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20.10.2008 Business & Finance

FDI Increases to GH¢ 1.3 billion in 3rd half 2008

By The Statesman

The Ghana Investment Promotion Centre recorded GH¢1.38 billion new Foreign Direct investments for the third quarter of 2008 from 1st July to 30th September against a figure of GH¢851 million recorded over the same period in 2007.

The total estimated value of the third quarter's new investments in projects increased by over 680% to GH¢1.58 billion from GH¢175 MILLION recorded over the same period in 2007.

Out of the 82 projects registered during this quarter, 51 of them, representing 60 % are estimated to be wholly owned foreign enterprises, with the remaining 31 projects being joint ventures between Ghanaians and their foreign partners.

The joint venture projects are valued at GH¢1.3billion whilst the 100% foreign owned enterprises are valued at GH¢280.94million.

The figure comprises GH¢407.41 million worth of reinvestments, (that"s on capital goods imported), and GH¢972.10 million in equity transfers for new projects registered during the quarter under review and existing investments.

It is estimated that 82 new projects were registered during the third quarter, out of which 2 were liaison offices against 80 projects registered in the same period in 2007, showing an increase of 60%.

According to Robert Ahomka-Lindsay, Chief Executive Officer of GIPC, the new investment was expected to create 4,631 jobs .89.645that's 4,151 of the total jobs would be created for Ghanaians and the remaining 10.36% would be available for expatriates, bringing the total number of jobs created in 2008 to 19,262.

The sectoral composition saw projects in the area of services which topped in the second quarter once  again topping the list with 1400 projects, building and construction,600,general trade,500,agriculture,350,manufacturing,300,export trade,100,tourism,about 100,and Liaison which is 50

Mr. Ahomka-Lindsay said the country continued to make progress despite the global financial crisis and the aggressive pursuit of Foreign Direct Investment by other countries.

He said the country was attracting investments into the critical areas of the economy necessary to sustain growth because of the overwhelming confidence in the Ghanaian economy and re-investment of existing companies.

India and the Netherlands continue to top the investment chart with 13 registered projects each valued at GH¢1,287.56, followed by Nigeria10 projects at GH¢257.12, China, Luxemburg, Germany and the united States with 9 projects at GH¢8.85.

France and Britain registered 7 projects Lebanon and Singerpore,6 projects at GH¢2.99 south Africa GH¢2.84 and  Norway with two projects at GH¢1.02million.

The location of projects continues to be skewed in favor of the Greater Accra Region, with 80 per cent of the projects located in Accra.

This is followed by the Ashanti, Western Eastern Northern and the Volta regions. Mr. Ahomka Lindsay noted that seven out of the ten regions benefited from the registered projects by way of their location with 84.15% of all the projects being located in Greater Accra.

He expressed dissatisfaction at the rate at which efforts were being made to open GIPC offices in all the ten regions and said he would make sure that they speed up their activities.

He said offices in each of the regions could help identify areas that needed investment and enable them encourage investors to go into these areas for the good of the country.

Prior to that , he announced his outfit is in a process of drafting a regional investment  plan for each of the regions and establish a satellite technology system to monitor investment activities.

This he said would also help to generate employment, improve infrastructure and living standards in all the regions.

 He also encourages Ghanaians with investments outside the country to do well to inform and partner GIPC to enable it assist them whenever possible. This, he said would also facilitate data collection and open new opportunities for them in the area of payment of revenue.

He said Ghana has signed several bilateral treaties and double taxation agreements with several countries which could benefit Ghanaian investors abroad when they partner GIPC. 

Mr. Ahomka-Lindsay said the Centre was making efforts to ensure fair and equitable distribution of projects across the regions. However, he said, investors continue to be attracted to Accra because of ready infrastructure and linkages.

"We are encouraging investors to venture into the regional centers and one way we can do this successfully is through agriculture and agri-business,' he said.