Locked
Why Ghana went from hero to zero for investors
Ghana seems to be facing a meltdown with investors - lucrative crude oil production is both its blessing and curse.
By Ekow Dontoh
Ghana is learning the hard way why oil can be a blessing and a curse. The onset of commercial crude production helped turn the West African nation into one of the continent's top investment destinations, but also prompted successive governments to borrow to the hilt. Skittish investors offloaded Ghana's bonds and currency, the cedi, amid doubts over its ability to settle its debts. The concern proved to be well-founded: In December, the government caught bondholders by surprise by unilaterally suspending interest payments on its external debt ahead of restructuring talks aimed at pinning down a $3 billion loan from the International Monetary Fund.
1. Why was Ghana so popular among investors?
___STEADY_PAYWALL___