Ghana has edged closer to a coveted top five position this year, rising three places to number six in Rand Merchant Bank’s (RMB) Investment Attractiveness rankings.

The country’s growth outlook is strong and concentrated around the oil and gas sector.

The co-authors; Celeste Fauconnier, Neville Mandimika and Nema Ramkhelawan-Bhana of the report, said non-oil growth was forecast to pick up again, supported by pro-business reforms and a steady improvement in power supply.

They said political stability would remain underpinned by Ghana’s strong democratic credentials.

This year the co-authors delved deeper into the traditional and alternative sectors driving African economies to reach ever-higher levels of economic growth.

The report indicated that Ghana’s mining industry was worth US$5.9bn in 2019, the third highest in Africa, and grew at 6.3 per cent year-on-year, outshining many of its continental peers in resources sector.

It said Ghana also had Africa’s highest ranking in the Fitch Solutions mining risk/return reward index, which assessed potential returns on investment, both in terms of industry size and forecast growth and broader country characteristics like the regulatory environment.

However, the Accra retail market was close to saturation, and new developments will be opening in a challenging economic environment.

The report said in the short to medium term, retail development was likely to focus on secondary cities such as Takoradi and Kumasi.

"Ghana’s manufacturing sector is ranked the eighth strongest on the continent characterized by its small market size but high competitiveness," it said.

It said in all of that, Ghana remained one of the few West African countries bucking the downward growth trend by continuing to offer positive examples of economic recovery by placing emphasis on diversifying its economy.

It said despite the recent deterioration in its operating environment rankings, Ghana remains one of the easier business environments in Africa.

“Over the medium term is expected to average 6.2 per cent, which is supportive of the greater macroeconomic fundamentals," it added.

The report, however, said the country's public debt burden (and public arrears in the local sector) requires considerable fiscal consolidation to correct.

It indicated that the country’s commodity dependency was increasing, with oil, gold and cocoa being the main exports, which leaves Ghana heavily exposed to international price trends.

According to Fauconnier and Chris Mabanga, a contributor manufacturing was set to take centre stage as the continent, with its advantage of an abundance of natural resources, was focusing on turning its raw materials into manufactured goods to boost exports and reduce reliance on imports.