According to the 2022 World Investment Report, the rise in Ghana’s foreign direct investment flows was attributed to major projects in its extractive industries
Foreign direct investment flows to Ghana increased by 39% to US$2.6 billion for the year 2021, according to the World Investment Report 2022.
This placed Ghana second in West Africa, and seventh in Africa, in terms of FDI attraction.
The rise in Ghana’s FDI flows was attributed to major projects in its extractive industries, which included; the construction of a US$850 million gold mining facility by Newmont Corp, and the construction of a cement factory by Ciment d’Afrique (CIMAF) for US$436 million.
The increase in FDI flows reflects the findings of the Deloitte 2022 Africa Investment Attractiveness Index, which placed Ghana as the second most appealing destination for investments in Africa based on the comments of nearly 200 CEOs.
Overall, the World Investment Report indicated that FDI flows to Africa reached US$83 billion, a record high, up from US$39 billion in 2020, representing 5.2% of global FDI.
Meanwhile, FDI into the West African sub-region increased by 48% to US$14 billion. Neighboring Nigeria
were the highest beneficiaries with FDI flows doubling to US$4.8 billion, mainly because of the resurgence in oil investment and expansion in gas.
For the rest of 2022, the World Investment Report predicts that FDI flows to developing economies are expected to be strongly affected by the war in Ukraine and its wider ramifications.