Ten reasons to invest in Ghana

  1. Political stability. I wrote a few days ago about how Ghana has solidified its reputation for political stability with its latest election. When you invest in Ghana you get low political risk in your portfolio.

2.    Reducing cost of government borrowing. I wrote about how the yields on government treasury bills are falling. This is welcome news for the private sector which has struggled to compete with the risk-free borrowing rate.

3.   Rapid growth is expected in 2017. As oil production picks up in the Tweneboa, Enyenra and Ntomme (TEN) fields the IMF projects Ghana’s economy to grow by 7.5% next year.

4.   A new government hoping to impress. The New Patriotic Party (NPP) won the election on the back of the failure of the National Democratic Congress (NDC) to turn the economy around from a huge deficit arising from electoral spending in 2012, weak commodity prices and crippling power cuts. There is pressure on them from a hopeful electorate for them to deliver on their promises.

5.  Increasing economic stability. More fiscal and monetary discipline has led to a gradual reduction in inflation.

6.   Bear market in equities.  Stocks on the Ghana Stock Exchange are down 21% this year. This presents an opportunity to invest in early and catch the rally that may come from the end of political uncertainty and improving economic conditions. Also, more and more companies are listing and this will continue next year.

7.  The Commodity Exchange coming up will present another opportunity to invest.

8.   Derivatives trading will commence on the Ghana Stock Exchange from 2017.

9.   Mortgage Backed Securities are now a thing in Ghana. A chance to make money off the real estate boom or maybe profit from betting on a crash if you can arrange for default insurance.

10.  Great market. 17% of the adult population is said to use electronic financial services. The Fintech industry is growing fast. There is only an upside here. The growth is making transactions cheaper and safer and is expanding markets beyond the urban areas.

Bonuses

11.  We have great food. I recommend waakye, kenkey and jollof.

12.   CediTalk.com writes about Ghana more than any other country. So you can be sure to see significant updates about the country here.

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