The Ghana Investment Promotion Centre (GIPC) is concerned the Coronavirus Pandemic could hugely impact inflows of foreign direct investment to Ghana.
It all falls on the Coronavirus outbreak which has already seen global stocks losing over $3 trillion just before the end of the first quarter of 2020.
With a limit on capital inflows and transactions as many economic enforce social distancing measures to contain or prevent the virus, CEO of the GIPC, Yofi Grant tells JoyBusiness there is no option than to lower expectations for FDIs in 2020.
Mr Grant said “Many countries have banned large meetings; on this side of Ghana the presidency has issued a temporary travel ban which is in order because of the scourge of the Coronavirus and many other countries have even closed their flights and that would impact the flow of capital.
“World markets have lost so much value – as at last week about $6.5 trillion was lost on the global stock exchange. This definitely leaves us with no option than to reduce our FDI target.”
Yofi Grant spoke at the sides of a CEOs breakfast meeting by GIPC which walked business executives through Ghana’s Company Act.
The coronavirus (COVID-19) outbreak could cause global foreign direct investment (FDI) to shrink by 5%-15%, according to an UNCTAD report published on 8 March.
The UN trade body had projected earlier a stable level of global FDI inflows in 2020-2021 with a potential increase of 5%. Now it warns that flows may hit their lowest levels since the 2008-2009 financial crisis, should the epidemic continue throughout the year.
COVID-19’s negative impact on investments will be felt strongest in the automotive, airlines and energy industries, the report says.
Although the economies most severely affected by the epidemic will be the hardest hit, shocks to consumer demand and the economic impact of supply chain disruptions will affect investment prospects in other countries.
“The ripple effect could cause a major setback to efforts of government around the globe to attract the private investment needed to achieve sustainable development objectives,” UNCTAD Secretary-General Mukhisa Kituyi said.
So far, President Akufo-Addo has banned the country’s public officials from foreign travels as the deadly coronavirus scourge continues to spread.
Covid-19 has infected more than 115,800 persons, killing over 4,200 worldwide. This also falls in line with Ghana recording its first two cases.
While the number of new cases in China – the epicentre of the outbreak – slowed down tremendously, the scourge is now gaining pace around the world with cases confirmed in Algeria, Burkina Faso, Togo, Tunisia, Morocco, Egypt, Senegal, and Nigeria.
The temporary travel ban comes days after Akufo-Addo called for greater care, advising Ghanaians against shaking hands.
Ghana has already begun establishing “isolation and treatment” centres for potential cases. The government has also procured some 5000 personal protective equipment for health workers in anticipation of the arrival of potential cases. Ghana has firmed up the protocol for inbound traffic from countries affected by the fast-spreading coronavirus (COVID-19) in a bid to prevent the disease from entering the country.
President Nana Akufo-Addo revealed this on Wednesday, March 11, 2020, in a televised national address on measures the government has put in place in the wake of the coronavirus outbreak that has now been declared a global pandemic by the World Health Organization (WHO).
He explained that a recent directive from the Jubilee House banning all ministers, Deputy Ministers, Metropolitan, Municipal and District Chief Executives (MMDCEs) and heads of government agencies from foreign travels is among measures to quell a possible outbreak of the disease in Ghana.
Apart from revealing that there have been major enhancements of protocol for travellers entering Ghana from countries that have confirmed cases of the deadly zoonotic disease, he did not provide details of these enhanced protocols. Already, cases of the coronavirus that emerged in the central Chinese city of Wuhan in late December 2019 are being reported daily around the world.