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FDI into Ghana up by 92.95% in first qtr2011

By Fred SARPONG
The Ghana Investment Promotion Centre (GIPC) recorded an increase of 92.95% in Foreign Direct Investment (FDI) inflows into the country from January to March, this year.

During the period, the centre had GH¢527.63 million in FDI inflows into the country compared to GH¢225.88 million recorded for the same period in 2010.
George Aboagye, Chief Executive Officer of GIPC, who announced these figures in Accra last week, said the success was achieved on the back of investment promotional missions abroad and on the domestic front.

The local currency component also amounted to GH¢40.02million, representing an increase of 6.61% over the local component of GH¢37.54million recorded in 2010.
The total number of projects registered by the GIPC for the three months period this year was 109 with a total estimated value of GH¢567.66million compared to 108 projects registered for the same period in 2010 with a total estimated value of GH¢263.42million.

The initial capital transfer for the newly registered projects during the quarter under review amounted to GH¢103.35 million as against GH¢20.81m, representing a 360% increase.

Out of the 109 registered projects, 66 (60.55%), were wholly-owned foreign enterprises valued at GH¢175.07m and the remaining 43 (39.45%) being joint ventures between Ghanaians and foreign partner valued at GH¢392.58million.
A total of 7,004 jobs are expected to be created from the registered projects, an increase of 14.41% compared to the 6,122 expected jobs to be created in the corresponding quarter of 2010. About 6,497 of the total jobs will be for Ghanaians and the remaining 507, for expatriates.

India, with 19 projects, topped the list of countries with the highest number of projects registered for the three months of 2011. Britain/Belize, with US$70.50 million investment, also topped the list of countries with the largest value of investments registered in the same period. Lebanon followed with US$59.94 million and Mauritania with US$56.00 million.

Six out of the 10 regions Ashanti, Central, Eastern, Greater Accra, Northern and Western will directly benefit from these projects of which about 78.90% are located in Greater Accra Region.
Aboagye said the centre will step up its missions and campaigns, leveraging on the improved perception of the country as a safe investment destination and the democratic credentials.

He said various investment missions to Europe, Asia and North America and the hosting of Jareco General Construction Limited from Dubai had been lined up to draw attention of big industrial players to opportunities available in Ghana.
Energy Bank Ghana Limited and HBSi Ghana Limited are the two major companies that started operation within the first quarter of 2011.
Energy Bank is a joint venture between Nigeria and Britain, but largely owned by the Global Fleet Group which has played a leading role in corporate Nigeria with substantial interests in strategic sectors of the economy. The bank shareholders’ fund is in excess of GH¢60m which makes it one of the highest capitalised banks in Ghana.
HBSi is also a joint venture between Britain and Ghana, and is a real estate development company based in Accra with a goal of producing affordable housing units.
HBSi developed a building solution that has revolutionised the building and construction sector. The current value of contracts which HBSi Ghana has secured now exceeds US$150 million. HBSi Ghana is on target to complete a number of its projects by 2019 and once it achieves full production capacity in 2011 it would have created over 200 full time jobs.

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