Ghana has recorded a sharp rebound in foreign direct investment (FDI) in the first half of 2025, raising hopes that the country is regaining traction as an investment destination in West Africa. According to data from the Ghana Investment Promotion Centre (GIPC), 76 projects were registered by the end of June with a combined estimated FDI value of $862.96 million.
The figure represents a remarkable 381.91% increase over the $179.07 million recorded for the same period in 2024, and has been described by analysts as a potential turning point in Ghana’s investment fortunes.
The data show that the new investments are expected to generate some 4,707 jobs when the projects reach full operational capacity.
The manufacturing sector led in the number of projects registered, accounting for 32 of the 76 ventures, while general trading attracted the highest share of the investment value, contributing $622.92 million out of the total inflows.
This indicates that although manufacturing remains central to Ghana’s industrialisation agenda, large commercial enterprises in trade and distribution are currently anchoring the biggest flows of capital.
The GIPC report also sheds light on the sources of investment. China emerged as the leading contributor with 22 projects, followed by India with 14 and Nigeria with eight.
The United Arab Emirates and the United Kingdom registered four projects each, while the United States ranked sixth with three. Other investors came from Liberia, Mauritius, Singapore and Turkey, all of which recorded two projects apiece in the first half of the year.
The dominance of Asian countries, coupled with rising participation from regional African economies, suggests that Ghana is becoming increasingly integrated into intra-continental and South–South investment flows, while still maintaining links to traditional Western partners.
To appreciate the significance of this surge, it is useful to compare the performance with recent history.
In 2024, GIPC’s full-year report recorded $617.61 million in FDI, representing a decline from the $649.58 million registered in 2023.
That period was marked by global uncertainty, high inflation, and investor caution over Ghana’s debt burden.
The government’s decision to enter an International Monetary Fund programme was seen as critical to restoring confidence, as was the implementation of fiscal consolidation measures and debt restructuring.
Against this background, the first half of 2025 appears to reflect a marked shift in sentiment, with investors rewarding signs of macroeconomic stability and reform momentum.
Several factors are believed to be driving the upswing. Improved macroeconomic management has contributed to easing investor concerns, with inflation beginning to slow and fiscal discipline showing results.
Ghana has also taken steps to improve its investment climate, with President John Mahama recently signalling plans to abolish minimum capital requirements for foreign businesses.
That reform, if enacted, would remove what many see as a major barrier to entry for small and medium foreign investors.
At the same time, Ghana’s political stability, relative security and democratic credentials continue to strengthen its reputation as one of the more reliable destinations for investment in West Africa.
The country’s strategic positioning is also playing a role. The dominance of general trading in the FDI mix highlights Ghana’s appeal as a regional hub for import and export activities, logistics and distribution.
The high number of manufacturing projects points to continued investor interest in processing and value addition, particularly in light industries.
Both dynamics suggest that Ghana is being viewed not only as a market in its own right but also as a springboard to regional markets under the African Continental Free Trade Area.
Despite the optimism, questions remain about the sustainability of this surge.
Half-year data can often be skewed by a few large deals, and the test will be whether the momentum is maintained in the second half of the year.
Moreover, registered projects do not always translate into realised investments. Delays in approvals, land acquisition disputes or financing challenges can stall progress.
Ghana’s broader macroeconomic fragility is another concern. The country continues to carry a heavy external debt burden, and exchange rate volatility and global shocks remain live threats that could undermine investor confidence.
Another challenge lies in ensuring that these investments deliver inclusive benefits.
Policymakers and observers have often warned that FDI can become enclave in nature, generating limited spill overs for the domestic economy.
Ghana must therefore prioritise policies that guarantee job creation, skills development and technology transfer.
The 4,707 jobs expected from the current batch of projects will be a welcome development, but the broader question is whether such investments can help catalyse industrialisation, foster innovation, and stimulate local supply chains.
Still, if the trend is consolidated, the implications could be far-reaching.
New investments would not only boost employment but also bring in critical foreign capital to support Ghana’s balance of payments.
They could stimulate downstream sectors, attract supporting industries, and enhance Ghana’s visibility as a destination of choice for global investors.
Sustained inflows would also help Ghana diversify its economy away from overdependence on commodity exports and deepen its integration into regional and global value chains.
GIPC officials have expressed confidence that the upswing reflects the effectiveness of ongoing reforms and investor outreach strategies.
They argue that the data will help refine incentives, highlight high-potential sectors, and attract anchor investors who can serve as a magnet for additional capital.
Investors tend to be reassured not by promises but by predictable regulatory frameworks, stable macroeconomic conditions, and credible long-term strategies.
The 2025 half-year figures suggest that Ghana is once again on the radar of international investors, after a difficult period of volatility and declining inflows.
Whether this surge becomes a defining moment in the country’s economic trajectory will depend on the government’s ability to consolidate reforms, maintain stability, and ensure that foreign investments are channelled into sectors that create jobs, build capacity, and drive industrial transformation.
If those conditions are met, the first six months of 2025 could mark not just a rebound, but the beginning of a new chapter in Ghana’s journey toward sustainable growth and global competitiveness.
