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Ghana becoming attractive destination for oil investment

With uncertainty still surrounding the outcome of Nigeria's amnesty deal with militants, the country's low ranking in the doing business index, poor infrastructure and a controversial industry policy, oil majors are exploring other frontiers in search of stable and secure sources of crude oil.

The latest in such moves involves Exxon Mobil Corp which has agreed to buy a $4 billion stake in an oil field off the coast of Ghana, according to people involved in the deal, as the global energy giant seeks a foothold in a major new oil-producing region.

The situation in the Niger Delta has driven investment that would have ordinarily come to Nigeria to her neighbouring countries of Angola and now Ghana because of peaceful investment climate in those places.

There have been series of attacks and high level of insecurity which have led some of the projects that should have been completed years back to remain stalled.

The deal is Exxon's first major purchase in a decade and appears to highlight that the company believes oil prices will rise over the long term. Some energy analysts have asserted that weak demand for the fuel can't support even the current price of $70 a barrel. A spokesman for Exxon declined to comment. People briefed on the deal said that while the parties have reached a binding agreement, the deal hasn't yet been completed and is therefore subject to change. One outstanding issue is that the Ghanaian national oil company has the right to increase its stake, according to a person involved in the transaction.

The seller is Dallas-based Kosmos Energy, which was part of a group that made the 2007 offshore discovery that is estimated to hold 1.8 billion barrels of oil. Anadarko Petroleum Corp. and Tullow Oil plc also own separate stakes in the field, known as Jubilee.

Kosmos informed bidders for its 23.5 percent stake in the field that it had "entered into an exclusive binding agreement" with Exxon, according to a person who had seen the letter.

The news of the deal was cheered by investors. In London trading Tullow rose 8.4 percent to £12.09 ($19.28). In afternoon New York trading, Anadarko was up 6.1 percent to $65.41 and Exxon was up 1.5 percent to $68.58.

But reacting to the development, Diran Fawibe, chief executive officer of International Energy Service, said the issue of corporate governance is very important to foreign investors and considering what is currently happening in Nigeria it is not impossible that oil companies might look elsewhere. He said the recent visit of President Barrack Obama to Ghana was part the strategic move by the United States to ensure that there is continuous supply of oil to their country. "US wants to make strategic move into oil industry in Ghana"

Oil companies in Nigeria, he said, are nervous with the intent Petroleum Industry Bill which the government is bent on implementing. The PIB, he said, seeks to reverse some terms of the existing contracts that have been. It is putting some level of uncertainty in the comfort level of the oil companies. Another industry operator who spoke to BusinessDay but did not want to be quoted said that the way the Chinese companies are trying to get a foothold into the Nigerian oil industry makes the government uncharitable to the traditional players in country's oil and gas industry.

But the former president of the Nigerian Association Petroleum Exploration (NAPE), Kingsley Ojoh, said that there is no cause for alarm over the investments oil majors are making in the neighbouring countries as their reserves are still far lower than that of Nigeria.

According to him, the biggest discovery in Ghana which is Jubilee field is worth $1.5 billion to $2 billion, adding that every investor has the right to put his money where he thinks he would make the best returns.

The oil industry has become increasingly optimistic about the prospects for oil production off the upper West African coast. This summer, a separate consortium announced a discovery off Sierra Leone, leading analysts to speculate that the 1,100-kilometer stretch between the two finds could be dotted with buried sands containing precious light crude oil.

Exxon's entry amounts to a seal of approval. "If Exxon Mobil likes this stuff, then everyone knows it's good," says Neil McMahon, an energy analyst with Sanford C. Bernstein.

The acquisition is the largest deal for the famously conservative company in over a decade. In the late 1990s, Exxon Corp. and Mobil Corp. combined in an $81.2 billion merger, creating the world's largest shareholder-owned oil company.

Around the same time, Exxon bid aggressively for exploration licenses in several deepwater blocks off Angola, which was then an unproven oil region emerging from years of civil war. The deal proved prescient: Angola is now a major oil producer and in 2007 became a member of the Organisation of Petroleum Exporting Countries (OPEC).

