The Chief Executive Officer (CEO), Ghana Investment Promotion Centre (GIPC), has indicated government’s resolve to mitigate the economic effects of the coronavirus pandemic and restore the Ghanaian economy to its rightful place.
Mr. Yofi Grant indicated that, “Ghana was not only affected by a health pandemic but by the seeming global recession which has resulted in a projected revenue shortfall of about US$2.35 billion (GH¢13.6 billion).”
Mr. Grant made this known on Friday in a press briefing at GIPC, Accra, during which he informed that, “For Ghana to survive the effects of the pandemic and to thrive, the government is implementing the Coronavirus Alleviation & Revitalization of Enterprises Support (CARES) programme” which held promise is dealing with the economic effects of the pandemic.
Mr. Grant indicated that the Enterprise Support was a three-and-a-half-year recovery and revitalization programme which involved an investment of GHS100 billion, out of which 70% was expected to be funded by the private sector through investments, and the CARES programme was expected to impact every facet of Ghanaian lives and set the economy on a path to recovery.
Mr. Grant informed that GIPC as an investment promotion agency “is determined to play a crucial and indispensable role in supporting Governments efforts for developing both domestic and foreign investments through innovative and aggressive investment attraction strategies to support the economic recovery process and the transformational agenda through the Ghana Beyond Aid concept.”
The CEO indicated that Foreign Direct Investment (FDI) flows into Ghana during the second quarter of 2020 deviated from the global expected trend of declines, resulting in a significant increase in FDI inflows for the first half of the year.
He informed that total investments recorded in the first half of 2020 was US$869.47 million with total FDI value amounting to US$785.62 million. “The GIPC recorded a total of 69 projects, with a total estimated cost of US$688.74 million in the first half of 2020,” Mr. Grant said.
He said that out of this, the FDI component and that of the local components amounted to US$627.52 and US$61.22 million respectively with the total initial capital transfers recorded for the period also amounting to US$55.75 million. The FDI value of US$627.52 million was a significant increase of 409.10% over the FDI value of US$123.26 million recorded in the first half of 2019.
Mr. Grant said the investments recorded by the Centre in the first half of 2020 had prospects of generating a minimum of 6,489 jobs. “5,972 (87.2%) of these jobs are to be generated for Ghanaians and the remaining 562 (8.7%) will be for Non-Ghanaians,” he added.
On the global investment sphere, Mr. Grant said Africa enjoyed some of the highest global returns on Foreign Direct Investment (FDI) despite the continuous slide in global FDI flows. According to him, this made Africa to stand in sharp contrast to developed economies, which saw FDI inflows plunge 27% to their lowest level since 2004.
“As a result, Ghana began the 2020 year with so much optimism as the country was conscious of the opportunities and benefits associated to not only the efforts put in place by the Government to improve the business environment, but also the entry into force of the African Continental Free Trade Area (AfCFTA) in May 2019 which promised to boost intra-African trade by as much as 25 per cent by 2040,” the CEO added.
Out of the 69 projects registered in Ghana, the services sector recorded the highest number with 25 projects whilst manufacturing and export trade sectors followed with 21 and 11 projects respectively.
In terms of the estimated cost of investments, the general trading sector recorded the largest value of US$246.05 million. This was followed by the mining exploration and manufacturing sectors with estimated cost of US$231.02 million and US$170.67 million, respectively.
China was the leading source of investments registered in the first half of 2020 with 12 projects. In terms of FDI value, the United Kingdom was the country with the largest investment value with US$238.90 million.
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