The Rand Merchant Bank (RMB), a corporate and investment banking arm of the First Rand Bank Limited, has ranked Ghana sixth on this year’s ‘Where to Invest in Africa 2021’ rankings.
A statement jointly signed by Mr Delali Dzidzienyo of the First National Bank Ghana and Ms Joandra Griesel of the Rand Merchant Bank, stated that Ghana came first in West Africa in terms of investments attractiveness, outperforming Cote d’Ivoire, Senegal and Nigeria.
It stated that Ghana entered the COVID-19 crisis on a relatively stronger footing than its African peers as the economy managed to avoid a recession in 2020 and registered growth of 0.4 per cent, outperforming the Sub-Saharan Africa economies, which contracted by 3.2 per cent on the average.
“Structurally, Ghana’s economy has seen major shifts over the past few years, positioning it for significant growth going forward.
“This is supported not only by primary sector industries like oil and gold but accelerated development in the tertiary sector. We see the construction, agriculture and services sectors as the main catalysts for strong 4.2 per cent average growth between 2022 and 2023.” it stated.
The statement indicated that the 2021 economy had shown a steady recovery, with the gross domestic product (GDP) print at 3.9 per cent, supported by performance in both secondary and tertiary industries.
“Over the next few years, oil production output will rise in the near term supported by higher oil prices that should encourage further oil exploration in Ghana. There are similar expectations for gold production, which have further supported the government's efforts to curb illegal mining activity, thereby promoting the formal sector,” it stated.
According to RMB’s Africa Economist, Mr Daniel Kavishe, the report assessed the extent of the pandemic’s impact by sketching the landscape of the continent in pre-COVID-19 and painting a picture of both its actual and potential outcomes through the post pandemic.
“We created a new set of rankings that incorporated some of the unavoidable COVID-19-induced challenges, of which the operating environment score was one,” he said.
The report includes an appraisal of the government’s ability to support its various economies during such periods and also explored key themes emerging from Africa’s developmental aspirations.
Mr Kavishe said that was essential because “ﬁscal scores are important indicators of how governments respond to COVID-19.”
“Of these, three are central to ﬁghting the pandemic and resuscitating economic conditions; they are government intervention, a focus on our triple-threat sectors, and healthcare,” he added.
For Ghana, the report stated that the next few years would centre on the government’s ability to consolidate ﬁscal spending, undoubtedly necessary to alleviate the country’s debt burden.
The Chief Executive of First National Bank, Mr Dominic Adu, noted that “Ghana has done remarkably well navigating the tough COVID-19 environment. We are very pleased to be leading the pack in West Africa in terms of economic recovery with expected GDP growth of 4.1 per cent in 2022. Now is deﬁnitely the time to invest in Ghana.”