Ghana Economy Overview

Currency

GH₵ Ghanaian Cedi (GHS)

Working hours

40 hours/week

Public/bank holidays

13 public holidays

Capital

Accra

Languages

Twi

Population

34.8 million

Minimum hourly salary

GHS 18.15

Tax year

1st Jan – 31st Dec

Date format

DD/MM/YYYY | In Akan:

YYYY/MM/DD | In Ewe: M/D/YYYY

Misclassification penalties

Employers who misclassify employees as contractors may be liable for back payment of salaries and benefits, payment of unpaid taxes and contributions, and fines.

Fun fact

The capital city of Ghana is named Accra. Its name translates to “ants.” The name was gained because of the anthills that used to surround the city.

With a population of 33.743 million, Ghana is the second-most populated country in West Africa. It shares borders with Ivory Coast (Cote D’Ivoire), Burkina Faso, and Togo. Its capital is the large coastal city of Accra, and its sole official language is English.

This country was influenced by the Portuguese and eventually became a British colony in the 19th century, eventually gaining its independence in 1957 as the first Sub-Saharan country to do so. After a period of instability, Ghana has maintained a free and stable government since the 1990s. Starting in 2000, the country’s flat economy began to grow considerably, reaching a nominal GDP of $76.28 billion in 2023.

This GDP is predicted to continue growing by 2.8% in 2024. Ghana is currently working to reduce its deficit through fiscal restructuring efforts and combat inflation. If you’re thinking of hiring Ghanaians or setting up a business in the country, you have a lot of options to help you get started.

Overview of Ghana's Economy

Ghana uses its own currency, the Ghanian cedi (GHS) which trades at roughly 1 USD = 15.50 GHS in 2024. This strong local currency has been gaining value steadily in line with the country’s economic development, but has made large gains in the past two years.

Economic SectorsContribution to GDP
ServicesOver 40%
IndustrialOver 30%
AgricultureRoughly 20%

The economy of Ghana is largely based on services (over 40%), with a strong industrial sector (over 30%), and agriculture contributing roughly 20% of GDP. Health, tourism, energy, and communications are major contributors to the service sector. Ghana possesses great wealth in hydrocarbons, industrial minerals, and precious metals like gold, copper, and nickel.

The country has a strong presence in food processing, mineral processing, and textiles. It is also the second-biggest producer of cocoa in the world (after Ivory Coast), and yams, grains, oil palms, and timber also contribute to its agricultural wealth.

Its biggest trading partners are:

  • China (16.75% of trade)
  • Switzerland (14.71%)
  • India (14.19%)
  • South Africa (11.75%)
  • the Netherlands (5.76%)

Ghana is considered a low-middle-income country by the World Bank, but is one of the wealthiest in West Africa. It’s also an affordable country to hire workers from. The minimum wage in Ghana is mandated at 21.77 GHS/day (2.05 USD) or 587.8 GHS/month (55 USD).

Middle-class workers tend to make 3000-4000 GHS/month (190-260 USD/month). While employers pay 13% contributions to social security, employees here are still very affordable.

FDI IndicatorValue
FDI Inflows (2022)$1.47 billion
FDI Stock$42.49 billion
Major Investing CountriesSouth Africa, Netherlands, France, Mauritius, China

Taxes

Employer Tax: 13.5%

SSNIT

13.5% 1st Tier (2.5% of the 13.5% goes to the NHIA for the member’s health insurance)

Employee Tax: 5%

Occupational Pension Scheme

5% 2nd Tier

Provident Funds and Other Pension Funds

Voluntary (no limitations on the contributions)

Income Tax

Gross Income (GHS)

First 5,880

Next GHS 1320

Next GHS 1,560

Next GHS 38,000

Next GHS 192,000

Next GHS 366,240

Exceeding 600,000

Tax Rate

0%

5%

10%

17.5

25%

30%

35%

Business Regulation in Ghana

Doing business in any new country includes challenges to overcome and lessons to be learned. Ivory Coast is, however, very open to foreign investment. If you’re planning to start doing business here, these are some of the regulations you’ll need to know about to make doing business easier:

Registration and Compliance

Setting up a business in Ghana can be moderately challenging; however, it can take just 13 days to set up an LLC through eight procedural steps. These include:

  • Obtaining a tax ID number
  • Registering a name with the Registrar-General’s Department
  • Obtaining a certificate to commence business and a temporary Business Operating Permit (BOP) 
  • Receiving an inspection from the Metropolitan Authority
  • Obtaining a BOP
  • Opening a bank account and depositing paid-in capital
  • Registering with the Social Security and National Insurance Trust Office

Taxes and Investments

The corporate tax rate (CIT) in Ghana is 25% and 35% for mining and petroleum companies and VAT is 15%. Withholding taxes are 8% for dividends, 8% for interest, and 15% for royalties. Social security contributions for employers total 13%.

