Ghana: Foreign investment flows from South African reach $1.2bn – Yofi Grant
Total foreign direct investment from South Africa to Ghana has reached $1.2 billion.
This is according to the Chief Executive Officer (CEO) of the Ghana Investment Promotion Centre (GIPC), Yoofi Grant.
Making the assertion at the Ghana – South Africa Business Forum on Sunday, December 5, 2021, Mr Grant noted investments in the country by South African companies have mostly been in the services sector.
According to the GIPC, there are over 200 South African companies registered in Ghana and over the last ten years South African companies have undertaken over 170 projects valued in excess of $1.2 billion in capital investment in the country.
For the year 2020, the GIPC attracted $2.65 billion in total Foreign Direct Investment (FDI) with South African corporates investing just over $242 million.
Touching on the trade relations between the two countries, Mr Grant noted South African exports to Ghana amounted to $375 million in 2019 with exports from Ghana to South Africa reaching $1.97 billion in the same year.
Speaking further at the Forum attended by business leaders from both countries, Mr Grant noted there are several investment opportunities for South African countries in the automobile industry, manufacturing, energy, finance, infrastructure, agrofood and tourism sectors.
Trade relations
With regard to bilateral trade, Ghana represents the major export market for South African goods after Nigeria.
In recent years, trade between South Africa and Ghana has grown significantly. South African exports have grown from less than R1 billion ($61.9 million) in 1998 to over R3 billion ($185 million) in 2008. In 2019, total value of trade between Ghana and South Africa reached $357.61 million.
Despite the ravaging impact of the Covid pandemic in 2020, trade between the two countries was still robust as Ghana’s imports from South Africa was $347 million whilst exports to South Africa amounted $520 million.
Products such as vehicles, machinery, mechanical appliances; electrical equipment, base metals, aircraft, vessels & associated products contributes to the increased exports to Ghana.
There are more than eighty South African multinational and small scale companies registered in Ghana and they include MTN, ABSA Bank, First National Bank, Old Mutual, Gold Fields, AngloGold Ashanti, SABMiller, Woolworths, Engen, Hytec Engineering, Multichoice, Alliance Media, Stanbic, Shoprite, among others.
South African investors are prevalent in the following sectors: mining, retail, insurance, transport, tourism, banking, telecommunication, construction, services, franchising, manufacturing, fishing, advertising, aviation and energy.
Meanwhile, South African President, Cyril Ramaphosa is on a three-day State visit to Ghana, his visit is aimed at strengthening the already existing bilateral, political and economic relations between Ghana and South Africa.
According to President Ramaphosa, the State visit will see the South African government and business representatives from various sectors engaging with the government and private sector of Ghana as a meaningful expression of the quest to deepen integration, cooperation and development for the citizens of both countries.
“This State visit exemplifies South Africa’s commitment to the principles of unity, partnership and solidarity. Together with our sister Ghana, we will emerge from this visit stronger in terms of economic development and integration, through the operationalization of the African Continental Free Trade Area (AfFCTA).
“The State visit also marks one more step in the journey that we believe could redefine our economic ties and set us collectively on a trajectory that contributes to growth across our region. We expect the bilateral agreements that will emerge from this State visit to light the torch for sub-regional, regional and continental cooperation,” he remarked.
President Ramaphosa is scheduled to leave Ghana on Sunday, December 5, 2021.
