Over the last 20 years, Ghana has been enjoying stability and deepening in democratic aspects and governance. Positive growth has been seen due to these reasons:
- There were seven successful elections that have strengthened the impact of key national institutions.
- There is an enhancement in the confidence of investors.
- Implantation of the economy for growth.
Ghana is one of the best places to do your business in West Africa. According to the World Bank’s Ease of Doing Business Report 2019,it has the fastest growing economy in the world. This country has grown into a well-established destination for investors who are looking for a conducive environment for the business. There can also be seen as progressive and committed private-government sector participation, stability politically, transparent regulations, and an energetic private sector that is ready for the partnerships.
The government is working on implementing policies that can help reduce the general price of doing business to accelerate investor confidence in the country.
So, we have listed ten reasons to invest in Ghana:
1. There is political stability
Ghana is ranked as the most stable political environment within the African region (west) and is on the fifth rank in Africa. Ghana has developed democratic systems and institutions which ensure there are better governance and following rules and laws in the country. There is a maturity in the political conditions in Ghana. In the days of political instabilities around the globe, it is one of the most important factors in which an investor is looking for a business.
2.Decreasing the cost of government borrowing
The government has been cutting borrowing in the domestic market, which can create a lot of spaces for new businesses. GSE’s performance is improved. There is a fall in the interest on the 91-day Treasury bill from 22.5 % to 18.6 %. The falling costs for the domestic government borrowing have given a respite. So, it attracts new opportunities for business.
3.Because of the accessibility
Ghana is in the center of the planet earth and is closer geographically than any other country in the world. The average time of flying hours it takes to reach here from Europe and the Americas is around 8 hours.
It has great accessibility options and easy to reach as there is a world-class airport within the West African sub-region that serves hundreds and thousands of flights within the entire continent. Ghana is home to one of the largest ports of West Africa, which are handling around 3.5 million TEUs. There is also a great network of financial services and trunk roads.
4.Presence of educated and competitive labor force
There is a great availability of skilled and educated labor. These people can be easily trained. This is the place that has one of the highest literacy rates, and that makes the labor here so efficient and helpful. They are very smart and learn the process and working principles in a short duration of time. The average minimum wage is around $558.
5.Urbanization and growing population
There has been seeing the rate at which the population is increasing, and so does urbanization. The rate at which the population is growing is ~2% per annum. Africa is young as about 20-25% of its population is between the ages of 15 to 24, and it is expected to rise by 321 million in the numbers by 2030.The young people of Africa are also consumers who prefer to use the latest technologies, services, and products. There are also great institutions for students and learners. The quality of education is provided by strong institutions, so the students are learning well. So, it has a tremendous potential market in the coming future.
6.There is a strong resource pool
Ghana is the second-largest cocoa producer in the world and Africa’s largest gold miner which is after South Africa. So, it really impacts a lot and increases the chances of success in the business.
There is the usage of electronic financial services by the adult population which is estimated at around 17%. The fintech industry is growing quick in Ghana. Ghanaians adored cash as they believe holding currency makes them feel secure about the actual liquidity. But they are also well aware of how risky it can get to handle cash in large amounts. So, instead of keeping the cash, they are trying to shift to transactions and prefer making mobile payments. There is great potential for financial technology companies to improve mobile payments and online payments. There are up gradations in this too like there are apps that can let you borrow money and return it through app only.
8.Most influential headquarters in Africa
South Africa has a lot of multi-national headquarters, and in fact, the largest headquarters in the continent, and it is really helpful in assessing the opportunities for expansion in Africa.
Commodity exchange gives a green flag to a lot of investors, and they are gaining confidence in the exchange. The GCX was started with rice, corn, and soy initially and kept expanding. There is a lot of potential for trade and alternatives for the development in the market. There are many upsides with these like creating jobs, increasing capital for businesses, enhancing liquidity, and decreasing the borrowing costs. There are ethical practices that are being used. This all makes it a great place to invest.
Ghana is a country that is internationally respected. It is a known country and treated with so much dignity. It is also a member of the G20 World Economic Forum and started sitting on the United Nations Security Council from 2019 only.
Other international benchmarks:
It is ranked fifth for human development in Africa.
It is ranked sixth for the rule of law and safety.
It is also the most resilient economy in West Africa.