Ghana Attracts More FDIs

Ghana attracted $33.44 million in investments between April and June, this year, out of which $31.42 million was foreign direct investment and $1.95 million were in local equity.

According to a Ghana Investment Promotion Centre (GIPC) quarterly report dated July 2005, 70 projects were recorded during the period, 37 of them being wholly foreign owned, 29, joint venture enterprises between Ghanaians and foreign entrepreneurs and four liaison offices.

It said about 3,120, jobs were expected to be generated from the 70 projects, out of which 2,881 were anticipated to be Ghanaians and 239 foreigners.

The report said the manufacturing sector topped the list with 22 projects, general trade, 14, service, 13, tourism, seven, agriculture, four, building and construction, three and export trade, three.

The report said the actual equity capital transferred into the country during the quarter was $9.50 million, which was 71 per cent higher than the minimum expected transfer by law for the quarter under review and also higher than the corresponding figure of $3.49 million in the second quarter of 2004.

It added that initial foreign equity capital inflow from January 2001 to June 2005 was $112.60 million.

The report said manufacturing and services continued to be the leading sectors attracting foreign direct investment of $13.05 million and $3.18 million respectively. The tourism sector attracted $0.62 million.

It noted that India, China, Britain, Lebanon, the USA and Germany continued to be the main sources of FDI inflow into Ghana, adding that as of the end of June, this year, India had registered 196 projects, Britain, 181, China 185, Lebanon, 150, the USA, 130, and Germany 107.

The leading African countries investing in the country, the report said, were Nigeria, with 56 projects, South Africa, 33, and Cote d'Ivoire, 11. Malaysia, it added, was making significant inroads with the registration of 12 projects.

The report said the gradual rise in investments from La Cote d'Ivoire could be attributed to the political crisis in that country, while the strong presence of Nigerian investors could be a pointer to the good business environment in Ghana.