Opening up its wallet to purchase oil assets signals a new strategic direction for Exxon. Over the last decade, the Texas behemoth has been reluctant to make any large purchases, even as its holdings of cash and repurchased stock ballooned. At midyear, it held $15.6 billion in cash, and the value of treasury shares it has bought back since 2001 were worth $173.6 billion. The Ghana purchase suggests that Exxon is moving to replenish its oil reserves by building its portfolio asset by asset, rather than by making a mega-deal. Indeed, analysts say that Exxon, with its $325 billion market capitalisation, may be too big already in the eyes of regulators to swallow another large oil company.

In addition to buying into the new West Africa oil province, Exxon is engaged in some high-profile, deepwater exploration activities off the coasts of the Philippines , Turkey , Madagascar and Greenland . It also recently backed a large oil-sands development in Canada and a gas export facility in Australia . While none of these regions is large enough to transform the company, put together they could help Exxon maintain its oil and natural gas production and reserves.

It is not clear which company would be the operator of Jubilee, which is expected to begin producing oil in 2010. Tullow has a 34.7 percent stake, larger than the share Exxon is acquiring from Kosmos. Anadarko also holds a large interest. The Ghanaian national oil company and two other companies hold small stakes.

Source:
businessdayonline.com

 

GIPC records Gh¢263.43 million (US$ 188.16 million) worth of investment for the first quarter of 2011

REGISTERED PROJECTS
The gains currently being enjoyed from the prudent macroeconomic policies of the government is reflected in the achievements of the Ghana investment Promotion Centre during the 1st quarter of 2010.

During the period under review, the Centre recorded a total estimated value of GH¢263.43million (US$188.16million) worth of investments, a significant increase of 942.46% compared to GH¢25.27 million (US$18.05 million) recorded for the first quarter of 2009. The total initial capital transfer for this period was GH¢20.81million (US$14.86million), an increase of 65.48% compared to the first quarter of 2009 value of GH¢12.57(US$8.98MILLION)

The FDI component of the estimated value of the projects recorded for the first quarter was GH¢225.88 million (US$161.34 million), representing 85.75% of the total estimated value and a significant increase of 876.04% compared to GH¢23.14 million (US$16.53 million) recorded for the first quarter of 2009. The local currency component also amounted to GH¢37.34 million (US$26.82 million), representing 14.25% of the total estimated value.

A total of 108 new projects were recorded for this quarter, an increase of 208.57% compared to the 35 registered projects in the 1st quarter of 2009. This is expected to create 6,122 new jobs. This is an increase of 66.90% over the 3,668 expected jobs recorded for the first quarter in 2009.

GHANA CLUB 100 AND “INVEST IN GHANA” SEMINAR
The Centre in February launched the 2010 Ghana Club 100 awards, which is an annual event to honour the top 100 companies in corporate excellence. Under the theme “Enhancing partnerships between domestic and foreign investments for economic growth” Awards will be given in the ten strategic sectors, which are in line with government’s development agenda i.e. Agriculture and Agribusiness, Financial Services, Information and Communication Technology, Services, Infrastructure, Petroleum and Mining Services, Manufacturing, Tourism, Health and Education. 

The “Invest in Ghana” seminar which is being organised in collaboration with the Swiss Agency for Investment (OSEC), which was also launched on the same day is to promote partnerships between local and foreign investors. The first phase involved the identification and profiling of projects in Ghana. The second phase involved the Centre promoting the profiled projects in Switzerland. The next phase is the “Invest In Ghana” seminar which is to provide a platform for the profiled companies to hold one-on-one meetings with the foreign investors.

The Centre has decided that the Ghana Club 100 event and the “Invest In Ghana” seminar which is in partnership with OSEC be moved to the 3rd quarter of 2010. This is to enable more companies to participate in both events. 

