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Ghana’s AID and FDI Not under Threat from Global Turmoil

-As Experts predicts an end by 1st qtr 2009.
By Raphael Adeniran.

Ghana’s Official Direct Assistance (ODA) and Foreign Direct Investments (FDIs) are not likely to be affected by the recent crippling global financial crisis, because economist experts are predicting an end to the turmoil by the first quarter of 2009.
This timeline means the turmoil would end way before the Ghanaian economy begins to feel any potential impact.
Barely a fortnight ago, University of Virginia professors Robert Bruner and Herman Schwartz, during a forum on the current economic crisis, concluded that the world economy was not headed for times as bad as the Great Depression even though this was the worst U.S. financial crisis since then.

According to them, the collective actions of the U.S. Treasury Department, Congress and financial ministers worldwide standing in solidarity may be the crucial factor that brings the current financial turmoil to an end in a matter of months, by the first quarter of 2009, said Bruner, dean of the Darden Graduate School of Business.
In a collective action to stem the turmoil’s rampage, governments and international aid organisations globally have committed close to US$ 8trillion to bail out distressed countries and corporations.
According to analysts in Ghana and most part of the developing world, this was good news. Just last week, at Monetary Policy Committee’ press conference, the Governor of Ghana’s central Bank, Dr. Paul Aquah, allayed the public’s fears about the potential impact of the crisis on the country’s ODA inflows, According Dr Acquah, foreign aid to the country for this year will not be affected, because all proposed pledges have already been received and disbursed.
Meanwhile Ghana’s FDI are not under immediate threat either, with the suggested 2009 first quarter timeline. Ghana is fast becoming an FDI hub with the discovery and expected exploitation of its hydro-carbon reserves in the Gulf of Guinea by 2010.
The Ghana Investment Promotion Council, (GIPC) recently released figures indicating a 680 percent increase in FDI for the first three quarters on 2008 over the same period in 2007. More than 80 new projects were recorded at an estimated value of GH¢1.3 bn, with over 60 percent of the recorded projects wholly owned by foreign interests.






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