GIPC targets US$3bn of FDI

The Ghana Investment Promotion Centre (GIPC) is looking to attract at least US$3bn in foreign direct investment (FDI) this year as part of the country’s post-Covid recovery strategy.

Last year, the centre registered FDI projects worth US$2.65bn, an increase of 139 percent over the US$1.11bn registered in 2019. The trend defied the anticipated steep decline in the value of registered FDI projects as COVID-19 threatened to cripple the Ghanaian economy.

According to the GIPC’s 4th Quarter 2020 Investment Report that was released yesterday, some 279 projects were registered last year. This comprised 129 newly registered projects, 131 upstream developments and 19 free zones activities. Cumulatively, some 27,110 jobs were expected to be generated from the projects.

The leading sources of the investments were China, the United Kingdom, South Africa, Australia and the Netherlands.

In terms of the sectoral allocation of the investments, the manufacturing sector, with 57 projects, recorded the largest FDI value of US$1.27bn. This was followed by the services and mining sectors with FDI values of US$656.19m and US$424.32m, respectively.

Speaking at the launch of the report, Yofi Grant, CEO of GIPC, said: “While this trend of strong performance in Ghana’s inbound FDI amidst the global health pandemic could be attributed to a combination of factors, including effective government policy responses, an easing of travel restrictions, and, more importantly, the delivery and expected future development of vaccines in-country, the GIPC’s notable efforts as the leading investment promotion agency also played a pivotal role in attracting investors.”

He stated that Ghana wants “enduring investors who will grow with us”, and added that the centre has created the Aftercare and Diaspora office to attract at least US$3bn of investment in specific areas.

The report revealed that on the domestic front, additional equity totalling US$69.28m was ploughed back as investment by 172 already-existing companies, whereas US$250.68m was invested by 52 wholly Ghanaian-owned ventures.

“As Ghana steps into an era of liberalised trade under the AFCFTA (African Continental Free Trade Area), there is even stronger commitment from the centre to boost investor confidence and ultimately harness valuable investments for Ghana, now Africa’s business capital,” Mr. Grant said.