Ghana – A Very Modern Legal Outlook

The force is with Ghana. The positive trends seen in much of Africa over the past decade have been particularly evident in Ghana. Ghana has experienced a long period of political stability, with six successive free and fully-contested elections over the past 20 years, resulting on two occasions in a peaceful change of government.

This stability has encouraged international agencies and investors to make substantial investments in the Ghanaian economy, boosted by oil revenues now that the substantial “Jubilee” oilfield off Ghana's coast has come on-stream. These investments, coupled with contributions from the important agriculture and mining sectors, and an increasingly vibrant consumer and services sector, resulted in the highest GDP growth rate in the world for 2011 - 12 to 13%. Growth rates consistently in excess of 7% are predicted over the coming years despite the effects of the global recession, and the development of housing and infrastructure are urgent government priorities. Together with the development of the nascent oil and gas industry, the construction sector is expected to continue to generate extensive opportunities for overseas contractors, consultants and suppliers.

For those in the construction industry doing business in Ghana, a good understanding of the local legal regime is crucial. So what are some of its key features?

Procurement

Procurement by Ghanaian government agencies is governed by the Public Procurement Act 2003, although there are exceptions for the petroleum and mining sectors. “Local content” legislation, which stipulates minimum levels of local participation in all projects in the oil and gas industry, is expected shortly; the legal requirements, influenced by the framework applied in Trinidad and Tobago, are currently making their way through Ghana's legislature.

Corruption and ease of doing business

Ghana has signed and ratified the UN Convention Against Corruption. It currently ranks 63rd out of 183 for “ease of doing business” (IFC “Doing Business” Report 2012) and scores 3.9 out of 10 with regard to corruption (Transparency International Corruption Perceptions Index 2011). This shows that, while there is still more to do in these areas, Ghana compares very favourably with neighbouring countries and with the major emerging economies. On both counts, Ghana scores significantly better than Brazil, China, India and Russia.

The courts

Ghana has a common law legal system based on the English model, with...