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24.04.2008 Business & Finance

Ghana attracts $460m investment in 3 months

By The Statesman

The Ghana Investment Promotion Centre has recorded a total of $460.7 million in new investments in the first quarter of the 2008 fiscal year. Robert Ahomka Lindsay, Chief Executive of the GIPC announced this in Accra yesterday.

According to him, this is made up of $442.6m cash investments of which $442.6m constitutes reinvestments and $7.98m being equity transfers. This has increased the country's investment portfolio by 50% compared to the $299.58m reinvestments and $7.04m initial equity transfer recorded in 2007.

The Centre successfully registered 92 new projects with a total value of $3,032m during the quarter under review as against 57 projects registered in 2007 which recorded $36.75m in value.

Out of the 92 registered projects, 56 representing 60.9% of the total number are new wholly owned foreign enterprises, with the remaining 36, 39.1% being joint ventures between Ghanaians and their foreign partners.

The joint venture projects generated $2.985m, while the 100% foreign owned enterprises earned $46.06m.

The manufacturing sector had 16 projects valued at $55m, with the service sector recording 19 projects valued at $4.3m. Tourism recorded 8 projects at $1.94m. Building and Construction had 6 projects at $2,079m. Export Trade, Agriculture and General Trading recorded 6, 5 and 29 projects valued at $2.3m, $1.13m and $819.2m.

Greater Accra recorded a total of 79 projects out of 92, Ashanti 2, Brong Ahafo 2, Central 2, Eastern 2, Northern 1, Volta 4, and Western 1.

India and United Arab Emirates top the investor countries chart with 17 projects each valued at $2.076m. China, Nigeria, Britain, Netherlands and France followed with 16, 7, 7, 4, 4 and 3 projects respectively.

Mr. Ahomka-Lindsay said apart from India and China, the United Arab Emirates had made a huge impact, singling out the $2billion investment by Kampac Resources Ghana for the rehabilitation and the modernisation of the western and central railway lines as an example of the country's growing investor profile.

"The outstanding performance demonstrates the resolve of GIPC to remain focused and deliver on its mandate in positioning Ghana as the preferred destination for both Domestic and Foreign Direct Investment in Africa," he stated.

The increased investment is projected to have created employment opportunities for 9,707 people as against 2,082 jobs that were created over the same period last year, constituting an increase of 300%.

Mr Ahomka-Lindsay expressed disappointment at the low level of investment in the agric sector and said efforts were being renewed to make agriculture attractive to investors.

He cited administrative conflicts, lack of data on unutilised lands, and disputes over ownership of lands, among others, as some of the challenges making the industry look unattractive but said efforts were being made to resolve the various bottlenecks.

By slarge

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