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Eye On Africa: Top 5 Investment Opportunities In Ghana

Eye on Africa: Top 5 Investment Opportunities In Ghana

Ghana has experienced an oil boom in the last decade which has proven to be a great additive to one of Africa’s most active small and medium enterprise economies. Its reputation as one of the continent’s most stable democracies almost seems like an added bonus. For these reasons, Ghana has become increasingly attractive to foreign investors.

Ghana’s economy expanded by 8.1 percent year-on-year in the fourth quarter of 2017, following an upwardly revised 9.7 percent growth in the previous three-month period. … It is the highest growth rate since the third quarter of 2014, mainly boosted by a 72.2 percent jump in the oil and gas.

Here’s a look at some of the best opportunities the west African country has to offer:

Financial Services

The Banking Act in 2007 laid the foundation for change in the financial services industry. Since its passage, financial services in Ghana have improved tremendously. A thriving economy and growing incomes usually underline the potential of the financial sector. But Ghana has shown more promise than other countries in the region.

Big ideas and little capital is the story of most Ghanaian banks. They are simply unable to meet the increasing demand from the energy, mining, oil & gas, and telecommunications sectors. Corporate banking and finance units are understaffed and inadequately utilized. Capital investment is needed to maintain growth and meet the ever-increasing needs of consumers.

Real Estate

The returns never stop coming in real estate with the thriving oil & gas market. Large cities and neighboring suburbs are seeing a surge in construction as developers see a growing flood of cash from foreign investors. Improvements in consumer financing and mortgages in the banking sector will also add to the opportunity for residential and commercial real estate.

Industrial

Ghana is more advanced in than many other African countries in this field. But it still nowhere near its full potential. Pipeline manufacturing for the oil & gas sector fails to meet the demand in timely fashion with quality. Ghana has great potential as a car manufacturing country, including electric cars. The potential of the overall industrial sector in Ghana is unimaginable. But it can only be reached with more capital.

Telecommunications

A booming oil and gas sector is pushing for better all-around service to support their growth while telecom companies continue to build infrastructure in order to improve quality and stability. Installations should also increase network capacity in order to cope with upcoming traffic increases. The introduction of more competitive service bundles and specialized data products can definitely add to profit margins.

In fact, just recently the country’s largest mobile telecom operator, MTN, has launched its initial public offer (IPO) as part of the company’s aim to allow Ghanaians acquire a stake in its highly profitable business – becoming first in the telecommunications industry to place on the Ghana Stock Exchange (GSE). The public can now buy shares in the company at a cost of GH¢0.75 and a minimum of 10 shares per purchase. The shares can be bought at selected banks as well as on MTN mobile money.

Medical Services

Ghana is still in need of healthcare services across the board. The country requires management-level education facilities to meet the growing need in the country’s private sector. Medical services fail to provide high-quality care, leaving foreigners and some locals to travel outside the country for specialized medical care.

A lack of investment in the above sectors has the potential to stump Ghana’s economic growth. Great returns are available, especially if investors can connect investments to Ghana’s energy and mining boom.

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