The New Ghana – A new world of Opportunities

An Attractive Place To Invest In Africa

GHANA

Is this how you see

Africa?

There is a new Africa emerging

with Ghana spearheading development

…none of the pictures above is from Africa…….and the bad perceptions of Africa are being replaced by amazing stories of recovery and opportunity

Significant number of trade agreements and relationship with international markets

A dynamic and growing economy with focus on

private sector driven business

Strategically located to facilitate access to West Africa sub region

Investment ready economy with attractive opportunities in oil and

gas, energy, telecoms and infrastructure

Growing middle class and market with huge demand

for goods and services

Relatively well educated work force and impeccable democratic credentials

THE SELL STORY

8

Agenda

• Ghana –

• Ghana Summary

• Overview of the Ghanaian Economy

• 2017-2022 Investment Drive

• Spotlight on Some Key Sectors

• Banking and Finance • Trade and Industry • Oil & Gas • Power • Railways • Roads and Highways • Agriculture

• Testimonies

10

Ghana Beyond Aid ….building the…

Society

11

Empowering the economy with investment capital…….

Reforms to improve the investment and business climate. Infusing SDGs into policy

12

Ghana Summary

Source: *World Bank Report: Global Economic Prospects: Sub-Saharan Africa; Bloomberg Markets

GHANA ECONOMY 2017 – 2022 GOVERNMENT OF

GHANA INVESTMENT DRIVE SPOTLIGHT ON KEY SECTORS FOR

INVESTMENT DRIVE AND TARGETS

• Government is embarking on a 6yr agenda to source significant amount of investment into the country.

• Target of $20 – 40 billion over the period.

• Immediate target of $10 – 20 billion over the next four years.

• Anchor industries of banking and finance, roads and highways, power and railways, trade and industries, agriculture, and oil and gas.

• GDP: $ 42.7 Billion

• GDP Growth: 7.9% projected in 2017

− Projected to be fastest growing economy

in the world in 2018 by World Bank*

• Diversified economy underpinned by oil,

cocoa, gold, timber and other commodities

• Banking and finance: $10.5 billion

• Trade and Industry: $3 billion

• Oil and Gas: $15-19 billion

• Power and Railways: $30 billion

• Roads and Highways: $10 billion

• Agriculture: $3-4 billion

13

Ghana’s Economic Overview | Key Indicators

Diverse and robust economy rich in resources including gold, cocoa and oil.

Projected at 8.3% in 2018, the fastest growing economy in the world

Growth rebounded and growing over last 3 qtrs

Ranking in Africa 21 of 53. Globally Ranks 146th of 185

INFLATION

Headline inflation dropping for last 4 consecutive quarters

FDI

Preferred FDI destination in West Africa; Received highest percentage of West Africa FDI

Improved Trade balance position 1st Trade Surplus after 5 years of deficits

14

A conducive and safe Political and Business Environment

Rule of Law Measures 8 factors including (Order & Security, Regulatory Enforcement, etc.)

Rank in West Africa

#1

Global Peace Index Measures level of safety, the extent of

conflicts and the degree of militarization. Rank in West Africa

#2

Democratic Rule One of the longest uninterrupted

democratic rules in Sub-Saharan Africa. Years

25

Elected Presidents 5 leaders democratically elected through

fair and peaceful elections since 1992. Rulers

5

Change of administration Successful presidential transitions between

political parties in the 4th Republic. Successful Transitions

3

Ease of doing Business in Sub-Saharan Africa

Sectors that Investment Incentives cover

Tax for Companies listed on the Ghana Stock Exchange

Transfer of profits and dividends under Ghanaian investment laws

15

Key achievements of current administration and improvements in the country’s credit ratings

Improved Literacy Rate (Free Senior High School Program)

– Tuition fees abolished (Zero fee program)

– Wider access to education in line with SDGs

Strong Economic Recovery

– Economy expanded for all 4 quarters in 2017

– 2017 year end 8.5%

Reduction in Debt to GDP

– From 74% to 68%.

– Expected to hit 66.1% by the end of 2018.

