The Ghana Investment Promotions Centre (GIPC) recorded foreign direct investment (FDI) totaling US$123.06 million from 32 projects between January and March 2024, according to a quarterly report from the centre.
The report highlighted a 16 per cent increase in FDI compared to the US$106.02 million recorded during the same period in 2023.
Out of the 32 projects registered in the first quarter of 2024, the manufacturing sector recorded the highest number with 12 projects. This was followed by the services sector with 9 projects, general trading with 4 projects, and export trade and building and construction with 2 projects each.
The CEO of the Centre, Yofi Grant, indicated that the first quarter brought positive developments for Ghana, including growth in certain sectors. The Central Bank took steps to stimulate the economy by lowering interest rates in January 2024. This, combined with a steady decline in inflation from a peak of 54 percent in December 2022 to 23 percent by December 2023, with a forecast of 15 percent by the end of 2024, paints a more optimistic picture.
Overall, Ghana’s economy is expected to pick up speed in 2024, with a projected real GDP growth rate of 3.5 percent compared to an estimated 2.7 percent in 2023.
Mr. Grant also noted that the centre remains vigilant and proactive in its endeavors to attract investments, bolster economic resilience, and cultivate sustainable development in Ghana. “Our dedication to employing innovative investment promotion strategies remains steadfast, aiming to elevate Ghana’s global market influence.”
The tourism, liaison, and agriculture sectors recorded one project each. In terms of FDI value by sector, the liaison sector topped the list with US$76.30 million, followed by the manufacturing sector with US$31.69 million.
These investments are anticipated to create 3,602 jobs when operations reach full capacity. Additionally, eight wholly Ghanaian-owned projects were registered with an estimated value of US$13.49 million.
Of the total jobs created, 3,379 (93.8 percent) will be for Ghanaians, while the remaining 223 (6.2 percent) will be for non-Ghanaians.
In terms of regional distribution, five regions directly benefited from the 32 projects. The Greater Accra region registered 24 projects, Ashanti had 4, Eastern had 2, and the Central and Upper East regions each had 1 project.
Significant contributions to FDI were recorded in key sectors such as manufacturing, services, general trading, export trading, building and construction, agriculture, liaison, and tourism.
China, with 8 projects, was the leading source of investments by the number of projects, while Spain recorded the highest FDI value at US$76.41 million in the first quarter of 2024.
The report also disclosed that from January to March 2024, 11 companies brought in additional equity totaling US$10.82 million.
Furthermore, the eight wholly Ghanaian-owned projects, with a total project value of US$13.49 million, were registered in the building and construction, general trade, manufacturing, and services sectors.
By Eugene Davis
