Ghana attracts $1.5b FDI flows in ‘election petition’ period

Independence squareA new UN report has shown that foreign direct investment (FDI) flows to Ghana declined in the first-half of 2013, a period where the election petition was heard by the country’s Supreme Court.

It was difficult to know exactly how much investment loss Ghana incurred during the 8-month hearing of the case which was to challenge the legitimacy of President John Mahama.

Governor of the central bank, Dr Kofi Wampah at a monetary policy press meeting after the election verdict, indicated of a hold-back of investments during the period.

According to the latest Global Investment Trends Monitor (GITM) released October 31,2 013 by the UN Conference on Trade and Development (UNCTAD), FDI flows to Ghana slowed to $1.5 billion as the end of first-half of 2013 from $1.6 billion at the end of 2012 second-half.

Between 2012 and 2013 first-half, the UNCTAD report indicated that the growth rate of FDI flows into Ghana declined 11%. “…flows to Ghana were slightly lower than last year but future prospects look positive,” it said.

According to the UN trade agency, Indian automotive manufacturer, Mahindra, is looking to set up a vehicle-assembly plant in partnership with a local Ghanaian firm, raising hopes for a diversification of investments away from the oil and mining sectors.

UNCTAD reported that FDI flows to Africa decreased by 5% in the first half of 2013, compared to the same period in 2012 despite two of the continent’s five sub-regions – North Africa and Southern Africa – recorded positive growth rates.

In Sub-Saharan Africa, it said Nigeria attracted inflows of $2.6 billion, in the first six months of the year – less than half last year’s record $7 billion.

UNCTAD however expects Nigeria’s inflows to rise sharply on the back of recent efforts to attract industrial and manufacturing investments and its market growth prospects.

By Ekow Quandzie

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