Ghana’s country risk index of 53.9% placed it first, ahead of four top West and Central African countries, according to assessment by Fitch Solutions, the research arm of the rating agency, Fitch.
This means the country is the best place to invest in the ECOWAS and Central Africa region since it has lower risk elements for political, economic, and operational.
The country’s high score of both political and operational risk index propelled it to the first position, ahead of Gabon, Ivory Coast, Nigeria, and Cameroon.
According to Fitch Solutions, a high score index means lower risk in terms of the investment climate.
The nation scored 69.7% and 72.9% for the short and long term political risk, while its 44.1% operational risk index score placed it higher than the other four countries assessed.
For the economic risk index, the nation recorded 41% and 51.6% for the shorter and longer-term respectively.
The country’s economic performance will however trail Ivory Coast- which will become the fastest-growing economy this year- and Nigeria in both the short and long term.
However, Ghana’s overall high-rank index pushes it as the best place to do business in West and Central Africa.
This is large because of the uncertainty associated with investing here, and more specifically the degree to which that uncertainty could lead to losses for investors is very low.
The country’s economic pointers have looked good this year despite covid-19.
Growth is expected to hover around one percent this year and make it a top performer globally, while inflation and exchange have remained low and relatively stable.
Though the debt level is worrying, it is not likely the nation will default in its loan repayment.
Quarter 2 GDP results
Ghana’s economy contracted by -3.2% in the second quarter of this year, the first time it has contracted since 1983.
According to figures released by the Ghana Statistical Service, the heavy fall was largely attributed to some restrictions on activities in the economy, which virtually came to a standstill during the partial lockdown period, as a result of the Coronavirus outbreak.
The information and communication sub-sector recorded the highest expansion of 74.2%, while the hotel and restaurant sub-sector also recorded the highest contraction of 79.4%.
December 7 Elections
The country will be electing a President and 275 Parliamentarians on December 7.
This follows the gradual end of the tenure of the current President Nana Addo Addo-Dankwa Akufo-Addo who is seeking re-election.
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