The Economy

Trying to understand the economic struggles of a developing country is complex.  There are so many facets to the problems people here are facing when it comes to development.  I won't pretend to have answers, but one major problem I see is the lack of exports.  There are roadside stands everywhere and people hawking goods at every street corner.  But, apart from tourists they are trying to sell their wares to each other and there just isn't much money in the economy with a per capita GDP of $3,300.  I have seen many microfinance places here, and microfinance may help women start new stores or ventures; but how many of these can the economy support without new money coming into the country to stimulate buying?  What is needed are some basic industries; the kind that bring in revenue from outside the country, in order to grow the economic pie here. Almost everything I have seen here is being imported, the cars the air conditioners the pots and pans in the markets. Of course, capital is needed to invest in large industry, and often the route that a country will take to accumulate capital is to exploit their mineral or natural resources first.  We were able to tour the local Bauxite mine and learned that the Chinese own 80% of the mine, which was owned by Australians before that and by the British originally.  Of course, there are some taxes paid to the Ghanaian government,  but the opportunity to build wealth through this resource is being missed.

Bauxite travels down the mountain to be washed
after being crushed.

The Chinese flag flying at Ghana Bauxite

Cocoa is an important export for Ghana.  70% of the world's Cocoa comes from either Ghana or Ivory Coast.  But you will only find imported chocolate bars, and much of the value added in the commodity chain for chocolate is in the manufacturing of chocolate for the consumer.  Cocoa farmers aren't getting rich here, except for a few large ones, and government sets the price for cocoa.  We were told Ghana's Cocoa is desirable because of the process Ghanaians use to ferment it during the drying stage.  Below - a stack of Cocoa pods and what they look like on the tree.

Large industries also require reliable electricity and good roads.  Both of these things are sometimes lacking here, still.  The Chinese are loaning the Ghanaians money to build a new road from Accra to Kumasi and it is close to being finished.  But right now there are spots where it just ends and your smooth highway turns to bumpy dirt.  Power outages are common and the people here are used to it.  We read an article in yesterday's paper that was written by a Ghanaian speaking of the need for entrepreneurs here.  Most people seem to want to work for the government if they are educated, or contribute to the brain drain by leaving for the U.S.