Coronavirus: Foreign investors lost an average of US$75,000 in second quarter - GIPC

Foreign investors operating in Ghana, have in the second quarter of 2020, recorded an average revenue loss of $75,000, according to the Ghana Investments Promotion Centre (GIPC).

The GIPC in a recent survey conducted between April 1-June 12, 2020 showed 51.43 percent of the respondents sampled had been negatively impacted by the coronavirus pandemic.

The survey dubbed; “Survey on the Impact of Coronavirus (COVID-19) on Foreign Investors in Ghana” further indicated 51.4 percent of the respondents sampled by Centre had recorded revenue losses in excess of US$100,000.

Additionally, the rest of the respondents sampled recorded losses between US$100,000 and less than US$1,000.

The GIPC says the recorded losses was as a result of the coronavirus pandemic and its associated lockdowns, closure of land and air borders that have since affected demand and supply chains globally.

“This saw most companies experience payment and repayment delays, financial constraints and a reduction in demand for products and services which translated into revenue losses,” the GIPC said.

The report added; “With regards to employment, 40 percent of foreign investors foresee a permanent reduction in their workforce in the ensuing months. Meanwhile, most workers have had to stay home temporarily due to the pandemic. Despite the downturn in activity experienced by various industries and businesses, sectors such as manufacturing, food processing, e-Commerce, agriculture and healthcare have remained resilient and present opportunity for growth and investments.”

The GIPC however said interventions such as a reduction in the cost of data, further reduction in taxes for manufacturers, tax exemptions on Capital Expenditure as well as the re-opening of the country’s borders will be required to cushion businesses as the detrimental effects of the pandemic unfolds.