Ghana: GIPC Attracts GH¢10.14 Billion Worth of Investments in 2012

The Ghana Investment Promotion Centre (GIPC) has registered a total of 399 projects in 2012 showing a decrease of 22.37% if compared to 514 projects registered in the corresponding year of 2011 and an increase of 34.80% compared to 296 projects registered in 2008 (election year).

The total estimated value of registered projects for 2012 amounted to GH¢10.14 billion (US$5.63 billion) reflecting a decrease of 26.68% compared to the value of US$7.68 billion recorded in corresponding period of 2011.

The Acting Chief Executive Officer of GIPC, Mrs. Mawuena Trebarh told journalists in Accra, yesterday. These projects covered sectors including agric, building and construction, export, manufacturing, service, and tourism.

According to her, excluding the estimated value for STX (US$2.5billion) registered in 2011, the estimated value of US$5.63billion registered in 2012 gives an increase of 8.69% over the US$5.18 billion estimated value recorded for 2011.

Initial capital transfers for the registered projects in 2012 was GH¢178.15 million (US$98.97 million) and the foreign direct investment (FDI) component of the estimated value of registered projects amounted to GH¢8.83 billion (US$4.90 billion) with the local currency component amounting to GH¢1.31 billion (US$726.28 million), she explained.

The total number of jobs expected to be created from registered projects in 2012 sums up to 24,562. A total of 71 wholly-owned Ghanaian projects were registered in 2012, with a total estimated value of US$7.99 billion.

China, with 56 projects, topped the list of countries with the highest number of registered projects within the year 2012. Lebanon, however, topped the list of countries with the largest FDI value, amounting to US$1.49 billion.

From the new investment inflows, Mrs Trebarh stated that: "it is expected that 8,198 jobs will 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 with 566 jobs also expected to be created for expatriates".

Touching on the performance of the fourth quarter of last year, she noted that the centre recorded relatively positive growth in FDI notwithstanding the election in 2012, saying: "This reflects the continued confidence of investors in Ghana as being amongst the best investment destinations in Africa".

Specifically, the 4th quarter of 2012, recorded 94 projects. Of the 94 projects registered during the fourth (4th) quarter, 63 projects representing (67.02%), were wholly-owned foreign enterprises valued at GH¢1.05 billion (US$583.17 million) which is 88.76% of the total estimated value of projects registered.

The remaining 31 projects (32.98%) were joint ventures between Ghanaians and foreign partners also valued at GH¢132.97 million (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 GH¢1.18 billion (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 summed up to GH¢29 million (US$16.11 million).

The FDI component of the estimated value of the projects registered during the period under review (1st October to 31st December) was GH¢944.47 million (US$524.71 million), representing 79.86% of the total estimated value, and a local currency component of GH¢238.21 million (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 and the local currency component was US$55.06 million.

The total foreign equity was GH¢227.59 million (US$126.44 million) and the initial equity transfers was GH¢34.52 million (US$19.18 million) for this quarter.

Geographically, Mrs Trebarh revealed that seven out of the ten regions directly benefited from the registered projects during the quarter. The regions are Ashanti, Brong Ahafo, Central, Eastern, Greater Accra, Northern and Western region. 79.79% of all the projects registered are located in Greater Accra region.

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