Accra, Sept. 27, GNA -The Ghana Investment Promotion Centre (GIPC) registered 780 projects involving an estimated capital outlay of 1.3 billion dollars between 1994 when the implementation of the GIPC Act, ACT 478 began and the end of 1998.
About 78 per cent of the projects, involving over 997 million dollars are in foreign equity and loans. These were contained in the World Investment Report launched in Accra on Monday The report is under the theme: " Foreign Direct Investment and the Challenge of Development".
Out of the 780 projects, 534 (over 68 per cent) were registered as joint venture projects, involving Ghanaians and their foreign partners, with 246 (31.54 per cent) as wholly foreign-owned enterprises.
However, Ghana's Foreign Direct Investment (FDI) declined to 45 million dollars last year from 82 million dollars in 1997. It was the second successive decline compared to the 120 million dollars in 1996.
Mr Emmanuel M. Gyasi, Director of Research and Development, Ghana Investment Promotion Centre, acknowledged that Ghana had to strengthen its efforts to become a strong investment location.
He said Great Britain has been the major source of FDI into the country with 81 projects. China follows with 59 projects and the United States 58 projects.
India has 57; Germany 56; Lebanon 42; Italy 33; Netherlands 33; Switzerland 32; Korea 28; Canada 18 and France 16. Nigeria, South Africa and Malaysia were leading recipients in developing countries.
Mr Gyasi said: "Clearly, innovative and proactive measures for sourcing investments into Ghana need to be undertaken. "This is not only to sustain Ghana as a competitive investment location, but to enhance the business environment, particularly in reducing establishment cost and time."
The Ghana Free Zone Board had registered 59 enterprises to operate as single factories as at the end of 1998. He said Free Zone Board has concluded a lease agreement with the Business Focus of Malaysia for the establishment of the Tema Free Zone enclave.
The Tema Free Zone comprises 594 units of terrace factories, 270 units of semi-detached factories, 190 units of detached factories, 190 units of 0.4 hectares and 27 units industrial lots.
Mr Gyasi said the GIPC was reviewing the legal framework for investment and had shifted its promotion from a general to a more targeted approach. Dr Joseph L. S. Abbey, Executive Director of the Centre for Economic Policy Analysis, said Ghana has to source the right kind of investments for the right sectors.
He said dependency on natural resources do not have long-term benefits since investors will pack off after they have exhausted them. " A striking feature of the new environment is that trans-national corporations shift their portfolios of mobile assets across the globe to find the best match with the immobile assets of different locations".
Dr Abbey stressed the need for Ghana to market itself progressively and develop its manpower in line with technological changes to attract dynamic investments. He urged the GIPC to implement its policies, as lip service would not bring the needed results.
The report identified tourism, food and beverage sub-sector, textiles, leather and clothing, telecommunications and agriculture as favourable areas for investment.
Mr Emmanuel M. Gyasi, Director of Research and Development, Ghana Investment Promotion Centre, (GIPC) acknowledged that Ghana had to strengthen its efforts to become a strong investment location. " Clearly, innovative and proactive measures for sourcing investments into Ghana need to be undertaken.
This is not only to sustain Ghana as a competitive investment location, but to enhance the business environment, particularly in reducing establishment cost and time". Mr Gyasi, said since the implementation of the GIPC Act, ACT 478 in 1994 to 1998, the Centre has registered 780 projects involving an estimated capital outlay of 1.3 billion dollars.
About 78 per cent involving over 997 million dollars are in foreign equity and loans. Out of the 780 projects, 534 (over 68 per cent) were registered as joint venture projects, involving Ghanaians and their foreign collaborators, with 246 (31.54 per cent) as wholly foreign-owned enterprises.
He said Great Britain has been the major source of FDI into the country with 81 projects. China follows with 59 projects; United States 58, India 57; Germany 56;, Lebanon 42; Italy 33; The Netherlands 33; Switzerland 32; Korea 28; Canada 18 and France 16 respectively.
Nigeria, South Africa and Malaysia were leading sources from developing countries. The Ghana Free Zone Board had registered 59 enterprises to operate as single factories as at the end of 1998.
