Ghana’s FDI Attraction Improves

 

Ghana moved up one place up from the eighth to the seventh position in the league of countries that attract Foreign Direct Investment (FDI) in Africa.

The 2018 EY Africa Attractiveness Report, which made this known, also ranked Ghana second in West Africa for FDI attractiveness.

EY Africa Attractiveness Survey and Report by Ernst & Young Company is designed to help businesses make informed investment decisions.

It also helps governments to improve their respective business environment while lightening barriers that may intercept future growth.

Ghana in 2016 got 28 projects out of the 676 FDI projects that came to Africa, putting it in the seventh position in Africa and third in West Africa.

In 2017, FDI projects in Ghana increased by 15 more projects to 43, displacing Ivory Coast at the second position in West Africa.

Nigeria moved up from the fifth position to fourth but lost the third position to Kenya who in 2016 was at the fifth position.

South Africa, once the clear leader in attracting FDI, now shares the top rank with Morocco.

This is the first time that South Africa has been challenged in terms of being the most preferred investment destination (measured by FDI project numbers).

Ethiopia jumped seven places to become the fifth-largest FDI recipient, its highest ranking yet.

These shifting FDI dynamics illustrate a broader trend outside South Africa, as growth across the rest of the continent accelerates, so they take a greater share of inbound investment.

After facing its lowest economic growth in over 20 years, Sub-Saharan Africa (SSA) posted a slow recovery in 2017.

The International Monetary Fund (IMF) forecasts a modest rise in the region’s GDP growth from 2.8 per cent in 2017 to 3.4 per cent this year.

In tandem with improved economic performance, Foreign Direct Investment (FDI) projects into Africa rebounded from their lowest level in a decade.

Last year, Africa registered 6.2 percent growth in inward investment projects compared with 2016.

The report revealed that West Africa attracted 172 FDI projects in 2017- Nigeria had a 37 per cent share, Ghana with 25 per cent then Ivory Coast with 13 per cent, while the rest shared the remaining.

 

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