Graphic Business News

GIPC attracts over US$2 billion worth of FDIs • Registers 117 new foreign projects

By: Emmanuel Bruce
Mr Yofi Grant, CEO, GIPC
Mr Yofi Grant, CEO, GIPC

THE Ghana Investment Promotion Centre (GIPC) registered 117 new projects with foreign participation from January to September 2018.
The value of the new projects is estimated at US$2.1 billion, with foreign direct investment (FDI) component of US$2.05 billion.

The total initial capital transfers for the newly registered projects amounted to US$67.42 million, with 8,872 jobs created.

The centre also registered 47 wholly Ghanaian owned projects with total estimated value of GH¢715.70 million during the period under review.

This was contained in the Finance Committee’s report on the budget estimate for the office of government machinery, under which the GIPC falls.

Planned activities for 2019
On the way forward, the GIPC plans to register 220 new projects with foreign participation in 2019.

The centre also plans to register 80 new joint venture projects.

The total estimated value of these projects is US$6 billion, with FDI component estimated at US$5.5 billion.

On completion of these projects, a total of 14,644 jobs are expected to be created for Ghanaians in the oil and gas, railway, tourism and mining sectors of the economy.

Compensation of employees
The committee in its report observed that compensation of employees of the GIPC had increased from GH¢7 million to GH¢31.4 million under its internally generated funds (IGF).

The technical team responded that in 2019, the centre intends to open eight international offices and seven additional regional offices.

The increase in the compensation of employees is, therefore, due to the additional staff who would be employed to man these offices.

The centre assured the committee that the Ministry of Finance had granted the necessary permit for recruitment.

Opening of new offices
As part of its mandate to attract FDIs and in order to support the one district, one factory initiative, the centre aims to establish permanent offices in eight countries including China, United States, South Africa and Japan.

The officials informed the committee that GIPC’s presence in these countries was very necessary to attract the needed FDIs.

They explained that the offices would aid in undertaking the needed follow-ups of potential investments.

The centre also pointed out that it currently had three regional offices and an intention to open offices across the country.

The committee was assured that with these measures in place, the centre had targeted FDI value of US$5.5 billion for the year 2019.

Office of govt machinery
The Office of Government Machinery embraces the constitutional view of the Office of the President as the seat of government and organisations whose operations fall outside traditional areas of sectoral responsibilities.

The Office of Government Machinery comprises the Office of the President, Scholarships Secretariat, Ghana Aids Commission, State Protocol Department, the National Population Council and the Internal Audit Agency.

The rest are the Ghana Investment Promotion Centre, Microfinance and Small Loans Centre, Office of the Administrator-General and the Millennium Development Authority.

Others include the African for Bio Fuels Development, State Enterprises Commission, Divestiture Implementation Committee, National Identification Authority and the Office of the Senior Minister.

For the effective operations of these organisations, Parliament approved a budget estimate of GH¢3.67 billion for the entire office of government machinery.