FDI drops by over 80% in 2016 third quarter

Business News of Sunday, 22 January 2017

Source: citifmonline.com

2017-01-22

Mawuena Trebarh GIPC NewMawuena Trebarh, CEO GIPC

Foreign Direct Investments decreased by 83.33 percent for the third quarter of 2016, figures from the Ghana Investment Promotion Centre (GIPC) has shown.

The FDIs dropped from 1.45 billion dollars in the second quarter of 2016 compared to the 241.17 million dollars for the third quarter of the same year.

Similarly, the total initial capital transfers for the newly registered projects amounted to US$18.08 in the second quarter of 2016 compared to the US$59.12 million recorded in the second quarter of 2016 and the US$15.82 million in the third quarter of 2015.

Total registered products in the third quarter of 2016 also dropped from 51 in the second quarter of 2016 to 46 in the third quarter of the same year.

This also represents a decrease compared to the third quarter of 2015 where total registered projects were 51.

Meanwhile a total of 1,504 jobs are expected to be created from the 46 newly registered projects at full capacity.

The total number of expected jobs to be created gives a decrease of 74.90% over the 5,993 expected jobs to be created in the corresponding quarter of 2015.

Out of this, 214(14.23%) will be made of expatriates, whiles 1,290 (85.77%) will be made of Ghanaians.

Commenting on the report for the third quarter, the CEO of the GIPC, Mawuena Trebarh said, “The GIPC remains committed to our mandate to attract quality investments targeted at the development needs of the country. We therefore invite potential and existing investors to do business in the best investment destination on the African continent.”

Ownership Structure of registered projects

Of the 46 projects registered during the third (3rd) quarter, 34 (73.91%), were wholly-foreign owned enterprises valued at US$59.68 million which is 24.75% of the total estimated value of projects registered.

The remaining 12 (26.09%) were joint ventures between Ghanaians and foreign partners valued at US$181.49 million which is 75.25% of the total estimated value of projects registered.

Sources of Foreign Direct Investment (FDI)

China was the biggest contributor and highest source of investment with 9 projects in the third quarter.

However, with an FDI value of US$178.08 million, Mauritius topped the list of countries with the largest value of investments registered during the quarter. This was then followed by China with US$17.02million, Canada with US$9.50million and Lebanon with US$6.73million.

The United Kingdom followed with US$4.39million and Hong Kong with US$3.90million.Netherlands also invested with US$3.33million.

South Africa came in eighth with US$2.56million, with United Arab Emirates following closely with US$1.50million.

Italy also made the list of investors support with US$1.33million.

Registered Ghanaian projects

A total of 10 Ghanaian projects were registered during the 3rd quarter, 2016. These projects are located in three (3) regions of Ghana, with Greater Accra registering the highest number of 7.

In terms of sectoral distribution, the services sector topped with 6 projects recorded.

The manufacturing sector recorded the highest number (243) of expected jobs to be created.

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