Gov’t assures prudent use of $2.7billion GIPC investment inflows

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The Ghana Investment Promotion Centre (GIPC), last year, reported some $2.7 billion in investment inflows.

This the government has promised to put to prudent use for the benefit of Ghanaians.

The Minister of Information, Kojo Oppong Nkrumah, disclosed this at a press conference yesterday, assuring that government would continue to assiduously pursue worthwhile investments to help bolster the Ghanaian economy towards recovery.

This, he said, would be done by putting the inflows reported by GIPC into good use in order to shore up the economy and better the lives of Ghanaians generally.

“The key thing that the GIPC is at this stage leading government to do is, all of these investments in terms of their equity compositions and then their logistics compositions are on board fully, so that the jobs and opportunities associated with them can be realized by the Ghanaian people.

“So, for example, it is estimated that a with total of 27,000 jobs expected to be generated from the 279 projects with operations at full capacity, about 22,000 of those jobs are expected to be for Ghanaians, while about 1,064 of those jobs, just about five per cent, are expected to be taken up by expatriate or non-Ghanaians,” the Minister said.

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Foreign Direct Investment

This comes at the back of an upsurge of up to 140 per cent in Foreign Direct Investment (FDI) for 2020, in spite of the ravaging effects of the coronavirus disease.

From January to December 2020, Ghana recorded 279 projects with total estimated investment of US$2,796.49 million. The FDI component and the local components amounted to US$2,650.97 million and US$145.52 million respectively for 2020.

The Minister assured that government, through the new investment inflows, would embark on meaningful projects and creates more jobs for Ghanaians.

Inflows

Ghana saw a surge in Foreign Direct Investments (FDI) inflows, recording an impressive over 2.6 billion dollars’ worth of inbound investments for the year 2020. The trend defied the anticipated steep decline in FDI flows as a second wave of COVID 19 infections threatened to cripple the Ghanaian economy.

A report by the United Nations Conference on Trade and Development placed the pandemic-induced decline in global FDI at 42 per cent. The fall was however highly uneven across developing regions.

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While Ghana had initially witnessed a plateau in FDI inflows during the first wave of infection and its ensuing lockdowns, investments well along saw a rebound on the back of government policy responses to mitigate the impact of the health pandemic on businesses.

Total investment inflows, thus, peaked to US$2,796.49 million in 2020, with a total FDI value of US$2,650.97 million for Ghana.  The FDI value of US$2,650.97 million illustrates a significant increase of 139.06% over the FDI value of US$1,108.93 million recorded in 2019.

With the considerable inflow of investments, some 279 projects were registered within the year. This comprised 129 newly registered projects, 131 upstream developments and 19 free zones activities -dispersed across eight regions, with Greater Accra registering the highest number of 231 projects. Cumulatively, some 27,110 jobs are expected to be generated from the aforementioned registered projects.

For the year under review, some countries that stood out as the nation’s leading sources of inward investments included China, the United Kingdom, South Africa, Australia and the Netherlands.

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In terms of the sector allocation of the investments, the manufacturing sector with 57 projects recorded the largest FDI value of US$1,270.53 million. This was followed by the services and mining sectors with FDI values of US$656.19 million and US$ 424,32 million respectively.

On the domestic front, additional equity (cash and goods) totaling US$69.28 million was ploughed back as investment from 172 already existing companies, whereas GHC1,438.91 million was obtained from 52 wholly Ghanaian-owned ventures.

While this trend of strong performance in Ghana’s inbound FDI amidst the global health pandemic could be attributed to a combination of factors, including effective government policy responses, an easing of travel restrictions and more importantly the delivery and expected future development of vaccines in-country, the GIPC’s notable efforts as the leading investment promotion agency also played a pivotal role in attracting investors.

Moreover, as Ghana steps into an era of liberalized trade under the AFCFTA, there’s even stronger commitment from the Centre to boost investor confidence and ultimately harness valuable investments for Ghana, now Africa’s business capital.

 

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