INAUGURATION OF REGIONAL TASK FORCE (CENTRAL AND WESTERN REGION)
In response to reports from certain sections of the Ghanaian business community, particularly the Ghana Union of Traders (GUTA) that some foreign investors/traders operating in the country are flouting the country’s investment law, a National Trade and Investment Task Force was set up in Accra on the 15th July 2009 to monitor the activities of non-Ghanaian entrepreneurs operating in the country. Subsequently, the GIPC inaugurated Regional Task Forces in Tamale and Kumasi in January 2010.

In order to ensure a wider coverage of the monitoring of the activities of foreign investors/traders, the Central and Western Regional Task Forces will be inaugurated in Cape Coast and Takoradi on the 13th and 14th May, 2010 respectively.

The task force is made up of representatives from the Customs Excise and Preventive Service (CEPS), Ghana Immigration Service (GIS), Social Security and National Insurance Trust (SSNIT), Internal Revenue Service (IRS), VAT Service, Ghana Union of Traders Association GUTA), the Ministry of Trade and Industry (MOTI), Registrar General’s Department and the Ghana Investment Promotion Centre(GIPC).

PROPOSAL FOR THE ESTABLISHMENT OF A 450,000METRIC TONNES CAPACITY SUGAR PROCESSING PLANT
The Centre in March held discussions with Cargill S.A. a multinational producer and marketer of food, agricultural, financial and industrial products in Switzerland on the establishment of a 450,000 metric tonnes per annum sugar processing plant in Ghana. The refinery’s productive capacity is expected to finally increase to 650,000 metric tonnes per annum. The estimated value of the project is US$100million. Representatives of Cargill are expected in Ghana in June 2010, for a follow up on discussions. 

For further information on this topic, please contact the

Marketing & Public Relations DIvision
Phone: 0302- 665125-9
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GIPC records GH¢927.76 Million (US$662.68 Million) worth of investment for the Second Quarter of 2011

REGISTERED PROJECTS
The Ghana Investment Promotion Centre (GIPC) remains committed to ensuring that Ghana becomes the preferred investment destination and to play an active role in government’s development agenda. This commitment is reflected in the 2nd quarter performance of the Centre.
 
During this period 105 new projects were registered, an increase of 26.51% compared to 83 registered projects in the corresponding quarter of 2009.
 
Of the 105 projects registered, 67 (63.81%), were wholly-owned foreign enterprises valued at GH¢907.76 million (US$648.40 million). The remaining 38 (36.19%) were joint ventures between Ghanaians and foreign partners valued at GH¢20.00 million (US$14.29 million).For the corresponding quarter of 2009, 56 wholly-owned foreign enterprises and 27 joint ventures were registered and valued at GH¢47.05 million (US$33.61 million) and GH¢109.29 million (US$78.06 million) respectively.
 
The total estimated value of the newly registered projects was GH¢927.76 million (US$662.68 million), a significant increase of 252.19% compared to GH¢263.42 million (US$188.16 million) recorded for the 1st quarter of 2010. This is also a substantial increase of 493.43% compared to GH¢156.34 million (US$111.67 million) recorded in the corresponding quarter of 2009.
 
The total initial capital transfers for the second quarter of 2010 was GH¢22.42 million (US$16.01 million), an increase of 7.74% compared to GH?20.81 million (US$14.86 million) recorded for the first quarter 2010.
 
The FDI component of the estimated value of the projects registered for the second quarter was GH¢839.07 million (US$599.34 million), representing 90.44% of the total estimated value; an impressive rise of 271.48% over the value of the projects recorded for the first quarter of 2010, which amounted to GH?225.88 million (US$161.34 million). This is also a surge of 549.20% compared to GH?129.25 million (US$92.32 million) recorded in the corresponding quarter of 2009.
 
The local currency component also amounted to GH¢87.50 million (US$62.50 million), representing 10.19% of the total estimated value as against GH¢27.08 million (US$19.35 million), which was 17.32% of the total estimated value for the same period in 2009.
 
