BUSINESSDAY

Ghana's oversized West African dream

Okey C. Iheduru, Friday,18 June 2010

     Ghana is a relatively small country with big dreams; it has always been, since independence in 1957. Its founding president, Kwame Nkrumah had an ideological dream about Ghana as the pacesetter and hope for Pan-Africanist unity and restoration of the African humanity trashed by the European slave trade and colonialism. In the ongoing 2010 World Cup tournament in South Africa, Ghana came through once again and rekindled that dream by clinching Africa's first match win.

     Over the last decade, however, a different crop of leaders have foisted on this country of about 22 million people a foreign-made dream-an oversized dream that Ghana is now ‘the economic hub ‘of the West African sub-region. Many government publications and websites, national print and electronic media, and publications by international financial institutions and over-paid foreign consultants variously describe Ghana as 'the Gateway to the West African Region,' 'the Singapore of West Africa,' or simply as 'an economic force' in the sub-region, all of which is supposedly making Ghana 'a middle income country in our generation.'

     If these claims were stated as aspirations, they would elicit nothing but praise and recommendation to other countries in the region. Instead, what come across are finalist statements of certainty. Proponents exude not only an arrogant air of 'Ghanaian exceptionalism' but also an obvious delusion about what Ghana must do to attain 'middle income status.' For instance, the CEO of Brand Ghana Office brags about 'our country's perceived value and unique proposition (sic) to others' and 'the unique people of Ghana.'

     Established in September 2009 by government, the goal of this facsimile copy of 'national positioning' projects in South Africa and Nigeria is to stimulate economic, social and psychological well-being for all Ghanaians through developing and implementing a proactive and integrated national and international competitive brand strategy.' Interestingly, Brand Ghana's biggest concern is how 'the negative African brand effects cast its halo on Ghana.' Yes, Ghana has become so different that it now sings the Afro-pessimist refrain more excitedly than their Western 'friends' and development 'experts.'

     Could Ghana be an 'economic power' with a per capita income of about US$450 and its major exports remaining mainly primary products-cocoa, gold, and timber? In the future, may be. In a few months, crude oil exports will commence, but Ghanaians should not expect new revenue soon from this sector because the joint-venture partners will have to pay off the government's delinquent share of the costs.

     In a capitalist economy, public consumption is not a good measure of a country's economic health, but in Ghana it is, because the 'central planning' psychology of its ruling and bureaucratic class refuses to die. Enigmatically, about 44 per cent of the country's annual budget comes from 'development aid', courtesy of its unenviable status as a 'highly indebted poor country' (HIPC). About two million Ghanaians abroad remit US$1 and other long-distance social welfare obligations annually to soothe pains of US2.9 million per capita debt trap.

     Although investment inflow into Ghana is rising, it is too low to support any major economic push. Ironically, much of the paltry inflow actually comes from the very 'negative African neighbourhood' that supposedly undermines Ghana's uniqueness. Nigerian investments in Ghana currently exceeds US2 billion roughly a third of Ghana's US6 billion gross domestic product (GDP). Nigeria's First Bank, Nigerian Breweries, and Zenith Bank International ranked 37th, 40th, and 48th, respectively, in the ‘African Business's’ 'Africa's Top 250 Companies' for 2010-have a combined market value of US$8 billion. That's US2 billion more than Ghana's GDP! Ecobank Ghana (196th) and Standard Chartered Bank of Ghana (218th) are the only Ghanaian firms to make the rankings, questions about their 'Ghananess' notwithstanding.

     Even if one entertains libelous allegations that some regional banks and financial services firms may have been infiltrated with drug cartel money, West Africa still boasts formidable major league players not found in Ghana. The Nigerian Breweries (a food and beverages company) and Côte d'Ivoire's Sonatel (a telecommunications company) ranked 40th and 44th, respectively-have a combined market value of US$5.336 billion. Yet, Brand Ghana Office claims that 'Ghana does not have international or regional brands to leverage emerging brands.'

     Could a country with such record truly become 'the gateway' to West Africa? The answer will come from a quick survey of Ghana's road, air and shipping transport and tourism infrastructure vis-à-vis those of its neighbours in a subsequent column. The review will also demonstrate that while dreams can galvanise a nation to attain great heights, leaders have a responsibility to be truthful to the citizenry about their current economic development status and the appropriate strategies to create a better future for them.      Ghanaians should stick to the dream that works, rather than buying too much into the patronizing intentions of 'partners' and 'experts' who feel a compunction to hype any accomplishment in Ghana no matter how miniscule or else they be called to account for their failed policies in Africa.