FDIs slump by 59.9%

Foreign Direct Investments (FDIs) for the third quarter of this year slumped by 59.96 percent, according to data published by the Ghana Investment Promotion Centre (GIPC).

According to the report, Ghana recorded FDI inflows of US$235.2 million for the first nine months of this year, compared with US$587.5 million during the same period last year.

Total estimated value of projects registered during the third quarter of this year also declined drastically from US$820.7 million in September 2015 to US$241.7 million at the end of quarter three 2016.

China, with nine projects, was the country with the highest source of investments in the third quarter.

However, with an FDI value of US$178.08million, Mauritius topped the list of countries with the largest value of investments registered during the quarter.

Of the 46 projects registered during the third 3rd quarter, 34 representing 73.9 percent, were wholly-foreign owned enterprises valued at US$59.68 million. This is 24.75 percent of the total estimated value of projects registered.

The remaining 12, representing 26.09 percent were joint ventures between Ghanaians and foreign partners valued at US$181.49 million which is 75.25 percent of the total estimated value of projects registered.

A total of 10 Ghanaian projects were registered during the 3rd quarter of 2016. These projects are located in three regions of Ghana, with Greater Accra registering the highest number of seven.

In terms of sectoral distribution, the services sector topped with six projects recorded. The manufacturing sector recorded the highest number of 243 of expected jobs to be created.

Five out of the 10 regions directly benefited from the registered projects during the quarter.

The regions are Greater Accra, Western, Ashanti, Central and Northern region. 78.26 percent of all the projects registered are located in Greater Accra region.

In terms of jobs creation, 1,504 jobs were expected to be created. This is about 74.90 percent decline over the previous year ‘s figure of 5,993.

Commenting, CEO of GIPC, Mawuena Trebah, said “It has been an exciting 3rd quarter for the Centre having undertaken activities to fulfil our mandate as an IPA and to support the development agenda of Ghana"

She added that the center remains committed to its mandate to attract quality investments targeted at the development needs of the country, adding “we, therefore, invite potential and existing investors to do business in the best investment destination on the African continent.”