GIPC secures US$2.6 billion worth of FDI in 2020 amidst COVID-19

Ghana has seen a surge in foreign direct investment (FDI) inflows, recording an impressive US$2.6 billion worth of inbound investments for the year 2020.

The trend defied the anticipated steep decline in FDI flows as the second wave of COVID-19 infections threatened to cripple the Ghanaian economy.

Presenting the 4th quarter 2020 investment report, Yofi Grant, chief executive officer of the Ghana Investment Promotion Centre (GIPC), said in terms of sector allocation of the investments, the manufacturing sector with 57 projects recorded the largest FDI value of US$1, 270.53 million.

“We had a remarkable figure of US$ 2, 650.97 million which was against all our expectations because of what had happened globally and because of provisions made and I dare say it’s a testament to the confidence investors have in the Ghanaian economy.

“Indeed, our numbers tell us that, for 2020, Ghana together with Nigeria attracted the second-highest foreign direct investments on the continent. The first was Egypt with about US$5.6 billion,” he said.

With the considerable inflow of investments, some 279 projects were registered within the year. This comprised 129 newly registered projects, 131 upstream developments and 19 free zone activities -dispersed across eight regions.

Greater Accra registered the highest number of 231 projects. Cumulatively, 27,110 jobs are expected to be generated as a result of the projects.

Out of the 279 projects registered, the services sector, with 184 projects, recorded the highest number of projects. It was followed by manufacturing with 57 projects.

Export trading, general trading and building and construction recorded 15, 10 and five projects respectively.

The mining and petroleum sectors recorded three projects each and agriculture and liaison recorded a project each. In terms of the FDI values, the manufacturing sector recorded the largest value of US$1,270.53 million.

This was followed by the services, mining and petroleum sectors with FDI values of US$656.19 million, US$424.32 million and US$222.55 million respectively.

A total of 52 wholly Ghanaian owned projects with a total estimated investment amount of US$250.68 million (GHC1,438.91 million) were registered in the year 2020. These projects were registered for the agriculture, building & construction, export trading, general trading, manufacturing and services sectors.

Countries that were identified as Ghana’s leading sources of FDIs are China, the United Kingdom, South Africa, Australia and the Netherlands.

Grant reiterated the GIPC’s commitment to discharging its mandate under GIPC Act, 2013 (Act 865) which is to attract foreign direct investments into the country as well as promote domestic investments that will transform Ghana into an industrial and export-led economy by adopting efficient promotional strategies.

Philip Abutiate

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