Ghana ranks 6th in Africa for investment attractiveness in 2024

Ghana has secured its position as the 6th most attractive investment destination in Africa, according to Rand Merchant Bank’s (RMB) 2024 “Where to Invest in Africa” report.

With an overall score of 0.24, Ghana’s appeal as an investment destination reflects its growing strengths across several critical economic sectors. The report provides valuable insights into Ghana’s current position within Africa, evaluating factors such as economic stability, innovation, and market growth.

Ghana’s strengths span multiple dimensions, showcasing the country’s potential for investment growth. In innovation, Ghana scored 0.549, placing 9th among African countries, signaling a competitive edge in technology and creative sectors.

Its growth structure ranked even higher, with a score of 0.935, securing the 5th position, which highlights Ghana’s ongoing efforts to foster a dynamic business environment. Ghana also ranked 6th in economic stability and investment climate with a score of 0.27, a significant indicator of the nation’s resilience and investor confidence in the economy.

Additional indicators demonstrate Ghana’s advancement in market accessibility. It ranked 6th in connectedness, scoring 0.850, indicating a high degree of integration within African and global markets. Ghana’s position in urbanization was slightly lower at 10th, with a score of 0.553, reflecting ongoing urban development. However, the country faced challenges in the complexity category, where it placed 26th, suggesting room for improvement in streamlining regulations and simplifying investment processes.

The report underscores Ghana’s significance as a sizable market in Africa, pointing to its favorable rankings in urbanization, connectedness, innovation, political stability, and personal freedom. Additionally, Ghana’s high performance in employment and its low levels of corruption reinforce its attractiveness to investors. Ghana’s import concentration was also ranked among the best in the region, further highlighting its central role in African trade.

In terms of fiscal policy, Ghana has shown notable progress. The report indicates that fiscal consolidation efforts are on track, with the fiscal deficit estimated to reduce from 10.7% of GDP in 2022 to 4.6% in 2023. Despite lower oil revenues, revenues and grants remained steady at 15.7% of GDP in 2023, showing resilience in Ghana’s revenue streams. The forecast for the coming years is promising, as increased gold and oil exports from upcoming projects are expected to contribute significantly to growth by 2027.

Ghana’s standing among the top African nations for investment is further highlighted when compared to other leading countries in the report. The Seychelles topped the list with a score of 0.72, followed closely by Mauritius at 0.69, Egypt at 0.49, South Africa at 0.33, and Morocco at 0.30. These rankings illustrate the diversity of Africa’s top investment destinations, with Ghana positioned among the most stable and attractive economies on the continent.

The 2024 RMB “Where to Invest in Africa” report emphasizes the need to consider both economic performance and the operating environment in investment decision-making. With a comprehensive approach to evaluation, RMB has structured its findings around four key pillars that define a country’s investment appeal.

Economic performance and potential remain central to the assessment, as these indicators highlight a nation’s capacity for growth. Ghana’s market accessibility and innovation are also critical, underscoring its openness to trade and adaptability in an increasingly digital world. Economic stability and investment climate are particularly relevant for investors seeking stable returns, and Ghana’s performance in this area demonstrates its readiness for foreign investment. Social and human development metrics round out the evaluation, offering insights into the quality of life and labor market, which are vital for sustainable economic growth.

This robust assessment approach combines data from 20 metrics across multiple years, with inputs from preeminent institutions. The findings are supported by quantitative analysis and draw on peer-reviewed research, providing a credible foundation for investors seeking insights into Africa’s evolving investment landscape. The 2024 report not only celebrates Ghana’s achievements but also highlights areas for improvement, such as regulatory simplification and enhanced urban development. For policymakers and investors alike, the report underscores the importance of continuing efforts to improve Ghana’s investment climate, thereby maintaining its competitiveness on the African continent