Ghana Ranks 6th in African Countries to Invest

The Rand Merchant Bank’s ninth edition of Where to Invest in Africa focused on sectors that are believed to be key to unlocking the continent’s growth potential.

Ghana Ranks 6th in African Countries to Invest
Ghana Ranks 6th in African Countries to Invest

Ghana has been ranked the sixth best place in Africa for investors in the 2020 RMB Investment Attractiveness rankings.

The country has risen three places from its previous spot in the rankings to edge closer to a coveted top 5 position this year.

According to the report, “non-oil growth is forecast to pick up again, supported by pro-business reforms and a steady improvement in power supply. Political stability will remain underpinned by Ghana’s strong democratic credentials.

“Ghana’s mining industry was worth US$5.9bn in 2019, the third-highest in Africa, and grew at 6.3% y/y, outshining many of its continental peers in the resources sector,” the report added.

Ghana also has Africa’s highest ranking in the Fitch Solutions mining risk/return reward index, which assesses potential returns on investment, both in terms of industry size and forecast growth and broader country characteristics like the regulatory environment.

Ghana’s manufacturing sector is ranked the eighth strongest on the continent is characterised by its small market size but high competitiveness.

In all of this, Ghana remains one of the few West African countries bucking the downward growth trend by continuing to offer positive examples of economic recovery by placing emphasis on diversifying its economy. Despite the recent deterioration in its operating environment rankings, Ghana remains one of the easier business environments in Africa.

 

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The Rand Merchant Bank’s ninth edition of Where to Invest in Africa focused on sectors that are believed to be key to unlocking the continent’s growth potential.

This year, co-authors Celeste Fauconnier, Neville Mandimika and Nema Ramkhelawan-Bhana delve deeper into the traditional and alternative sectors driving African economies to reach ever-higher levels of economic growth.

“We believe that the six sectors we’ve featured this year are key to inclusive growth across the continent,” says Fauconnier.

Contributor, Daniel Kavishe, adds that under the resources banner, “mining, energy and agriculture all offer vast opportunities for the savvy investor.”

Turning to retail, Fauconnier says that it’s all about playing the long game. “While the middle class is not growing as fast as expected, the potential is still evident in the numbers.”