Ghana Attracts Robust Foreign Direct Investment in First Three Quarters of 2024

 

Ghana’s economy continues to demonstrate its attractiveness to foreign investors, recording a significant inflow of Foreign Direct Investment (FDI) during the first three quarters of 2024. According to the Ghana Investment Promotion Centre (GIPC)’s Third Quarter Report, the country attracted $316 million in FDI, solidifying its position as a leading investment destination within West Africa.

 

The GIPC report details the registration of 108 projects between January and September 2024, representing a combined estimated investment value of $325.88 million. This figure reflects a healthy mix of foreign and domestic investment, with foreign investment dominating the landscape. Local investments contributed a comparatively smaller amount of $9.88 million, indicating a strong preference among investors to establish operations within Ghana.

 

A breakdown of the registered projects reveals a substantial contribution from wholly foreign-owned entities. A total of 85 projects, representing a significant 78.7% of the total number of registered projects, were wholly foreign-owned, bringing in $303.49 million in investment. Joint ventures between Ghanaian and foreign entities accounted for the remaining 23 projects, contributing $22.39 million or 21.3% to the total investment value. The initial capital transfers during this period amounted to $22.1 million, highlighting investor confidence in Ghana’s economic stability and future growth prospects.

 

The manufacturing sector emerged as the primary beneficiary of FDI inflows, attracting a substantial 55 projects with a combined investment value of $190.7 million. This sector’s dominance in attracting foreign capital underscores its critical role in driving Ghana’s industrialization agenda and creating jobs. The liaison sector followed closely, attracting $76.3 million in investment, while the general trade sector secured $21 million.

 

The diversity of sectors attracting investment is also noteworthy, suggesting a broader appeal to foreign investors. In addition to manufacturing, services (27 projects), general trade (11 projects), export trade (7 projects), agriculture (3 projects), tourism (2 projects), and building and construction (2 projects) all received foreign investment, with liaison services attracting one project. This sectoral diversity indicates a robust and varied investment landscape capable of fostering sustainable and inclusive economic growth across multiple sectors.

 

The significant FDI inflow recorded during the first nine months of 2024 provides encouraging evidence of Ghana’s continued appeal as a viable and attractive destination for foreign investment. The manufacturing sector’s leading role, coupled with investments across various economic sectors, suggests a promising trajectory for sustained economic growth.