Time to boost FDI to grow GDP — John Mahama

• Posted on September 2, 2024September 2, 2024
• by Nana Kwesi Coomson
• Comment

Former President John Dramani Mahama has underscored the need for the country to boost foreign direct investment (FDI) inflow to make up for the shortfall in borrowing from the international capital markets.

At a time when FDI inflow is fast dwindling, he said, measures to attract new investments were necessary, particularly in the next four years, to help maintain a robust gross domestic product (GDP) growth.

“The issue of FDI for Ghana is even more crucial now than ever before. With Ghana’s default on international debt and our temporary shutout from the international capital market, boosting FDI inflow for Ghana will be critical over the next four years in maintaining robust GDP growth,” he said.

Former President Mahama made the call at a forum in Accra on the theme: “Future of Foreign Direct Investment in Ghana” in Accra last Thursday.

The forum, dubbed “Distinguished Speaker Series on FDIs”, was put together by a consortium of trade associations and business chambers for the various presidential flag bearers to share their perspectives on how to take FDIs into the country to the next level when a new administration takes over the mantle of government.

The consortium includes the American Chamber of Commerce in Ghana, the Ghana Netherlands Business & Culture Council, the Spain-Ghana Chamber of Commerce, the Ghana South Africa Business Chamber, the Canada-Ghana Chamber of Commerce, the Japan External Trade Office and the Chamber of Commerce & Industry, France.

Context

Placing his call in the right context, former President Mahama said: “In spite of the expansive and catalytic role of FDI in development, Africa in general and Ghana in particular, have had relatively limited FDI inflows to supplement domestic capital formation”.

In 2023, for example, he said there was not a single African country in the top 20 destinations for FDI when Europe and Asia topped the list.

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