Challenges of Foreign Direct Investment in Ghana, Examining Empirical Evidences in Vodafone Ghana

Abstract

In recent times there has been a concerted attempt to attract Foreign Direct Investment (FDIs) into Ghana. This is largely due to the need for development in the country, as a way of enhancing the standard of living of the people. Foreign Direct Investment (FDIs) is seen as a catalyst for this development.Most African countries including Ghana abound in natural resources. However, most of these resources are untapped due to inadequate capital and technical know-how to harness such resources. Ghana has had its fair share of Foreign Direct Investment (FDIs) in the recent years; mostly in the sectors of Mining, Banking, and Telecommunications; Road Construction, Broadcasting, Automobile and manufacturing Industries. Despite the apparent economic benefits to be accrued to both the nation and its citizens, there has been some criticism and public outcry against these foreign investments. Some are of the view that bringing foreign investors means entrusting the destiny of the nation into the hands of these foreigners. Others are of the opinion that these foreign investors have no genuine interest for the socio-cultural and economic development of the country; sometimes often downplay the very source of the identity – our cultural heritage. At least two issues make FDIs hotly debatable issues in Ghana as to whether FDIs really beneficial and leads to socio-economic development of the Ghanaian economy. Economic growth is not an end unto itself. Growing the economy is a vital task for every government, generations and generations yet unborn because of what economic growth brings; a better life for millions of Ghanaian people and hundreds of millions of people around the African continents.Foreign Direct Investment in Ghana faces major challenges that impede their smooth transition. This research paper discusses these issues as the basis of tackling major challenges faced by investors and its implication for policy makers if FDIs are to contribute for national development.