FDI Inflows: Ghana is second highest recipient in West Africa
FDI flows to Ghana increased by 39% to $2.6 billion for the year 2021, according to the World Investment Report 2022. This placed Ghana 2nd in West Africa, and 7th in Africa, in terms of FDI attraction.
The rise in Ghana’s FDI flows was attributed to major projects in its extractive industries, which included; the construction of an $850 million gold mining facility by Newmont Corp, and the construction of a cement factory by Ciment d’Afrique (CIMAF) for $436 million.
The increase in FDI flows reflects the findings of the Deloitte 2022 Africa Investment
Attractiveness Index, which placed Ghana as the second most appealing destination for
investments in Africa based on the comments of nearly 200 CEOs.
“Ghana has a great global reputation, and as the host of the African Continental Free Trade
Area, it provides considerable opportunities for businesses to trade in the enormous
African market.
Furthermore, with our democratic stability and smart business policies in
place, such as the 10-Point Industrialization Agenda, Ghana most appeals to investors
seeking stability and vibrancy to prosper and grow their firms. So, despite the
current economic difficulties, investors continue to see Ghana as a desirable destination to
invest”, said Yofi Grant CEO of the GIPC.
In recent years, the government through the GIPC has made FDI attraction a priority by
improving investment attraction strategy to a more proactive one. It has also spurred
private sector investment through the Ghana Covid 19 Alleviation and Revitalization of
Enterprises (CARES) program – a 100bn Ghana Cedis economic response program, aimed
at supporting the private sector in targeted sectors, to accelerate growth and stabilize the
Ghanaian economy.
In addition to encouraging private sector investments, the government has been working
to eliminate regulatory discrepancies among several state agencies that create
unnecessary barriers to doing business.
The GIPC for instance has digitized its registration procedure, making it considerably quicker and more flexible for investors to register and apply for exemptions under the GIPC Act (Act 865).
“It is essential to note that Foreign Direct Investment in an economy like ours is crucial for
creating jobs, gaining access to new technologies, increasing output, expanding trade, and
forming valuable relationships between local enterprises and multinational corporations.”
As such the GIPC will not relent in promoting Ghana as a choice destination for investment
and assiduously engaging with global partners”, noted Mr Grant.
Overall, the World Investment Report indicated that FDI flows to Africa reached $83 billion,
a record high, up from $39 billion in 2020, representing 5.2% of global FDI. Meanwhile,
FDI into the West African Subregion increased by 48% to $14 billion.
Neighbouring Nigeria was the highest beneficiary with FDI flows doubling to $4.8 billion, mainly because of the resurgence in oil investment and expansion in gas.
For the rest of 2022, the World Investment Report predicts that FDI flows to developing
economies are expected to be strongly affected by the war in Ukraine and its wider
ramifications.
PRESS RELEASE
For further information, please contact the Public Relations Division via
Phone: 0302- 665125-9
Email: [email protected]
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Source: Ghana Business
