The Chief Executive of the Ghana Investment Promotion Center (GIPC), Yofi Grant, has stated that the current economic challenges in the country have not negatively impacted on Foreign Direct Investments (FDI), and attraction of capital investment.
Mr. Grant noted that there is rather an “uptick” over the past months from investors, following up on their requests to do business in Ghana.
His reaction comes after concerns that Ghana’s economic conditions, and global economic downturn have affected countries seeking to attract FDIs.
Speaking on PM Express Business Edition with host George Wiafe on October 26, 2023, Mr. Grant disclosed that ,“a day will not pass without investors coming into our offices to follow up on enquiries that they have made earlier this year , about setting up some projects in Ghana”.
He stressed that data available to the GIPC does not support views that investors are turning their backs on Ghana.
“Interestingly, this year and last year have been one of our most engaging times here at the Ghana Investment Promotion Center when it comes to meeting fresh investors,” he said.
“We can talk about the German Chancellor coming to town with a high powered Business Delegation, to follow up on some developments in the country”, he added.
He argued that business owners will always move to areas where they can grow and explore opportunities to create wealth.
“All these firms are coming because they have identified business opportunities, and remember what these investors are focusing on is the outlook and not now”.
He added that Ghana still stands tall among its peers in relation to attracting investment, post COVID-19.
Citing some good features helping Ghana to attract investors, Mr. Grant said the country’s Political Stability has also been a major “pull factor” in attracting investors.
IMF Programmme and impact on Investment Attraction to Ghana
Speaking on the impact of the IMF programme on investment drive, Mr. Grant pointed out that securing a deal with the IMF has rebuild confidence among investors.
He explained that the deal has helped removed the perception that the economy will continue to struggle.
Ghana in October secured a staff level Agreement for the first programme review. The country’s is now waiting for the IMF Board to meet on November 22, 2023 and possibly approve the staff report , subject to Ghana securing financing assurances from its bilateral creditors.
Ghana and Foreign Direct Investments Attraction
Ghana’s Investment Report from January to June this year, showed that the Foreign Direct Investment component amounted to US$238 million and US$40 million dollars for the first half of 2022. The total initial capital transfers recorded for the first half of 2022 also amounted to US$28.33 million. The investments recorded by the Centre in the first half of 2022 have the capacity to generate a minimum of 4.066 jobs.
However, there have been concerns that Foreign Director Investors for this year will decline further looking at the current numbers.
But Mr. Grant believes that the situation will improve greatly by the end of the year.
“It will be better for the year to end for us to do proper assessment as to whether the situation is getting worse when it comes to Foreign Direct Investment”, he maintained.
He suggested that it will be prudent to take a relook at the way investment flow is measured in Ghana.
On concerns about whether the projects that Ghana has recorded through Foreign Direct Investments, are measureable, Mr. Grant explained that there is a unit in place at the GIPC that monitors investment activities.
“The GIPC has also taken steps to ensure that there is local content and technology transfers from all the projects that Ghana is recording under the Foreign Direct Investments”, he assured.