According to the United Nations Conference on Trade and Development (UNCTAD), the coronavirus pandemic will plunge global Foreign Direct Investment (FDI) by about 40 percent, and drive total value of FDI below US$1 trillion for the first time since 2005.
Ghana’s FDI in first half of 2020
Despite the gloom prediction and lockdown measures instituted in Ghana to curb the spread of the virus, the country witnessed an upsurge of FDI in the first half of the year.
According to Ghana Investment Promotion Centre (GIPC), Foreign Direct Investment increased from US$123.26 million last year (January – June) to US$627.5 million within the same period this year, representing over 400% increase.
The data also revealed a total investment of US$869.47 million in the first half of the year, with a total in FDI amounting to US$785.62 million between January to June 2020.
The reason for the increase has been attributed to the gradual easing of restrictions and government initiatives such as the Coronavirus Alleviation Programme (CAP) Business Support Scheme that was set up to help businesses withstand the negative impact the coronavirus poses.
Ghana’s FDI by sector
Out of the 69 projects recorded at GIPC, the services sector emerged at the top with 25 registered projects. The manufacturing and export trade sector followed suit with 21 and 11 registered projects respectively. With regards to value, general trading was said to have recorded the highest amount of US$246.05 million, followed closely by the mining exploration sector with US$231.02 million.
Ghana’s FDI by geographical location
GIPC further states that the projects cut across 6 regions namely, Greater Accra, Central, Eastern, Ashanti, and Volta regions, with Greater Accra bearing the greatest number of registered projects. The 69 projects in total are expected to create a total of 14,614 jobs when the projects are fully operational. 14,052 out of the total 14,614 jobs to be created, representing 96.15 % will go to Ghanaians while the remainder of 562 jobs will go to foreigners.
The GIPC said, it
“will continue to assiduously pursue worthwhile investments for economic development as well as support government initiatives such as the COVID-19 Alleviation and Revitalization of Enterprises Support (CARES) Programme to help bolster the Ghanaian economy towards a recovery and remain resilient pre and post-pandemic.”