Ghana ranked second highest FDI recipient in West Africa
Ghana has been ranked the second highest recipient of Foreign Direct Investment for 2021 in the latest World Investment Report after recording a 39 per cent increment in FDI flows to $2. 6 billion for the year 2021.
The $2.6bn is an improvement over the $1.8bn the country recorded in 2020.
The report ranked Nigeria as the highest FDI recipient in the sub-region, recording $4.8bn in 2021.
The increase in Ghana’s FDI flows was attributed to major projects in its extractive industries, including construction of an $850 million gold mining facility by Newmont Corporation, and the construction of a cement factory by Ciment d’Afrique (CIMAF) for $436 million.
The increase in FDI flows also reflected the findings of the Deloitte 2022 Africa Investment Attractiveness Index, which placed Ghana as the second most appealing destination for investments in Africa based on the comments of nearly 200 CEOs.
Commenting on the report, Mr Yofi Grant, the Chief Executive Officer (CEO) of the Ghana Investment Promotion Authority (GIPC), said that: “It provides considerable opportunities for businesses to trade in the enormous African market.”
He noted that: “Ghana has a great global reputation, especially as the host of the African Continental Free Trade Area. With our democratic stability and smart business policies in place, such as the 10-Point Industrialisation Agenda, Ghana appeals to investors seeking stability and vibrancy to prosper and grow their firms.”
Mr Grant emphasised that: “So, despite the current economic difficulties, investors continue to see Ghana as a desirable destination to invest.”
In recent years, the Government through the GIPC has made FDI attraction a priority by improving investment attraction strategy to a more proactive one.
It has also encouraged private sector investment through the Ghana COVID-19 Alleviation and Revitalisation of Enterprises (Ghana CARES) programme – a GHS100bn economic response programme.
The Ghana CARES programme is aimed at supporting the private sector in targeted sectors to accelerate growth and stabilise the Ghanaian economy.
The government has also been working to end regulatory discrepancies among several State agencies that create unnecessary barriers to doing business.
The GIPC, for instance, has digitised its registration procedure, making it considerably quicker and more flexible for investors to register and apply for exemptions under the GIPC Act (Act 865).
“It is essential to note that Foreign Direct Investment in an economy like ours is crucial for creating jobs, gaining access to modern technologies, increasing output, expanding trade, and forming valuable relationships between local enterprises and multinational corporations. As such the GIPC will not relent in promoting Ghana as a choice destination for investment and assiduously engaging with global partners,” noted Mr Grant.
Overall, the World Investment Report showed that FDI flows to Africa reached $83 billion, a record high, up from $39 billion in 2020, being 5.2 per cent of global FDI.
Meanwhile, FDI into the West African sub-region increased by 48 per cent to $14 billion.
For the rest of 2022, the World Investment Report predicted that FDI flows to developing economies were expected to be strongly affected by the war in Ukraine and its wider ramifications.