Ghana records 786 million foreign direct investment in the first half of 2020

Sierra Leone Telegraph: 24 October 2020:

Ghana has recorded total investments of US$869.47 million, with total Foreign Direct Investment (FDI) value amounting to US$785.62 million between January to June 2020 as FDI inflow showed rare strength in the final moments of the second quarter of the year, undeterred by the Covid-19 pandemic.

The total FDI of US$785.62 million represents investment recorded by the Ghana Investment Promotion Center (GIPC) and the Petroleum Commission.

Worldwide, the United Nations Conference on Trade and Development (UNCTAD) has forecasted   the Covid-19 pandemic to send global FDI plunging by about 40 percent – driving the total value of FDI below US$1 trillion for the first time since 2005.

However, in spite of a sluggish start in the first quarter of 2020 and a worrying slump in the beginning of the second quarter due to severe lockdown measures to contain the spread of the corona virus, FDI to Ghana have begun to rebound resulting in a notable increase in FDI inflow for the first half of the year.

At the GIPC, a total of 69 projects with a total estimated value of US$869.47 million was recorded by the end of June 2020. Of this, the total FDI component amounted to US$627.52 million while local component accounted for an estimated US$61.22 million.

The FDI value of US$627.52 million was a considerable increase of about 409.10 percent from last year’s FDI value of US$123.26 million, recorded within the same period (Jan-Jun 2019), depicting a strong performance irrespective of the global pandemic.

Out of the 69 projects recorded, the services sector registered a majority of 25 projects followed by the manufacturing and export trade sector with 21 and 11 projects respectively.

With regards to value, general trading recorded the highest amount of US$246.05 million. This was tailed closely by the mining exploration sector with US$123.26 million having sealed some major investments such as the Chirano Gold mine project for the exploration of minerals.

Ghana’s manufacturing sector also saw significant investments, valued at US$170.67 million on the back of some notable ventures, such as a deal by Matrix industries for the manufacture of paper and aluminium products as well as the Rainbow Paints Limited project which is a joint venture between Ghana and Kenya for the manufacturing of paints and related products.

Geographically, the spread of the projects cuts across 6 regions – namely, Greater Accra, Central, Eastern, Ashanti and Volta regions with most projects registered in the Greater Accra enclave.

Together, the 69 projects are expected to make significant contribution to job creation in the country.

A total of 14,614 jobs are expected to be created when the projects are fully operational. Out of this, 14,052 of the jobs representing 96.15 % will be for Ghanaians whilst the remainder of 562 jobs which represents 3.85% will be taken up by foreigners.

Meanwhile, additional equity totalling US$11.56 million was re-invested by existing companies within the first half of the year, while a total of GHC1,365.26 million was recorded as investments from 28 wholly owned Ghanaian businesses.

The seemingly positive performance of FDI inflows to the country has been to an extent attributed to the gradual easing of the Covid-19 restrictions as well as government initiatives and incentives rolled out to buffer businesses and the economy at the height of the pandemic.

Regardless of the upbeat performance, the United Nations Conference on Trade and Development (UNCTAD) predicts that FDI will continue to see a decline of 5-10 percent in 2021, with a slow recovery to be initiated in 2022 driven by restructuring of global Value Chains and a general rebound of the global economy.

In this regard, the GIPC remains cautiously optimistic about the flow of FDI to Ghana. That notwithstanding, the Center will continue to assiduously pursue worthwhile investments for economic development as well as support government initiatives such as the COVID-19 Alleviation and Revitalisation of Enterprises Support (CARES) Programme to help bolster the Ghanaian economy towards a recovery and remain resilient pre and post pandemic.

5 Comments

  1. As a matter of fact, Sierra Leone has been suffering from the Foreign Direct Investment (FDI) landscape since the ‘new direction’ SLPP came to power. All the country can boast of at the moment is a lacklustre and overzealous President who brags about his capability of stirring trouble and killing people with impunity. He doesn’t care about the daily hardships of the people in general; for example, the people of Marampa Chiefdom, through the closure of their mines and the continuous loss of earnings and government revenues that come with it. Even if the idea was to improve the marginal return in royalties to the local inhabitants, the fact that this entity is now continuously generating negative returns makes this fraught decision non-viable, imprudent and a foolish and reckless proposition.

    Apart from creating the necessary background in which business can flourish, there are attributes – like good negotiating skills, the appropriate business credentials, the right calibre, and presence – that are equally important in order to create the right atmosphere in which business agreements are naturally accomplished with ease. It is a pity that the country lacks the environment and an individual that can exhibit the right body language that will flux in much needed FDI into the country.

