Ghana’s economy expanded steadily in the first half of 2024, defying sluggish global investment trends and geopolitical instability, according to a report by the Ghana Investment Promotion Centre (GIPC).
The country recorded a 2.7% year-on-year GDP increase, driven by strategic sector diversification and resilient domestic demand.
The GIPC’s latest data shows 140 new projects registered between January and June, marking an 11.5% rise from the same period in 2023. While foreign direct investment (FDI) dipped 5% to $617.6 million, the uptick in project volume signals sustained confidence in Ghana’s economic fundamentals. Analysts attribute the FDI decline to tightened capital flows in emerging markets, as global investors pivot toward lower-risk assets amid inflationary pressures.
Manufacturing emerged as the most active sector, securing 66 projects—nearly half of all registrations—as Ghana strengthens its position as a West African industrial hub. The services sector, however, attracted the highest FDI value at $281.6 million, underscoring its pivotal role in sustaining foreign exchange reserves and employment growth.
The GIPC emphasized alignment with national priorities, including agricultural modernization and tech-enabled services, through enhanced tax incentives and streamlined approval processes. “Our focus remains on sectors that drive inclusive growth and value addition,” said GIPC Chief Executive, citing recent partnerships to upgrade port infrastructure and renewable energy capacity.
While rising public debt and currency volatility pose challenges, economists highlight Ghana’s progress in renegotiating bilateral loans and stabilizing inflation, which fell to 23.1% in May from 54% a year earlier. The International Monetary Fund’s $3 billion bailout package, approved in 2023, has also bolstered fiscal credibility.
“Short-term FDI fluctuations are expected given external headwinds, but Ghana’s structural reforms—from digitalizing land registries to expanding export zones—are laying groundwork for long-term gains,” said Accra-based Financial Journalist Roger A. Agana.
The GIPC report coincides with new World Bank projections forecasting 3.5% GDP growth for Ghana in 2024, outpacing regional averages. With 83% of registered projects classified as wholly or jointly foreign-owned, officials aim to deepen linkages between multinational firms and local suppliers to retain more capital domestically.
As global markets navigate uncertainty, Ghana’s mixed performance reflects both the fragility and adaptability of emerging economies in recalibrating to a shifting investment landscape.
