GIPC records 924 million worth of investment

Accra, Aug.19, GNA - The Ghana Investment Promotion Centre (GIPC) recorded a total cash investment of GH¢923.79 million as at the end of June this year. The figure comprises GH¢916.06 million used for the importation of capital goods for re-investments by companies and GH¢7.73 million equity transfers for the projects registered during the second quarter.

This represents a very significant increase compared to GH¢351.54 million dollars for the same period in 2007. Fifty-three new projects were registered during the quarter with a total estimated value of GH¢57.03 million, a decline from GH¢77.37 million recorded for the same period last year. Thus the total estimated value of projects registered in the first half of the year stands at GH¢3.03 billion.

Thirty-eight of the projects are new and wholly owned foreign enterprises with the remaining 15 being joint ventures between Ghanaians and their foreign partners. Mr. Robert Ahomka-Lindsay, Chief Executive Officer of GIPC, said it was a demonstration of the targeted and focused nature of the investment drive being pursued by the Centre. The Joint venture projects are valued at 13.5 million dollars while the 100 per cent foreign owned enterprises are valued at 42.17 million dollars.

The sectoral composition saw projects in the area of services topping the list with 16 projects, manufacturing had eight and Agriculture four, among others. Some of the high profile companies attracted during the quarter included Dos Palm Oil Productions, Colwick Ghana Limited and Prairie Volta West Africa Fish Limited. Mr. Ahomka-Lindsay said the country continued to make progress despite the global financial crisis and the aggressive pursuit of Foreign Direct Investment by other countries. He said the country was attracting investments into the critical areas of the economy necessary to sustain growth because of the overwhelming confidence in the Ghanaian economy and re-investment of existing companies.

India and China continued to top the list of countries with greater number of projects during the period. However, in terms of value of projects the United Kingdom account for GH¢33.45 million of investment during the period. The location of project s continues to be skewed in favour of the Greater Accra Region, with 81 per cent of the projects located in Accra. Over 4,900 jobs are expected to be generated from the projects with Ghanaians accounting for nearly 96 per cent of employment. Mr. Ahomka-Lindsay said the Centre was making efforts to ensure fair and equitable distribution of projects across the regions. However, he said, investors continue to be attracted to Accra because of ready infrastructure and linkages. "We are encouraging investors to venture into the regional centres and one way we can do this successfully is through agriculture and agri-business," he said.