Ghana Is West Africa’s Most Attractive Trade And Investment Destination: Fitch Solutions Discovers

According to the Fitch Solutions Operational Risk Index, Ghana is the most attractive market for trade and investment among the 16 West African countries.

Ghana surpasses the West African average of 36.4 with a Trade and Investment Risk score of 50.9 out of 100, placing it in a competitive second place regionally and 90th out of 201 markets internationally.

Policy consistency, openness to trade and foreign investment, strong institutions, and a wealth of natural resources are among the country’s key characteristics.

“Businesses operating in the country enjoy many incentives for key areas such as infrastructure, agriculture, and manufacturing. The new oil sector – with associated export and fiscal revenue – should reduce the risks of macroeconomic instability and provide a substantial boost to growth over the long-term,” the report said.

In addition, the country’s open investment policy, a gradual rebound in commodity prices, improvements in infrastructure and energy diversification, and more digitisation are likely to fuel medium-term growth.

However, the report notes that businesses operating in the country face structural challenges such as onerous bureaucratic procedures, limited access to competitive financing mechanisms, and a high reliance on imports – particularly for consumer goods, machinery, and fuel – all of which drive up operating costs.

Through insights into trade barriers, free trade agreements, investment incentives, investment restrictions, FDI flows, key import and export markets, government intervention, taxation, and the development of the legal and bureaucratic systems, the Report assesses the trade and investment risks and opportunities facing businesses and investors in Ghana.

Similarly, Ghana beats the West African average of 33.3 with a Crime and Security Risk score of 51 out of 100, ranking first in the region and 90th out of 201 markets globally.

Operational Risk Index Indicators
Under the economic openness segment, the country was assessed for the risks posed to businesses and investors looking to enter the market, assessing its overall openness to foreign direct investment and attractiveness as an investment destination compared with its regional and global peers.

The report highlights key investment barriers and incentives, and evaluates trade flows, main trading partners and products, and trade barriers.

The government intervention segment highlights key risks stemming from the burden of taxation and financial barriers on foreign and local firms. It also analyses the development of the financial market, the density of the banking sector, the availability of credit, and the sophistication of the market.

Legal risk analysis examines observance of the rule of law and risks posed to businesses stemming from corruption. This segment evaluates the main risks that investors and businesses face from regulatory quality in a market and the protection of real and intellectual property rights.

It further assesses bureaucratic risks, the extent of e-governance development, and governmental transparency.

Source: Opemsuo.com/ Emmanuel Owusu Anti