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Ghana’s Foreign Direct Investment

2016 2nd Quarter

Foreign Direct Investment (FDI) results recorded during the second quarter of 2016 increased by over 400% in the amount of initial transfers compared with the value recorded in the corresponding quarter of 2015.

According to the Ghana Investment Promotion Centre (GIPC), 12 more projects were recorded in the second quarter compared with the number of projects recorded in the first quarter of 2016.

In addition, a total of 51 new projects were registered with total initial capital transfer amounting to US$59.12 million.

Meanwhile of the total estimated value of the projects which was US$1.45 billion, FDI component amounted to $1.41 billion.

Also total of over 4000 jobs are expected to be created by the projects recorded.

CEO of the GIPC, Mawuena Trebarh explained, “As part of our growing efforts in creating awareness of GIPC services to the local business community, the GIPC continues to engage with local investors through the annual outreach program.”

Meanwhile a total of eighteen (18) wholly Ghanaian projects were registered by the Centre in the quarter under review.

The estimated value of these projects amounted to US$392.19 million.

Ownership Structure of registered projects

Of the 51 projects registered during the second (2nd) quarter, 40 (78.43%), were wholly-foreign owned enterprises valued at US$391.17 million which is 26.97% of the total estimated value of projects registered.

The remaining 11 (21.57%) were joint ventures between Ghanaians and foreign partners valued at US$1.06 billion which is 73.03% of the total estimated value of projects registered.

                                                           Sectoral breakdown of the 2016 Q2 FDI

A breakdown of how the various sectors benefited from the 2016 Q2 FDIs

A breakdown of how the various sectors benefited from the 2016 Q2 FDIs

Geographical distribution of projects

Seven out of the ten regions directly benefited from the registered projects during the quarter.

The regions are Ashanti, Central, Eastern, Greater Accra, Northern, Volta and Western region.

74% of all the projects registered are located in Greater Accra region.

Sources of Foreign Direct Investment (FDI)                 

China, with 13 projects, ranked the number 1 source of investments by number of projects.

Also, with an FDI value of US$1.06 billion, Singapore topped the list of countries with the largest value of investments registered during the quarter.

Details of countries and their respective number of projects for second quarter of 2016

Details of countries and their respective number of projects for second quarter of 2016

2016 1st Quarter

Figures published by the Ghana Investment Promotion Center (GIPC) in 2016 showed that the Foreign Direct Investment  (FDI) component of the total estimated amount of the registered projects for the last quarter of 2015 amounted to US$2.33 billion, with a local currency component of US$351.31 million.

According to the GIPC figures FDI’s into Ghana declined by 31 percent between 2014 and 2015.

The total FDI of about 3.4 billion dollars recorded in 2014 declined to 2.3 billion dollars in 2015.

Also, total number of projects declined from 185 to 170 for the same period.

The figures however showed an increase in local components for the same period increased by 93.4 percent.

It thus increased from 181.61 million dollars to 351.31 million dollars.

According to the GIPC, total number of projects registered for the period decreased from 185 to 170.

Total initial capital also declined by 60 percent from about 180 million dollars recorded in 2014 to about 70 million dollars recorded in 2015.

Although countries with highest number of projects increased from 30 in 2014 to 35 in 2015, the value of countries with highest investments reduced from about 1.9 billion dollars in 2014 to about 1.3 billion dollars in 2015.

The value of all notable investments declined by 46 percent as the 2014 figure of about 2.4 billion dollars declined to about 1.3 billion dollars.

While total employment to non-Ghanaians declined from 1,452 to 1,414 for the period; total employment for Ghanaians however increased from 11,664 to 13,534 between 2014 and 2015.

Source: GIPC

Source: GIPC

Source: GIPC

Source: GIPC

Source: GIPC

Source: GIPC

Source: GIPC

Source: GIPC

According to the GIPC,  total initial capital transfers of registered projects for 2015 amounted to US$69.70 million.

Total jobs created for 2015 by the registered projects was 14,948, an increase of 13.93% over the jobs to be created by the projects recorded in 2014.

Source: GIPC

Source: GIPC

In all, 13,534 jobs reserved for Ghanaians are to be created out of the total number for the year 2015, an increase of 15.97% over the 2014 figure.

Source : GIPC

Source : GIPC

As part of its strategy for 2016, the GIPC has announced that it will focus on improving upon its operational efficiency, provide higher level services and roll out the second phase of  the “Think Ghana Make it Happen” campaign with the target of propelling Ghana to become the preferred investment destination in Africa.

Source: GIPC

Source: GIPC

Source: GIPC

Source: GIPC

Total number of registered projects was 170, a figure lower by 14 projects compared to the number recorded in 2014.

This resulted in a total estimated amount of US$2.68 billion for 2015.

Source: GIPC

Source: GIPC

Source: GIPC

Source: GIPC

According to the World Bank, Foreign Direct Investment, net (BoP, current US$) in Ghana was ($3,226,300,000.00) as of 2013.

Over the past 8 years, the value for this indicator has fluctuated between ($144,970,000.00) in 2005 and ($3,293,430,000.00) in 2012.

Source: IMF, Balance of Payments Statistics Yearbook and data files.

Source: IMF, Balance of Payments Statistics Yearbook and data files.

Check below investment pattern from 1980

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4

Source:IndexMundi

Source:IndexMundi

GSE Returns on Investment

Credit: GSE

Credit: GSE

Source: GSE

Source: GSE

 

 

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