Accra is top destination for FDIs in Ghana

Eighty-three percent of the 78 new projects recorded in the last quarter of 2008 were located in Accra, the latest quarterly update of the Ghana Investment Promotion Centre (GIPC) has indicated.

Investors cited improved infrastructure as the primary reason for locating their projects within the Greater Accra region.

Seven out of the 10 regions of the country benefited from the registered projects by way of their location, which amounted to GH¢410.01 million (US$410.01m).

It comprised GH¢391.86 million (US$391.86 million) worth of re-investments (capital goods imported) and GH¢18.15 million (US$18.15 million) equity transfers for new projects registered.

For the corresponding quarter of 2007, the total investments for 89 projects registered was GH¢953.21 million (US$953.21 million).

Of the 78 projects registered during the quarter, 51 are wholly-owned foreign enterprises and 27 ­representing 35% - are joint ventures between Ghanaians and their foreign partners.

The total estimated value of the quarter’s newly registered projects was GH¢215.62 million. GH¢4.99 billion was recorded for the same period in 2007.

The joint venture projects are valued at GH¢144.08 whilst the 100% foreign-owned enterprises are valued at GH¢71.54 million.

The sectoral composition of the new projects saw the service sector recording 22 new projects valued at US$12.62 million, followed by general trading registering 18 new projects valued at an estimated US$6.49 million with manufacturing seeing 13 new projects registered with an estimate value of US$142.75 million.

Tourism followed with eight new projects registered, valued at US$ 0.49 million; with building and construction registering seven new projects valued at US$1.82 million followed by export trade registering four new projects valued at US$0.23 million.

From the number of new projects registered during the quarter under review, it is expected that 10,818 jobs will be created.

92.64% (10,022) of the total jobs being created will be for Ghanaians and the remaining 7.36% (796) for expatriates.

The total new investment for 2008 was GH¢3.17 billion (US$3.19 billion), a significant increase of over 160% from GH¢1.15 billion (US$1.2 billion) recorded in 2007.

309 new projects were registered for 2008 with a total estimated value of GH¢4.83 billion (US$4.89 billion), a decrease of 13.7% from 2007 - when a total number of 308 projects registered recorded a total estimated value of GH¢5.27 billion (US$5.67 billion).