Britain & Ghana: Partners in Progress

by Nana Otuo Acheampong

The arrival of the Royal Yacht in Accra last April, together with a seminar addressed by Lady Chalker, marked the beginning of the campaign "Britain & Ghana: Partners in Progress".

This was followed by British Trade Fair Week in May, a unique trade mission to Ghana which the British Department of Trade and Industry (DTI) described as "completely radical and the first of its kind". The fair was seen as a major opportunity for serious exporters to promote themselves to this emerging marketplace.

Speaking to Ghana Review, David Connolly, the DTI's Ghana Officer, explained that the Fair was intended to cement the strong historical links between Britain and Ghana. "The bottom line is that we are doing this to counter the increased competition from French and Japanese companies and to remind the Ghanaians of the long-standing trade links between us," he told GR from his offices in Victoria, London.

The Fair, which took place in Accra between 22 and 26 May 1995, featured a diverse set of over 80 British companies already operating in Ghana, ranging from construction giants Taylor Woodrow and John Laing, to international banking operations such as Standard Chartered.

Since 1983 Ghana has embarked on an IMF monitored economic recovery programme which has recorded an annual growth rate of 5 per cent a year and in GDP of two per cent since 1983. But there are still some critics who argue that for a country like Ghana, that is not enough.

For instance, life expectancy remains at the depressingly low figure of 55 years, the adult literacy rate is under 50 per cent and more than half the population toils the land. And while a few people dispute the fact that life has improved since the calamitous years of the 1970's when per capita income fell by a third, Ghana still qualifies for substantial and much needed foreign aid.

This has come in the form of both bilaterally and multilaterally funded help. Predictably, Ghana's traditional trading partners - Britain, USA, Germany - have all stumped up generously, with total British investment in Ghana currently standing at around 500 million p/stlg. In recent years the World Bank has also recognised the importance of the Economic Recovery Programme with a series of loans totalling $1.2 billion in support of this.

In addition the bank has provided help on a smaller scale, with a plethora of loans, such as the $50 million grant announced last December for expanding the telecommunications sector, the $176 million for work at a thermal power building plant near Takoradi, or the $1.6 million pledged towards a study into the effects of mining on the environment.

As Connolly told Ghana Review, Britain has put its considerable expertise in areas such as engineering, banking and finance at the disposal of Ghanaians. "Many Ghanaian engineers come over here as part of their training", he told GR. "That helps to forge valuable links between the countries. There are similar schemes with the London Stock Exchange (LSE) which trains Bank of Ghana employees" he said.

Higher up the ladder are other events designed to protect the relationship between Ghana and Britain. "We have identified Ghana as a target market, in recognition of its importance to us", said Connolly. One direct consequence of this designation is that with John Quinlan, the Export Promoter for Ghana at the DTI, Connolly has worked a series of target sectors for British companies to home in on in Ghana.

The list includes water, mining, agriculture, energy, health, education, agro-processing, sewage, waste management, printing and packaging, chemicals and mining. "The next stage is to stage seminars here in London, bringing together the two sides", he said. For instance the invitation of the Ghanaian President to address investors at the CBI is part of the strategy.

Another phase involves the holding of events in Ghana marketing British products, skills and capabilities. One forthcoming exhibition, for example, is due to take place in Accra in November 1995. Organised by Water Africa Ltd, it will focus on agriculture, irrigation, forestry and food processing equipment. Over the same days, Cranfield University will be presiding over a conference on Postharvest Technology and Commodity Marketing. Earlier in November, a British conference and Exhibition on energy will also take place in Accra (see full list below).

As the LSE training scheme suggests, financial expertise is one particular British skill from which Ghanaians are keen to benefit. For example, it is with British officials that the Ghanians worked out the new Investment Code, which was designed to create a clearer and more reliable framework of financial regulation. But it must also be mentioned that it was with the same help that the disaster of the Value Added Tax was as hurriedly introduced in Ghana as it was quickly withdrawn. However, as the President of Ghana told the CBI conference last week, "... it shall return ..." when we have done our homework.

Connolly finally told GR "The Ghanaians are marketers, natural entrepreneurs and tend to base business commitment on personal knowledge of the individual they're dealing with". Other reasons that make the country attractive to British investors, he pointed out, include a familiar legal judicial system and methods of payment that are well established.

Postscript: In the hard copy version of GR we shall feature details of some of the trade missions to Ghana undertaken by the Chamber of Commerce from London, Bristol, Leicester and Birmingham.