Bloomberg News

Ghana’s Foreign Direct Investment Fell on Vote Concerns

February 06, 2013

Foreign direct investment into Ghana, West Africa’s second-biggest economy, dropped 28 percent to $4.9 billion last year because of “uncertainties” related to elections, the Ghana Investment Promotion Centre said.

The decline is “characteristic of every election year in Ghana,” Mawuena Trebarh, chief executive officer of the agency, said in an interview today in the capital, Accra.

Ghana, the world’s second-biggest cocoa producer, has benefited from rising investment since the 2007 discovery of oil. Economic growth is forecast to reach 7.8 percent this year, compared with a 5.3 percent average for sub-Saharan Africa, according to the International Monetary Fund.

China was the top investor in Ghana based on number of registered projects, which increased to 56 last year from 52 in the previous year, the investment agency said. Lebanon was the biggest investor in terms of value, with $1.49 billion. Investment projects created 25,000 jobs in 2012 compared with 43,000 in 2011, Trebarh said.

President John Dramani Mahama, 54, of the ruling National Democratic Congress, won 50.7 percent of the votes cast in the Dec. 7-8 election. His challenger, Nana Akufo-Addo of the New Patriotic Party, is contesting the result in court.

To contact the reporter on this story: Ekow Dontoh in Accra at edontoh@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


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