Ghana experienced a 10.0% decline in Foreign Direct Investment (FDI) inflows in 2023 compared to 2022, marking the lowest level in the past decade and 28% below pre-pandemic figures.
Bridgewater Advisors reported that FDI inflows to Ghana decreased by $1.4 billion in 2023, continuing a trend of poor performance from 2022.
From 2014 to 2023, Ghana’s share of inflows into Africa and West Africa averaged 6.0% and 23.0%, respectively. However, outflows surged by 46% to $55.76 million in 2023.
For the first half of 2024, Ghana’s estimated FDI components totaled $186.16 million, with 69 registered projects primarily in manufacturing, accounting for approximately 81.0% of the investment value.
Greenfield projects
Meanwhile, Ghana continued to rank second in West Africa for greenfield investment projects, trailing only Nigeria.
The country has averaged 36 projects per decade, while Nigeria has averaged 56.
In 2023, the value of announced greenfield projects in Ghana jumped by 92% to $1.3 billion, even though the number of projects fell from 39 to 29.
Over the past decade (2014-2024), Ghana averaged 36 greenfield projects annually, with a peak of 47 projects in 2014, totaling over $4.9 billion.
Project finance
Additionally, the report noted that international project finance deals increased by $21 million in 2023, totaling $1.5 billion, with the number of projects doubling from two to four.
This growth highlights the growing involvement of local banks in funding large-scale projects and the strengthened capacity of the Ghana Infrastructure Investment Fund to support medium- to long-term infrastructure financing, aided by recent contributions from development finance institutions such as the African Development Bank.