Ghana's ICT sector offers opportunities for investors


“Ghana represents very good opportunities for equity investors to get into some very high growth assets which some are going to grow rapidly as the economy grows. Primarily along those are things like infrastructure, power and sectors along those lines to begin with,” Ewan Middlemiss Director at Bridge Capital told CNBC Africa.

According to Bridge Capital in a recent report on the West African nation, Ghana’s ICT sector is one of the country’s most recognised areas of value. However, the reliance of the country on a single source of hydro-electric generation which produces less power when there are low water levels in Lake Volta is hampering its growth.

“Anybody who has been to Ghana will experience the power outages that they have across the country. Without power you cannot grow an economy and as many related support industries that are necessarily to power generation,” Middlemiss said.


“If you want to certain growth rates of six, seven and eight per cent and above, you need your power sector to be growing substantially and very rapidly. People cannot get their businesses to grow without power and what is never factored into is the cost of lost GDP through power outages,”

Bridge Capital that provides management consulting and corporate finance services from small to medium sized growth businesses believes the Ghanaian government is doing a number of things right despite the latest downgrade by Moody’s.

“I think [Ghana] have a very stable system of law and they have a very well understood economy,” Midlemiss said.

Moody’s Investors Service downgraded Ghana’s sovereign rating from B1 to B2. The Key drivers to this rating was the country’s deteriorating fiscal strength, as reflected in the rising debt level and worsening debt affordability amid persistently high fiscal deficits. Also, the nation’s increase in vulnerability to shocks, given its large debt-refinancing needs and wide external imbalances.

Earlier this year, the Ghanaian government received a 3.8 million US dollars grant for the development of Information and Communications Technology (ICT) projects from the Rockefeller Foundation, an International humanitarian organisation and the World Bank.