27,110 jobs to be created from 279 projects in 2021 – GIPC

The Ghana Investment Promotion Center (GIPC) has stated that $2.65 billion in the form of direct foreign investment injected into Ghana’s economy last year is projected to result in the creation of 27,110 jobs this year.

According to the center, the investment inflows have been directed into some 279 projects which are expected to create the said number of jobs when they become fully operational.

The center notes that about 95.46 per cent of the jobs will be reserved for Ghanaians while the remainder will be made available to foreign nationals.

The total foreign direct investment for 2020 ($2.64 billion) has exceeded that of 2019($1.1 billion) with an increase of about 139.06 per cent despite the onset of the COVID-19 pandemic.

This was disclosed by the Chief Director of GIPC, Mr Yofi Grant at a press conference organised on its Fourth Quarter 2020 Investment Report on Thursday, March 11, 2021.

Mr Yofi Grant noted that despite the gloomy global economic outlook caused by the COVID-19 pandemic, overall foreign direct investment in developing countries such as Ghana appeared relatively resilient even though that of developed countries showed a decline.

According to the GIPC, the 279 projects expected to create the jobs include 129 newly registered projects, 131 upstream developments and 19 free zones activities dispersed across eight regions, of which 231 are located in Greater Accra.

Allocations in other regions include Western 31, Ashanti seven, Volta three, Eastern three, the former Brong Ahafo Region two, with Central and Upper East registering one project each.

The services sector registered the highest number of projects of 184, followed by the manufacturing sector with 57.

A further breakdown of the projects has export trading, general trading and building and construction recording 15, 10 and five projects, respectively whiles the mining and petroleum sectors had three projects each. A while agriculture and liaison received a project each.

The manufacturing sector recorded the largest value of $1.27 billion, followed by services, mining and petroleum with $656 million, $424 million and $222 million, respectively in terms of values.

Also, additional equity in the form of cash and goods totalling $69 million was ploughed back as investment from 172 already existing companies, while $250 million (GH¢1.44 billion) was obtained from 52 wholly Ghanaian-owned firms on the domestic front.

Outstanding nations of leading sources of inward investments included China, the United Kingdom, South Africa, Australia and the Netherlands.

Ghana in 2020 also recorded, among others, significant projects by Toyota Tsusho (automobile), Sentuo Oil Refinery (refining crude oil), the One Rand Group (manufacturing of real estate materials) and African Underground Mining Services (mining support services).

On what could have effected Ghana’s strong performance in terms of inbound FDI amid the COVID-19 global pandemic, Mr Yofi Grant said attribution could be made to several factors, including effective government policy responses, easing of travel restrictions and the delivery and expected future development of vaccines in-country.

He added that the Center’s efforts in promoting investment and leading the charge on investment promotion also significantly played in the favour of the country.

“As Ghana steps into an era of liberalised trade under the AfCFTA, there is even a stronger commitment from the centre to boost investor confidence and ultimately harness valuable investment for the country, now Africa's business capital,” he added.