Power Stabilization

– Scheduled power cuts completely eliminated

– 3,000 MW to be added over the next 3 years

Increased FDI inflows

– FDI of US$3.16 billion from January to June 2017

– Significant increase of 101.3% over the same period of 2016. Year end 2017 at US$4.91bn

Stabilization of the local currency

– Local currency stable from Jan 2017 to date

– Facilitated reliable financial planning and improved cost of doing business.

B - Positive

B - Stable

B3 - Stable

Improving the current tax

environment to be more

favorable for business, ease

of doing business

Simplifying requirements

and the registration process for businesses

Improving access to

finance for businesses,

especially for SMEs, by

reducing the cost of capital

Aligning budgets to their priorities, fiscal discipline

and macro economic stability

and growth

Driving a stable electricity supply and price to fuel industrial growth and value added

economy

The Ghanaian government is committed to executing on its plans to drive growth

17

2017 – 2022 Investment Drive

Government is pursuing a bold strategy for creating growth and transformation that requires Investment & Partnership across multiple sectors. The highlights include:

Banking and Finance

Trade and Industry

Oil and Gas

Power and Railways

Road and Highways

Agriculture

18

Fast Moving Consumer GoodsHousehold spending expected to reach USD20.7

billion by 2020 as the middle class increases

TransportationOver 4,007.6 km of

integrative railway

linking south and north

of Ghana and also east

and west.

…significant potential. The World Bank estimated that the Ghanaian economy may be the fastest growing in 2018 at a projected 8.3% …….. A growth rate of 8.5% was achieved in 2017 Ghana on the Go

ENERGY

• Distribution network

• Generation in renewable and sustainable energy

• Oil and Gas

INFRASTRUCTURE

• Integrative and transformative transportation, railway

• Schools

• Hospitals

• Road, bridges and airports

AGROPROCESSING

• Mechanized production

• Irrigation, One Village One Dam

• Value Addition and Processing

• Planting for Food and Jobs

TOURISM

• Ecotourism

• Culture Tourism

• Hospitality Centres and Hotels

• Theme parks

MANUFACTURING

• One District One Factory

• Bauxite, Iron ore, Gold processing

• Pharmaceuticals

• Textiles

• Cocoa processing

Manufacturing Transforming the economy from export of raw materials and resources to value added and processing and manufacturing

PRIORITY SECTORS

20

Banking And

Finance

21

Transforming and Deepening Financial Sector for Accelerated Growth

Investment Target: USD 10.0 Billion

$1.0bn Government of Ghana seeded the

fund with $250m. $2.0bn

Investment required to drive financial inclusion initiatives.

$2.0bn Allocation of capital and

management of investments with private sector participation.

$0.2bn

Opportunity for expansion of trade finance service offering for trade with standardization of port documentation.

$0.5bn Exclusive focus on long-term

finance for industrial and agricultural sectors in Ghana.

$3.0bn Housing deficit of 1.8m units.

$0.3bn Capital injection to consolidate

sector and drive penetration.

Recapitalization of banks to GHS400m requiring approximately US$1.5bn

22

Ghana’s Banking Sector | Overview

0,0100,0200,0300,0400,0500,0600,0700,0800,0900,0

Estimated Capital Position (GHS mm) Ghanaian Owned

Foreign Parent

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Aggregate Bank Assets and Deposits (GHS Bn)

Aggregate Bank Assets Industry Deposits

0%

10%

20%

30%

40%

50%

60%

Aggregate Banking Returns

ROE ROA PBT Margin

23

Trade And

Industry

24

Industrialization – A strategic focus for the current Administration to transform the Ghanaian economy

Investment Target: USD 2.80billion

Industrial Revitalization

$100m - $200m

Stimulus package to viable but distressed companies.

Export Development Programme

Facilitate businesses to explore export opportunities including AGOA and the EPA.

One District One Factory

$500m - $1bn

Focus on creation of factories and industries

Decentralize industrial development State will facilitate business set up

Retail Infrastructure

Value addition to meet global standards

Demand for retail infrastructure due to rollout of flagship.

Anchor Industries

Develop robust industries in: − Petrochemical − Integrated Aluminum − Pharmaceuticals − Vehicle assembling plants − Industrial salt architecture − Palm oil

Regulatory reforms

Ease the cost and process of doing business in the country.

Industrial Parks

$100m - $300m

Creation of industrial parks Parks could be Free Zone enclaves Access to reliable energy supply.

