Youssouf Dao gave Ivory Coast the lead when he finished off from Hamed Traore in the 13th minute. The Ivorian after the goal continued to dictate the pace of the game.
Ghana were lucky not to have conceded a penalty after they brought an Ivorian striker inside the 18-yard box.
Ghana after the break restored parity in the game. Yaw Yeboah the skipper of the side struck in a through ball from Samuel Obeng in the 56th minute.
The Black Meteors went to sleep following the equalizer and allowed their Wet African neigbours to control the game. Ivory Coast benefited from their dominance when Youssouf Dao headed home a well-calculated cross from Silas Gnaka in the 85th minute.
Substitute Kwabena Owusu with two minutes into added time took on four players and was brought down inside the box, but managed to set up Evans Mensah to score the equalizer.
Evans Mensah could have been the hero of the day during extra time when he was fetched by his teammate in the Ivory Coast goal area, but his volley went over the crossbar.
Youssouf Dao was denied from registering a hat-trick by Kwame Baah, also in extra time, after he had beat a defender.
The extra time ended with either side failing to find the back of the net, so the penalty rule was evoked to break the tie.
Ghana scored the first penalty kick through Emmanuel Lomotey, before Diallo responded to the Black Meteors.
Emmanuel Cudjoe kick was stopped, but there was a sigh of relief for Ghana when Keita followed suit by wasting his kick for Ivory Coast.
Evans Mensah had his kick saved by the Ivorian goalie and Traore scored to put the Ivorians in the driving seat.
Samuel Obeng restored Ghana’s hope of staging a comeback, but Kouao K scored for Ivory Coast.
Before Kwabena Owusu broke Ghanaians heart with his lackluster penalty kick which was easily saved by the goalkeeper.
The Black Meteors are, however, left with another opportunity to qualify for the Olympics should they beat the loser of the second semi-final game between hosts Egypt and South Africa in the third-place play-off. The fourth placed-team will take on an opponent from Asia for a place in the Olympics.
Meteors XI vs Ivory Coast
Kwame Baah (GK), Kingsley Fobi, Edward Sarpong, Zackaria Fuseini, Habib Mohammed, Emmanuel Lomotey, Yaw Yeboah, Michael Agbekpornu, Evans Mensah, Robin Polley and Samuel Obeng