Ghana has been ranked as the 18th most attractive investment destination in the latest Africa Investment Index by Quantum Global Research Lab, a research firm.
According to the report launched yesterday in Accra, Ghana attracted a net foreign direct investment of $3.5 billion, which came on the back of strong growth over the past decade.
Commenting on the study, Professor Mthuli Ncube, Head of Quantum Global Research Lab, said, “Ghana’s democratic attributes are as robust as its economic growth and by improving policies and institutions, successive governments have been able to build an attractive business climate conducive for growth.
These measures, he added, include, “Reducing the number of days it takes to register a limited liability company and days spent on resolving commercial disputes in the courts. Furthermore, the election of a new Government in 2016 has revitalised the drive for higher growth and infrastructure investment, all which augurs well for investment opportunities in the country.”
The research noted that while the economy continued to grow at a steady pace until 2013, gross domestic product growth slowed from seven percent in 2013 to 3.6 percent in 2016 due to structural challenges such as the ongoing fiscal deficits pushing public debt to over 70 percent of GDP, trapping Ghana’s economy in a cycle of debt service and borrowing.
The report took into consideration factors such as growth, liquidity, risk, business environment, democratic landscape and social capital.
“Furthermore, a 3-year power crisis and power-rationing slowed down private sector’s productivity and competitiveness.
In addition, the significant external sector deficit and low world prices for Ghana’s gold, cocoa, and oil export were a major factor behind the economic slowdown,” the study added.
Botswana was ranked the most attractive economy on the continent, while Morocco, Egypt, South Africa and Zambia in that order make up the top four destinations.