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Ghana as a Market

Denmark and Ghana share a long-standing
relationship of trade and commercial cooperation. Danish companies from various
sectors have shown interest in Ghana and commercial activities are increasing.

Ghana holds a lot of unexplored potential for Danish companies. Fortunately, The Trade Council regularly receives requests from Danish companies in various sectors interested in doing business in Ghana. Since 2011, the number of requests has been increasing every year, with an exponential increase seen after the state visit in November 2017.The increasing interest from Danish companies can be attributed to a combination of economic and political factors, including high economic growth rates, an emerging middle class, and political stability, which together create a sound business environment for foreign companies. Today, the Danish business community in Ghana consists of approximately 60 Danish and affiliated companies.

In Ghana, four sectors are considered key sectors by The Trade Council. The sectors present an opportunity to leverage on prior or existing contacts and goodwill gained from development cooperation. They are all Danish strongholds and sectors that are also prioritised by the Government of Ghana. The sectors are:

  • Water and Environment
  • Food and Agriculture
  • Energy
  • Maritime & Infrastructure

The chart below displays the distribution of the Danish companies in Ghana as per December 2018. The companies included either have a local setup or a local partner in Ghana.

Today, most Danish companies are working in Ghanas Food and Agriculture sector (31.58 %). Another 22.8 % of Danish companies are in the Water and Environment sector, while 14 % are operating in the Maritime and Infrastructure sector. 5 % of Danish companies are working in the energy sector in Ghana, and the remaining 22.8 % of Danish companies are operating in other sectors. The main sectors represented under “Others” are ICT and Health.

Ghana offers access to the market of the Economic Community of West African States (ECOWAS), which has an estimated population of 250 million people. The interim Economic Partnership Agreement (EPA) between the EU and ECOWAS is expected to gradually transform the relationship between Ghana and the EU from one of dependency to one of mutual trade partners in the long term. The EPA will be applied asymmetrically, with the EU fully opening up its market and ECOWAS gradually opening up over time while retaining the right to protect a share of its sensitive industries from European competition.

Trade between Denmark and Ghana is growing. Although numbers still show much variation from year to year, the upward trend is visible. In 2017, total import of goods from Ghana to Denmark was DKK 183 million with export of goods from Denmark to Ghana amounting to DKK 1.461 million. From January to June 2018, the numbers are DKK 138 million and DKK 350 million for imports and exports, respectively. The large exports in 2017 and the first half of 2018 are a result of a single but very large order of pipes for Ghana’s oil and gas industry. Imports and exports of services are larger, amounting to DKK 728 million and DKK 439 million for imports and exports, respectively.

The major categories of Danish export to Ghana are machinery and transport equipment, chemicals, pharmaceuticals, food products, services and technical knowhow. The major Danish imports from Ghana are cocoa, shea and biomass.

The figures below provide an overview of some key economic indicators regarding Ghana as a market.

  

A brief overview of the Ghanaian budget for 2019 as well as the macroeconomic situation published by the Ghanaian Ministry of Finance can be found here: Budget Highlights 2019.

Contact us:

Naja Møller Jørgensen
Commercial Attaché
Email: najjor@um.dk

 

Linda Kafui Abbah-Foli
Commercial Adviser

Email: linabb@um.dk

 

Garcia Armelle Honvoh
Commercial Adviser
Email: garhon@um.dk

 

Emmanuel Antwi Akoto

Commercial Adviser

Email: emmako@um.dk

 

Regitze Theill Jensen
Trade & Investment Trainee
Email: regjen@um.dk

 

Mads Andersen Münster
Trade & Investment Trainee
Email: madmun@um.dk