However, companies engaged in “non-traditional exports” can pay only 8% CIT, free-trade zone (FTZ) companies are tax-exempt for ten years and then pay just 15% CIT, and companies that set up in regional capitals (other than Accra and Tema) pay 6.25% CIT or 7.5% in non-capital regions.

Employment Laws

Employees in Ghana work eight hours a day and 40 hours per week and must be paid 150% for overtime hours. They should receive an annual paid leave of at least 15 working days per year. Ghanaians are entitled to 13 paid public holidays per year.

Fully paid maternity leave is granted for 12 weeks, but there is no mandated paternity leave. Workers should be given between two and four weeks’ notice of termination, depending on the lengths of their contracts. 

Learn more about employee benefits in Ghana

Intellectual Property

Copyrights in Ghana last for 70 years after the life of the creator. Trademarks can be registered for ten years and then renewed for ten-year periods, and patents receive 20 years of protection by law.

Benefits of Doing Business in Ghana

There are many advantages to doing business in Ghana that should be considered when comparing places to set up a business, including:

  • More developed infrastructure than most West African countries
  • Political stability and steady growth
  • Highly affordable labor
  • Large population with an emerging middle class and access to regional markets
  • English as an official language facilitates communication
  • 100% foreign ownership of entities is possible
  • Free Zones (0% CIT for 15 years) and other tax reductions and holidays are available

Business Expansion Options in Ghana

For companies looking to get started in business in Ghana, several options are available to choose from, including:

Ghana Employer of Record (EOR)

The Ghana EOR becomes the official legal employer of your Ghana team. This method is fast and efficient, making it perfect for companies that need to quickly deploy staff on the ground. 

An EOR handles payroll, benefits, taxes, and compliance with local labor laws, allowing businesses to focus on their core activities. They may also provide additional services, such as Ghana talent acquisition and visa support.

LEARN MORE

Recruitment Agencies

A Ghana recruitment agency can help you source employees in Ghana quickly and cost-effectively. Ghana recruiters often work in tandem with Professional Employer Organizations or Employers of Record (see below) to ensure that your Ghana team is hired and paid in full compliance with local laws.

LEARN MORE

Ghana Professional Employer Organization (PEO)

Another option to start out in Ghana is to hire Ghanaian workers through a Professional Employment Organization (PEO) or Employer of Record (EOR). These service providers own entities in Ghana and can use them to legally hire Ghanaians to work directly for your company.

This gives you access to affordable but skilled and educated workers who can help you lay the groundwork for future economic activities in the country and the larger region.

LEARN MORE

Subsidiary Incorporation

Many overseas companies choose to incorporate subsidiaries in Ghana or else obtain them by purchasing local firms. Limited liability companies (LLCs), public companies limited by shares (PLCs), and unlimited companies are all options for incorporation. An LLC is the best choice for small or medium enterprises.

An LLC needs to have between one and 50 shareholders of any nationality and must appoint at least two directors, one of whom must be Ghanaian. The startup minimum share capital to open an LLC is 500,000 USD for a completely foreign-owned company and 1 million USD for a trading company.

A joint venture with a Ghanaian requires a minimum capital investment of just 200,000 USD, and the Ghanaian partner must own at least 10% of the business. A PLC is a good choice for larger and more liquid enterprises. The minimum share capital for a PLC is also 500,000 USD, and 1 million USD for a trading company.

A PLC needs at least one shareholder and two directors of any nationality, though one director must be a resident of Ghana. PLCs must submit their audited financial statements annually to the Companies Registrar.

Branch Registration

A foreign-registered company can also open a branch office in Ghana to act as its point of contact in the country. A branch is considered part of its parent company, which has full liability for its actions in Ghana.

A branch needs to have a registered address and requires only one representative of any nationality resident in Ghana. This person can sign contracts and official documents, issue sales invoices, and perform import and export activities on behalf of the parent company.

Exploring Opportunities in Ghana

Ghana presents a range of attractive business opportunities for investors and entrepreneurs, thanks to its growing economy, stable political environment, and abundant natural resources. The country’s strategic location in West Africa, coupled with its government’s efforts to create a business-friendly environment, has positioned Ghana as an appealing destination for foreign investment.

Business OpportunitiesReasons
Agribusiness and Food ProcessingAbundant agricultural resources, growing demand for processed foods, government support for the sector.
Mining and Mineral ProcessingRich deposits of gold, copper, nickel, and other minerals, increasing demand for processed minerals.
Oil and GasSignificant offshore oil and gas reserves, growing energy demand, government initiatives to attract investment.
Renewable EnergyAbundant solar and wind resources, government commitment to increasing renewable energy share.
Infrastructure DevelopmentGrowing population, rapid urbanization, government focus on infrastructure improvement.

These opportunities, combined with Ghana’s stable political environment, improving ease of doing business, and access to a large regional market through its membership in the Economic Community of West African States (ECOWAS), make it an attractive destination for investors seeking to establish a presence in West Africa.