Investor Confidence Soars

Startling Revelation from GIPC Report: INVESTOR CONFIDENCE SOARS

56.6 per cent higher than last year

Story By Kofi Enchill

As President J. E. A. Mills continues with the ardent task of stabilizing the messed economy he and his National Democratic Congress (NDC) government have inherited, the 2009 Second Quarter Report of the Ghana Investment Promotion Centre (GIPC) suggests that, 83 new projects were registered, an increase of 56.6 per cent compared to 53 new projects registered in the corresponding period last year.

The Second Quarter data, which covers 1st April to 30th June, 2009 also represents an increase of 137.14% compared to 35 new projects registered in the first quarter of 2009, a clear manifestation of strong investor confidence in the economic polices of the government.

According to the GIPC report, the total initial capital transfers for the newly registered projects during the quarter amounted to a staggering GH¢ 92.65 million (US$66.18 million).

“The total estimated value of this quarter’s newly registered projects was GH¢ 156.34 million (US$111.67 million), a significant increase of 91.9 per cent compared to GH¢ 57. 03 million (US58.19 million) recorded for the same period in 2008,” the GIPC report revealed.

“Of the 83 projects registered during the second quarter, 56 (67.47 per cent), were wholly-owned foreign enterprises and 27 (32.53 per cent) were joint ventures between Ghanaians and their foreign partners.

“The joint venture projects were valued at GH¢109.29 million (US$78.06 million), which is 30.1 per cent of the total estimated value of projects registered, while the 100 per cent foreign-owned enterprises were valued at GH¢ 47.05 million (US$33.61 million), which is 69.9 per cent of the total estimated value of projects registered.

“For the corresponding quarter in 2008, 38 wholly-owned foreign enterprises and 15 joint ventures were registered and valued at GH¢ 42.17 million (US$43.14 million) and GHc13.5 million (US$13.8 million) respectively”, the GIPC second quarterly report asserts.

According to the GIPC, the Foreign Direct Investment (FDI) component of the estimated value of the projects registered during the period under review (1st April to 30th June, 2009) was GH¢129.25 million (US$92.32 million), 82.68 per cent of the total estimated value, and a local currency component of GH¢ 27.08 million (US$19.35 million), representing 17.32 per cent.

For the corresponding quarter of 2008, the GIPC report reveals that, the FDI component of the estimated value of the projects registered was GHc51.97 million (US$53.04 million) and the local currency component was GH¢ 3.9 million (US$3.98 million) of the estimated cost of the projects.

The total foreign equity was GH¢107.12 million (US$76.51 million) and the initial equity transfers was GH¢ 92.65 million (US$66.18 million) for this quarter. For the corresponding quarter of 2008, the initial equity transfers was GH¢ 7.73 million (US$7.89 million).

According to the GIPC, from the number of new projects registered in this 2nd quarter alone, it is expected that 4,457 jobs will be created. 92.15 per cent (4,107) of the total jobs to be created will be for Ghanaians and the remaining 7.85 per cent (350) for expatriates.