Foreign direct investment in Ghana declines

Ghana's foreign direct investments (FDI) experienced a sharp decline of $300 million in the year 2016, raising concerns about the country's economic stability and investor confidence. The current president, Nana Akufo-Addo, is making efforts to attract investors back to the country by participating in the Global CEO Forum in Geneva. Collins Appiah, the Deputy Managing Director at Ascent Financial Services in Accra, joined CNBC Africa to shed light on the strategies needed to revitalize Ghana's FDI landscape. Appiah discussed the factors leading to the significant decrease in FDI in 2016, citing dissatisfaction among foreign investors with the management of the economy under the previous government. He highlighted corruption and economic mismanagement as key reasons for investors shying away from investing in Ghana during that period. However, Appiah expressed optimism about the current government's ability to restore investor confidence and stimulate FDI inflows. In response to the IMF program in Ghana, Appiah viewed the agreement as a positive step towards rebuilding investor trust. He emphasized the credentials of key government officials, such as Investment Minister Yaw Osafo-Maafo, with extensive international market experience. Appiah suggested that these connections could help Ghana leverage the IMF program to attract the desired $5 billion in FDI for 2017. When discussing the sectors poised to benefit the most from increased FDI, Appiah pointed to agriculture, oil, energy, and technology as key areas of interest for investors. He underlined the importance of these sectors in driving economic growth and attracting foreign capital. Additionally, he highlighted the significance of innovative programs and services in creating attractive investment opportunities for potential investors. Regarding investor skepticism towards African countries, Appiah acknowledged a combination of factors at play, including concerns about political stability and policy implementation. He emphasized Ghana's relative political stability and highlighted the government's efforts to create a conducive environment for investment. However, he recognized the need for continuous improvement in governance and economic policies to address investor apprehensions and enhance the country's investment attractiveness. As Ghana navigates its FDI challenges, the government's proactive engagement with global investors and commitment to economic reforms will be crucial in revitalizing the country's investment landscape. With targeted initiatives in key sectors and a focus on governance transparency, Ghana aims to regain investor confidence and drive sustainable economic growth in the coming years.