$3 billion dollars investment in first quarter of 2008

Accra, April 23, GNA - The Ghana Investment Promotion Centre (GIPC)recorded three billion dollars (3 billion) worth of investment in the first three months of 2008.

This represents a very significant increase compared to 36.75 million dollars for the same period in 2007.

Ninety-two new projects were registered during the quarter, out of which three were liaison offices. The total number of projects for the same period in 2007 was 57.

Commenting on the report, Mr Robert Ahomka-Lindsay, Chief Executive Officer of GIPC said it was a demonstration of the targeted and focused nature of the investment drive being pursued by the Centre. Of the 92 projects, 56 representing 60.9 per cent are new wholly owned foreign enterprises, with the remaining 36 projects or 39.1 per cent being joint ventures between Ghanaians and their foreign counterparts.

The Joint venture projects are valued at 2.9 billion dollars while the 100 per cent foreign owned enterprises are valued at 46 million dollars.

The sectoral composition saw projects in general trading topping the list with 29 projects, services 19, manufacturing 16, and tourism, among others.

Building and Construction, which has six projects, account for about two billion of the value of total investments while trading is worth 819.3 billion.

Some of the high profile companies attracted during the quarter included Kampac Resources Ghana Limited, which alone accounts for more than two billion dollars in investment for the rehabilitation and modernization of the western and Central Railway lines. Nana Industries, steel manufacturing, Savannah Diamond Company, processing and manufacture of cement and Westcom Steel limited are among the major companies.

"We are attracting investments into the critical areas of the economy and this is important to sustain growth," Mr Ahomka-Lindsay said.

India and China continued to top the list of countries with greater number of projects during the period. However, in terms of value of projects the United Arab Emirates account for two billion dollars of investment during the period.

The location of projects continues to be skewed in favour of the Greater Accra Region, which accounts for 79 projects out of 92. The other seven regions shared the remaining 13 projects. There were no projects registered in the Upper East and West regions. Over 9,700 jobs are expected to be generated from the projects with Ghanaians accounting for nearly 94 per cent of employment Mr Ahomka-Lindsay said the Centre was making efforts to ensure fair and equitable distribution of projects across the regions. However, he said, investors continue to be attracted to Accra because of ready infrastructure and linkages.

"We are encouraging investors to venture into the regional centres and one way we can do this successfully is through agriculture and agri-business," he said.

The Centre, he said, would pursue vigorously the attraction of investment into the agriculture and agri-business sectors.