30.05.2005 Business & Finance

Ghana Attracts More Investment

By Graphic
Ghana Attracts More Investment
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Accra, May 30 (Daily Graphic) --Ghana attracted investment of $21.43 million in the first quarter of this year. This amount excludes investments in mining.

Out of the amount, $18.59 million represented foreign direct investment (FDI) while $2.84 million was local equity.

This was contained in the quarterly report of the Ghana Investment Promotion Centre (GIPC) for the first quarter ending April 2005.

The report stated that 51 investment projects were embarked upon during the period, out of which 32 (62.7 per cent) were wholly foreign owned and 19 (37.3 per cent) were joint venture enterprises between Ghanaians and foreign entrepreneurs.

The manufacturing sector, the report said, topped the list with 20 projects, followed by services, 11; general trade, nine; building and construction, seven; export trade, two; agriculture, one, and tourism, one.

It noted that the actual equity capital transferred into the country during the quarter was $6.40 million, which was higher than the corresponding figures of $6.39 million in the first quarter of 2004.

The report said 2,136 jobs were expected to be generated from the 51 projects registered between January and March this year, of which 1,905 were expected to be for Ghanaians and 231 for foreigners

“The building and construction sector is expected to employ 788 Ghanaians and 59 foreigners, the manufacturing sector 561 Ghanaians and 63 foreigners, the service sector 269 Ghanaians and 41 expatriates, and the general trade sector 161 Ghanaians and 31 expatriates,” the report said.

“The agricultural sector is expected to employ two Ghanaians and 11 expatriates, tourism will employ 102 Ghanaians and 14 expatriates, while the export sector is expected to employ 22 Ghanaians and 12 expatriates,” the report added.

The report revealed that India, Britain, China, Lebanon, Germany and the USA continued to be the main sources of investment inflow into Ghana and added that India had registered 188 projects; Britain, 178; China, 168; Lebanon, 140, the USA, 127; and Germany 106 since 1994.

The leading African countries investing in Ghana, the report said, were Nigeria, with 56 projects; South Africa, with 33 projects, and Cote d'Ivoire with 11.

On regional distribution of registered investment projects, the report said the Greater Accra Region topped with 79.37 per cent, with the Ashanti, Western, Central, Eastern, Volta, Northern, Brong Ahafo, Upper East and Upper West regions having portions of 6.80 per cent, 4.61 per cent, 3.20 per cent, 2.81 per cent, 1.41 per cent, 0.96 per cent, 0.51 per cent, 0.28 per cent and 0.06 per cent respectively.

The report expressed the hope that investors would take advantage of the locational tax incentives to bring about a more even distribution of the projects for the benefit of the well-endowed regions.

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