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EIU ranks Ghana among African nations with worsened operational risk

Operational risk is termed as the risk of losses caused by flawed processes, policies, systems or events that disrupt business operations.

The UK-based firm in its recent Operational Risk Outlook attributed Ghana’s worsening score to the deterioration in the macroeconomic risk sub-category.

“The operational risk scores for 16 of the 51 African countries in EIU’s Operational Risk Service worsened between end-2022 and mid-2023, including those for Ghana, Egypt and Sudan”.

“This reflects the negative impact of rising domestic consumer prices on businesses’ profit margins and the wider implications for exchange-rate and monetary policy,” the EIU said.

The firm, however, noted that despite the ongoing shocks in the global economy, macroeconomic risk had retained its position as the best-rated subcategory across the region with an average score of 43, equivalent to a C rating.

It clarified that this mainly reflects the relatively rapid economic growth associated with expanding populations.

In addition to the rankings, some 11 out of 51 African countries, including Tanzania, the Central African Republic, and Ethiopia recorded an improving Operational Risk Outlook.

Despite this, the EIU cautioned that “We also believe that there is a high risk of financial sector distress, given high and rising public debt levels and comparatively low levels of banking supervision and autonomy in the region.”

 

Source: www.ghanaweb.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. In addition to his media ventures, Solomon serves as a Brand Ambassador for Alabuga, a prominent Russian industrial company, representing their interests and expansion across Africa. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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