GIPC Exceeds FDI Inflow Target in 2011


Prosper Agbenyega

The Ghanaian economic indicators have all shown positive signs showing the creditability of the performance of the country’s economy at the end of 2011. It is on record that the country enjoyed a single digit inflation of 8.58% as at December last year.

According to the Ghana Investment Promotion Council (GIPC), the year 2011 has been an action year for the country as it attracted more Foreign Direct Investments (FDIs) with FDI exceeding inflow target of US$5.32 billion for the year.

This was revealed by the Chief Executive Officer (CEO) of GIPC, Mr. George Aboagye at a press conference on the Fourth Quarter 2011 Investment Report, in Accra.

Mr. Aboagye noted that in the 4th Quarter of 2011, GIPC registered 117 new projects making an increase of 56% compared to 75 registered projects in corresponding quarter of 2010.

He mentioned also that 85 projects out of the 177 were wholly-owned foreign enterprises with value of GH¢637.23million representing 12.30% of the total estimated value of registered projects.

“The remaining 32 projects being 27.35% were joint ventures between Ghanaians and foreign partners and was valued at GH¢4.55 billion, also representing 87.70% of the total estimated value of projects registered,” he said.

The GIPC Boss also averred that the FDI component of the estimated value of newly registered projects during the quarter was GH¢4.04 billion which represented 77.94% of the total estimated value. In all, a total number of 514 projects were registered in 2011, having an increase of 33% from 2010 resulting in a total estimated value of GH¢11.52 billion.

He explained that China tops the list of countries with largest number of registered projects in Ghana. According to him, China registered 25 projects with US$2.25billion as estimated value of the investments.

Korea however topped the list of countries with the largest value of investments registered during the fourth quarter of 2011.

It has also been revealed that, last year’s 3rd quarter growth was as a result of a substantial leap from industry also largely fueled by the crude oil production from the jubilee field.

According to Mr. Aboagye, Manufacturing didn’t do well. “Whilst electricity had an increase of 7.8 percent, water on the other side didn’t do that well”

The services sector he indicated followed industry with 5.8% growth whilst Agric recorded the lowest growth of 5.2%
The Services Sector however maintained its dominance as the biggest contributor to the economy with 50% followed by Industry and Agriculture.

Mr. Aboagye averred that GIPC is confident that the FDI inflows for 2012 will appreciable considering the experience and contacts it made in the last few years, saying that, “The GIPC is committed to its mandate and continues to promote Ghana’s great variety of investment opportunities which is geared towards the realization of the country’s development goals, even as it still improves its business environment.”

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