GIPC registers more projects in second quarter

Accra, Oct. 13, GNA - The Ghana Investment Promotion Centre (GIPC) registered 47 projects with foreign participation with a capital outlay of 24.39 million dollars during the second quarter of 2004. The total capital outlay involves a foreign component of 22 million dollars, according to a statement issued by the GIPC in Accra on Wednesday.

The GIPC said the number of projects compared favourably with 37 projects registered during the first quarter of the year and an improvement over the figure of 38 projects recorded during the second quarter of 2003.

The statement said domestic investment formed just about 10 per cent of the investment cost of the new projects.

"However, in satisfying the statutory requirements of the GIPC Act 1994, (Act 478), initial equity capital transferred in respect of the 47 projects stood at 4.27 million dollars, which is 33.2 per cent lower than the 6.39 million dollars initial capital transferred with respect to the 37 projects registered during the first quarter of the year." Among the registered projects, those jointly owned by Ghanaians with foreign collaboration accounted for 57.6 per cent (27 projects), leaving wholly foreign-owned ones with 45.4 per cent (20 projects). For the first half of 2004, the Centre recorded 84 projects with an estimated investment cost of 50.99 million dollars.

Wholly foreign-owned enterprises in the period formed 44 per cent of the total number of registered projects, while joint venture projects accounted for 56 per cent.

"In terms of foreign direct investment (FDI), the 84 projects attracted 42.53 million dollars, which accounts for 83.4 per cent of the total investment cost for the period.

"The initial capital transfers in respect of the registered projects amounts to 10.66 million dollars as against an expected statutory minimum amount of 5.94 million dollars."

The statement said for the first half of 2004, registered projects proposed to employ 7,413 Ghanaians as against a figure of 314 for foreigners.

For the period January 2001 to June 2004, manufacturing and services maintained the lead as sectors attracting the highest number of projects with 153 and 152 projects, respectively.

In terms of the value of investment, however, the Service Sector attracted 147.4 million dollars (44.4 per cent) as compared to 62.3 million dollars (18.8 per cent) of the total investment outlay over the period.

Activities in the General Trade, Tourism and Agriculture Sectors followed in that order with registered projects of 71; 68; and 48 with corresponding values of investments of 44.34 million dollars; 14.08 million dollars and 40.45 million dollars.

These projects proposed to employ 26,009 Ghanaians and 1,766 foreigners during the period under review.

The statement said Britain had 166 projects; India, 162; China, 149; Lebanon, 125; USA, 121 and Germany 101 projects.

Others were Korea, 64 projects; Italy, 59; The Netherlands, 58; Switzerland, 49; France, 37 and Canada 34 projects.

Those from Developing countries were: Nigeria 48 projects; South Africa, 31; Malaysia, 12 and Cote d'Ivoire 11 projects. The Centre said these developments "reflect the realities of the enhanced investment environment and the renewed confidence in the economy.

"Inflation, which hovered around 30 per cent during the first quarter of 2004, came down to about 11 per cent at the end of June 2004.

"Around the same time, the lending rates of the banks had been reduced to an average of 25 per cent from about 51 per cent at the beginning of 2001.

"Growth in GDP has also improved from 4.7 per cent in 2002 to 5.2 per cent at the end of 2003."

The GIPC said these indications pointed to Ghana's high potential in FDI attraction and domestic investment generation and the need to do more in improving the business environment.

It said the implementation of the Centre's Corporate Plan 2003 - 2008 should deepen its current thrust focus on targeted investment promotion in which specific firms and product manufacturers were attracted to locate in Ghana.

"The main objective of this new approach of the Centre's operations is to focus strategies on Ghana's investment priorities, natural and competitive advantages, resource endowments and other related factors."