24.04.2008 Business & Finance

GIPC new investments hit $3b in first quarter

24.04.2008 LISTEN
By Stephen Odoi-Larbi - Ghanaian Chronicle

The Ghana Investment Promotion Centre (GIPC) has recorded a US$ 3.Obillion worth of new investments in the country for the first quarter of the year (2008).

This performance recorded by the centre represents 50percent increase in total new cash investment as compared to the same period in the previous year (2007).

During the quarter under review, the Centre recorded a total cash investment of GH¢ 451.6million as compared to GH¢ 300.49 the previous year, out of which GH¢ 433.8million constituted reinvestments.

At a media briefing in Accra on Wednesday, the Chief Executive Officer of GIPC, Mr. Robert Ahomka-Lindsey, attributed his outfit's performance to the economy, which has remained conducive for investment for the past years.

To this effect, during the period under review (first quarter, 2008), his outfit registered 92 new projects with which their total investments were estimated at GH¢ 2,971.98million as compared to 57 investments in the previous year (2007).

Out of the 92 new projects registered, 9,707 new jobs were created as compared to 2,082 for the same period in the previous year, constituting an increase of over 300percent, according to the GIPC boss.

“This outstanding performance demonstrates the resolve of the GIPC to remain focused and deliver on its mandates in positioning Ghana as the preferred destination for both Domestic and Foreign Direct Investments (FDI) in Africa and directing FDI into strategic sectors such as infrastructure and manufacturing”, noted Mr. Ahomka-Lindsey.

India and China continue to be the leading FDI in the country whilst the United Arab Emirates stood on top in terms of value in investments.

Kampac Resources Ghana Limited, a Dubai based company leads the investments in terms of value with US$ 2.0billion investment in the railways sector.

Out of the 92 projects registered during the first quarter under review, 56 of the projects, representing 60.9percent were new wholly foreign enterprises, with the remaining 36 projects, representing 39.1percent, being joint ventures between Ghanaians and their foreign partners.

The joint projects were estimated at GH¢ 2,926.78million whilst the projects that were wholly owned by foreign enterprises were valued at GH¢ 45.14million.

Out of the projects recorded, general trading, services and manufacturing recorded the highest in terms of sectoral composition.

The Agriculture sector recorded the least projects during the period under review.

Mr. Ahomka-Lindsey in reaction to why agriculture recorded the least projects said one of the challenges being faced by the sector was ready availability of land which has continued to shy investors away.

Another area he mentioned was non-availability of funds from lending institutions and other financial institutions to farmers.

To this effect, he said he has ordered his support team to look into the area of that sector (Agriculture) and come out with solutions to lift it to greater heights.

He also appealed to financial institutions to provide loan facilities to farmers in order to improve the agriculture sector in the country.

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