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Annex C7 -- Socioeconomics Supplemental Information C7 - 1
NATIONAL OVERVIEW
Ghana gained independence in 1957, the first country in sub-Saharan Africa to do so. While
Ghana endured military rule for a period, the country has enjoyed uninterrupted democratic
governance since 1992. With its comparatively stable political infrastructure and strong
social capital base, the country is atypical of the region.
In the 2000 census, Ghana’s population was estimated at about 21 million people. The US
Department of State, Bureau of African Affairs estimated the 2007 national population at 23
million (NGRL 2008). As the population increased, so did the country’s population density
per square kilometre (km²). It has more than doubled from 36 persons in 1970 to 79
persons in 2000. The 2007 population density estimate is 88 persons per km² (GRRL 2008).
Accra, the capital city, had a population of 2,825,800 (metropolitan area) in 2000. Kumasi,
the country’s second largest city, had an estimated population of 975,800 in 2000. English is
the official language of Ghana. Local languages spoken include Brong, AsanteTwi, Fanti, Ga,
Ewe, and Dagbani. The native people of Ghana are classified into 5 major groups: the Akan
(44 percent), the Ewe (13 percent), Moshi Dagomba (16 percent), the Ga (8 percent), and
the Gruma (3 percent). Christians make up 63 percent of the population. Followers of
traditional beliefs make up 21 percent, and Moslems make up 16 percent of the population
(GRRL 2008).
Ghana’s economy is predominantly rural-based as agriculture and mining drive the current
economy. Cocoa, timber, and pineapples are the main export crops while gold mining has
become one of the biggest primary sources of foreign exchange. The emerging value-added
industrial sector products include cassava, fruits, and cocoa by-products.
Ghana’s human development indicators, while low, are improving. In 2001, life expectancy
at birth was 58; adult literacy was 73 percent; school enrolment (combined primary,
secondary and tertiary) was 46 percent, and per capita income was estimated at $2,250
(USD). Ghana continues to endure macro-economic challenges. The 1999 terms of trade
shock, precipitated by a collapse in the price of chief export commodities – gold and cocoa
– and an escalation of petroleum prices following the government's decision to remove fuel
subsidies, led to a pronounced reversal in macro-economic performance. Ghana joined the
Heavily Indebted Poor Country (HIPC) debt relief programme in 2002.
Ghana was ranked 8th in the world in 2000 for gold production (Chamber of Mines of
South Africa 2005). In 2002, mines in Ghana produced 2,241,125 ounces of gold, down 8
percent of the production experienced in 2000. The Ghana Minerals Commission reports
that revenues in USD generated by gold mining in Ghana in 2002 (the last year of complete
annual data) was $646,030,832 USD with royalties of $15,843,015 USD (15,999,861 GH¢).
Gold accounted for almost 93 percent of the total mineral royalties collected during 2002.
Over 12,900 people were employed by gold mining in 2002, and corporate taxes from large
scale mining equalled $914,118 USD (923,168 GH¢) (CIVA 2005).
The country’s economy has performed well in recent years. In 2006, real Gross Domestic
Product (GDP) growth reached 6.2 percent, which was the highest rate since the early
1990s. The economy has to date proved resilient to the energy shortages that began in
September 2006 with GDP rising to 6.3 percent in 2007 (GRRL 2008). In December 2007,
Akyem Gold Mining Project November 2008 FINAL EIS