Minister answers questions on foreign direct investments

Accra, Feb. 3,GNA - The Ghana Free Zones Board (GFZB) during the year 2002 attracted investment to the tune of 41,512, 149 dollars while for 2003, the figure rose to 168,034,733 dollars for the first quarter of that year.

The Ghana Investment Promotion Centre, (GIPC) on the other hand, recorded an investment value of 13 million dollars for the year 2002 and 35 million dollars for the first quarter of 2003.

Mr Alan Kyeremanten, the Minister of Trade, Industry and President's Special Initiative, said this in Parliament on Tuesday when answering a question that stood in the name of Mr Samuel Johnfiah, NPP-Ahanta West, who wanted to know how successful the Government had been in attracting investment into the country over the last two years. The Minister said figures for GIPC during 2002/2003 constituted initial capital transfers and "minimum expected inflows over the same period were 15 million dollars."

Mr Kyeremanten said GIPC and GFZB have been charged with the responsibilities of attracting investment into the country and whether the figures recorded by the two organisations could be considered as "significant would have to be determined within the context of the world-wide pattern of foreign direct investments (FDIs)".

He said according to the World Investment Report, the flow of FDIs into Africa, including countries such as South Africa, declined for the first time in 2000 from 10.5 billion dollars to 9.1 billion dollars and rose" to 17 billion dollars in 2001."

He explained that the figure for 2001 further reduced to 11 billion in 2002, affecting Ghana as well.

"It must be noted that Africa's share has over the years averaged about 2 per cent but these inflows have mostly been to a few large FDIs projects such as in South Africa, Egypt and Morocco."

"The slow down of FDIs is explained by the apparent lack of confidence and disinterestedness in investing in Africa," he said.

Mr Kyeremanten said the Government could take credit for some quality investment that had come into the country such as the Newmont Mining Corporation and the merger between Ashanti Goldfields and Anglogold, which he said, "is expected to bring in an additional investment to make Ghana the Gold Coast of the World.

"The recently announced merger between Guinness Ghana Limited and the Ghana Breweries Limited owned by Heineken, will create the foundations for a new brewing conglomerate, which will be one if not the largest brewery operation in Africa."

He said there was investment in the pipelines, including the establishment of a new Cocoa processing plant, currently being negotiated with Cargill Corporation of the US, one of the leading agro-processing companies in the world.

The Minster said investments would flow into countries that have "a good track record of political stability ... investment would also flow into countries that show strong macro-economic performance...these attributes are currently reflected by our country."

Mr Alban Bagbin, the Minority Leader, had wanted to find out about figures for FDIs for the year 2000 and 2001 for Ghana but the Minister said he needed time to furnish the house with that information.

Dan Abodakpi, NDC-Keta, asked the Minister whether the merger between the two breweries would not lead to down sizing and workers losing their jobs because of duplications. The Minister agreed but said it could also lead to an expansion with more employment.

Mr Kyeremanten answering another Parliamentary question from Mr John Akologu Tia, NDC-Talensi, said the Divestiture Implementation Committee was at various stages of re-advertising the Pwalungu Tomato Factory, the Zuarungu Meat Factory and the Bawku Vegetable Oil Mills. Mr Tia had sought to know from the Minister what steps were being taken to reactivate the three factories.

The Minister said efforts to divest the companies have not been successful but that security measures were in place to ensure the safety of the assets of the companies pending their divestiture.

Mr Bagbin asked why it had taken the Ministry a long time to re-advertise the three companies. The Minister said it was the Divestiture Implementation Committee that could best answer the question.

Mr Cletus Avoka, NDC-Bawku West, asked if it was not possible for the Government to invest into the three companies and make them viable before seeking for investment since they could serve as avenues for employment. The Minister said funds were limited.

Mr Kyeremanten in answer to another question said four companies have responded to bids for the Bonsa Tyre Factory.

He said their responses were currently being evaluated and it was expected that the "Bonsa divestiture process will be duly completed by the end of the first quarter of this year".

Mrs Gifty Kusi, NPP-Tarkwa Nsuaem, had asked for specific steps being taken to revive the tyre factory since January 2001.