Ghana Sees 10% Drop in FDIs in 2023, Lowest in a Decade – Report

Ghana recorded a 10.0% drop in Foreign Direct Inflows in 2023 relative to 2022, the lowest inflow over the past decade and 28% lower than pandemic levels.

According to financial advisory firm, Bridgewater Advisors, FDI flows to Ghana fell by $1.4 billion in 2023. This followed another dismal performance in 2022.

The country’s share of inflows into Africa and West Africa between 2014 and 2023 averaged 6.0% and 23.0% respectively. However, outflows rose by 46% to $55.76 million in 2023.

In half-year 2024, Ghana’s estimated FDI components out of total registered investment was $186.16 million, with 69 registered projects predominately into manufacturing, about 81.0% of investment value.  

Greenfield projects

Meanwhile, Ghana remained second in West Africa, after Nigeria in the volume of greenfield investment projects.

The nation has a decade of average of 36 projects compared to Nigeria’s 56 projects.

The value of announced greenfield projects in Ghana in 2023 surged by 92% to $1.3 billion, despite a decrease in the number of projects from 39 to 29.

Over the past decade (2014-2024), the average number of greenfield projects was 36, with the peak of 47 projects recorded in 2014, totaling over $4.9 billion.

Project finance

Furthermore, the report said international project finance deals rose by $21 million in 2023, reaching $1.5 billion, with the number of projects doubling from two to four.

This increase reflects the expanding role of local banks in financing large-scale projects and the Ghana Infrastructure Investment Fund’s enhanced ability to support medium-to-long-term infrastructure financing, bolstered by recent funding from development finance institutions, including the African Development Bank.