Investment Drops By Over 40%

Ghana’s investment inflows dropped by 41.5% during the first half of this year. The Ghana Investment Promotion Council (GIPC) recorded US$20.94 million expected investment as compared to $35.80 million recorded for the same period last year. According to statistics on registered projects released by the Center, 54 projects have so far been registered this year with a quarterly breakdown of 26 projects estimated at US$11.73 million in the first quarter and 28 projects estimated at US$9.21 million the second quarter.

This year’s 54 registered projects fall short of last year’s 86 registered projects by 37.2% which had a quarterly breakdown of 32 projects with a capital outlay of US$15.90 million in the second. This year recorded US$14.32 million and US$6.62 million for wholly foreign and foreign/Ghanaian joint ventures respectively as against US$26.99 respectively last year. Sectorial distribution of investment for this year has shifted from the usual concentration on the service sector; with the manufacturing sector recording 23 projects out of the total 54.

A projected cost of US$13.25 million accounting for 63.28% of the total expected investment was recorded for the period compared with figures from last year where the sector attracted 24 projects estimated at a cost of US$5.84 million accounting for 16.3% of the total investment inflow.

Building and investment had four projects costing US$1.72 million, Agriculture and General Trade attracted three projects while export trade attracted one project. Regional pattern of project distribution for the half-year period remains favorable to the Greater Accra, which recorded 49 projects, representing 90% of total registered projects, 7% higher than that of last year.