President Nana Addo Dankwa Akufo-Addo says the performance of the country’s economy has made it one of the favourite and attractive destinations on the continent for investors, backing his comments with the recent mad rush for the 40-year Eurobond.
A few weeks ago, global markets and investors surprised managers of the economy with their willingness to lend more than five times the required amount needed by government when it went to raise US$3billion on the international borrowing market. It came after international ratings agency Moody’s affirmed the country’s long-term bond issuer and senior unsecured bond ratings at B3, and changed the outlook to positive from stable.
Speaking at his last State of the Nation Address in his first term of office, the president told parliament that this feat was achieved due to his administration’s prudent economic management which has courted the attention and interest of foreign investors like no other in the history of the country, leading to the creation of many jobs.
“Our economic growth 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 percent, up from 3.4 percent 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.
“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… This expression of confidence is important, because it will lead to enhanced investments in our economy and the accompanying greater numbers of jobs,” he said.
Still commenting on job creation efforts, the president said government is still on course to deliver its One District, One Factory (1D1F) project, saying a total of 181 projects spread across 112 districts are currently at various stages of implementation under the programme.
Again, he said EXIM Bank last month signed a US$100million facility with Credit Suisse to help complete 20 of the export-related factories by end of the year.
According to the president, the 1D1F initiative will generate about 230,000 jobs – both direct and indirect – after it has come to full completion; adding that the initiative is also helping to revive struggling, existing businesses to get back on a good footing.