Ghana has recorded a total of US$2,650.97 billion worth of Foreign Direct Investments (FDI) despite the outbreak of the Covid-19 pandemic in 2020.
This represents an increase of 139.06 percent of the total US$1,108.93 million FDI the country recorded in 2019.
The Chief Executive Officer of the Ghana Investment Promotion Center (GIPC), Mr Yofi Grant, speaking at a press conference to present the 4th Quarter 2020 Investment Report said, the trend defied the anticipated steep decline in FDI flows as the second wave of Covid-19 infections threatened to cripple the country’s economy.
He indicated that for the year under review, some countries that stood out as the nation’s leading inward investments included China, the United Kingdom, South Africa, Australia and the Netherlands.
According to United Nations Conference on Trade and Development (UNCTAD) Global Investment Trends Monitor, global FDI collapsed in 2020, plummeting by 42 percent to an estimated $859 billion, from $1.5 trillion in 2019.
The decline was concentrated in developed countries, where FDI flows fell by 69 percent to an estimated $229 billion. The fall was, however, highly uneven across developing regions including 37 percent in Latin America and the Caribbean, 18 percent in Africa and 4 percent in developing countries in Asia.
Mr Grant said while Ghana had initially witnessed a plateau in FDI inflows during the first wave of infection, which resulted in lockdowns, investments saw a rebound on the back of government policy responses to mitigate the impact of the health pandemic on businesses.
The total investment inflows thus peaked at US$2,796.49 million in 2020, with a total FDI value of US$2,650.97 million for Ghana compared to the FDI value of US$1,108.93 million recorded in 2019.
He said with the considerable inflow of investments, some 279 projects were registered within the year, comprising 129 newly registered projects, 131 upstream developments and 19 free zones activities dispersed across eight regions, with Greater Accra registering the highest number of 231 projects.
“Cumulatively, some 27,110 jobs are expected to be generated from the aforementioned registered projects,” he added.
In terms of the sector allocation of the investments, Mr Grant explained that the manufacturing sector recorded the largest FDI value of US$1,270.53 million with 57 projects while the services and mining sectors recorded FDI values of US$656.19 million and US$ 424.32 million in that manner.
On the domestic front, he said additional equity (cash and goods) totalling US$69.28 million was ploughed back as investment from 172 already existing companies, whereas US$250.68 million (GH¢1,438.91 million) was obtained from 52 wholly Ghanaian-owned ventures.
“This trend of strong performance in Ghana's inbound FDI amid the global health pandemic can be attributed to a combination of factors including effective government policy responses, an easing of travel restrictions and more importantly the delivery and expected future development of vaccines in-country,” he said.
He said the GIPC's notable efforts as the leading Investment Promotion Agency also played a pivotal role in attracting investors.
Mr Grant expressed the Centre’s commitment to boosting investor confidence and harness valuable investments for the country as it took a step into an era of liberalised trade under the Africa Continental Free Trade Area.
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