FDI inflows into Ghana recorded a 52% decline in 2021
• FDI inflows into Ghana recorded a decline in 2021
• This is contrary to figures released by the GIPC
• FDIs inflows into the country per the World Bank declined by 52% in 2021
The World Bank’s recent 2022 International Debt Statistics has revealed Ghana’s Foreign Direct Investment inflows in West Africa registered a 52% decline in 2021.
According to the report, the decline registered was US$2.0 billion in 2020, from an earlier US$3.9 billion recorded in 2019.
The Bretton Woods institution attributed Ghana’s decline in FDI inflows to the adverse impact of the coronavirus pandemic on the global economy.
“In contrast Ghana, one of the largest FDI recipients in West Africa and the first country on the continent to impose mobility [COVID-19] restrictions, registered a 52% decline in FDI inflows in 2020. They fell to US$2.0 billion from US$3.9 billion in 2019 with manufacturing, services, and the mining sector all recording a downturn,” the report pointed.
Meanwhile, the World Bank’s latest report is contrary to data released by the Ghana Investment Promotion Center which said the country had recorded FDIs of a little above US$2.6 billion in 2020 representing a 139% increase as compared to 2019.
The GIPC estimated that FDIs into Ghana are expected to improve from 2022 owing to a gradual reopening of economies and business activity globally.