Ghana is most preferred investment destination in Africa – GBF survey reveals
Ghana has been identified as the most preferred investment destination in Africa in the latest Global Business Forum (GBF) survey, spearheaded by the Dubai Chamber of Commerce and Industry.
The survey, which explored insights on various aspects of investment across the continent, found Ghana as the preferred destination for investment, with Nigeria being second.
“Of the 10 Sub-Saharan countries included in the survey, Ghana was identified as the most favourable destination for investment, with 63% of respondents highlighting the country. This was followed by 62% who pointed to Nigeria as being the most promising destination,” the survey noted.
It was observed that, “Ghana also scored highly as the Sub-Saharan African country deemed to be the easiest to do business in terms of foreign direct investment (FDI), tying with Rwanda – both with a score of 53%.”
The survey report, which is expected to be presented at the Global Business Forum Africa (GBFA) Expo 2020 Dubai, polled 158 participants, including traders and investors worldwide.
It covered 173 countries and 24 international organisations.
The high-level event will take place on October 13 and 14 under the patronage of the Vice President and Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum.
It would be held under the theme: ‘Transformation through trade.’
Ghana’s economic outlook and risks
The African Development Bank has noted that the economic outlook of Ghana is good in the short to medium term.
This is contingent on increased demand for Ghana’s exports, improved business confidence, and successful implementation of the Ghana Covid–19 Alleviation and Revitalisation of Enterprise Support program (Ghana CARES) initiative.
Growth is projected to increase to 4% in 2021 and 4.1% in 2022, while inflation is expected to ease to 8.2% in 2021 and 8% in 2022 – in the midpoint of the Bank of Ghana’s target band of 6%–10%.
The bank also projects that the fiscal deficit would narrow to 7.2% in 2021 and 5.7% in 2022, driven by an expected increase in revenue collection in a recovering economy.
However, the current account deficit is expected to widen to 2.8% of GDP in 2021, and 3.2% in 2022 as import volumes resume their pre-pandemic levels.
Downside risks to the outlook emanate from a possible second wave of the virus and heightened fiscal and debt pressures.
Agric is the most lucrative investment area in Sub-Saharan Africa
The majority of the trade and investment leaders across the globe believed that agriculture is the most profitable area to invest in on the African continent.
Particularly, 61% of respondents believed that agriculture represented the most lucrative area for investment in the Sub-Saharan region of Africa, followed by telecommunications, which had 45%.
According to the findings, agriculture was adjudged the best sector ahead of oil and gas, manufacturing and mining.
The retail sector, per the survey, is the least lucrative to invest, on the continent.
In addition, cash was the preferred option for investment among 61% of respondents, followed by commodities (48%), hedge and private equity funds (42%), bonds (32%), stocks (24%), mutual funds (18%) and Exchange Traded Funds (15%).
The abundance of natural resources was the factor identified as the one that most positively impacts investment opportunities ahead of economic growth, demographics, domestic markets, a large low-cost labour force and the political and social environment.
Focus areas for this year’s expo
Key topics that would be addressed include the outlook for African economies and the expected impact of the African Continental Free Trade Area.
The evolution of global trade, the adoption of advanced technologies, and the role of innovation in strengthening capital markets and promising investment opportunities emerging in a post-Covid-19 world would also feature during the event.
The Global Business Forum series explores trade and investment potential in promising markets across Africa, the Commonwealth of Independent States (CIS), Latin America, and the ASEAN region.
Since its launch in 2013, the GBF series has welcomed 32 heads of state and government, 140 ministers and government officials, and 9,950 participants, including business leaders and executives from 65 countries worldwide. More than 1,800 business meetings were held between UAE investors and their global counterparts.
The GBF Africa Expo 2020 Dubai
In the past, Global Business Forum Africa Expo 2020 Dubai shed light on the global economic recovery following the Covid-19 pandemic and its effects on trade and business worldwide.
It addressed Africa’s next phase of economic development in the Covid-19 era and beyond, as discussions examined the role of cross-border collaboration in creating new business opportunities and driving sustainable growth across the continent.
As one of Dubai Chamber’s flagship business forums, GBF Africa promotes Dubai as a gateway for African companies that can be leveraged to expand their global footprint, as it showcases the emirate’s competitive advantages.