Telecom Risks and Rewards Index : Ghana slips 2 places to 5th position
Ghana slipped two places to 5th in the latest Fitch Solutions sub-Sahara Africa’s Risks and Rewards Index.
Globally, the nation also lost its 73rd position to place 77th.
The country scored a total of 53.1 points in the Risks/Rewards Index, up from the previous quarter of 52.8 points, but that was not enough to push it from the 5th position. However, it’s telecom market is considered as one of the most attractive on the African continent.
48 countries in sub-Sahara Africa were captured in the report.
In terms of the criteria, it was also ranked 5th in Regulatory Independence and Urban/Rural Split in the region respectively.
The report said the improve score was mainly due to positive demographic data as well as new mobile market growth data. This shows promising uptake of advanced services as the market grows increasingly receptive to new technologies, applications and services.
“Ghana scores 53.1 out of a potential 100 points, up from the previous quarter’s score of 52.8. This is mainly due to positive demographic data as well as new mobile market growth data which show promising uptake of advanced services as the market grows increasingly receptive to new technologies, applications and services”.
However, increasing taxes have impacted on the operators’ investment strategies, particularly related to advanced services.
These risks the report said will be particularly heightened as operators have faced increasing operational costs on the back of theft and damage to critical telecoms infrastructure around the country.
Majority shareholders of Airtel/Tigo left the telecom space mainly due to increasing operational cost. Meanwhile, South Africa maintained its lead as number one country in the region in terms of the Risk/Reward Index in the telecom space. It was followed by Nigeria and then Gabon and Senegal in 2nd, 3rd and 4th respectively.
Sub-Sahara Africa’s overall score stood at 40.1 points
Sub-Sahara Africa’s overall score stood at 40.1 points, out of a potential 100 points in the Risk/Reward Index for the fourth quarter, a 0.1-point decrease from the previous quarter.
The report said the region continues to underperform the global average of 50.0 point.
| Country | Rewards | Risks | Risk/Reward Index | Regional Ranking |
| South Africa | 58.4 | 61.6 | 59.4 | 1 |
| Nigeria | 62.1 | 45.5 | 57.4 | 2 |
| Gabon | 60.4 | 40.6 | 54.4 | 3 |
| Senegal | 52.3 | 55.6 | 53.3 | 4 |
| Ghana | 48.4 | 63.9 | 53.1 | 5 |
| Botswana | 48.1 | 62.5 | 52.4 | 6 |
| Mauritius | 41.3 | 76.6 | 51.9 | 7 |
Note: The higher the score for Risks, the lower the risk pertaining in that environment.
Source: myjoyonline.com
