Home   >   Business   >   Economy   >   201707   >   Ghana Drops In Investment Ranking





Ghana Drops In Investment Ranking
 
<< Prev  |  Next >>
 
21-Jul-2017  
Comments ( )    Email    Print
     
 
 
 
 
Related Stories
 
Ghana dropped nine places to rank 18th position in investment performance in Africa with a net foreign direct investment (FDI) of 3.5 billion dollars in 2016 according to the Africa Investment Index (AII).

The AII developed by Quantum Global Research Lab (QGRL) showed that Ghana came down from ranking 9th in 2015 to the 18th position by the end of 2016.

The report attributed the decline to the three-year power crisis, structural challenges including fiscal deficits pushing public debts to over 70 per cent of GDP and low world prices for the country’s resources.

Professor Mthuli Ncube, Head of QGRL, stated that the risk factors which pushed Ghana downwards was seen to be already changing in the first half of 2017 considering the current government’s initiatives.

“We are pleased with what we are hearing from government with infrastructural investment. Risk factors are already changing as I speak, exchange rate risk, inflation risk, import cover risk is down. All the structural reforms the government is trying to put in place will be very positive for growth going forward,” he said in an interview with the Ghana News Agency.

He added that the current government initiatives will improve the investment climate in Ghana.
The AII report said that by improving policies and institutions, successive governments have been able to build an attractive business climate conducive for growth.

These measures included reducing the number of days it takes to register a limited liability company and days spent on resolving commercial disputes in the court.

Botswana ranked highest in 2016 because they have prudent public finance management, revenue collection and budget deficit.

Professor Ncube urged government to also consider Domestic Direct Investment (DDI). “DDI is very important, if you are going to a country you want to know even the locals want to invest in their economy.”

Dr. Gideon Boako, Technical Economic Advisor to the Vice President of Ghana expressed optimism of Ghana’s ranking going high.

“Ghana’s competitiveness in terms of trade facilitation, investment facilitation, creating an environment for businesses to thrive are all going high.”

He added that the government will work to get higher rankings and consolidate gains.
“We are trying to diversify our foreign income earnings, key commodities that give us foreign exchanges” to cushion the country against external shocks.

Quantum Global Group is an international group of companies active in the areas of private equity investments, investment management as well as macroeconomic research and econometric modelling.

The index used is a multidimensional barometer based on growth factors, liquidity factors, risk factors, business environment factors, demographics, and social capital factors.
 
 
 
Source: GNA
 
 

Comments ( ): Post Your Comments >>

 
 
 
Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority.