Evidence of settlements along the Ghanaian coast dates back some 40,000 years, but it wasn't until the late 15th century, with the arrival of the Portuguese, that a written history of the area came into being. The Portuguese came in search of gold, which they found in abundance adorning the powerful Ashanti kings of the Akan people. The Portuguese soon began construction of several forts along what came to be known as the Gold Coast, where their plundered gold was shipped back to Europe as ingots. The real money, however, turned out to be in the slave trade, and the Portuguese traders' fortunes attracted the Dutch, British and Danes in the late 16th century. During the next 250 years, all four nations competed fiercely to control the trade, building forts and capturing those of rivals. The average yearly 'take' in slaves was 10,000, and by the 19th century, when the slave trade was outlawed, there were 76 forts dotting the coast, an average of one every 6km (4mi).

After the demise of slavery, the British took over the forts to use as customs posts, signing treaties with many of the local chiefs. The Ashanti profited handsomely from the arrangements, and their capital, Kumasi, began to take on all the trappings of a European city. The British grew increasingly uneasy with the tribe's wealth and influence, and when in 1873 the Ashanti refused to give up Kumasi, the British sacked the city and declared the Gold Coast a crown colony. Violent Ashanti resistance continued until 1900, when the tribe attacked the British fort at Kumasi, losing the battle but almost entirely destroying the city in the process.

The British set out to make the Gold Coast a showcase African nation, allowing few Europeans to settle or even be employed there. Cocoa exports became the backbone of the economy, followed by gold, timber, manganese, bauxite and diamonds. By WWI, the Gold Coast was the most prosperous colony in Africa, with the best schools and civil service, a cadre of enlightened lawyers and a thriving press. Still, anti-British sentiments ran deep.

In the late 1920s, a number of political parties dedicated to regaining African independence began to emerge. In 1947, Kwame Nkrumah, the American-educated secretary general of the country's leading party, broke away from the group to form the Convention People's Party (CPP), aimed at the common person and pushing the slogan 'Self Government Now'. The CPP was an overnight sensation, and in 1949 Nkrumah brought the country to a halt by calling a national strike. The British responded by throwing him in prison, only to release him two years later after his party had won three general elections in his absence.

Independence finally came in 1957, making Ghana - the name chosen by Nkrumah after the first great empire in West Africa - the first black African nation to win freedom from its colonisers. For Ghana, it was the beginning of almost 25 years of economic decline. Nkrumah borrowed heavily to finance the country. His most grandiose project, the Akosombo Dam on the Volta River, didn't bring the electrification and irrigation programmes it promised for more than a decade. By 1966, Ghana was US$1 billion in debt. Nkrumah's excesses and the rampant corruption among his officials led to a popular army coup that same year.

Between 1966 and 1981, Ghana suffered through six corrupt and incompetent governments, five of them military and each fostering resentment among Ghanaians. In May 1979, in the midst of serious food shortages, a group of young military officers led by Flight Lieutenant Jerry Rawlings staged another coup and began a series of 'house cleaning' operations that resulted in the sentencing and execution of several senior officers and former heads of state. Three months later, Rawlings' Armed Forces Revolutionary Council passed the reins to a civilian government following general elections, only to forcibly retake control two years later. Rawlings has been the head of state ever since.

Military rule was formally brought to an end with the inauguration of the Fourth Republic on 9 January 1993, which was preceded by the adoption of a new constitution allowing political parties the freedom to organise. Popularly re-elected in 1996, President Rawlings' rule has seen Ghana's still-shaky economy move increasingly toward stabilisation and the country itself solidify its commitment to democracy. Another presidential election was due in 2000, but constitutionally Rawlings is not eligible to run again. However, he is likely to remain a political force if his wife, Konadu 'Nana' Agyeman-Rawlings, or his heir apparent, Professor John Atta-Mills, becomes president.

With the appointment of Ghanaian Kofi Annan as UN secretary general, national hopes are high that Ghana - a country with a wealth of human and natural resources - will again take on a leading role in Africa.

In December 2000 a new political era was heralded in as the conservative liberal New Patriotic Pary (NPP) of John Agyekum Kufuour won both the parliamentary and presidential elections, ousting President Jerry Rawlings after 20 years in power.

The Ashanti tribe of the Akan are the largest tribe in Ghana and one of the few matrilineal societies in West Africa. Once renown for the splendour and wealth of their rulers, they are most famous today for their craft work, particularly their hand-carved stools and fertility dolls and their colourful kente cloth. Kente cloth is woven in bright, narrow strips with complex patterns; it's usually made from cotton and is always woven outdoors, exclusively by men. The Ewé also weave kente cloth, and their more geometrical patterns contain symbolic designs handed down through the ages. Kente cloth is only worn in the southern half of the country and - as distinct from other forms of traditional weaving - is reserved mainly for joyous occasions.

Unlike virtually all other West Africans, Ghanaians do not use masks, although this is not to say they don't believe in supernatural powers and the fetishes used to invoke them. Rather, in Ghana this is most often accomplished using wooden or clay statuettes, often placed on altars in fetish houses. Fetish dolls in particular are treated like magical items, and women who want to ensure themselves beautiful, healthy children can be seen carrying the dolls around on their backs, with only the dolls' flat, fat heads protruding from their slings. In all sculpture, gender is very important, and body parts - especially the head, buttocks, breast and navel - are exaggerated in size.

Ghana has the highest percentage of Christians in West Africa, but the belief in traditional animist religions is still extremely common. Though each ethnic group has its own set of beliefs, there are some common threads. Though they all accept the existence of a Supreme Being (as well as reincarnation), the Creator is considered to be too exalted to be concerned with the affairs of humans. There are a host of lesser deities whose moods can be swayed through sacrifices, and ancestors are often deified as well. There are no great temples or written scriptures; beliefs and traditions are handed down through word of mouth. The Ewé, for example, have over 600 deities to turn to in times of need. Many village celebrations and ceremonies take place in honour of one or more deities.

Soups, which are more like sauces, are the mainstay of Ghanaian cuisine. They're usually fairly thick broths and are eaten with a starch. Popular stews include groundnut, garden egg, fish, bean leaf and forowe, a fishy brew with tomatoes. Other main courses are jollof rice, a paella-like dish with meat; kyemgbuma, crabs with cassava dough, meat and potatoes; and gari foto, eggs, onions, dried shrimp and tomatoes accompanied by gari (course manioc flour). Another ubiquitous staple is fufu, which consists of cassava, yam, plantain or manioc that has been cooked, pureed and mashed into a ball. Kelewele, a spicy dessert of fried plantains seasoned with chilli pepper and ginger, is a popular street-stall item, as is askenkee, a cool, white, nonalcoholic beverage made of corn. Pito (millet beer) is the booze of choice in the north, while palm wine is more popular in the south.