(Ecofin Agency) – Driven by a robust economic recovery and reforms, the Ghana Stock Exchange set a ten-year record in 2024 (+56%), the second best performance in the world. In 2025, the market promises to continue this momentum. The trend is regional, in Nigeria as on the BRVM, the dynamic is also confirmed.
The Ghana Stock Exchange recorded an increase of 56% in local currency in 2024, a performance which makes it the second best financial center in the world, behind Cyprus (+58%). This result is the result of an economic recovery supported by a $3 billion bailout from the International Monetary Fund (IMF), the debt restructuring agreement and the election of John Mahama as president.
This performance marks the return to grace of an economy which has gone through difficult times. Ghana was in fact emerging from one of the worst economic crises in its history: uncontrolled inflation, dizzying depreciation of its currency, the cedi, and a public debt which weighed heavily on the country’s finances.
After this period of economic crisis, the West African country saw its gross domestic product (GDP) grow by 6.3% on average over the first three quarters of 2024, compared to 2.6% a year earlier. , according to official data. This rebound was favored by the IMF program, which made it possible to stabilize public finances and revive economic activity.
In this climate, the election of John Mahama in December reassured investors. The former president, who is returning to business, promises to restore macroeconomic stability and restore Ghana to its rank as the second largest economic power in West Africa, behind Nigeria.
The Ghana Stock Exchange Composite Index took advantage of this context to record its best performance in a decade. The banking sector, telecommunications and natural resources drove this dynamic, while the recovery of the cedi, which appreciated by 7.6% in the last quarter of 2024, also helped to reassure foreign investors.
“We think the worst is behind us “, confided to Bloomberg, Alex Boahen, analyst at Databank Group in Accra, who anticipates a 45% increase in the Ghanaian index in 2025.
A regional dynamic: Ivory Coast and Nigeria
Ghana is not alone in this dynamic. In its Ivorian neighbor, the BRVM Composite index – which brings together the 47 listed companies from the 8 WAEMU countries, more than 70% of which are Ivorian – jumped 29% in 2024, driven by a resilient economic environment. This is its best performance in 3 years. Côte d’Ivoire, the economic engine of the Union, is expected to post growth of 6.4% in 2025, according to the IMF.
Despite social tensions linked to record inflation, Nigeria saw its stock market increase by 38%. President Bola Tinubu’s reforms, such as the liberalization of the naira and the end of fuel subsidies, have attracted foreign investors. However, the country still faces high inflation and a cost-of-living crisis, which could dampen investor enthusiasm.
Fiacre E. Kakpo
Edited by MF Vahid Codjia
Read also:
03/01/2025 – African stock markets growing sharply in 2024