Industrial sub-contracting exchange

Creation of useful contractual relationships between corporations and SMEs.

SME Development

$100m - $300m

Create enabling environment for SMEs Provide assistance – financial and technical Regulatory reform

Public-Private sector Dialogue

Annual evaluation of initiatives to ensure efficiency.

25

Oil and Gas

26

Ghana’s Oil & Gas Industry | Overview

2007 2010

Jubilee Field

• First Deepwater Oil & Gas

Reserves Discovery

• 628 million Oil Barrels Reserve

and 686 Billion cubic feet Gas

• Discovered by consortium led

by Kosmos Energy Ghana

TEN Field

• Offshore Oil & Gas

Discovery

• 239 million Oil Barrels

Reserve and 360

Billion cubic feet

2009

Jubilee Field

• Commercial Production

• Average oil production

increased from ~36,000 bopd

to ~103,000 bopd in 2015

• Managed by Tullow and

consortium partners

TEN Field

• Commercial Production

commences

• Initially delayed due to

ITLOS arbitration

• Managed by Tullow

2016

Jubilee Field

• 236 million Oil Barrels and

260 Billion cubic feet Gas

production

• Reserve of 392 million Oil

Barrels and 426 Billion

cubic feet Gas

2018

ITLOS Ruling

• Landmark Ruling in

unanimous favour of

Ghana over Cote

d’Ivoire

• Clear boundary giving

Ghana control of oilfields

DWCTP Field

• Exxon Mobil signed

agreement with

Government to explore

this large ultra deepwater

block, located offshore

Western Ghana

Sankofa Field

• 173 million Oil Barrels

Reserve and 1,071

Billion cubic feet Gas

• Development of oilfield

by ENI

2017

23 additional fields discovered

between 2008 and 2014

27

Ghana’s offshore Activity Map

Basin Status

Tano-Cape Three Points

• Shallow/Deepwater well explored

• Ultra deepwater to be explored

Accra - Keta • Shallow water moderately explored

• Deepwater inadequately explored

28

Voltaian Basin presents significant Onshore Exploration Opportunity

Ghana’s Onshore Voltaian Basin

• Covers area of over 100,000sqkm; ~40% of Ghana land mass

• GNPC pioneering exploration activities to unlock the untapped hydrocarbon

potential

• The 5-year reconnaissance program will cover 2D seismic data acquisition and processing, environmental impact assessment, community relations management and drilling of 2 conventional wells

Key Achievements

• Technical and financial evaluations of 2D Seismic Acquisition which are awaiting approval from Central Tender Review Committee

• Seismic Data Processing contracting and

• Explosives and Detonators Contracting

29

Key Players along the Oil & Gas Value Chain

Upstream Midstream

Downstream Service Providers

• Voltaian Onshore exploration • Additional oilfield development

Spectrum of opportunities across Value Chain

• Transport and Logistics Infrastructure

• Infrastructure to support new national LPG Recirculation Policy

• Gap exists to provide technical expertise and service

30

Investment Target: USD 15billion – USD 19billion

Onshore Farm-in Opportunities

$ 2.0bn Farm-in investments in onshore projects located on the Tano, Keta and Inland Voltaian Basin.

Natural Gas Processing

$ 1.5bn Additional natural gas processing facilities/ equipment to ensure continued supply during routine maintenance.

Development and Production of Abandoned Fields

$ 1.0bn - $ 3.0bn

Investment in the development of abandoned fields in Shelf Tano and Cape Three Points areas.

LPG Distribution

$ 1.5bn Investment in safe and standardized LPG vending and distribution facilities.

Further Exploration Opportunities

$ 3.0bn - $ 5.0bn

Further exploration in the adjoining areas and south of the Saltpond field.

Ammonia/ Fertilizer Plants

$ 1.0bn Local plants to convert gas to fertilizer.

Crude Oil Refinery

$ 3.0bn Establishing an additional oil refinery for increased processing of crude oil locally.

Oil and Gas Servicing Operations

$ 2.0bn Investment in indigenous oil and gas service companies to provide services to upstream and downstream players.