The total number of jobs expected to be created for Ghanaians from the projects registered in the second quarter is 89,483 compared to the 4,107 jobs created for same in the corresponding quarter of 2009.

For further information on this topic, please contact the

Marketing & Public Relations DIvision
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GIPC records GH¢400.65 Million (US$286.18 Million) worth of investment for the 3rd Quarter of 2010

REGISTERED PROJECTS

The investment promotion activities of the GIPC continue to yield positive results as evidenced by the number of investments recorded in the third quarter of 2010.


During the period, 97 new projects were registered, an increase of 19.75% compared to 81 registered projects in the corresponding quarter of 2009.


The total estimated value of the newly registered projects was GH¢400.65 million (US$286.18million), an increase of 7.08% compared to GH¢374.15million (US$267.25million) recorded for the corresponding quarter of 2009.


Out of the 97 projects registered projects, 70 (72.16%), were wholly-owned foreign enterprises with an estimated value of GH¢355.40 million (US$253.86 million) which is 88.71% of the total estimated value of projects registered. The remaining 27 (27.84%) were joint ventures between Ghanaians and foreign partners valued at GH¢45.25 million (US$32.32 million) which is 11.29% of the total estimated value of projects registered.


For the corresponding quarter of 2009, 50 wholly-owned foreign enterprises and 31 joint ventures were registered and valued at GH¢134.96 million (US$96.40 million) and GH¢239.19 million (US$170.85 million) respectively. For the second (2nd) quarter of 2010, 67 wholly-owned foreign enterprises and 38 joint ventures were registered and valued at GH¢907.76 million (US$648.40 million) GH¢20.00 million (US$14.29 million) respectively


The total initial capital transfers for the third quarter of 2010 was GH¢22.59 million (US$16.13 million), an increase of 0.75% compared to GH¢22.42 million (US$16.01 million) recorded for the second quarter 2010.


The FDI component of the estimated value of the projects registered for the third quarter of 2010 was GH¢303.39million (US$216.71 million), representing 75.72% of the total estimated value and the local currency component also amounted to GH¢97.26 million (US$69.47 million), representing 24.28% of the total estimated value. For the corresponding quarter of 2009, the FDI component of the estimated value was GH¢339.32million (US$242.37million), representing 90.69% of the total estimated value and the local currency component amounted to GH¢34.83 million (US$24.88 million), representing 9.31% of the total estimated value.


The total number of jobs expected to be created from the projects registered in the third quarter of 2010 is 5,964. Out of this 89.07% (5312) will be jobs for the Ghanaians and the remaining 10.93% (652) for expatriates.


Year to date, a total of 312 projects with a total estimated value of US$1.14 billion has been recorded. The FDI component of this figure is US$977.93 million, a significant increase compared to US$351.22 million recorded in the corresponding period in 2009. The initial capital transfers recorded so far this year amounts to US$47.10million. Around116,015 jobs are expected to be created from the projects recorded for the first three quarters; 100,264 of these jobs will be for Ghanaians and the remaining 15,750 will be for expatriates. For the same period in 2009, approximately 20,074 jobs were created from projects recorded at the time.

For further information on this topic, please contact the

Promotion & Public Relations DIvision
Phone: 0302- 665125-9
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GIPC records GH¢1.79 Billion (US$1.279 Billion) worth of investments in 2010

GIPC RECORDS GH¢1.79 BILLION (  US$1.27 BILLION) WORTH OF INVESTMENTS IN 2010

The Chief Executive Officer, the Board, Management and Staff of Ghana Investment Promotion Centre (GIPC) take this opportunity to wish all our cherished stakeholders a happy and prosperous New Year.

Registered projects-Forth quarter

For the last quarter of 2010, the GIPC continued to see growth in its recorded projects. 75 new projects, valued at US$ 141.88 million3, 6564 jobs expected to be created by these project. were recorded with an estimated

2010 Registered Projects

The year 2010, ended on a very strong point with a total of 385 projects registered. It is heart-warming to note that the number of projects registered for the year 2010 is an increase of 49.81% over 257 registered in 2009. The estimated value of projects registered in 2010 is US$1.279 billion (GH¢ 1.79bn), again, a significant increase of 106.78% as compared to US$619.99m (GH¢ 867.98m)recorded in 2009.

