Ghana’s investment landscape faced a significant blow in the first three quarters of 2024, as Foreign Direct Investment (FDI) value plunged by 39.86%, according to the Ghana Investment Promotion Centre (GIPC) 3rd Quarter Report.
The FDI component dropped from $525.45 million in 2023 to $316 million in 2024, a stark decline that raises questions about the country’s ability to sustain investor confidence.
This sharp fall comes at a time when the number of registered projects saw an 8% increase, rising from 100 projects in 2023 to 108 in 2024. While this growth in project numbers offers a glimmer of hope, the significant drop in investment value tempers the optimism.
The total estimated value of investments also fell by 39.28%, sliding from $536.68 million in 2023 to $325.88 million in 2024. Similarly, initial capital commitments dropped by 28.3%, from $30.83 million to $22.1 million, leaving gaps in capital injection into critical sectors.
The local component of investments declined by 12.02%, falling from $11.23 million in 2023 to $9.88 million in 2024. This highlights a worrying trend of reduced local investor participation, even as foreign-backed projects take center stage.
Adding to the concerns is a noticeable shift in high-value investors. Egypt emerged as the top country contributing FDI in 2024 with $96.01 million, replacing Turkey, which had led with $168.98 million in 2023.
These declines raise concerns about Ghana’s ability to attract high-value investments, even as the number of registered projects continues to grow.
Experts suggest that while the increase in projects is promising, the drop in total investment value may reflect challenges in securing larger capital commitments and maintaining the confidence of high-value investors.
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