Thursday, November 23, 2017

FDI RECORDS GROWTH

By William Yaw Owusu
Thursday, November 23, 2017

The Ghana Investment Promotion Centre (GIPC) recorded total investments of $4.37 billion through Foreign Direct Investment (FDI).

A GIPC quarterly report attributed the increase in FDI in Ghana to improving macroeconomic environment.

GIPC’s Chief Executive Officer (CEO) R. Yoofi Grant is quoted in the updated report as saying that the center had “closed the third quarter of the fiscal year ending 31st December 2017, having already directly booked US$ 3.37 billion of our US$5 billion target for the year of registered domestic and foreign investments for 2017.”

The report said the total FDI in Ghana included investments registered at the Free Zones Board (US$241.52 million), Minerals Commission (US$513.13 million) and the Petroleum Commission (US$358.41 million).

“We, at GIPC, are indeed encouraged to work hard to exceed our targeted FDI of US$5 billion for the year. The GIPC continues to be a central pivot of government in facilitating foreign direct and domestic investments to support development of our economy,” Mr Grant said.

He said, “An improved and attractive investment environment framework that will enhance sustainable partnerships and empowerment of indigenous businesses will continue to be a key focus of the GIPC.”

According to Mr Grant, “Ownership Structure of registered projects of the 44 projects registered during the third (3rd) quarter, 33 (75%), were wholly-foreign owned enterprises valued at US$61.08 million, which is 51% of the total estimated value of projects registered.”

“The remaining 11 (25%) were joint ventures between Ghanaians and foreign partners valued at US$58.73 million which is 49% of the total estimated value of projects registered,” he added.
He said that the current investment value of renewed projects showed an increase of about 101% over the total initial investment value of US$ 716.44 million and employment generated also increased by 101% over the initially estimated numbers.

He said data compiled showed that in the 3rd quarter, India and the United Kingdom, with five projects each, were the leading sources of investments by project numbers and added that with an FDI value of US$21.62 million, Denmark topped the list of countries with the largest value of investments registered during the quarter.

The FDI component of the total estimated value of the projects registered during the period under review (1st July to 30th September, 2017) was US$94.75 million, representing 79.1% of the total estimated value, and a local currency component of US$25.06 million, representing 20.9% while the total foreign equity was US$45.66 million and the initial equity transfer within the quarter was US$21.37 million.

A total of 139 new investments were registered from January to September 2017.

The manufacturing sector recorded the highest number of investments with 37 projects, followed by the services sector with 34 projects.

The agriculture sector recorded only one project while there was no investment recorded in the tourism sector, adding that in terms of the estimated value of investments, the manufacturing sector again topped with US$ 2.65 billion.

The high value, the GIPC boss explained, is attributable to a joint venture investment from Netherlands, with an activity of manufacturing power for sale to ECG.


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