GIPC records 400% increase in initial transfers for Q2 2016

The second quarter of 2016 has been a good time for foreign direct investments (FDI) in Ghana in comparison to the same time last year (Q2 of 2015). There have been percentage increases in all parameters used to measure FDI inflows.

The most apparent of them is the over 400% increase in Total Initial Transfers of US$ 59.12M as against US$ 10.03M in the same quarter of 2015.

FDI is a controlling ownership in a business enterprise in one country by an entity based in another country.

According to the Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Mrs. Mawuena Trebarh, the Centre continues to stay on course to achieve its target for increased domestic and foreign investment. She stated that the total number of projects registered was 51 with a total estimated value of US$1.41 billion.

According to data provided, this shows a considerable improvement in FDI results recorded during the second quarter of 2016 as compared to the first quarter of the same year and the corresponding quarter of 2015.

China, with 13 projects, ranked the number one source of investments by the number of projects. Singapore topped the list of countries with the largest value of investments being US$1.06B, for the quarter under review.

Registered Projects

Out of the 51 new projects registered by the Centre, 40 were wholly foreign owned enterprises valued collectively at US$ 391.17M, representing 78.43% of total projects for the quarter. The remaining 11 projects which represent 21.57%, were joint venture projects valued collectively as US$ 1.06B.

Additionally, a total number of 4,112 jobs (3729 for Ghanaians and 383 for expatriates) is expected to be created by the projects recorded giving an increase of 105.39 per cent over 2,002 expected to be created in the corresponding quarter of 2015.

Notable projects among the lot include the 660 megawatt combined cycle plant to be developed in Aboadze valued at US$ 1.06B and the ceramic tiles and allied products project also estimated at US$ 182.60.

The services sector continued its trend of receiving the highest number of projects in the quarter under review with eight projects. The agriculture sector also recorded the highest number of expected jobs to be created.

Continuous engagement

Mrs Trebarh said as part of the Centre’s growing efforts towards creating awareness of its services to the local business community, the GIPC will continue to engage with domestic investors through its Regional Sensitization Tours and CEOs Breakfast Meetings. Wholly Ghanaian projects were 18 in number estimated at US$ 392.19M.

“As we continue to improve upon our efficiency and also put into action some of the best practices as an IPA, we are confident that the end of the year results of recorded FDI as well as inflows, will be reflective of our collective team effort”, she said.