Wednesday, May 25, 2022

Online trends aiding West Africa’s economic growth – Report

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The West African region has experienced remarkable growth since the 1990s. An increase in collective GDP underscores this and suggests even more to come.

For example, GDP was worth $105 billion in 2000 and increased immensely to reach $659 billion in 2020.

Ghana is one of the largest economies. In addition to Ghana, Nigeria and Côte d’Ivoire account for a quarter of Africa’s GDP in 2020, but the high GDP and modernization of the economic sector are promising indicators of a rosier future.

Thus, it is only logical that Ghana’s entrepreneurial landscape is growing.

Promising business ideas have become a feature of this region. Some of them are addressed in promoting the entertainment branch and Others are based in the health, financing and education sector.

Thanks to modernization, several sectors will benefit. Especially after the turn down of the pandemia and many lockdowns.

Companies are aware of the foreseeable growth in demand and are trying to respond to the new needs of their customers. Consumers will soon be able to enjoy a wider range of offerings in the following categories.

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Delivery, courier and transportation services will be in high demand. Some experts even see an opportunity for construction equipment and materials rental, real estate, cell phone accessories retailing and microfinance. Businesses are certain to spring up and capture more and more sectors of the economy.

Not forgetting the new needs resulting from Covid-19. All was moved online, and these habits are more likely to stay. As has been shown in other countries.

Best Destinations For Investment

With all these positives, it is no wonder Ghana is on the top ten list for investing in Africa. Along with Egypt, South Africa, Morocco, Nigeria, Angola, Côte d’Ivoire, Ethiopia, Algeria and Kenya, it is a desirable candidate to attract foreign funds.

The country’s economy is expected to grow by 3.9% through 2021. By the end of 2021, its GDP will be $74.26 billion. The main drivers are cocoa beans, petroleum and mineral production.

The economy is expected to rebound, especially after the Covid-19 pandemic. Some of them will prove stronger than before the crisis.

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Nevertheless, it is Ghana that attracts the most foreign direct investment in West Africa. In 2020 alone, it attracted $2.65 billion. That was down from $3.88 billion in 2019 and $2.98 billion in 2018. Between 2011 and 2018, annual foreign investment inflows averaged $3.33 billion.

Since the discovery of deepwater oil and gas off Ghana’s coast in 2007, this industry has become the main recipient of funds. Agribusiness, food processing, textiles and apparel, mineral processing, and mining-related services are also very important sectors in promoting economic growth.

Recent Macroeconomic And Financial Developments

GDP growth fell from 6.5% in 2019 to 1.7% in 2020 due to the slump in oil prices and a weaker global economy because of the Covid-19 pandemic, but the economy will recover quickly thanks to a strong manufacturing and construction sector combined with favorable cocoa and gold prices.

With the global supply chain disrupted due to Covid-19 and expansionary monetary policy to mitigate the economic impact of the crisis, inflation rose from 8.7% in 2019 to 10% in 2020, with public debt to GDP at 71% in 2020. Compared to 63% in 2019.

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An Economic Outlook

Thanks to an expected increase in Ghana’s export products and the successful implementation of the Covid-19 alleciation and revitalization program targeted at businesses, the economic outlook is positive.

Another significant factor of its welfare is the poverty rate. Which increased from 25% in 2019 to 25.5% in 2020. However, it is predicted to rebound after the Covid-19 slowdown. Growth was forecasted at 4% in 2021, reaching 4.1% in 2022. In addition, inflation decreased from 8.2% to 8% in 2021 and 2022.

However, due to the newly discovered Corona variants, experts expect further waves that will negatively affect the economy. Increased fiscal and debt policy pressure is also influencing the outlook.

Ghana has outstanding economic potential. By some experts it is already called a hub for services and manufacturing. It will be in the future to see what benefits and cooperation this potential will bring.

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