Monitoring Private Capital Flows in Ghana-Survey Findings and Policy Issues
The Bank of Ghana's foreign investment survey for 2008 found significant foreign inflows, over half of which were FDI, and the rest trade credits and loans. Even FDI had a high debt component (62%). FDI equity concentrated in three sectors: transport, storage and communication; banking; and mining. It came mainly from Europe (60%) and Africa (38%). Portfolio equity investment remained low, and mainly in mining and transport. The survey also tracked an increase in investment by Ghanaian residents abroad.
Inflation was found to have the strongest negative effect on doing business, by labour market rigidities. Positive factors were domestic market size; access to finance and credit; and efficiency of banking, telecoms and internet services. Businesses gave strong signals to expand their activities over the next three years.
