Business News of 2014-03-14

Global economic slowdown accounted for decline in 2013 FDI – GIPC

The Ghana Investment Promotion Center (GIPC) has attributed last year’s decline in foreign direct investment to slowdown in growth in the major economies that contribute hugely to investment in Ghana.

Foreign Direct Investments (FDIs) legally registered declined to $3.946 billion representing about 19.5 percent drop from $4.904 billion recorded in 2012.

Speaking to Citi Business News, the Chief Executive officer of the GIPC, Mawuena Trebah stated that the foremost significant challenge was the global economic downturn.

“There was clearly a major slow down in the various major economies that are contributors to the major foreign direct investment. Globally if businesses are not making major investment or their restructuring or downsizing they are unlikely to look at new investments opportunities overseas,” she explained.

She added that investors were also skeptical because Ghana was in a phase of correcting some its poor macroeconomic indicators which was fallout of the 2012 election.

“Indeed in 2013 there is every concession that the country is going through a transition process in trying to stabilize certain macroeconomic indicators. I think the country has been successful in going through that challenging process”, she said.

Mawuena Trebah was speaking to Citi Business News after a national stakeholder’s dialogue on the new GIPC Act