FDIs decline both in value & volumes

Elorm Desewu

Foreign Direct Investments legally registered in the country has declined both in volumes and value for 2012, according to figures released by the Ghana Investment Promotion Center.
For 2012, the GIPC registered a total of 399 projects in the country, showing a decrease of 22.37% compared to 514 projects registered in the previous year of 2011.
The total estimated value of registered projects for 2012 amounted to US$5.63 billion representing a decrease of 26.68% compared to a value of US$7.68 billion recorded in a corresponding period of 2011. Excluding the estimated value for STX which was US$2.5billion registered in 2011, the estimated value of US$5.63billion registered in 2012 shows an increase of 8.69% over the US$5.18 billion estimated value recorded for 2011.
Figures released by the centre shows that for the fourth quarter of 2012, 94 projects were recorded. Of the 94 registered projects, 63 projects representing 67.02%, were wholly foreign-owned enterprises valued at US$583.17 million which is 88.76% of the total estimated value of projects registered. The remaining 31 projects which represents 32.98% were joint ventures between Ghanaians and their foreign partners with a value of US$73.87 million, which represents 11.24% of the total estimated value of projects registered.
The total estimated value of the registered projects for the quarter was US$657.05 million. This represents 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 totaled US$16.11 million.
According to the figures, the FDI component of the estimated value of the projects registered during the fourth quarter was US$524.71 million, representing 79.86% of the total estimated value, and a local currency component of US$132.34 million, representing 20.14%.
Also the FDI component of the estimated value of the projects registered in the corresponding quarter of 2011 was US$ US$2.69 billion and the local currency component was US$762.06 million
The FDI component of the estimated value of the projects registered in the third quarter of 2012 was US$1.86 billion with a local currency component of US$55.06 million.
Total foreign equity was US$126.44 million with initial equity transfers of US$19.18 million for this quarter.
From the new investment inflows, it is expected that 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 out of which 566 jobs are expected to be created for expatriates.