AardvarkCompare.com has shared this information from the US Department of State
Bureau of African Affairs
January 18, 2017
More information about Ghana is available on the Ghana Page and from other Department of State publications and other sources listed at the end of this fact sheet.
The United States established diplomatic relations with Ghana in 1957 following Ghana's independence from the United Kingdom. The United States and Ghana share a long history promoting democracy, human rights, and the rule of law. Ghana has set an example for countries throughout Africa in promoting governance and regional stability.
The United States and Ghana work together on various defense and law enforcement issues. Both countries’ militaries cooperate in numerous joint training exercises through U.S. Africa Command. The United States and Ghana have a bilateral International Military Education and Training program, a Foreign Military Financing program, and numerous humanitarian affairs projects, including a relationship between the government of Ghana and the North Dakota National Guard under the auspices of the U.S. Department of Defense State Partnership Program. Ghana continues to participate in the African Contingency Operations Training and Assistance program, in which the United States facilitates the development of an interoperable peacekeeping capacity among African nations. Ghana is a partner country for the African Peacekeeping Rapid Response Partnership and the Security Governance Initiative. These programs seek to address security sector governance challenges in Ghana and enhance Ghana’s ability to rapidly deploy peacekeepers. Ghana is also a priority country for efforts to address transnational organized crime in West Africa. The Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL) aims to help the government of Ghana to: 1) build capacity for complex investigations and case packages on transnational crimes and drug trafficking incidents; 2) conduct fair trials of transnational criminals and drug traffickers; and 3) combat rising drug abuse. In furtherance of these objectives, INL has supported institutional development across the criminal justice sector.
Through the U.S. International Visitor Program, Ghanaian parliamentarians and other government officials have become acquainted with U.S. congressional and state legislative practices and have participated in programs designed to address other issues of interest. Youth exchanges and study abroad programs are also robust and growing between U.S. and Ghanaian universities and NGOs. At the U.S. state level, the State Partnership Program aims to promote greater economic ties between Ghana and U.S. institutions, including the National Guard.
The United States has enjoyed good relations with Ghana at a nonofficial, people-to-people level since Ghana's independence. Thousands of Ghanaians have been educated in the United States. Close relations are maintained between educational and scientific institutions, and cultural links are strong, particularly between Ghanaians and African-Americans.
U.S. Assistance to Ghana
U.S. development assistance to Ghana is implemented by the U.S. Agency for International Development (USAID), the Millennium Challenge Corporation (MCC), and others. USAID-managed development assistance to Ghana has supported the country in improving the power sector, increasing food security, enhancing basic health care, increasing access to quality basic education, and strengthening local governance to benefit all Ghanaians. The West Africa Trade Hub, located in Accra, provides technical assistance to help small businesspersons to grow their businesses and access new customers in the United States and the West African region. The Peace Corps has a large program in Ghana, with volunteers working in education, agriculture, and health (including HIV/AIDS, malaria, sanitation, and nutrition).
Bilateral Economic Relations
One of the fastest growing economies in the world a few years ago, Ghana’s rate of growth slowed in 2015 to 3.9 percent, down from 7.1 percent in 2013. Ghana’s economy is highly dependent on the export of primary commodities such as gold, cocoa, and oil. Thus, the country remains vulnerable to potential slowdowns in the global economy and commodity price shocks. Overall increased inflation and devaluation of the Ghanaian cedi since late 2013 has dampened the macroeconomic success story. While the cedi has largely stabilized over the past year, inflation hit 19.2 percent in March 2016 – the highest since early 2010 – and still remains stubbornly high. Ghana’s total public debt rose to 71.4% of GDP in 2015, exceeding pre-HIPC levels.
In 2015, the GOG signed a $918 million extended credit facility (ECF) agreement with the International Monetary Fund (IMF) in an effort to stabilize Ghana’s struggling economy. Although the government has made progress this past year on fiscal consolidation, structural reforms are progressing slowly. Ghana has successfully completed three IMF reviews since the program started but Government of Ghana authorities face challenges in addressing its massive state-owned enterprise debt, mostly in the power sector, estimated to be between $1.5-2 billion. Ghana completed a five-year $547 million Millennium Challenge Corporation (MCC) compact in 2012 and a second, five-year $498 million MCC compact focused on the power sector entered into force on September 6, 2016.
Ghana exports goods to the United States under the African Growth and Opportunity Act (AGOA) and is a Feed the Future, Power Africa, Trade Africa, and Partnership for Growth country. The United States is among Ghana's principal trading partners, with bilateral trade between the two countries reaching $1.2 billion in 2015. A number of major U.S. companies operate in the country, including IBM, Coca-Cola and Newmont Mining. Political stability, overall sound economic management, a low crime rate, competitive wages, and an educated, English-speaking workforce enhance Ghana's potential as a West African hub for American businesses. Ghana has significant reserves of oil and gas, currently being developed by a variety of global petroleum companies, including U.S.-based Kosmos Energy.
Ghana's Membership in International Organizations
In foreign affairs, Ghana generally follows the consensus of the Nonaligned Movement and the African Union on economic and political issues that do not directly affect its own interests. Ghana and the United States belong to a number of the same international organizations, including the United Nations, International Monetary Fund, World Bank, and World Trade Organization. Ghana also is an observer to the Organization of American States. Ghana has a strong track record of contributing troops to international peacekeeping forces.
Ghana maintains an embassy in the United States at 3512 International Drive, NW, Washington, DC 20008 (tel. 202-686-4500).