Ghana has been ranked 1st in West Africa and 2nd in Sub Saharan Africa by Fitch Solutions, research arm of ratings agency Fitch, as the best destination for investments and trade.
With a Trade and Investment Risk score of 50.9%, the country outperformed the West Africa average of 36.4%.
Despite the challenges facing the economy, the country also placed 88th out of 201 markets globally in terms of competitive environment for investments and trade.
For Economic Openness, Ghana scored 58% and 50% for Trade and Investment Risk.
In terms of Government and Legal Intervention, the nation scored 45% each respectively.
Similarly, with a Crime and Security Risk score of 51%, Ghana outperformed the West Africa average of 33.3% and ranks in 1st place regionally and in 90th place out of 201 markets globally.
The report pointed out that Ghana’s markets have strong fundamentals, including a track record of private investment in energy infrastructure, comparatively high political stability and security, and a relatively diverse competitive landscape.
It however expressed worry about the depreciation of the cedi which it said will in the near term make private investors more reluctant to invest in Ghana’s infrastructure sector.
It therefore do not expect private investments to meaningfully cushion the negative impact of subdued public infrastructure spending on the market’s construction industry growth.
“We expect that a substantial depreciation of the cedi against the US dollar in 2022 will in the near term make private investors more reluctant to invest in Ghana’s infrastructure sector. We thus do not expect that private investment will meaningfully cushion the negative impact of subdued public infrastructure spending on the market’s construction industry growth.
Economic Openness 58% 1st
Trade and Investment Risk 50% 1st
Government 45% 2nd
Legal Intervention 45% 2nd
Crime and Security Risk 51st 1st
Source: Charles Nixon Yeboah | myjoyonline.com