The FDI component of the estimated value of the projects registered for the year 2010 is US$1.11 billion, (GH¢ 1.55bn) representing 86.59% of the total estimated value and a significant increase of 101.34% compared to US$551.30 million (GH¢771.82m) recorded for the year 2009. The local currency component also amounts to GH¢239.01 million, an equivalent of US$170.74 million. This represents an increase of 148.60% over the local currency component of total estimated projects registered in 2009.

Estimated Jobs to be Created

The total number of Jobs expected to be generated by these registered projects in 2010 total 119,578. This signifies a 531.78% increase over 22,486 expected jobs recorded for the year 2009. A total of 103,099 expected jobs in 2010 are targeted at Ghanaians while the remaining 16, 479 jobs may be for expatriates.

 
INVESTMENT PROMOTION ACTIVITIES

London Conference

The Business Council for Africa-West and Southern organised a business forum on “Ghana’s Oil & Investment Opportunities” in London on 27th October 2010.

The purpose of the forum was to brief members of the Business Council for Africa on Ghana’s Oil find and the opportunities arising as a result.

The Business Council for Africa is an association of businesses with high interest in Africa in a wide range of industries and sectors and provides a good platform to market Ghana.

The Chief Executive Officer of the Ghana Investment Promotion Centre, GIPC, Mr. George Aboagye made a presentation on the Investment Opportunities available in Ghana from the Oil and Gas Industry.

India Africa Business forum.

The Centre participated in the India Africa business Forum in Johannesburg 24th -27th October 2010. The purpose was to create a platform for 4 selected countries including Ghana to show investment opportunities in their respective countries. The GIPC made a presentation on the investment opportunities and the legal and regulatory framework in Ghana.

Paris Chocolate Fair

The Ghana Investment Promotion Centre and the Ghana Free Zones Board represented Ghana at the Chocolate Fair held in Paris from  28th October -1st November 2010. During the event , the two agencies mounted a exhibition to showcase Ghana’s cocoa industry and the various business opportunities existing in the sector.

Investment Promotion Mission to  Belarus

The Centre participated in a reciprocal business visit to Belarus Republic to follow up on interest expressed by a high powered delegation which visited Ghana during the third quarter of 2010.

The GIPC provided information on the sectors of interest as well as the legal framework for doing business in Ghana.

Investment Promotion mission to Czech Republic

The GIPC participated in the Ghana -Czech Investment Forum  which was held in Prague from 9th -12th November 2010. The forum, was organised by the Ghana Embassy in Prague in collaboration with  the Ghana Investment Promotion Centre, the   Czech Chamber of Commerce, and the Czech Export Guarantee and Insurance (EGAP) is under the theme: ‘Ghana’s Discovery of Oil and Gas; Exciting Opportunities for Business.’

The organisation of the forum was  informed by the need to renew and reestablish meaningful economic ties between the Ghana and the Czech Republic and brought  together the relevant stakeholders in trade and industry of both countries to discuss opportunities for mutually beneficial commerce.

The Centre made a presentation on the investment opportunities and legal and regulatory framework in Ghana

The Ghana delegation was led by H.E. the Vice President , John Dramani Mahama.

HUBEI CHINA – GHANA TRADE & INVESTMENT EXHIBITION

Following the visit of H.E. President J.E. A. Mills to China in September 2010,The Hubei Sub-Council of the China Council for the Promotion of International Trade (CCPIT) organized  a four-day trade and investment exhibition in Accra from 2nd -4th December 2010. The exhibition was aimed at creating a platform for companies from the Hubei Province of China to explore areas of collaboration with their Ghanaian counterparts.

The centre collaborated with the Hubei Province in organising the programme which included a business seminar and matchmaking session.

