Ghana’s Foreign Direct Investment for 2nd Quarter 2009 increases by 91.9%

Ghana’s Foreign Direct Investment for 2nd Quarter 2009 increases by 91.9%
By Masahudu Ankiilu Kunateh, Ghanadot

Accra, Sept 17, Ghanadot - The total estimated value of 83 newly projects registered in Ghana for the second quarter of this year recorded GH¢156.34million ($111.67) as compared with GH¢57.03million ($58.19million) for the same period in 2008.

This represents a significant increase of 91.9%.

In the second quarter of 2009 (1st April to 30th June 2009), the 83 new project registered, showed an increase of 56.6% compared with 53 new projects registered for the corresponding quarter in 2008.

This is also an increase of 137.14% compared to 35 new projects registered in the first quarter of 2009.

The total initial capital transfers for the newly registered projects during the quarter amounted to GH¢92.65 million (US$66.18 million).

From the number of new projects registered in this 2nd quarter alone, it is expected that 4,457 jobs will be created. 92.15% (4,107) of the total jobs to be created will be for Ghanaians and the remaining 7.85% (350) for expatriates.

According to release issued and signed by the Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Mr. George Aboagye , it intimated that of the 83 projects registered during the second quarter, 56 (67.47%), were wholly-owned foreign enterprises and 27 (32.53%) were joint ventures between Ghanaians and their foreign partners.

The joint venture projects were valued at GH¢109.29 million (US$78.06 million) which is 30.1% of the total estimated value of projects registered, whilst the 100% foreign owned enterprises were valued at GH¢47.05 million (US$33.61 million) which is 69.9% of the total estimated value of projects registered.

The release observed that for the corresponding quarter in 2008, 38 wholly-owned foreign enterprises and 15 joint ventures were registered and valued at GH¢42.17 million (US$43.14 million) and GH¢13.5 million (US$13.8 million) respectively.

Among the projects attracted into Ghana during the period under review are: Access Bank Ghana Limited – Universal Banking with an estimated project value of GH¢96.32 million (US$68.80 million), Triton Aquaculture Africa Limited-Aquaculture, hatchery, feed plant and processing plant for fish and poultry farming with an estimated project value of GH¢1.89 million (US$1.35 million), Scanstyle Biofuel Mim Limited-Production of wood pellets from wood waste with an estimated project value of GH¢7.19 million (US$5.14million), American Tank & Vessel Ghana Limited – Fabrication, engineering and erection pipelines, steel tanks and vessels with an estimated project value of GH¢3.99 million (US$2.85 million) and Main One Cable Company Limited- Installation of Submarine Optic Cable between Portugal and South Africa on the West Coast of Africa with an estimated project value of GH¢5.05 million (US$3.60 million).

These newly projects were registered in the agricultural, building and construction, liaison, general trading, manufacturing, service and tourism sectors of the Ghanaian economy.

During the quarter under review, the total foreign equity was GH¢107.12 million

(US$76.51 million) and the initial equity transfers was GH¢92.65 million (US$66.18 million) for this quarter.

For the corresponding quarter of 2008, the initial equity transfers was GH¢7.73 million (US$7.89 million).

In the area of number projects for the quarter, China topped the list of countries with the highest number of projects registered, while Nigeria topped the list of countries with the largest value of investments registered during this quarter.

Six out of the ten regions directly benefited from the registered projects. The regions are Ashanti, Brong Ahafo, Eastern, Greater Accra, Volta and Western region. 84.34% of all the projects registered are located in Greater Accra region.

Ghanadot