Ghana ranks first on country risk index in ECOWAS, Central Africa
Ghana has ranked first ahead of top four West and Central African countries on the country risk index after scoring 53.9%, according to an assessment by Fitch Solutions, research arm of ratings agency, Fitch.
This means Ghana is the best country to invest in ECOWAS and Central Africa regions since it has a lower risk elements for operation, politics and economics.
The country’s high score for both political and operational risk index propelled it to the first position, ahead of Gabon, Nigeria, Cameroon and Ivory Coast.
According to Fitch Solutions, a high score index means a lower risk in terms of investment climate.
Ghana 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 terms respectively.
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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 largely because the uncertainty associated with investing in Ghana, and more specifically the degree to which that uncertainty could lead to losses for investors is very low.
This means the country’s economic pointers look good despite Covid-19.
Growth is expected to hover around one per cent this year and make it a top performer globally, while inflation and exchange have remained low and relatively stable.
Ghana is unlikely to default its loan repayment despite the worrying debt level.
Quarter 2 GDP results
Ghana’s economy contracted by -3.2% in the second quarter this year, the first time it has contracted since 1983.
According to figures released by the Ghana Statistical Service, the heavy decline was largely due 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 restaurants sub-sector recorded the highest contraction of 79.4%.
December 7 elections
275 Legislators and a President would be elected on December 7.
This follows the gradual end of tenure of the current President, Addo Dankwa Akufo-Addo who is seeking re-election.
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