THE

Volume 7 Issue 1

QUARTERLY UPDATE
April 2011

GHANA INVESTMENT PROMOTION CENTRE FIRST QUARTER 2011 INVESTMENT REPORT (1ST JANUARY TO 31ST MARCH 2011)
MESSAGE FROM THE CEO
Mr. George Aboagye, CEO of GIPC with Mr. Ross Mclean, Business of Dow IMEA Director, Africa Chemical Gmbh

Dev. Middle East &

Compared to the corresponding quarter of 2010, the estimated value of registered projects grew by 101.31%; FDI component of the estimated value of projects also went up by 118.02% whiles the initial capital transfer increased significantly by 363.66%. Jobs expected for Ghanaians increased by 18.80% whereas that for non-Ghanaians decreased by 22.36%. I wish to assure you that, the GIPC will continue to aggressively market the investment opportunities in Ghana, facilitate investment projects and advocate for competitive business environment in Ghana. Long live Ghana George Aboagye, CEO

Results for the first quarter of 2011 vindicate our declaration of this year as the Year of hope and Action. We at the Centre planned to ride high and capitalize on the good international image and the prevailing promising domestic investment environment to aggressively market the investment opportunities in Ghana. Our operational results for the last two years indicate that FDI has been increasing on average by approximately 70% annually. But we cannot say the same for local investments or joint ventures. Our focus for the Year of Action is to enhance the importance of the domestic investor in the development of the country. Partnering domestic investments with FDI, we believe is the only means by which we can build the capacity and grow our domestic investors. To this end, between January and March, we toured all regions and interacted with Regional ,District and Metropolitan Authorities, Planning officers and the private sector to encourage them to help identify investment opportunities, call for project proposals, and to explain to them the role and services of the GIPC. We do hope the discussions with these stakeholders will encourage domestic investors to: develop and invest in good business ideas or concepts; increase their capacity to partner other investors both local and international and encourage local financial institutions to support worthy projects. We believe our efforts will encourage the improvement in the investment environment at the districts and regional levels to ensure the spreading of investment projects across the length and breadth of the country. For the first quarter of 2011 we assiduously pursued our investment promotional activities and offered services to existing and potential investors. A total of 109 projects with an estimated valued of GH567.66 million (US$378.44 million) were recorded. Jobs expected to be created by these projects is 7,004.

1.1 SUMMARY New Investments: 1st Quarter 2011 In the first (1st) quarter of 2011 (1st January to 31st March 2011), 109 new projects were registered. Initial Transfers The total initial capital transfers for the newly registered projects during the quarter amounted to GH103.35 million (US$68.90 million). Estimated Value of Registered Projects The total estimated value of this quarters newly registered projects was GH567.66 million (US$378.44 million). 1.3 STRUCTURE OF COMPANIES Of the 109 projects registered during the first (1st) quarter, 66 (60.55%), were wholly-owned foreign enterprises valued at GH175.07 million (US$116.71 million) which is 30.84% of the total estimated value of projects registered. The remaining 43 (39.45%) were joint ventures between Ghanaians and foreign partners valued at GH392.58 million (US$261.72 million) which is 69.16% of the total estimated value of projects registered. For the corresponding quarter of 2010, 63 wholly-owned foreign enterprises and 45 joint ventures were registered and valued at GH217.83 million (US$155.59 million) and GH45.59 million (US$32.57 million) respectively. During the fourth (4th) quarter of 2010, 49 wholly-owned foreign enterprises and 26 joint ventures were registered and valued at GH147.13 million (US$105.09 million) and GH51.50 million (US$36.79 million) respectively.

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SECTORAL COMPOSITION OF NEW PROJECTS

Newly Registered Projects 1 6 10 29 7 12 37 7 109 Estimated Value (US$) M 0.33 157.04 3.07 18.79 1.65 113.44 82.67 1.45 378.44 % of Estimated Value 0.09 41.50 0.81 4.97 0.44 29.98 21.84 0.38 100

Sectors Agriculture Building/Const Export Trade General Trading Liaison Manufacturing Service Tourism Total

currency component was GH37.54 million (US$26.82 million). The FDI component of the estimated value of the projects registered in the fourth quarter of 2010 was GH183.40 million (US$131 million) and the local currency component was GH15.24 million (US$10.88 million). The total foreign equity was GH276.48 million (US$184.32 million) and the initial equity transfers was GH103.35 million (US$68.90 million) for this quarter.

1.4 HIGHLIGHTS Among projects attracted into Ghana during the quarter are: a) AMERICAN CAPITAL PARTNERS (GHANA) LTD Real Estate Development with an estimated project value of GH105.75 million (US$70.50 million). b) ENERGY BANK GHANA LTD Banking, finance and investment with estimated project value of GH72.20 million (US$48.13 million). c) WESTERN DIAMOND CEMENT LTD Manufacturing/import and selling of cement and ancillary products with an estimated project value of GH45.06 million (US$30.04 million). d) HBSi GHANA LTD Real estate development; affordable housing units with an estimated project value of GH30 million (US$20 million). e) AFRICAN FINANCIAL SERVICES (GH) LTD Microfinance, consultancy with an estimated project value of GH22.50 million (US$15 million).