Harnessing oil and gas resources to support national industrialization

agenda

31

Power

32

Ghana’s Power Sector | Overview

Government

Public-Private Partnership

Private

Distribution Transmission Generation

Shenzhan Energy Group Ghana

CMS Energy

Sunon Asogli Power Ghana Ltd

Migration to Private Concessionaire

Potential to Partner with

GRIDCo

33

Transmission and Distribution Losses present opportunity in Ghana Power Sector

Power Demand and Supply (MW)

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Existing supply

Committed supply

Demand

• Potential to invest in the medium term in power generation to address growing demand

• Adequate current supply to meet immediate demand

“We need to reduce transmission losses ..We also need to ensure and preserve the financial health of the transmission utilities. This opens up tremendous opportunities for investments in the transmission system”. Mr. Benjamin Boakye Agyarko Minister of Energy, Ghana

2017

0

5

10

15

20

25

Transmission and Distribution Losses (Percentage)

Transmission Losses

Distribution Losses

2018 2019 2020 2021 2022

2012 2013 2014 2015 2016

• Significant losses (~$1.2bn) in transmission and distribution present investment opportunity through PPP arrangements

• Opportunistic power generation can be explored to improve transmission losses

• Government working to allocate distribution to private concessionaire

34

Railways

35

USD 21.5 Billion Rail Upgrade and Expansion underway

Phase 1: Rehabilitation of Line:

Phase 2: Eastern “A” Expansion

Phase 3: Sections

Phase 4: Trans ECOWAS Expansion

Phase 5: Western Expansion

Phase 6: Eastern B Expansion

Phases Amount Distance (km)

$ 2.8 Bn 1,335 km

$ 6.5 Bn 1,161 km

$ 2.7 Bn 484 km

$ 2.8 Bn 498 km

$ 4.1 Bn 729 km

$ 2.6 Bn 468 km

$21.5 Bn 4,675km

36

Roads and Highways

37

Ghana’s Road Development Plan

Arterial $ 2.9bn

Others $ 0.7bn

Interchange $ 0.8bn

Critical Roads $ 2.4bn

Bridges $ 0.2bn

Pavements $ 0.6bn

Inter-district $ 0.9bn

Others $ 0.1bn

USD 4.4Bn

(~1,200km)

USD 3.3Bn

(~2,100km)

USD 1.8Bn

(~6,100km)

USD 9.5Bn

Urban Highway Feeder

To Agric/Tourist sites $ 0.9bn

38

Transport infrastructure is critical to Industrialization Drive in Ghana

Railway

Rail Lines installed in 1957

940 km

Usable Rail

130km

Eastern Line

Central Line

Western Line

Ports - Aviation

Kotoka International Airport

Sunyani Airport

Takoradi Airport

Wa Airport

Kumasi Airport

Yendi Airport

Tamale Airport

Harbors Aviation

Ghana’s roads network

67,400 km

Feeder Roads

42,192 km

Urban Roads

12,400 km

Trunk Roads

11,628 km

41% in good condition

Roads

Tema Port Takoradi Port

Size: Medium; $1.5Bn Expansion underway Small; $428mm scheduled for 2018

Max. Vessel Size: > 500ft length

Type: Coastal Breakwater Coastal Breakwater

> 500ft length

Volume: 70-80% of national volume 20-30% of national volume

Ship Repairs: Limited Limited

39

Opportunities exist across all segments of the Transport sector

Railway • Strong Government commitment to revitalize the railway sector

• The Railway expansion master plan proposes over 4,007 km of

integrative railway

• Estimated capital required – USD21.0Bn

Ports • Need for a world class Dry Dock facility to provide Ship Repair and

Maintenance services

• Opportunity to build an upgraded jetty to receive LPG and crude oil vessels

Roads & Highways

• Upgrade and repair of existing road network - 39% in good condition, 32% fair and 29% in poor condition over the last 5 years.

• Priority to construct and upgrade major highways and agriculture feeder roads

• Government addressing contractor bottlenecks (e.g., late payments) to accelerate construction

Aviation

• Expansion works in Accra (USD 274mn) and Kumasi Airports (USD 29mn).

