by Elorm Desewu
Foreign Direct Investments legally registered in the country for the first half of 2024 has dropped significantly both in volumes and value, according to data from the Ghana Investment Promotion Centre, (GIPC).
From January to June this year, the Centre recorded 69 projects with total estimated investment cost of US$ 186.16 million compared with 72 projects with total estimated value of US$274.74 representing a decline of 4.1 percent and 32.24 percent respectively.
The FDI component of the 69 projects which was estimated at US$ 179.07 million also dropped by 33.36 percent compared with the 72 projects with estimated FDI component of 268.73 million recorded during the same period in 2023. Total initial transfers amounted to US$ 17.73 million.
Of the 69 projects registered, 53 were wholly foreign owned, representing 76.8% of the number of projects with a total estimated investment cost amount of US$ 177.79 million. The Joint Venture projects between Ghanaians and their foreign counterparts were 16, representing 23.2% of the number of projects and with a total estimated investment cost amount of US$ 8.37 million.
Out of the 69 projects registered in the first half year of 2024, the manufacturing sector recorded the highest number with 29 projects. This was followed by services (19), general trading (11), export trade and building and construction recorded (3) projects each, tourism recorded (2) projects and liaison and agriculture recorded (1) project each. Liaison recorded the highest FDI with US$ 76.30 million followed by manufacturing with US$ 62.16 million, and General Trading sector with US$ 20.99 million.
A total of 8,524 jobs are expected to be generated from the 69 projects registered in the first half of 2024, with operations at full capacity. 8144 representing 95.5% of the total jobs will be for Ghanaians and the remaining 380, representing 4.5% will be for non-Ghanaians
In terms of regional distribution of the projects registered, seven (7) regions directly benefited from the 69 projects. 53 projects registered are in the Greater Accra region. The other regions are Ashanti, Eastern, Central, Western, Northern and Upper East regions.
China, with 26 projects, was the leading source of investments registered by number of projects. Spain recorded highest FDI value of US$ 76.41 million in the first half of 2024.
Twenty (20) wholly Ghanaian owned projects with total project value of US$ 476.69 million were registered during the first half of 2024. These projects were registered in building and construction, general trade, manufacturing and services sectors.
In the second quarter of 2024, thirty-seven (37) projects were registered by GIPC with total estimated investment cost of US$ 58.03 million. This comprised FDI component of US$ 56.02 million and local component of US$ 2.01 million. Total initial transfers amounted to US$ 8.06 million.
Of the 37 projects registered, 29 were wholly foreign owned, representing 78.4% of the number of projects with a total estimated investment cost amount of US$ 54.45 million. The Joint Venture projects between Ghanaians and their foreign counterparts were 8, representing 21.6% of the number of projects and with a total estimated investment cost amount of US$ 3.58 million.
Of the 37 projects registered in the second quarter of 2024, the manufacturing sector led with 17 projects. It was followed by the services sector with 10 projects, general trading with seven (7), and export trade, tourism, and building and construction, each with one project. In terms of Foreign Direct Investment (FDI) value, the manufacturing sector also topped the list with US$30.47 million, while the general trading sector came next with US$17.4 million.
A total of 4,922 jobs are expected to be generated from the 37 projects registered in the second quarter of 2024, with operations at full capacity. 4,765 representing 96.8% of the total jobs will be for Ghanaians and the remaining 157, representing 3.2% will be for non-Ghanaians