COMPARISON OF FIRST QUARTERS 2011 AND 2010 Measures Figures Increase /Decreas e (%) Q1 2011 Q1 2010 F 66 63 No. of 10 108 0.93% Projects JV 9 43 45 Total Estimated Value ( US$ M) FDI Component (US$ M) Local Component (US$ M) Total Initial Capital Transfer ( US$ M) Country with largest No. of Projects Country with largest estimated Value of Projects Total Jobs Create d Ghanaians Non Ghanaians 378.44 351.75 26.68 68.90 188.16 161.34 26.82 14.86 101.13% 118.02% -0.52% 363.66%

India (19) Britain & Belize (US$ 70.50 M) 6,497 507

China (14) Belgium & South Africa (US$86.35 M) 5,469 653

18.80% -22.36%

1.5 FOREIGN DIRECT INVESTMENT The FDI component of the estimated value of the projects registered during the period under review (1st January to 31st March 2011) was GH527.63 million (US$351.75 million), representing 92.95% of the total estimated value, and a local currency component of GH40.02 million (US$26.68 million), representing 7.05%. The FDI component of the estimated value of the projects registered in the corresponding quarter of 2010 was GH225.88 million (US$161.34 million) and the local 1.6 SOURCES OF FOREIGN DIRECT INVESTMENT (FDI) India, with 19 projects, topped the list of countries with the highest number of registered projects. With US$70.50 million, as estimated investment, a joint venture between Britain/Belize topped the list of countries with the largest value of investments registered during the quarter. TOP TEN INVESTOR COUNTRIES (1ST JANUARY 31ST MARCH 2011) 2
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Investor Countries by Number of Registered Projects

1.8 EMPLOYMENT GENERATION From the number of new projects registered in the first quarter (1st) quarter, it is expected that 7,004 jobs will be created. This gives an increase of 14.41% compared to the 6,122 expected jobs to be created in the corresponding quarter of 2010. 92.76% (6,497) of the total jobs to be created in the first (1st) quarter will be for Ghanaians and the remaining 7.24% (507), for expatriates.

EMPLOYMENT GENERATED BY SECTORS (1ST JANUARY 31ST MARCH 2011)

Investor Countries by Estimated Value of Registered Projects

1.9 CONFERENCES, SEMINARS AND MISSIONS 1.7 GEOGRAPHICAL DISTRIBUTION Six (6) out of the ten regions directly benefited from the registered projects during the quarter. The regions are Ashanti, Central, Eastern, Greater Accra, Northern and Western region. 78.90% of all the projects registered are located in Greater Accra region. During the first quarter of 2011, GIPC organized and participated in the following programmes as part of its mandate of investment promotion: Hosting of thirty member Korean business delegation interested in infrastructure, property development, oil & gas services from 27th to 28th January 2011 Sensitization tour of 7 regional capitals (Takoradi, Cape Coast, Sunyani, Kumasi, Koforidua, Ho and Tamale) held from 17th February to 10th March 2011 Participation in the 4th Swiss African Business Exchange held at the Centre for International Conferences (CICG), Geneva from 16th to 17th March 2011 Participation in the 7th CII-EXIM Bank IndiaAfrica Project Partnership Conclave - held at TAJ

REGIONAL DISTRIBUTION OF PROJECTS

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Palace, New Delhi, India from 27th to 29th March 2011 Participation in the 4th COMESA Investment Forum held in Dubai from 23rd to 24th March 2011

Its mission is: conservatively growing arithmetically to affect the world in the hands of three people customers, employees and shareholders in equal opportunity for the development of Ghanas economy, humanity and to the glory of God. Energy Bank Ghana Limited though positioned to be the bank of reference in the oil and gas sector, is not strictly an oil and gas bank. It is a bank with a universal license to operate in ALL sectors of the Ghanaian economy. The main services provided by the bank are Wholesale Banking (Corporate Banking, Institutional Banking, Public Sector Group) and Retail & Customer Banking (Consumer Banking, Retail Banking). The Chairman of the Bank, Barrister Jimoh Ibrahim believes that having successfully grown business in Nigeria with huge economic potentials, similar successes can be replicated in other African countries. And of course, Ghana provides congenial socio-economic atmosphere for that purpose. He believes that, in another decade from now, the Ghanaian economy is projected to be the Dubai of West Africa. Energy Bank is in Ghana therefore to contribute its quota to the development of the economy for the benefit of the Ghana people and humanity. Mr. Sam Ayininuola is the managing director of the bank and he explains that the concept behind Energy Bank stems from the fact that the African is capable of managing its own affairs and can take a centre stage in championing his own economic development agenda. The ENERGY is more of vitality, strength, vigour and dynamism that the bank will deploy in its dealings with customers. It is about doing old things better, doing things never done before; it is about creative innovation. According to Mr. Sam Ayininuola, the managing director of Energy Bank, the bank will be rolling out products that will distinguish Energy Bank from other players. Its very dynamic product research and development unit will ensure that customers enjoy unique financial experience with the bank. The Bank shareholders fund is in excess of GHS 60 million which makes it one of the highest capitalized banks in Ghana. Energy Bank Ghana Limited expects to create employment for over 290 workers at full capacity. Energy Bank Ghana 4

