Ghana is ranked among 16 out of 51 African countries whose operational risk worsened between the end of 2022 and mid-2023, the Economist Intelligence Unit latest Operational Risk Outlook has revealed.

According to the UK-based firm, the worsening scores have been driven mainly by a deterioration in the macroeconomic risk subcategory.

“The operational risk scores for 16 of the 51 African countries in EIU’s Operational Risk Service worsened between end-2022 and mid-2023, including those for Ghana, Egypt and Sudan”.

This reflects the negative impact of rising domestic consumer prices on businesses’ profit margins and the wider implications for exchange-rate and monetary policy.

That said, despite shocks presented by the Russia-Ukraine war and the scars left by the coronavirus pandemic in 2020 and 2021, EIU said, macroeconomic risk retains its place as the best-rated subcategory across the region with an average score of 43, equivalent to a C rating.

This is mainly reflecting the relatively fast economic growth that comes with expanding populations.

Meanwhile, 11 of the 51 African countries have an improving risk outlook, including Tanzania, the Central African Republic (CAR) and Ethiopia.

The improvements reflect country-specific factors, including comparative stabilisation in Ethiopia in line with the ongoing implementation of its peace accord after two years of civil war, and the CAR’s securing of an International Monetary Fund deal in April 2023.

“We also believe that there is a high risk of financial sector distress, given high and rising public debt levels and comparatively low levels of banking supervision and autonomy in the region”, it added.