Bad Economy or Not, investors still love Ghana- GIPC

quist

August 24, 2015 2:53 PM

" we targeted investors in 2015, and they responded favorable. That is confidence in the economy. Of course, there are current challenges, but investor confidence is still there"

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Ghana's current economic challenges have not reduced investor-confidence in the country , as many experts would have us believe. This is according to the Ghana Investment Promotion Council (GNPC).

The country, for the past three years has been battling, a protracted energy crisis, high interest rates, and an unstable currency. Many economists, have concluded based on these indicators that Ghana's business environment has become unattractive to international investors. The world Bank's Doing Business Report for 2015 saw Ghana fall one slot from 2014's 69 th to 70th out of 189 countries.

However, Chief Executive Officer of the the GIPC, Mawuena Trebah says the interest of investors in the Ghanaian economy has not waned at all.

The GIPC boss revealed some major investors the council has been able to attract into the country this year.

" As I speak Singapore and the United Arab Emirates have just opened their chamber of commerce in Ghana , set to intensify their business dealings with the country. They believe that the current challenges will be surmounted soon. Also the outlook looks bright. And the investors believe this."

Meanwhile, the IMF has projected that Ghana’s economy is expected to slow down for the fourth consecutive year to an estimated 3.9% growth rate in 2015, owing to a severe energy crisis, unsustainable domestic and external debt burdens, and deteriorated macroeconomic and financial imbalances.

Provisional gross domestic product (GDP) figures issued by Ghana Statistical Services (GSS) further suggest that the economy expanded by 4.2% in 2014, less than the growth of 7.3% recorded in 2013.

The drivers of growth continue to be the service sectors, which constitute 50.2% of the economy, followed by industry and agriculture at 28.4% and 19.9% respectively.

In 2016 the economy is expected to recover, registering a growth of around 6%, bolstered by an increase in oil and gas production, private sector investment, improved public infrastructure and the country’s political stability. Nonetheless, the prevailing low international oil prices could slow the pace of economic growth in the future.

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