• Creation of new national carrier under consideration

• Airport infrastructure (e.g., parking and transportation at airport)

40

Real estate

41

Overview of Ghana’s Real Estate Landscape

De

velo

pm

en

t D

eve

lop

me

nt

&

Man

age

me

nt

Man

age

me

nt

4. Real Estate

42

Real Estate Sector provides attractive returns on investments

This presents opportunities to real estate investors in the country.

Attractive yields averaging 10% on retail, office and industrial properties.

Retail & Office Key Stats

Type Yield Rent per Sqm

(USD)

Retail 8 – 10 % 20 - 65

Office 9 – 10 % 18 – 35

Industrial 10 – 11% 4 – 10

Residential (Prime Areas)

No. of Beds Rent (USD) Sale (USD)

1 1.2k -1.5k 200k - 250k

2 2.0k - 2.2k 280k - 330k

3 3.0k - 3.5k 425k - 500k

Source: Broll Ghana; OBG Ghana 2017; W Hospitality; JLL Accra City Report; Sentinel Global

2,35

2,41

2,47

2,53

2,59

2,66

2,10

2,20

2,30

2,40

2,50

2,60

2,70

2015 2016 2017E 2018E 2019E 2020

Housing Deficit in millions

43

Industrial Park Status: Goal of 1 in each of 10 regions

Region Project Location Size Developer Status

Greater Accra • Tema Free Zone Enclave

• Industrial Park Ghana

• Appolonia Business Park

• Dawa Industrial Park

• Tema Business Park

Tema Tema Ningo Prampram Dawa Tema Aflao Highway

200 acres 60,000 square metres 89 acres 2,000 acres 18.5 acres

ILDC Limited (ILDC) Rendeavour LMI Holdings Mobus Property Holdings Ltd

Completed Phase I – Completed Completed Under construction Completed

Western Region West Park Industrial Zone Shama 405 acre BlackIvy Group LLC Under construction

Ashanti Region Greater Kumasi City Special Economic Zone

Kumasi 5,000 acres Yet to commence

Central Region

Volta Region

Northern Region

Upper East Region

Upper West Region

Eastern Region

Brong Ahafo Region

Opportunities To

Explore

44

Residential, Retail & Office projects Over The Last 5 Years

Category Project Location Size Developer Status

Residential The Affordable Housing Project The Appolonia City Villaggio Vista

Saglemi, Prampram Accra Airport Residential

6 acres

Messrs Construtora OAS Limited Rendeavour Trasacco Estate Development Co.

Under construction Under construction Completed

Retail Junction Shopping Centre Accra Mall West Hills Mall Kumasi City Mall

Nungua Accra Weija

11,597-sq-metre 23,000 sq metres 27,000 sq metres 29,000-sq-metre

RMB Westport Actis Delico Property Development

Completed Completed Completed Completed

Office Accra Financial Centre Stanbic Heights One Airport Square The Octagon The Rhombus

Accra Airport City Airport City Accra Central West Ridge

20,000-sq-metre 6500-sq-metre

RMB Westport RMB Westport Laurus Development Partners Dream Realty

Completed Completed Under Construction Completed Completed

45

Agriculture

46

Investment Target: USD 3.3bn – USD 6.0bn

$ 200m - $ 1.0bn Establishment of fertilizer plant in Western Region.

$ 1.0bn Investment in cocoa processing and value-addition for export.

$ 300m Setup manufacturing facility for production of irrigation equipment.

$ 200m Financing for fish farming operations to increase fish supply and manage restoration of water resources.

$ 500m Investment in the growth, consumption and export of quality rice grains.

$ 200m - $ 500m Investment in poultry production to meet local consumption and reduce imports.

$ 300m Investment in entire value chain – Revival of Komenda Sugar Factory.

$ 200m - $ 500m Investment in the e-Agriculture Extension program.

$ 200m Investment in production of improved cotton varieties.

$ 200m Transformation of cashew into major cash crop and foreign exchange earner.

Comprehensive Agricultural Investment Program Across

Sub-sectors

47

Ghana’s Agricultural Landscape

[CATEGORY NAME]

[VALUE] [CATEGORY

NAME] [VALUE]

[CATEGORY NAME]

[VALUE]

GDP Contribution [CATEGORY

NAME] [VALUE]

[CATEGORY NAME]

[VALUE]

[CATEGORY NAME]

[VALUE]

[CATEGORY NAME]

[VALUE]

[CATEGORY NAME]

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Agriculture Sector by Segment Sector Growth Rates

5,7%

4,6%

2,8% 3,0%

4,3%

2013 2014 2015 2016 2017*

Annual Growth Rate

Sector Growth Key Facts and Figures Agricultural activities most prevalent in Ghana.

