5 Reasons Why Investors Should Consider Investing in Ghana

Ghana is a country in West Africa that shares borders with six other nations (Sierra Leone, Ivory Coast, Burkina Faso, Togo, Liberia, and the Atlantic Ocean). It is one of the fastest-growing economies in Africa, with GDP expected to grow by 5.3% per year between 2016 and 2020. Ghana has a population of about 27 million people and, like many other emerging markets, has seen its stock market experience a huge run-up in prices over the past few years. In fact, the Ghanaian stock market has increased more than tenfold since 2013, gaining more than 500% in dollar terms. This article will explore five reasons why investors should consider investing in Ghana.

Ghana has a stable government

Ghana has a stable government and is considered a “safe” investment destination. This is because the military government that ruled the country from 1981 to 1997 was overthrown following a series of popularly-backed civilian rule coup d’états.

Ghana is a young market

Since Ghana’s introduction to the global economy at the end of the 19th century, the country has had lots of time to grow and develop. It is one of the youngest markets in Africa, with a population that is largely under the age of 35. This bodes well for the future of Ghana as the population is disproportionately youthful compared to other African nations with aging populations.

Ghana has a high household savings rate

One of the most important factors that will determine the future success of an investment in Ghana is the high level of household savings that the country has. According to a World Bank study, Ghana has one of the highest personal savings rates in the world, with about 36% of the country’s GDP going towards saving rather than consumption. This means that even in a bad economy, people will continue to put their money into savings rather than take out loans. This is very healthy and indicates a strong commitment to future economic growth, as savings will provide the funds to fuel investment and spur entrepreneurship.

Ghana has an emerging market trading status

As of January 2015, Ghana is officially an “emerging market”. This means that the country will be subject to additional scrutiny by global financial institutions such as the World Bank and the International Monetary Fund (IMF). While most emerging markets are growing rapidly and experiencing strong economic growth, they are still predominantly low-income countries with limited access to global financial institutions. By being listed as an emerging market, Ghana will now be able to borrow money at lower interest rates and invest in global financial markets.

Ghana has a well-educated workforce

The well-being of a country’s workforce is crucial to its future economic success. Strong educational institutions and skilled workers will help Ghana thrive in the future. Thanks to its history as a British colony, Ghana has a well-educated workforce that is largely English-speaking. More than half of all government employees and a large percentage of the country’s entrepreneurs and business owners are graduates of tertiary education. This high level of education has helped to create an environment in which entrepreneurship is greatly respected and rewarded.

Ghana has very low corporate tax rates

One of the best things about investing in Ghana is that companies operating in the country pay very low taxes. As of 2016, the corporate tax rate in Ghana is 12%. This is one of the lowest corporate tax rates in all of Africa and makes Ghana an extremely attractive place to do business. In fact, the government has publicly stated that it does not expect the corporate tax rate to rise above 12% in the near future, as it is meant to act as a “competitive advantage” for the country.

Bottom line

Ghana is a fast-growing economy in West Africa that offers a great deal to investors. It has a stable government, a young population, a high household savings rate, an emerging market status, a well-educated workforce, and very low corporate tax rates. These factors make Ghana an excellent place to invest in the future.