China leads in project numbers, Spain tops FDI value

China emerged as Ghana’s leading source of investment in terms of project numbers for the first half of 2024, with 26 registered projects, according to the Ghana Investment Promotion Center (GIPC) Investment Report.

However, Spain accounted for the highest foreign direct investment (FDI) value during the same period, recording US$76.41 million.

Overview of Investment Activity

A total of 69 projects were registered between January and June 2024, with an estimated combined investment value of US$185.86 million. Of these:

• 53 projects (76.8%) were wholly foreign-owned, with a total investment value of US$177.79 million.
• 16 joint ventures between Ghanaians and foreign investors accounted for 23.2%, with an estimated investment value of US$8.37 million.

Additionally, 17 companies reinvested a combined equity of US$28.14 million during the period, highlighting sustained investor confidence in the Ghanaian economy.

Sectoral Breakdown and Employment Prospects

The manufacturing sector led with 29 projects, followed by services (19 projects), and general trading (11 projects). Other sectors, including export trade, building and construction, tourism, liaison, and agriculture, recorded a smaller number of projects.

FDI values varied significantly across sectors:

• Liaison sector attracted the highest FDI value of US$76.30 million.
• Manufacturing sector followed with US$62.16 million.
• General trading recorded US$20.99 million.

These investments are expected to generate 8,524 jobs upon becoming fully operational, contributing to employment across agriculture, manufacturing, construction, tourism, and other critical sectors.

FDI and Local Contributions

Ghana accrued US$179.07 million in FDIs during the first half of 2024, complemented by a local investment component of US$7.09 million. Initial capital transfers for the period amounted to US$17.73 million, underscoring investor commitment to Ghana’s economic prospects.

Conclusion The GIPC report underscores Ghana’s appeal as an investment destination, with diverse sectors continuing to attract foreign and local investments. The dominance of China in project numbers and Spain in FDI value reflects Ghana’s ability to attract a mix of international investors while creating opportunities for job growth and economic diversification.