FDI surges for 1st half of 2020, amid COVID 19

By Elorm Desewu
The Foreign Direct Investments, (FDI), legally registered in
the country for the first half of 2020 has recorded US$688.74 million in value
and 69 projects in numbers.
Out of this, the FDI component and local components amounted to
US$627.52 million and US$61.22 million respectively. The total initial capital
transfers recorded for the period also amounted to US$55.75 million. The FDI
value of US$627.52 million was a significant increase of 409.10% over the FDI
value of US$123.26 million recorded in the first half of 2019.
Of the 69 projects
registered, 45 were wholly owned foreign enterprises, representing 65.20% with
a total estimated cost of US$127.80 million. The Joint Venture projects between
Ghanaians and foreign counterparts were 24, representing 34.78% of the
registered projects and with a total estimated cost of US$560.93 million.
Out of the 69 projects registered, the services sector, with 25
projects, recorded the highest number of projects. Manufacturing and Export
trade sectors followed with 21 and 11 projects respectively. In terms of the
estimated cost of investments, the general trading sector recorded the largest
value of US$246.05 million. This was followed by the mining exploration and
manufacturing sectors with estimated cost of US$231.02 million and US$170.67
million, respectively.
In terms of regional distribution of the projects registered,
six (6) regions directly benefited from the 69 projects. 59 projects,
representing 85.51% of the projects registered are in the Greater Accra region.
The other regions are the Central and Eastern regions with a project each,
Ashanti and Volta regions with two (2) projects each and the Western region
with four (4) projects
A total of 14,614 jobs are expected to be generated from the 69
projects registered, with operation at full capacity. 14,052 (96.15%) of these
jobs would be available to Ghanaians whilst the remaining 562 (3.85%) are
expected to be taken up by non-Ghanaians.
China, with 12 projects, was the leading source of investments
registered by number in the first half of 2020. In terms of FDI value, the
United Kingdom, with US$238.90 million was the country with the largest
investment value.
A total of 28 wholly Ghanaian owned projects with total
estimated cost of GHC1,365.26 million were registered during the first half of
2020. These projects were registered for the agriculture, building &
construction, general trading, manufacturing and services sectors.
In the second quarter of 2020, 22 projects were registered by
GIPC with total estimated value of US$499.20 million.
This comprised FDI of US$447.31 million and local component of
US$51.89 million. Total initial transfers amounted to US$40.49 million. Of the
22 projects registered, 10 were wholly foreign owned, representing 45% of the
number of projects and with a total estimated cost of US$7.57 million.
The Joint Venture projects between Ghanaians and their foreign
counterparts were 12, representing 55% of the number of projects and with a
total estimated cost of US$491.63 million.
Out of the 22 projects registered in the second quarter of the
year 2020, the services sector, with 7 projects, recorded the highest number of
projects. Manufacturing and General Trading sectors followed with 6 and 4
projects respectively.
The investments recorded by the Centre in the first half of
2020 have prospects of generating a minimum of 6,489 jobs. 5,972 (87.2%) of
these jobs are to be generated for Ghanaians and the remaining 562 (8.7%) will
be for Non-Ghanaians.
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