Ghana ranks last among 24 African nations in risk-reward index
Ghana finds itself at the tail end of 24 African countries, experiencing a significant deterioration in its Risk-Reward Score, as unveiled by the 2022-2023 Control Risks and Oxford Business Economics Africa Risk-Reward Index.
The country’s score of -0.96 out of 10 among its African peers underscores its struggle against economic headwinds, with the Reward Index dropping by 0.35 to 4.74. Despite this decline, the Risk Index witnessed an upward trajectory, rising to 5.85 in September 2023 from 5.24 in September 2022.
Ghana’s economic woes stem from a sluggish growth rate averaging 5.0% pre-Domestic Debt Exchange Programme, triggered by a 2022 debt default necessitating loan restructuring. The resulting inflation and cedi depreciation mark the worst seen in over three decades, amplifying both living costs and business challenges.
Risk assessments drawn from the Economic and Political Risk Evaluator highlight how Ghana’s debt default has intensified business risks and exacerbated macroeconomic conditions.
Conversely, Zambia (+1.19), Uganda (+0.64), Senegal (+0.26), Morocco (+0.26), and Cameroon (+0.24) witnessed significant positive shifts in their overall risk-reward scores between 2022 and 2023.
Defined by a combination of risk and reward scores, the Africa Risk-Reward Index offers an integrated analysis of economic and political risks by Control Risks and Oxford Economics Africa, providing a comprehensive view of the continent’s economic landscape.