Mr. George Aboagye, CEO of GIPC & Mr. Yesser Sangari interacting with an investor at the forum

2.0 UPCOMING EVENTS Launching of GC100 and the Invest In Ghana Seminar in June 2011 Investment Promotion Mission to Europe, Asia and North America: Russia, Holland, Italy, Slovenia, Greece, Malaysia, South Korea, Canada and USA Hosting of Jareco General Construction Limited from Dubai to explore opportunities in the Agribusiness, Construction and trading sectors in April 2011

2.1 INVESTOR PROFILES Energy Bank Ghana Limited is a joint venture between Nigeria and Britain. It was incorporated in September 2009 as a privately owned financial institution. Energy Bank formally commenced operations on 22nd February 2011. Energy Bank is largely owned by the Global Fleet Group which has been playing leading roles in corporate Nigeria with substantial interests in strategic sectors of the economy. For instance, in the Oil & Gas (downstream) sector is Global Fleet Oil &Gas with about 150 gas stations; in the Insurance sector is NICON Insurance, the biggest insurance company in Nigeria; in the Re-Insurance segment is the Nigeria Reinsurance Corporation and in Aviation, Air Nigeria, formerly known as Virgin Nigeria. The vision of the bank is to build a strong bank based on the timeless principles of loyalty.

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Limited can be located at Gnat Heights, 30 Independence Avenue Ridge, Accra-Ghana Tel: +233 0302 234033 Email: info@energybankghana.com Managing Director/CEO - Sam Ayininuola Tel: +233 302 234048, +233 54 8422156 E-mail: Ayininuola.Sam@energybankghana.com

detailed approach which confirmed to the company that Ghana was the most receptive and forward thinking country in the worlds emerging global market. HBSi Ghanas building solutions have been designed for the following market sectors; Multi-Storey Residential Apartments (Affordable, Mid Income and Luxury Sectors) Married Quarters Accommodation Student Accommodation Hotel Projects Key Worker Developments Secure Accommodation / Prison Cells Relocatable Housing Solutions HBSi Ghana has now secured a number of multi-storey apartment projects and housing schemes, all of which are ideally suited for using the companys building system. The company will construct Apartments and Houses, by providing the design, manufacture and installation of structurally freestanding, lightweight steel building frames, which incorporate concrete floors. HBSi are committed to procure as much of the building materials from within Ghana to assist the country generate internal wealth. HBSi will work closely with their chosen partners to be recognised as the leading employer in Ghana, who is prepared to invest time and financial resources to train local Ghanaians with transferable building, manufacturing and engineering skills. The company will strive to be acknowledged as the market leader, opinion former and innovation provider of building solutions in the Republic of Ghana. The current value of contracts which HBSi Ghana has secured now exceeds US$150m. HBSi Ghana is on target to complete a number of its live projects by 2019. Once the company achieves full production capacity in 2011 it will have created over 200 full time jobs for Ghanaians. HBSi Ghana Limited can be located at Plot 467 Mantse-Boi Street, Kaneshie, Accra P. O. Box AD 0128, Adabraka, Accra-Ghana Tel: +233 0274029990 Fax: +233 0302 251177

HBSi Ghana Limited, a joint venture between Britain and Ghana, is a real estate development company based in Accra with a goal of producing affordable housing units. HBSi developed a building solution that has revolutionised the building and construction sector. It is based around an integrated design and manufacturing process that incorporates millimetre perfect load bearing wall panels and precision engineered floor cassettes. Unique to the HBSi System is a concrete cassette floor, which in addition to time and cost savings, it offers the home owners a robust and solid feel flooring solution. HBSi boasts the highest building of its type in the world, which is a lightweight steel frame with concrete floors, in the IQ Five project, Birmingham, UK, which has achieved international acclaim and awards. HBSi also offer a modular system which allows fully completed rooms, including flooring, furniture and decoration to be completed at the factory and then transported directly to site. In the market of off-site manufactured buildings, the HBSi product is the world market leader, in terms of its flexibility, accuracy, capability and its approach. The company locally source the provision of materials, and manufacture the buildings within a factory controlled environment. HBSi reviewed opportunities in a number of countries including the Far East, Middle East and Russia; however the most receptive country was identified as Ghana, where there has been a growing demand for a technologically advanced building solution, which offers robust buildings, within a timescale previously unheard of in Ghana. Following meetings held with government officials, HBSi liaised closely with G.I.P.C and it was the consistent and

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