What are the factors in play with regard to Ghana's 2013 20% drop in FDI?

Haruna Iddrisu: Minister of Trade & Industry: One of the speakers at the
Innovation Forum conference in London on June 19

There's lots in the lean markets news about Ghana's 20% FDI drop in 2013 versus 2015. 

According to GhanaWeb:

"Foreign Direct Investments (FDIs)...declined to $3.946 billion representing about (a) 19.5 percent drop from $4.904 billion recorded in 2012."

There appear to be quite a few factors in play here from what I read:

1) Commodity price fluctuations.

(Gold is down, whilst Palm Oil and Cocoa is now up again) 

2) Macroeconomic policy hangovers from the previous administration's time in power.

3) Global volatility generally in investment flows in 2013 (note how the Ukraine situation is pushing money around other unrelated markets very quickly, and may continue to do so if Russia becomes an international investment pariah)

4) The Ghana Government's budget account deficit. (The Financial Times reports that "the government ran a budget deficit of 10.2 per cent of GDP in 2013, and may miss its pledge to reduce this to 8.5 per cent this year"

This blog will be looking into the investment prognosis in Ghana for 2014 and beyond in further posts. We know some big foreign investors are keen that more focus is given to agriculture, and the value chain within it and how it can be developed. Aquaculture also seems to offer some interesting opportunities alongside tourism (the national football team's appearance at the World Cup later in the year may give tourism a boost) and real estate. Of course the recently introduced foreign exchange controls will be a key issue for many. It remains to be seen how that issue will play out over the rest of 2014.

We're bringing together some of the key players in the Ghana Government together with companies and investors on June 19 in London. Check out the event here and let us know if you'd like to come.