Article 181(5) of the 1992 Constitution of Ghana and Its Implications on International Commercial Transactions

By Gbadegbe, Faisal Esenam; Amasah, Edmund Nelson | Business Law International, September 2016 | Go to article overview

Article 181(5) of the 1992 Constitution of Ghana and Its Implications on International Commercial Transactions


Gbadegbe, Faisal Esenam, Amasah, Edmund Nelson, Business Law International


Introduction

Ghana has been strengthened by a quarter-century of relatively sound management, a competitive business environment and sustained reductions in poverty levels. In late 2010, Ghana was categorised as a lower middleincome country and it must be noted that in relation to other African countries, Ghana's industrial sector is doing well as it accounts for about 30 per cent of the country's gross domestic product.

However, it seems that the country, which at the turn of the century held so much promise as an emerging economy in Africa, is today facing one of the most serious economic crises in its history. Economic growth has been slowing. The budget deficit has been at double digits for two years running, with a stockpile of payment arrears. In fact, the expectations of many of its hard-working citizens have not been met and the standard of living has gradually become increasingly unbearable.

The prospects look bleak, but some have suggested that the present state of depression offers a unique opportunity for investors who will have much value for what they bring in as the Ghana currency, the cedi, continues to depreciate on a daily basis following the failure of sustained efforts by the central bank to inject some stability into the economy. Another school of thought also contends that the state of the economy presents a fine opportunity for the government to implement policies that can turn things around to make businesses and other developments succeed in the country. The government has also announced that it would continue to create an enabling environment for private and foreign sector participation so as to close the country's infrastructure gap and increase the development growth rate.

Although Ghana currently has an open and entrepreneurial approach to business, English as the official language and a secure, peaceful and friendly environment to ease the comfort of international investors, there lies a deep-seated problem in the fundamental law of the country. Foreign enterprises and investors who intend to partner the country to make headway, and as a result, enter into contracts with it, often get caught up with questions concerning the validity of the agreements entered into arising out of the mandatory requirements of Article 181(5) of the 1992 Constitution of Ghana (the '1992 Constitution'), which appears in many instances not to have been complied with by government and related institutions. The courts have not been able to find a way out of the difficulty it poses for the foreign investor who rightly must have entered into such an agreement on the understanding that its Ghanaian counterparts will act within the constitutional legal framework.

In such situations, the government as a party to disputes arising out of international commercial transactions cannot refuse to abide by the decisions handed down by the courts with the result that foreign investors are left without a remedy while the people of Ghana for whose benefit such agreements were expressed to have been entered into take the benefit of the investment. This represents quite a disincentive to foreign investment in an economy that relies heavily on such inputs, as there is always a huge deficit in the import bill compared to that of exports. In the absence of such foreign investments, the government is unable to resolve most of the pressing issues that confront the economy in the fields of energy, health, education and even payment of salaries and wages to public sector workers following the implementation of a new salary regime known as the Single Spine Salary Structure (SSSS), which has made some significant improvement in the earning capacity of workers but has brought in its wake an unbearable financial burden arising out of the rash manner in which it was implemented, perhaps for political gain. From further analysis, one will notice that all the parties involved in certain cases seem to think that they have complied with the stipulated due process until the Supreme Court of Ghana in exercising its original jurisdiction per Article 130 of the 1992 Constitution holds the contract void for lack of compliance with the due process. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Article 181(5) of the 1992 Constitution of Ghana and Its Implications on International Commercial Transactions
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.