Despite recent economic challenges in Ghana, the International Finance Corporation (IFC) is optimistic about the country’s investment climate and economic potential. With a focus on sustainable growth and job creation, IFC continues to channel investments into key sectors such as agribusiness, renewable energy, and manufacturing. Recent initiatives highlight a commitment to enhancing domestic productivity and support for SMEs, particularly women-led enterprises.
The International Finance Corporation (IFC) remains hopeful about Ghana’s economic future, reaffirming its support for private-sector growth amid recent economic challenges. In a discussion with B&FT, Dahlia Khalifa, IFC’s Regional Director for Central Africa and Anglophone West Africa, praised Ghana’s resilience and economic potential.
IFC prioritizes the social impact of its investments, focusing on job creation and economic transformation rather than merely the volume of investment. Ms. Khalifa stated, “Our focus is not just on how much we invest but on the lives and livelihoods impacted,” underlining the organization’s long-term commitment to Ghana.
Having invested over US$2 billion in Ghana in the past decade, IFC allocated US$450 million in the last year, with expectations for increased investment in 2024. The organization is channeling funds into sectors with high employment potential, such as agribusiness, light manufacturing, and renewable energy. Khalifa highlighted the importance of Ghana’s economic fundamentals, asserting they remain robust despite current turbulence.
A particular emphasis is on value chain development, especially in agriculture, where Ghana has the potential to reduce imports and bolster local production. “Ghana should not be importing certain products when it has the resources to produce them locally,” Ms. Khalifa commented, highlighting IFC’s support for enhancing domestic value addition.
In renewable energy, IFC recently invested US$21 million in Ghana’s largest private-sector solar project, in partnership with LMI Holdings. This forms a part of a broader US$100 million initiative to enhance rooftop solar capacity in industrial areas. Khalifa pointed out that the project, which has seen success with LMI’s current installation of 16.8 megawatts, is set to grow to 200 megawatts by the next phase.
IFC is also expanding its engagements in Ghana’s manufacturing sector, particularly in garments and textiles. DTRT (Do the Right Thing), a major apparel manufacturer, has benefited significantly and currently employs over 7,000 people. Khalifa noted, “Behind each of these 7,000 jobs is a household benefitting from stable income.”
To promote small and medium-sized enterprises (SMEs), IFC collaborates with local banks to enhance financing opportunities. Recent agreements include a US$20 million facility with Access Bank focusing on women-led businesses and leveraging private equity to back startups in sectors like fintech and logistics.
Khalifa describes Ghana as at an “inflection point” of economic growth, fueled by private sector momentum and government commitment to improving the business climate. She concluded that there is a unified belief that Ghana is experiencing an upward trajectory in its economic development.
Ghana is viewed positively as an investment hub, with the IFC committed to fostering economic growth and job creation despite macroeconomic challenges. Investments are focused on crucial areas such as renewable energy, manufacturing, and SME support, indicating a robust strategy for sustainable development and domestic value addition in various sectors. Overall, Ghana’s potential for economic expansion remains strong, and efforts to enhance the business environment are seeing promising results.
Original Source: www.ghanaweb.com
