Ghana’s stock market, Africa’s best performer in 2024, is poised to extend gains into 2025, driven by investor optimism over the incoming President John Mahama’s economic policies. The Ghana Stock Exchange Composite Index surged 56% in local currency terms last year, its highest rise since 2013, largely supported by a $3 billion International Monetary Fund (IMF) bailout expected to boost growth. With the nation’s gross domestic product (GDP) growing at an average of 6.3% in the first nine months of 2024, compared to 2.6% in 2023, experts predict continued market growth.
According to Alex Boahen, head of research at Databank Group, the worst of the economic crisis may be over, and the Ghanaian stock index could see a 45% increase in 2025 as investor confidence grows alongside economic improvements.
Other West African markets, including Ivory Coast and Nigeria, also performed well last year. Ivory Coast’s BRVM Composite Share Index climbed 29%, supported by a $3.5 billion IMF loan and record cocoa prices, while new oil and mining projects by companies like Eni SpA and Montage Gold Corp are expected to boost the Ivorian economy by 6.4% in 2025. In Nigeria, the benchmark stock index rose 38%, aided by economic reforms introduced by President Bola Tinubu, including currency liberalization and the end of fuel subsidies. Nigerian companies Oando Plc and Seplat Energy Plc saw significant gains following major acquisitions.
Despite Nigeria’s inflation challenges, Ghana’s cedi has risen 7.6% over the past three months, and further currency gains could help control inflation, providing a boost to Mahama’s government, which takes office on January 7. With the IMF program supporting fiscal consolidation, experts like Bora Capital’s Nana Kofi Agyeman Gyamfi believe the Ghanaian economy is set for a strong recovery.
In 2024, Ghana’s stock market ranked second globally, just behind Cyprus, where the Cyprus Stock Exchange General Index surged 58%. As Ghana enters 2025, its stock market is expected to continue thriving, buoyed by economic stabilization efforts and investor confidence.
