Business News of 2014-01-08

FDI's to Ghana decline by 26%

Foreign Direct Investments (FDIs) legally registered in the country for the first nine months of 2013 have declined in value but increased in numbers. According to figures from Ghana Investment Promotion Center (GIPC), total FDI component recorded US$3,242.72 million, representing a decrease of 25.97% over US$4.38 billion recorded for the same period in 2012.
For the first nine months of 2013,144 projects were recorded by the Center compared with 102 projects recorded in 2012. Of the 144 projects registered during the third quarter, 108 representing 75%, were wholly- foreign owned enterprises valued at US$1,032.71 million which was 34.74% of the total estimated value of projects registered.
The remaining 36 which represents 25% were joint ventures between Ghanaians and foreign partners valued at US$1, 940, 27 million which was 65.26% of the total estimated value of projects registered.
For the corresponding quarter of 2012, 56 wholly foreign-owned enterprises and 46 joint ventures were registered and valued at US$1.87 billion and US$42.02 million respectively. For the first nine months of 2013, total initial transfers was US$75.34 million, a decrease of 9.08% over US$82.86 million 2012.
Total jobs expected to be created from these projects was 85,195, a significant increase of over 400% compared to the 16,364 expected jobs for the same period in 2012.
The FDI component of the estimated value of the projects registered in the corresponding quarter of 2012 was US$1.86 billion and the local currency component was US$55.06 million. For the second quarter of 2013, the FDI component of the estimated value of the projects registered was US$276.86 million and the local currency component was US$7.10 million.
The total foreign equity was GHC1, 080.50 million (US$545.70 million) and the initial equity transfers was GH459.76 million (US$30.18 million) for this quarter.
From the 144 new projects registered in the third quarter (3rd) quarter, it is expected that 10,034 jobs will be created. The total number of expected jobs to be created gives an increase of 65.91% over 6,048 expected jobs to be created in the corresponding quarter of 2012.
86.31% (8,660) of the total jobs to be created in the third (3rd) quarter will be for Ghanaians and the remaining 13.69% (1,374), for expatriates. India, with 23 projects, topped the list of countries with the highest number of registered projects.