but it has also helped UN in several peacekeeping operations overseas.

Ease of doing business in Ghana

As a stable English-speaking country in West Africa, Ghana is a destination of choice for the
regional headquarters of many companies and institutions. It is also host to the Secretariat of
the African Continental Free Trade Agreement (AfCFTA).
Ghana is well-positioned as a regional entry and exit point on trade routes, offering 2 large
ports, with a recently completed expansion of capacity at Tema and a modern international
airport serving Accra, which has direct air links to Europe, the Middle East, the US and the
region.
Despite some challenges, British businesses continue to see Ghana as a valuable
investment base for the region, and there are already many existing and flourishing flagship
UK companies in the market across multiple sectors.
Incentives for British businesses exporting to Ghana include:
• English is the official business language and widely spoken
• the judicial system is based on English common law principles
• large consumer base with a growing middle class
• the market for financial and legal services is well developed
• comparatively well-developed infrastructure within the West African region
• developing as a regional hub for opportunities in other West African markets