Foreign direct investment in Ghana: the distribution among thesectors and regions

This paper evaluates and provides an integrated literature review of the flow of investment and the analysis of the distribution and allocation of the inflow of FDI in Ghana’s economy. By considering FDI growth, export and import of merchandise trade, it was realized that, Ghana’s international trade contribution to the world’s development seems to be insignificant and majority of the country’s export goes to the European market. The inflow of foreign direct investment in Ghana has grown rapidly since 2006, as a result of much effort done by the government to attract potential investors into the country. There are reasonable conditions and rights an investor enjoys for investing in Ghana. However, the result indicates the Greater Accra area receiving most of the registered projects compared to the other regions in Ghana. The rate at which investment was allocated to service sector has changed and much attention being focused on the manufacturing sector. Therefore, since the continuous expansion of investment in Ghana demonstrates to be favorable and beneficial to investors, the need of other factors to attract many substantial investors into the country are recommended.