Ghana placed last out of 24 African countries with a deterioration in its Risk-Reward Score, the 2022-2023 Control Risks and Oxford Business Economics Africa Risk-Reward Index has revealed.

According to the report, the country recorded -0.96 out of a score of 10 among its peers in Africa.

The country dropped by 0.35 to 4.74 in the Reward Index.

Its Risk Index however went up to 5.85 in September 2023, as against 5.24 in September 2022.

The reward scores incorporate medium-term economic growth forecasts, economic size, economic structure, and demographics.  

Ghana has been battling with a slowdown in its economic growth of an average of 5.0% pre-Domestic Debt Exchange Programme. This is a result of the debt default in 2022 culminating in the restructuring of payment of its loans.

Inflation and the cedi thus worsened in more than three decades, increasing astronomically both the cost of living and doing business.

The risk scores for each country also stemmed from the Economic and Political Risk Evaluator.

Ghana’s debt default increased the risk of doing business and worsened the macroeconomic environment.

Zambia (+1.19), Uganda (+0.64), Senegal (+0.26), Morocco (+0.26) and Cameroon (+0.24) were the countries that witnessed the biggest positive movement in their overall risk-reward scores between 2022 and 2023.

The Africa Risk-Reward Index is defined by the combination of risk and reward scores, integrating economic and political risk analysis by Control Risks and Oxford Economics Africa.