The Republic of Ghana is one of the most desirable investment destinations, as well as, one of the comparatively freer markets in Africa, according to this year’s Index of Economic Freedom, which has placed it number 7 in the continent and 77 across the globe.
The report indicates that Ghana has a score of 61.3 of a possible 100 points, which is a hike of some 6 decimal points since the 2012 index came out.
The report cites the new policies by President John Mahama for changing the investment climate in the country, as well as, providing more macroeconomic opportunities for locals and foreigners in the private and public sectors alike.
The Index at a glance
The Index of Economic Freedom is a publication by the American Heritage Foundation in cohort with the Wall Street Journal, and it highlights the gains that countries make by giving their institutions free environments of doing business.
The premise of the index borrows from the maxims of Adam Smith who wrote an economic magnus opus, The Wealth of Nations, in the 18th Century, advocating the injection of personal freedom which would lead to reciprocate prosperity in the wider business environment.
The 2013 Index, for example, has touched on the most prominent areas of financial and economic freedoms including rights of owning property and the agility of being an entrepreneur, among other niches.
The survey uses about ten freedoms to underscore the rankings of countries depending on gains they have made in each of those areas. Beginning 1995, the Index of Economic Freedom has characteristically analyzed the economic competitiveness of hundreds of nations, with the 2013 one culminating with 185 of these. The 2012 index pooled together 179 nations.
The report also presents a competitive edge for analysis by offering global and regional median scores. With the case of Ghana, for example, its current mark of 61.3 points is way above that of the globe and region at 59.6 and 53.7 points, respectively.
Africa’s giants in the report include Mauritius, Botswana and Rwanda in the first three positions, whereas Cape Verde, Madagascar and SA follow the lead.
The results for last year had placed the Ghana at position 9, which has thereby led to the country climbing two notches higher. The performance, by the Index’s gauging standards, owes to Ghana’s stable improvement of the economy which has charted at 8 percent in the previous half a decade, compounded by the various reform impetuses of independent industries in the West African nation.
Warning statistics are also easy to glean from the Index’s gauges, to the effect that Ghana still has much to do to keep corruption from making institutions rot from the inside and also has to flex its muscle to protect the real estate and property markets.
The Index of Economic Freedom comes out each year and helps world leaders to compare the performance of their free economies and decide where reform policies need to focus.