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Ghana still a preferred destination for FDI inflows despite recent coups in neighbouring countries

2 years ago
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Ghana still a preferred destination for FDI inflows despite recent coups in neighbouring countries

Economist and Political Risk Analyst, De Theo Acheampong, has said Ghana remains an attractive destination for foreign direct investment (FDI) inflows despite the recent coups in some its neighbouring countries and on the African continent at large.

According to Dr Acheampong, the country’s current economic challenges and not the coups in neighbouring countries, are the main concerns of investors.

“Ghana is still favourably looked at by investors for foreign direct investment inflows despite the recent coups and that is a good thing that we shouldn’t lose,” he stated.

“For now, the DDEP and the other economic challenges of the country have turned out to be the major preoccupation of investors and they are asking when economic stability will be restored. They are not so much bothered about the coups in neighbouring countries and how that can affect their investments in Ghana. So Ghana still has a peace premium and we need to maintain it,” he added.

Dr Acheampong made the assertions while speaking during the NorvanReports X Space discussion titled “Africa’s Coup D’etats and Business Landscape: Effects on Investments and Economic Stability”, on Sunday, September 3, 2023.
According to Dr Acheampong, coups have major adverse impacts on economic growth with economic growth retrogressing for not less than a decade in most countries.

The retardation in economic growth is partly underpinned by the continuous decline in FDI inflows into the coup-hit country.

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He also noted that coups on the continent feed into the popular notion held by foreign creditors that Africa is unstable and hence the high premiums placed on loans given to African countries by foreign creditors.

The African Continent in the last three years, has witnessed successful coups in seven countries. The countries include Niger, Sudan, Mali, Burkina Faso, Gabon, Chad, and Guinea.

Tags: coupsFDI inflowsGhana still a preferred destination for FDI inflows despite recent coups in neighbouring countries
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