    The economic outlook of the country didn’t look good from the outset since this SLPP government was falsely INSTALLED on the people over two years ago. It may not be significantly wrong to assume that the perpetrators of such an action had the objective to impede or stall the country’s development prospects. Where is Mamamah International Airport? Where is the much touted Lungi Bridge? Where is Kono University? Where is the ultra-modern diagnostic centre? Where is what … What this government cares about is the monopolization of the political space of the country, and therefore very allergic to any form of Opposition. The development of the country is seen as a secondary priority.

  2. Good leadership comes in all forms. One thing you can’t do, is to teach good leadership to a leader. It comes out natural, and is not for the faint hearted. Mandela and this Ghanaian president understood it better than anyone. In coming out of prison, Mandela, invited his former prison guard for dinner in his family home. He didn’t stop there, one year after black majority rule came to power under his leadership, and to allay the fears of whites wanting to flee South Africa, President Mandela wore the South African Springboks ruby Jersey in the 1995 ruby world cup, that has always been the symbol of white power in the years of Apartheid.

    In other words white businesses that were scared of black rule were reassured, that Mandela’s government is not bent on revenge politics against the former leaders of the Apartheid regime like P.W. Botha and Magnus Malan. The few whites that left have gone back. Recently after the killing of George Floyd, in the United States, Ghana was the only African country that got a mention in his funeral eulogy. A clear message to African Americans that Ghana is their second home if they choose to. And it didn’t stop there, this Ghanaian president Nana Addo, is encouraging African Americans to come back and make Ghana their home. With that he knew investment will follow.

    We should take advantage of the role our country played in stopping that barbaric slave trade to our advantage. So if you have a president that think outside the box, instead of engaging in never ending political vendettas, and putting the security of the state at risk, there by creating uncertainty for foreign investors, chances are they will not come trooping to invest in your country. Even Sierra Leoneans are scared to go back home and invest – never mind foreigners. May God bless Sierra Leone.

  3. Make no mistake about it, good leadership serves as a ‘gravitational force’ that pulls external interests and flow of business investment towards a country’s direction. The current Ghanaian leader, Nana Akufo-Addo is among the brightest stars the continent of Africa can boast of in terms of good leadership. So it is no surprise his country is attracting such investment albeit the ongoing covid-19 epidemic raving nations’s economies around the globe.

  4. Well – this is what any nation that firmly clings onto the intrinsic values and solid principles of democracy can achieve in the littlest and briefest of time possible. Genuine lasting Peace, stability and a robust transparent environment that easily facilitates dialogue, mutual respect and understanding, have finally become the symbolic, altruistic Ghanaian way of life. In Ghana the effects of tribal differences on the social and political lives of its people are quite minimal – they strongly believe in the natural talent and inclinations of their citizens. Yup, in today’s Ghanaian society everyone is aiming for the stars, millions are still climbing on credible, reliable structures of patriotism the Great Kwame Nkrumah wisely built.

    He left behind scores of years ago – a highly resourceful and highly motivated energetic people. Travel to Ghana, relax and witness the awesome beauty of collective aspirations and transformation at work, as it fluidly surrounds itself like a giant octopus with diligence and mutual respect. Observe it carefully as it spins like a wheel, as it evolves and showcases itself with ease from being an unwanted dross to becoming the purest form of refined Gold. A well-behaved people with hearts overflowing with good intentions, prayerful and devoted to their country; that is who the Ghanaians really are. Answer – Why wouldn’t investors pour their hard earned money into a trustworthy place like Ghana; totally equipped with the brightest minds and fully functioning institutions that are considered among the most credible on the African continent?

    Unlike Maada Bio President Nana Addo came into office and took the baton of hope and accountability and ran pragmatically with it; our tired old soldier is still stumbling, falling on his way and just can’t seem to be able get up; Only the devil knows how he got so tightly shackled by his own gross incompetence.(lol) Ask me no more when positive change will come under the WRONG direction because it wont; and why should anyone languishing in abject poverty that has not been feeding their children in days, be happily watching a huge feeder overfeeding himself and his gap-toothed, tobacco chewing, palm-wine drinking SLPP Criminal cabal?(lol)

  5. I will like to see my country Sierra Leone grow more than this. God give our leaders wisdom and understanding to rule this country in the right way.

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