Sector employs about 45% of the population both in the formal and informal sector, making up an average of 20.80% of total national output.

Sector proves to be very promising and with a lot of opportunities.

Subsectors within the Ghanaian agriculture sector include fishing, forestry and logging, livestock and crops.

Outlook and Opportunities

The agricultural sector though predominant, contributes relatively less to GDP. The thrust of the sector, however, depends on improving the value chains of the sub sectors that exists.

Government Commitment: Planting for Food and Jobs Program: the

program created 754,000 jobs in 2017. One-Village-One-Dam Initiative: provision a

sustainable irrigation system. 1 District 1 Factory campaign: 3 agro

processing plants ready under the campaign.

7,04

7,36

7,57

7,79

2013 2014 2015 2016

GDP From Agriculture (GHS billion)

48

Fast Moving Consumer Goods

Household spending to reach USD20.7 billion by 2020 Growth of 15% in USD terms

Huge potential in the West African +350m population with growing

middle class

48

Breakdown of household

spending

Source: Press Releases; BMI; Sentinel Global

49

Cocoa

50

COCOBOD Overview Company Profile

The Ghana Cocoa Board (COCOBOD) was established by ordinance in 1947 as the main government agency responsible for the development, promotion, facilitation, production, processing and marketing of good quality Cocoa, Coffee and Sheanut in all forms in the most efficient and cost effective manner, and maintain the best mutual industrial relation with its objectives.

• Currently there are 7 cocoa growing regions namely Ashanti, Brong Ahafo, Eastern, Volta, Central and Western North and Western South regions.

• COCOBOD has successfully lived up to its mandate of facilitating and promoting the growth and sustenance of the Ghanaian cocoa industry. The success story is owed to a well-structured set of agencies of COCOBOD that work together with synergy to provide most of the services and products required by various stakeholders in the industry.

• COCOBOD and its subsidiaries and divisions are involved in the following operations;

Marketing of cocoa beans and cocoa products

Cocoa Quality Assurance

Evacuation/transportation

Research and training

Crop diseases & pests control

Crop rehabilitation projects

Farmer Extension Services

0,74 0,78 0,85 0,9

1,7 1,8 1,8

1,3

14/15 15/16 16/17 17/18E

Syndicated Funding for Cocoa Output

Cocoa Output (Tonnage) Value U$D

COCOBOD Subsidiaries

Cocoa Research Institute of Ghana (CRIG)

Seed Production Division (SPD)

Cocoa Health and Extension Division (CHED)

Quality Control Company (QCC)

Cocoa Marketing Company (CMC)

51

Ghana’s Cocoa Industry | Overview (1/2)

Industry Overview

• Ghana is the world’s second largest cocoa producer after Cote d’Ivoire, with a 21% market share of global cocoa production.

• The Ghanaian economy has a reputation for superior bean quality, enabling beans to consistently command a premium on the international market.

• The country’s cocoa sector is controlled by the government through the Ghana Cocoa Board (COCOBOD). COCOBOD acts as a regulatory body for the coca industry.

• The cocoa sector accounts for 4.5 % of GDP and contributes 25% of Ghana’s merchandise export earnings.

45

65

30 32

-

29

24 26

0

45%

80% 80%

-

10

20

30

40

50

60

70

Afrotropic CPC Niche PLOT

‘00

0s

Capacity Effective Capacity Utilisation

Processing Capacity of Key Local Players in the Industry

567

773 714

649

732 780

850 900

0

100

200

300

400

500

600

700

800

900

1 000

2010 2011 2012 2013 2014 2015 2016 2017E

‘00

0s

Cocoa Exports (MT) Top 5 Producers of Cocoa

Country ‘000 MT Share

Cote D’Ivoire 1,724 40%

Ghana 888 21%

Indonesia 401 9%

Nigeria 248 6%

Brazil 226 5%

52

Ghana’s Cocoa Industry | Overview (2/2)

Outlook of Ghana’s Cocoa Industry

• The future of the cocoa industry continues to be positive, through policies to ensure the industry’s growth.