The GIPC participated actively by making a presentation on the investment opportunities at the Business Seminar, facilitating the one –on- one business meetings, and mounting an exhibition

Investment Promotion Mission to Saudi Arabia and Egypt

The GIPC organised a public private sector business delegation to Saudi Arabia Arabia and Egypt from 2nd -12th December 2010. While in Saudi Arabia, the delegation participated in the Arab Africa Business Forum. The delegation also met with the Saudi Chamber of Commerce for one one one meetings between the Saudi and their Ghanaian Counterparts.  

In Egypt the GIPC made a presentation at the Ghana –Egypt Business Seminar  and participated in the one –on –one business meetings by providing advisory services to Egyptian companies interested in investing in Ghana and also assisting members of the Ghanaian delegation in their one on one business meetings.

H.E. the Vice President,John Dramani Mahama led the Ghana Delegation to both countries and made presentations at the two fora.

 Upcoming Events

The GIPC begins the year 2011 positively by leveraging on the improved perception of the Ghana as a safe investment destination thanks to the prudent management of the economy together with strong investment positioning of the Ghanaian economy by H. E the President. The investment trips undertaken to China and Japan continue to draw the attention of big industrial players in not only Asia but the whole world to Ghana.

 

Incoming Investment Missions

Notable among the  incoming missions in the early part of 2011 are:

a.      A visit by Messrs Hong-Kong Construction Company, one of Asia’s most respected building contractors, a major Chinese property developer and an alternative energy player. The company is interested in infrastructure and commercial property development in Ghana and another visit by Jiangxi Deng Ni Teindustrial Company of China. The company is a major player in Real Estate Development, infrastructure and Agriculture Development in Asia and wishes to explore investment opportunities in similar sectors in Ghana.

b.      A thirty member Korean business delegation to discuss investment opportunities in infrastructure, property development, and oil and Gas sectors among others.

c.       Visit by a delegation from the Scania Group of Sweden to explore opportunities in the transportation and infrastructure sectors.

d.      28 member German business delegation to strengthen the links between Ghana and Germany.

 Official Opening of GIPC Information & Documentation Centre (Library)

In readiness for the task (which our new oil economy comes with) the Centre thinks the best note on which to open the year 2011 is to officially commission its well-stocked modern library. This underscores the value the Centre places on the development of its most treasured Resource-the Human Capital. No doubt, this will go a long way in enhancing our capacity building efforts.

Oxford Business Group

By way of recall, the Centre signed a Memorandum of Understanding (MOU) with the Oxford Business Group in December, 2010. The  MOU will among others generate the ‘Report: Ghana 2011’ This report is set to become Ghana’s leading business intelligence report of reference and will consist of comprehensive and accurate analysis of the country’s economic performance targeted at local and foreign investors. The centre will pursue this collaboration for the benefit of the investor community.

Home front

Prominent among the programs on the home front is Regional visits for project sensitization. This will enable the Centre to identify for promotion investment opportunities and call for project proposals to be profiled for promotion. 

  For further information on this topic, please contact the

Promotion & Public Relations DIvision
Phone: 0302- 665125-9
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Upcoming Events

Thu Nov 30 @ 6:00PM - 10:00PM
Ghana Club 100 Awards
Tue Dec 12 @10:30AM - 12:00PM
Ghana-German Business Forum
Wed Dec 13 @ 8:00AM - 11:00AM
4th Quarter CEOs Breakfast Series
Mon Feb 19 @ 9:00AM - 05:00PM
Ghana Tourism Investment Forum
Wed Feb 28 @10:00AM - 08:00PM
22nd Ghana International Trade Fair
Wed Mar 07 @ 8:00AM - 05:00PM
Africa Energy & Infrastructure Investment Forum
Mon Mar 26 @ 8:00AM - 05:00PM
Africa CEO Forum, Abidjan 2018
Mon Apr 09 @ 8:00AM - 05:00PM
Annual Investment Meeting (AIM) 2018