Initial FDI transfers soar
The Ghana Investment Promotion Centre (GIPC) has recorded a total of 51 projects valued at US$1.45 billion in the second quarter of the year, with a foreign direct investment (FDI) component valued at US$1.41 billion.
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Out of the 51 new projects registered by the centre, 40 were wholly foreign-owned enterprises valued collectively at $391.17 million. This represented 78.43 per cent of the total projects for the quarter.
The remaining 11 projects, which represented 21.57 per cent, were joint venture projects valued collectively as $1.06 billion.
The GIPC has in recent times focused attention on local businesses and developed a catalogue to prepare and market them to foreign entities for partnerships. The efforts are yielding results which have resulted in the high joint venture components.
The centre, therefore, registered a total of 18 wholly Ghanaian projects in the second quarter, with an estimated value of $392.19 million.
The Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Mrs Mawuena Trebarh, told the Daily Graphic that the centre had been doing a lot of sensitisation with local businesses, making them aware of delegations that were arriving so they could participate.
“The centre continues to stay on course to achieve its target for increased domestic and foreign investment. We have an initiative called ‘Think Ghana, Make it Happen,’ which we use as a vehicle to sensitise the domestic business people through various channels,” she stated.
Initial transfers soar
According to the GIPC, the second quarter performance of FDIs marked a significant improvement over the first quarter results on all parameters.
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“The most apparent of them is the over 400 per cent increase in total initial transfers of $59.12 million as against $10.03 million in the same quarter of 2015,” Mrs Trebarh said.
FDI is a controlling ownership in a business enterprise in one country by an entity based in another country.
Job creation
One of the cardinal benefits and principles of attracting FDIs is job creation and with the projects registered for the quarter, a total of 4,112 jobs are expected to be created.
Since the country’s laws permit some latitude for expatriate workers under the investment window to facilitate knowledge and skills transfer, 3,729 of the jobs to be created would be reserved for Ghanaians, with 383 expected to be occupied by expatriates.
Country performance
China leads the ranking of countries with the highest number of investments of 13 projects. However, in terms of the projects’ values, Singapore topped the list of countries with the largest value of investments of $1.06 billion, for the quarter under review.
The projects
Out of the 51 new projects registered by the centre, 40 or 78.43 per cent of the total projects were wholly foreign-owned enterprises, valued collectively at $391.17 million. The remaining 11 projects which represent 21.57 per cent, were joint venture projects valued collectively at US$ 1.06 billion.
Mrs Trebarh, in a new release, said the projects included the 660 megawatt combined cycle plant to be developed at Aboadze at the cost of $1.06 billion and the ceramic tiles and allied products project estimated at $182.60 million.
The services sector continued its trend of receiving the highest number of projects in the quarter under review with eight projects. The agriculture sector also recorded the highest number of expected jobs to be created.
Regional distribution
Seven out of the 10 regions directly benefited from the registered projects during the quarter.
The regions are Ashanti, Central, Eastern, Greater Accra, Northern, Volta and Western.
However, up to 74 per cent of all the projects registered are located in the Greater Accra Region the GIPC said.
Continuous engagement
Mrs Trebarh said the GIPC would continue to engage with domestic investors through its regional sensitisation tours and CEOs breakfast meetings as part of the centre’s growing efforts towards creating awareness of its services to the local business community.
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“As we continue to improve upon our efficiency and also put into action some of the best practices as an investment promotion agency, we are confident that the end of the year results of recorded FDI, as well as inflows, will be reflective of our collective team effort,” she said.
Other perspectives
Making reference to the attractive FDI out-turn for Ghana with high initial transfers, the Head of Standard Bank’s Commercial Banking, Africa, Dr Manessah Alagbaoso, said there were significant opportunities wrapped in the obvious challenges of a high rate of inflation, cedi fluctuation and current energy issues bedeviling businesses in Ghana.
“Successful investors see beyond the apparent and that is why foreign investors still troop into the country,” he said ahead of Standard Bank’s second Standard Bank inter-Africa trade and business conference in Accra.
For his part, the Managing Director of Stanbic Bank Ghana, Mr Alhassan Andani, urged investors in Ghana and Africa to take a long-term view that aimed for the long haul.
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“For investors to succeed in Ghana, one key thing they need to consider is longevity. Any business that comes to Ghana should be ready to invest for the long term if they really want to be part of the growth of Ghana,” he stressed.