• Measures to strengthen the existing public-private partnership extension model by promoting Farmer Based Organizations and the training of Local Community Facilitators.

• The Government through COCOBOD is continuing the distribution of free hybrid cocoa seedlings to farmers to complement the effort of farmers in the implementation of the National Cocoa Rehabilitation Programme.

0,5

0,7 0,8

0,7 0,7 0,7 0,7

0,6

0

0,2

0,4

0,6

0,8

1

2009 2010 2011 2012 2013 2014 2015 2016

0

0,5

1

1,5

2

2,5

3

3,5

4

Contribution (GHS bn) % Contribution

Contribution of Cocoa to Ghana’s GDP

Cocoa Beans Processed by Factories (2017)

Shipment of Ghanaian Cocoa Beans by Destination (2017)

CPC 9,3%

CARGILL 25,1%

BD ASSOCIATES 0,3% BARRY

28,0%

ADM 13,3%

REAL PRODUCTS 0,4%

NICHE 12,8%

PLOT 10,8%

Europe 54,6%

North America 9,2%

Asia 25,2%

Others 11,0%

53

Global Cocoa Industry | Key Players

Industry Overview • Consumption is concentrated in Europe and America. Europe has the largest

chocolate industry in the world and purchases 58% of cocoa grindings which originate mainly from West Africa.

• Cote d’Ivoire and Ghana have maintained dominance as the leading cocoa producers in the world, producing 60% of global cocoa beans.

• A shift in global consumption of cocoa in emerging countries with strong positive growth in North America fueled a 1.01% growth in global consumption of cocoa: 3.95mn tonnes to 3.99mn tonnes1.

• Between 2016 and 2018, the prices of cocoa on the world market has experienced a decline, reducing from USD 3,162 to USD 1,714.

30

65 65

15 15

27

59 59

8

12

-

10

20

30

40

50

60

70

ADM Barry Callebaut Cargill Real Touton

‘00

0s

Capacity Effective Capacity Utilisation

Processing Capacity of Select Players in the Global Cocoa Industry

Select Companies on the Global Scene

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

2000 2002 2004 2006 2008 2010 2012 2014 2016

Average Cocoa Prices ($/kg)

54

Global Industry | Overview

Outlook of the Global Cocoa Industry

• With Olam’s 70,000-MT factory in San Pedro reaching full production Côte d’Ivoire is expected to overtake the Netherlands as the world’s top grinder once. West Africa will continue to dominate the supply of raw cocoa beans to the world market with a forecast 1.95mn MT of exports in 2017/18.

• After peaking at US$3,179/MT in mid-October 2014, international cocoa prices have been on a downward trajectory, falling to a one-year low of US$2,760/MT at the end of January 2017. The slump in prices has reflected numerous factors, including last season’s record crop in West Africa, weakening chocolate demand in the key markets of North America and Western Europe, and the strengthening of the US dollar, which has an inverse effect on cocoa prices. Cocoa prices are expected to average US$2,100/MT in 2018.

Africa 75%

America 13%

Asia & Oceanis 12%

Production of Cocoa Beans

-300

-200

-100

0

100

200

300

400

500

0

1000

2000

3000

4000

5000

6000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Surplus/Deficit Production Grindings

World Cocoa Bean Production & Grinding (in ‘000 MT)

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2008 2009 2010 2011 2012 2013 2014 2015 2016Europe Americas Asia Africa

Consumption of Cocoa Beans ( ‘000 MT)

testimonials……..

“We want to build an economy that is not

dependent on charity and handouts, but an

economy that will look at the proper management of

its resources as the way to engineer social and

economic growth in our country.”

Nana Addo Dankwa Akufo Addo, President of Ghana

Africa CEO Forum, Monday March 20 2017

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“For those of you who needed proof

that there is a new generation of

leaders believe in a new future, you

have your proof now...There are

leaders in Africa who want a new

relationship...[and] a future for the

youth in their country.”

