Business News of Thursday, 27 July 2017
Ghana recorded 1,775.11 per cent increase in Foreign Direct Investment (FDI) inflows for the first quarter of 2017 over that of 2016.
According to the Ghana Investment Promotion Center, the nation bagged US$2.954 billion in registered FDIs in the first three months of 2017, as against US$157.57 million during the same period last year.
Total estimated value registered during the first quarter was, however, US$3.04 billion, about 1118 percent increase over the same period last year.
49 new projects were also registered for quarter one 2017. Out of this, 43, representing 87.76 percent were wholly-foreign owned enterprises valued at US$539.56 million which is 17.75 percent of the total estimated value of projects registered.
The remaining 6.0 (12.24 percent) were joint ventures between Ghanaians and foreign partners valued at US$2.500 billion which is 82.25 percent of the total estimated value of projects registered.
Some of the companies registered were Early Power Limited, AFCONS Infrastructure Limited and Keta Krachi Timber Recovery Limited.
The total jobs expected to be created by the recorded investments are 2,551. Out of this, 343 of these will be for expatriates.
China, with 10 projects was the country with the highest source of investments in the first quarter of 2017. However, with an FDI value of US$2.434.40 billion, Netherlands topped the list of countries with the largest value of investments registered during the quarter.
Manufacturing led the pack with US$2.5 billion (85.3 percent) estimated value of project followed by Liaison (US$406 million )and General Trading (US$15.87 million)
Seven regions out of the 10 regions directly benefited from the registered projects during the quarter. The regions are Ashanti (1), Brong-Ahafo (1), Eastern (3), Greater Accra (39), Northern (2), Volta (1) and Western (2) region. 79.59 per cent of all the projects registered are located in Greater Accra region.
Also, a total of 14 Ghanaian projects were registered during the 1st quarter of 2017. These projects are located in five regions, with Greater Accra registering the highest number of 8.
In terms of sectoral distribution, the services sector registered the highest number, with 6 projects. The building & construction sector recorded the highest number of expected jobs (1,447) to be created.
Commenting, CEO of GIPC, Yofi Grant said the first quarter of 2017 has been an exciting period for the GIPC, following the initiation and commencement of some critical business friendly policies and projects of the new political administration. Some of these policies and programs such as the “One District One Factory”, the “Planting for Food and Jobs”, “Accra Marine Drive” project and improved tax system in the 2017 Budget Statement have boosted investor confidence, leading to the influx of visits by potential investors in the 1st quarter.
“With an expected target of attracting double the amount of FDI recorded in the entire period of 2016, and the current approach of the staff and management to their activities of promoting investments and delivering all round positive results, the GIPC is confident of achieving its set target of US$5 billion for the year 2017 and to also make Ghana the best investment destination in Africa”, he added.