Ghana is ranked 72nd in the world when it comes to the state of globalisation. This is according to the DHL Global Connectedness Index (GCI), a comprehensive analysis of the state of globalisation around the world, which was released this week.
The GCI 2012 ranks 140 countries on their global connectedness levels based on international flows of trade, capital, information and people.
According to Randy Buday, Managing Director, DHL Express Anglophone Africa, while the Sub-Saharan Africa region remains the world’s least connected, it averaged the largest connectedness increase from 2010 to 2011. “Sub-Saharan Africa did perform poorly against Europe, Asia and the Americas but, from a positive perspective, the 5 countries with the largest increases in their scores – Mozambique, Togo, Ghana, Guinea and Zambia – are all from the region. We are confident that with the increased investment in Africa and a sustained commitment from governments, we will continue to improve these scores year on year. Sub-Saharan Africa is definitely on the correct path when it comes to the growth in global trade and connectivity.”
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Ghana achieved one of the world’s largest increases in its global connectedness from 2010 to 2011, increasing its rank 22 places from 94th to 72nd. Its rise was driven by its growing depth on the trade pillar. Ghana’s Jubilee oil and gas field began production in December 2010. Following its large increase over the past year, Ghana now ranks 5th out of the 29 countries studied in Sub-Saharan Africa in terms of overall global connectedness as well as on each of the four pillars. Ghana’s large FDI inflows over the past three years are also noteworthy. Ghana ranks 17th worldwide on FDI inflows, with FDI contributing 38% of Ghana’s gross fixed capital formation.
Randy explains that depth refers to how much of a given activity is international (rather than domestic). Breadth complements depth by looking at how broadly the international component of a given type of activity is distributed across countries.
He says that the GCI also reveals that in 2011, intra-Africa trade continues to lag far behind its European and Asian counterparts. “If we want to improve this interconnectivity, we need to look at the ease of doing business across borders in the region and work towards regional trade agreements, customs improvements and border efficiencies, to name just a few.”
Ghana’s top trade export destinations are currently Togo (25%), South Africa (17%), France (9%), Italy (6%) and U. A. E. (5%).
Randy says that from a global perspective, the GCI 2012 indicates that today’s volatile and uncertain business environment bears the lasting impact of the financial crisis. “In this period of slow growth, it’s important to remember the tremendous gains that globalisation has brought to the world and recognise it as an engine of economic progress. It is crucial that governments around the globe resist protectionist measures that hinder cross-border interactions.”