President Nana Akufo-Addo, says investor confidence in Ghana’s economy is growing following the competent management of the economy exhibited since 2017.
According to President Akufo-Addo, “In three years we have reduced inflation to its lowest level (7.8% in January 2020) since 1992. For the first time in over 40 years, we have had a fiscal deficit below 5% of GDP for three years in a row.”
Additionally, the President indicated that “for the first time in over 20 years, the balance of trade (that is the difference between our exports and imports) has been in surplus for three consecutive years.
Our current account deficit is shrinking, interest rates are declining, and the average annual rate of depreciation of the cedi is at its lowest for any first-term government in the Fourth Republic.”
He made this known on Thursday, when he delivered a Message on the State of the Nation, in Parliament.
Economic growth, President Akufo-Addo said, has rebounded to place Ghana among the fastest growing economies in the world for three years in a row at an annual average of 7%, up from 3.4% in 2016, the lowest in nearly three decades.
“The international investor community has recognised this development, resulting in Ghana, today, being the largest recipient of foreign direct investment in West Africa.
“The sovereign credit ratings agencies have upgraded our ratings, and also improved the outlook for this year, notwithstanding the fact that it is an election year,” he said.
President Akufo-Addo added, “This is a massive vote of confidence in the current management of the economy, as best illustrated by Ghana’s successful issue of the longest-dated Eurobond ever issued by a sub-Saharan African country, with investors placing $15 billion of orders for Ghana’s 41-year Eurobond.”
The seven-year Bond, he explained, attracted the lowest coupon rates ever for Ghana at 6.375%, compared with the 9.25% Ghana had to pay for a similar Eurobond issue in 2016.
“No wonder Bloomberg, the reputable global financial media house, earlier this week, highlighted Ghana as the top candidate for an economic leap in Africa.
“This expression of confidence is important because it will lead to enhanced investments in our economy, and the accompanying greater numbers of jobs,” he added.