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FDI shots up by 680%

By Kofi Ahovi and Fred Sarpong

The Ghana Investment Promotion Centre (GIPC) has recorded over GH¢1.38 billion of Foreign Direct Investment for the third quarter of 2008. An increase of over 680% from GH¢175m recorded for the same period last year. The estimated value of projects being financed by this figure is GH¢1.58bn.

The amount comprises GH¢407.41m worth of reinvestments (capital goods imported) and GH¢972.10m equity transfers for new projects registered during this quarter and existing investments.

During the same period a total of 82 new projects were recorded, 51 representing over 60%, are new wholly owned foreign enterprises with the remaining 31 projects being joint ventures between Ghanaians and other foreign partners. The joint venture projects are valued at GH¢914.36m, whilst the 100% foreign owned enterprises are valued at GH¢280.94m.

For the corresponding quarter in 2007, the total new investments were GH¢851m with 80 projects registered, an increase of over 60%.

According to the CEO of GIPC, Robert Ahomka-Lindsay, figures are a manifestation of recent massive investment from major companies, including; Vodafone UK which invested in excess of GH¢1.2bn in the telecommunications sector; the entry of MDS-Lancet Laboratories (GH) Ltd with a project value of over GH¢1.4m in the area of healthcare delivery and Advans Ghana Savings and Loans company which recently injected over GH¢8.8m in the microfinance sector.

Service sector recorded the highest number and value of investments, with 28 new projects estimated at GH¢1.56bn, followed by general trading and manufacturing sectors with 17 and 13 new projects respectively.

India topped the list of countries with the highest number of projects registered during the period, followed by Nigeria, while Netherlands led in the value of investments (GH¢1.29m) for the first time this year. Greater Accra region continues to be the highest beneficiary of FDIs.

It is expected that, from the number of new projects registered in this quarter, 4,631 jobs will be created, out of which 89.64% (4,151) of the total jobs to be created will be for Ghanaians. This brings the total number of jobs created so far in 2008 to 19,262.

Cumulatively, the total new investment for the first three quarters of 2008 was GH¢2.66bn with an estimated value of GH¢4.61bn and 227 new projects.
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