Emmanuel Macron, President of France

Africa CEO Forum, Monday March 20 2017

“The people of Ghana have worked hard to put democracy on a firmer footing, with peaceful transfers of power even in the wake of closely contested elections. And with improved governance and an emerging civil society, Ghana’s economy has shown impressive rates of growth.”

Barack Obama, former President of USA

Parliament House - Ghana, Saturday July 11 2009

57

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“Africa is on the ascent and Singapore must ride this wave.”

Tharman Shanmugaratnam, Deputy Prime Minister of Singapore

Africa-Singapore Business Forum, Wednesday 24th January 2018

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“Your (Ghana) government’s approach to governance with an emphasis on efficiency, transparency, accountability, democratic and civilian oversight, coordination and professionalism is exemplary.”

Tsutomu Himenu, Ambassador from Japan

Flagstaff House - Ghana, Thursday 18th January 2018

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“Chinese enterprises are very interested in investing in Ghana

because it has a lot of advantages. I think the biggest

dividend is the peaceful nature of the country and stability. There

are also abundant resources and the labour force is educated.”

Sun Baohong, Chinese Ambassador to Ghana

China-Ghana Economic and Trade Cooperation Forum, Tuesday 28th June

2016

60

“It’s a kind of model case for many

African countries and we see a lot

of potential in Ghana.”

Christophe Retzlaff, German

Ambassador to Ghana

Interview with Ghana News

Agency, Monday 19th June 2017

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The Chinese Exim Bank’s

confidence in Ghana is reflected

in the fact that the country (Ghana)

has received the largest amount of

money from the bank in Africa for

projects such as telecom and

agriculture.

Mr Liu Liange, President of the

China Exim Bank

Vice President Bawumia's official

visit to the People’s Republic of

China, Wednesday 21st June

2017

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“We are very excited about what we

have been able to do in Accra, with

our store opening on Oxford Street

in Osu because this is such a

wonderful asset that's created such

fantastic opportunity for the

Ghanaian people.”

Keith Warren, Managing Director

(KFC Ghana)

Official Opening of KFC Ghana,

Friday 5th September 2011

“Accra is a bustling, connected city

that Uber is proud to be launching

in. Its rapid growth and multiple

ethnic communities make it an

exciting place to introduce our

service.”

Alon Lits, General Manager

(Sub-Saharan Africa- Uber)

Uber Ghana Launch, Wednesday

8th June 2016

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“Total Petroleum Ghana Limited, as part of its three year investment programme between 2014-2016 said to be investing over GHC 160 million to products and services to ensure customer satisfaction.”

Olivier Van- Parys, Former Managing Director (Total Petroleum Ghana Ltd.)

Annual General Meeting of Total Petroleum Ghana Ltd., Thursday 12th May 2016

64

“We are very excited with the hotel opening. Accra is becoming the economic hub of the West African region, which offers such rich and diverse natural and economic potential.”

Stuart Chase (Mövenpick Hotels & Resorts)

Press Release on Cision PR Web, Monday 7th November 2011

64

“We will continue to make

significant contributions to the

Ghanaian economy.” $100 million

investment for new grinding plant

to provide 3,000 direct jobs and

5,000 indirect jobs.

Mr Etornam Komla Buami, Media

Relations Manager of Dangote

Cement

End of Year Program of Tema

Command of the Customs Division

- Ghana, 19th January 2017

“Ghana’s post-election upswing now is looking so strong that the country is poised to take the lead as Africa’s fastest-growing economy this year -- for the first time in at least three decades.”

Bloomberg, Monday 5th February 2018

"Star of Africa in 2018 Lenders’ Economic Forecasts Is Ghana" by Ekow Dontoh

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“Ghana’s economy is rebounding and the major commodity exporter is poised to wean itself off bailouts through sustained fiscal discipline and a battle against corruption.”

CNBC Africa, Thursday 18th January 2018

“Ghana’s economy back on track: President” by Reuters

“We want to build an economy that is not dependent on charity and handouts, but an economy that will look at the proper management of its resources as the way to engineer social and economic growth in our country.”

Nana Addo Dankwa Akufo Addo, President of Ghana

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……A land of endless possibilities

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Thank you

Ghana Investment Promotion Centre

Tel: +233 302 665125

+233 302 665126

+233 302 665127

Email: info@gipcghana.com