Ghana picks 7th position in list of top 10 African countries with highest FDI inflows
Ghana, according to the 2023 World Investment Report by the United Nations Conference on Trade and Development (UNCTAD), is the country with the highest foreign direct investment (FDI) inflows on the African Continent.
According to the report, Ghana had some $1.5bn in FDI inflows for the 2022 fiscal year.
Ghana was ahead of Uganda, Tanzania and Zambia which had FDI inflows of $1.5bn, $1.1bn and $116m respectively.
Egypt, South Africa and Ethiopia emerged as the three countries with the highest FDI inflows on the continent with the aforementioned countries attracting inflows to the tune of $11bn, $9bn and $3.7bn respectively.
| Rank | Country | FDI |
|---|---|---|
| 1. | Egypt | $11 billion |
| 2. | South Africa | $9 billion |
| 3. | Ethiopia | $3.7 billion |
| 4. | Senegal | $2.6 billion |
| 5. | Morocco | $2.1 billion |
| 6. | Democratic Republic of Congo | $1.8 billion |
| 7. | Ghana | $1.5 billion |
| 8. | Uganda | $1.5 billion |
| 9. | Tanzania | $.1.1 billion |
| 10. | Zambia | $116 million |
Africa, often referred to as the “next frontier” for economic growth and development, is gradually becoming a hotspot for Foreign Direct Investments (FDIs).
This continent, rich in natural resources, youthful demographics, and untapped markets, is attracting a growing number of international investors.
The report shows that foreign direct investment (FDI) flows to Africa decreased from a record $80 billion in 2021 to $45 billion in 2022. They represented 3.5% of all FDI worldwide.
Greenfield project announcements increased by 39% to a total of 766. Africa was home to six of the top 15 greenfield mega projects (those costing more than $10 billion) that were announced in 2022.
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The report also notes that the deficit has increased from $2.5 trillion in 2015, when the SDGs were established, to around $4 trillion annually.
A quick rundown on the report shows that In North Africa, Egypt saw FDI more than double to $11 billion as a result of increased cross-border merger and acquisition (M&A) sales. Nigeria saw FDI flows turn negative to -$187 million as a result of equity divestments. FDI flows to Ghana fell by 39%.
In East Africa, flows to Ethiopia decreased by 14%, and the country remained the second-largest FDI recipient in the sub-Saharan region. FDI to Uganda grew by 39%.
