Ghana Records 101% Increase In FDIs Inflows

Ghana registered Foreign Direct Inflows of US$3.16 billion from January to June 2017, a significant increase of 101.27 percent over that of US$1.57 billion recorded during the same period of 2016.

This is however against 1,775.11 percent increase in FDIs inflows recorded for the first quarter of 2017.

According to the Ghana Investment Promotion Centre, 95 new investments were recorded in the first half of the year with a total estimated value of US$3.25 billion. This was a 91.18 percent increase over the US$1.70 billion estimated value recorded in the corresponding period of 2016.

The total initial capital transfer amount recorded in the first half of the year however amounted to US$44.14 million, a decrease of 42.25 percent over the US$76.43 million amount recorded in the same period of 2016.

Meanwhile, of the 46 projects registered during the second (2nd) quarter, 35 (76.09 percent), were wholly-foreign owned enterprises valued at US$61.75 million which is 29.87 percent of the total estimated value of projects registered. The remaining 11 (23.91 percent) were joint ventures between Ghanaians and foreign partners valued at US$144.98 million which is 70.13 percent of the total estimated value of projects registered.

The report explained that in the first half of 2017, a total of 95 new investments were registered and the services sector recorded the highest number of investments with 25 projects. It was closely followed by the manufacturing sector with 24 projects. The agriculture sector recorded only a project, being the sector with the least number of investments.

Interestingly, there was no investment recorded in the tourism sector. The manufacturing sector however topped the sectors by estimated value of investments, leading with US$2.62 billion.

A joint venture investment from Netherlands with an activity of manufacturing power for sale to ECG contributed to the large value of estimated cost in the first half of the year.

China, with 21 projects, topped the list of countries with the highest number of registered projects in the first half of the year and the Netherlands topped the list of countries with the largest FDI value, amounting to US$2.44 billion

Also, a total of 34 Ghanaian projects were registered with the Centre for the first six months of 2017, with a total estimated value of US$2.73 billion.
2,989 jobs are expected to be created for Ghanaians with building and construction constituting the highest number.

However, a total of 20 Ghanaian projects were registered during the 2nd quarter of 2017. These projects can be located in four regions, with the Greater Accra registering the highest number of 14.

In terms of sectoral distribution, the services sector with eight projects was the sector that recorded the highest number of projects and also with a total of 497 jobs, recorded the highest number of expected jobs to be created

Commenting, Chief Executive Officer of GIPC, Yoofi Grant said “The Ghana Investment Promotion Centre (GIPC) approaches the second half of the year with much enthusiasm, as we work around the clock to achieve our set target of attracting US$5 billion worth of Foreign Direct Investment (FDI) by the end of the year” .

He added that the Centre’s focus on its mandate within the first half of the year has been in diverse areas including its aggressive investment promotional missions, its participation in various local and international events related to investments and engagement with stakeholders on the process of reviewing the GIPC Act 2013 (Act 865). The engagements have been with the public and private sector stakeholders including the Ghana Immigration Service, Minerals Commission, the MDAs, the Pharmaceutical Society of Ghana, Telecoms Chamber, UK-Ghana Chamber of Commerce, Association of Ghana Industries and others

Source: The Finder