12.1 C
London
Tuesday, October 7, 2025

Advisory Firm Targets Ghana as Investor Confidence Returns

Investor Confidence
Investor Confidence

Frontière Advisory has launched operations in Africa with Ghana identified as a priority market, as the country’s economic stabilization program begins restoring investor confidence following years of financial stress.

The advisory firm, which specializes in reputation management and stakeholder strategy, announced its launch on October 6, 2025, positioning itself to help companies navigate Ghana’s evolving regulatory and community landscape. The timing coincides with Ghana’s notable economic turnaround after weathering severe inflation pressures.

Ghana’s inflation rate dropped to 11.5 percent in August 2025, marking its lowest level in nearly four years. This represents a dramatic improvement from the peak above 50 percent recorded in 2023, reflecting the success of economic reforms implemented under the current administration.

The Bank of Ghana has responded to the improved inflation outlook by cutting interest rates to 21.5 percent, the lowest level since 2019. This monetary easing cycle signals growing confidence that inflationary pressures will continue moderating, potentially creating more favorable conditions for business investment.

Elena Ansong, Frontière Advisor for Ghana, emphasized that economic metrics alone don’t guarantee sustained investor confidence. “Ghana has moved past peak stress, but legitimacy is still on trial,” she noted. “Companies are judged not just by balance sheets, but by how they handle power reliability, land, water and price explanations.”

Her comments highlight a critical reality facing businesses operating in Ghana. Technical compliance and financial performance matter, but community relationships and stakeholder trust increasingly determine whether companies can operate smoothly or face disruptions that erode profitability.

Ghana’s stabilization reflects broader African trends toward improved investment climates. Foreign direct investment to Africa reached a record $97 billion in 2024, surging 75 percent year on year according to UNCTAD reports. However, these flows remain highly concentrated in specific countries and sectors, making governance and community relations crucial differentiators.

Deanne Chatterton, CEO for South Africa and Africa at Frontière Advisory, stressed that reputation directly impacts enterprise value. “The firms that do best are those that take local trust seriously before it is tested, not after,” she explained. “Leaders who manage stakeholder relationships with credibility unlock growth. Those who don’t, erode it.”

This philosophy reflects growing recognition across capital-intensive sectors that social license to operate carries tangible financial implications. Mining, energy, and agribusiness projects particularly depend on maintaining community goodwill to avoid costly delays or operational disruptions.

Research associated with the Harvard Kennedy School estimates that world-class mining projects can lose approximately $20 million per week in net present value when production delays stem from social conflict. These figures underscore why companies increasingly view stakeholder engagement as risk management rather than corporate social responsibility.

Ghana’s capital-intensive sectors face specific challenges around power reliability, land disputes, water access, and pricing transparency. Companies that address these issues proactively through clear communication and burden-sharing arrangements tend to maintain smoother operations than those reacting to problems after they escalate.

Sovereign ratings agencies are monitoring Ghana’s fiscal consolidation efforts closely. The country restructured its external debt and implemented reforms aimed at restoring macroeconomic stability, but sustaining discipline remains essential for maintaining improved credit outlooks that enable cheaper financing.

Kim Polley, CEO for UK and Africa at Frontière Advisory, emphasized the speed with which trust translates into financial impact. “In Ghana, the ability to show fairness, explain decisions clearly and evidence discipline is what keeps market confidence intact,” she stated.

The firm combines senior-level advisory expertise with local market knowledge through a panel of advisors covering Ghana, Nigeria, Kenya, Mozambique, Tanzania, and Zimbabwe. This structure aims to ensure strategies account for lived experiences and local contexts rather than imposing generic approaches.

Frontière Advisory’s service offerings span reputation positioning, stakeholder strategy, risk and crisis management, and environmental, social, and governance alignment. These capabilities address increasing pressure from investors, lenders, and communities for companies to demonstrate responsible business practices.

McKinsey research indicates major projects continue facing schedule delays and cost overruns globally, often stemming from inadequate stakeholder engagement and risk management. Companies that invest in these capabilities upfront typically achieve better project outcomes than those treating them as afterthoughts.

For Ghana specifically, the improved macroeconomic environment creates opportunities for companies previously deterred by currency instability and high inflation. However, capturing these opportunities requires understanding that financial metrics tell only part of the story investors and communities consider.

The advisory firm’s founders bring extensive experience across African markets. Kim Polley has nearly 30 years advising global and African businesses on reputation and risk management across resources, agriculture, energy, financial services, and technology sectors.

Deanne Chatterton has worked across Africa, the UK, and Asia, helping organizations navigate crises, embed ESG practices, manage mergers and acquisitions, and build reputational resilience through periods of investor scrutiny and operational challenges.

Aon’s Global Risk Management Survey identifies damage to brand and reputation among the top risks worldwide, reinforcing why stakeholder confidence has become what Polley describes as “strategic currency” for businesses operating in complex environments.

Whether Frontière Advisory’s approach proves effective in Ghana will depend partly on whether companies embrace stakeholder engagement as core business strategy rather than compliance exercise. The firm’s emphasis on earning trust before it faces testing suggests recognition that reactive approaches rarely succeed.

Latest news
Related news