Ghana has been ranked 8th for economic stability and investment climate across Africa, according to the 2024 Rand Merchant Bank (RMB) “Where to Invest in Africa” report.
The report highlights Ghana’s strong performance among 31 African nations, showcasing its strengths in forex stability, liquidity, economic freedom, inflation control, and political stability.
The RMB report evaluates countries based on four key pillars: economic performance and potential, market accessibility and innovation, economic stability and investment climate, and social and human development.
Ghana also excels in other areas, ranking 3rd in social and human development, 6th in market accessibility and innovation, and 15th in economic performance and potential.
Overall, Ghana is ranked as the 6th most investable country in Africa, with an index score of 0.24, behind Seychelles, Mauritius, Egypt, South Africa, and Morocco.
Excluding smaller economies like Seychelles and Mauritius, Ghana moves up to 4th place as the most attractive investment destination, just behind Egypt, South Africa, and Morocco.
With a GDP of $76 billion and a population of 33.5 million, Ghana is a significant market. It ranks among the top ten in urbanization, innovation, political stability, personal freedom, and employment. The country also performs well in corruption control and leads in import concentration.
However, the report highlights the need for Ghana to address its high public debt and inflation to ensure continued macroeconomic stability, especially under the current $3 billion IMF extended credit facility program (2023-2026).
Ghana is showing signs of fiscal consolidation positively. The fiscal deficit is projected to decrease to 4.6% of GDP by the end of 2023, down from 10.7% in 2022.
Despite lower oil revenues, overall revenues and grants have remained stable at 15.7% of GDP in 2023.
Looking ahead, the report predicts accelerated growth for Ghana by 2027, driven by increased gold and oil exports from new projects.
The RMB report is based on 20 metrics across its four key pillars and utilizes data from global institutions such as the World Bank, IMF, African Development Bank, United Nations, and International Labour Organisation.
Encouragingly, Ghana is making significant progress in fiscal consolidation. The fiscal deficit is expected to shrink to 4.6% of GDP by the end of 2023, down from 10.7% in 2022. Despite a drop in oil revenues, overall revenues and grants have remained stable at 15.7% of GDP this year.