Business News of Thursday, 7 February 2013
Source: Ghana Business News
A total of $5.63 billion (GH¢10.14 billion) worth of investments were recorded in Ghana during year 2012, the Ghana Investment Promotion Centre announced February 6, 2013.
In its latest report, the GIPC said it registered a total of 399 projects in 2012 showing a decrease of 22.37% compared to 514 projects registered in the corresponding year of 2011 and an increase of 34.80% compared to 296 projects registered in 2008 which was also an election year.
“The total estimated value of registered projects for 2012 amounted to GH¢10.14 billion ($5.63 billion) reflecting a decrease of 26.68% compared to the value of $7.68 billion recorded in corresponding period of 2011,” the GIPC report said.
According to the GIPC, if the 2011 STX project value of $2.5 billion was to be excluded, then the estimated value of$5.63billion projects registered in 2012 gives an increase of 8.69% over the $5.18 billion estimated value recorded for 2011.
The GIPC recorded 94 projects during the fourth quarter of 2012 of which 63 representing (67.02%) were wholly-owned foreign enterprises with a value of GH¢1.05 billion ($583.17 million) which is 88.76% of the total estimated value of projects registered.
And the remaining 31 projects (32.98%) were joint ventures between Ghanaians and foreign partners valued at GH¢132.97 million ($73.87 million) representing 11.24% of the total estimated value of projects registered.
The GIPC noted that the total estimated value of the registered projects for the fourth quarter was GH¢1.18 billion ($657.05 million), a decrease of 65.68% compared to the value recorded in the third quarter of 2012.
The initial capital transfers for the newly registered projects during the quarter summed up to GH¢29 million ($16.11 million), it added.
According to the Centre, the foreign direct investment (FDI) component of the estimated value of the projects registered during the fourth quarter period (October 1 to December 31) was GH¢944.47 million ($524.71 million), representing 79.86% of the total estimated value, and a local currency component of GH¢238.21 million ($132.34 million), representing 20.14%.
From the new investment inflows, the GIPC says it expects that about 8,198 jobs will be created. “Out of this, the total number of jobs expected to be created for Ghanaians from the projects registered in the fourth quarter of 2012 is 7,632 with 566 jobs also expected to be created for expatriates,” it added.
Though the country recorded relatively positive growth in FDIs due to the elections in 2012, the GIPC said “This reflects the continued confidence of investors in Ghana as being amongst the best investment destinations in Africa.”
Most of the projects registered were in the services sector, general trading, building and construction and manufacturing, among others.