Ghana Experiences Over 50% Decline in FDI

Data released by the Ghana Investment Promotion Centre (GIPC) indicates that in the fiscal year ending 2023, Ghana’s Foreign Direct Investment (FDI) amounted to $649.58 million, representing a notable decline of over 50% compared to the previous year’s $1.35 billion.

The GIPC’s quarterly investment report highlights that these investments are poised to create 13,523 jobs upon reaching full operational capacity. Sectors attracting significant investments include manufacturing, services, general trading, export trading, building & construction, agriculture, and liaison.

Of the total job opportunities, 89.22% are designated for Ghanaians, while the remaining 10.78% are allocated for non-Ghanaians. Among the registered projects, 90 are wholly foreign-owned, while 32 are joint ventures.

The manufacturing sector emerges as the frontrunner with 50 projects, followed by services with 43 projects and export trade with 10 projects. In terms of FDI value, manufacturing attracted the highest amount, totaling $280.24 million, followed by services with $226.29 million and general trade with $75.17 million.

China leads the pack among countries contributing to these investments, with 31 projects and the highest FDI of $211.89 million. The USA, India, the Netherlands, and Turkey are among the other significant contributors.

Yofi Grant, CEO of GIPC, emphasises the centre’s forward-looking initiatives aimed at further attracting crucial investments to support Ghana’s economic transformation. Initiatives such as regional sensitization tours, CEO’s breakfast meetings, and targeted investment promotion missions abroad underscore Ghana’s commitment to enhancing its market influence globally.