Foreign Direct Investment (FDI) inflows into Ghana, which are legally registered with the Ghana Investment Promotion Centre (GIPC) for the 1st Quarter of 2007, has declined in value but has increased in numbers compared with the same period in 2006.

From January to March 2007, projects with foreign participation registered by the GIPC totaled 57 as against 53 during the same period in 2006.

However, the total value of commitments for the 57 projects was US$36.02 million.

This depicts a decline of 5894.5% as compared to US$2,159.21 million recorded during the same period in 2006 for 53 projects. This achievement in 2006 was the highest ever recorded in the history of the centre in any quarter since its establishment. This was basically due to the projected value of equity investment by the ALCOA group of companies in VALCO.

ALCOA has taken up a significant part of the equity stake in VALCO previously held by Kaiser, apart from making new financial injections.

The total value of US$36.02 million covering 57 projects was made up of foreign equity of US$23.57 million and US$ 12.45 million in local contributions.

The initial capital transfers in respect of the 55 registered projects excluding two liaison offices amounted to US$6.95 million as against a legally expected minimum equity requirement of US$4.06 million.

The agriculture and the building and construction sector attracted most foreign direct investment. From January to March this year, the agricultural sector attracted US$11.74 million spread across 3 projects, followed by the building and construction industry, which attracted US$9.27 million spread across 5 projects.

The general trade attracted US$ 6.72 million spread across 9 projects while the services sector attracted a total foreign investment of US$ 3.22 million spread across 14 projects. The manufacturing sector attracted US$ 2.72 million spread across 13 projects, followed by the tourism sector, which attracted US$ 1.95 million spread across 9 projects while export trade attracted US$ 0.41 million spread across two projects.

According to the figures released by the centre, China and India continue to top the list of countries from where a greater number of projects originated during the first quarter of 2007. Other countries with investors include Lebanon, Germany, USA, South Africa, Britain, Korea, La Cote d'lvoire, Benin, The Netherlands, Austria, Bahrian, Sweden, and Cyprus.

In addition, there were 21 inward missions to Ghana by potential investors from La Cote d'lvoire, Germany, Spain, USA, China and Italy.