Ghana and Nigeria are the top destinations when it comes to doing business in West Africa. Both countries receive a significant portion of foreign direct investments (FDIs) entering the sub-region. This is particularly so in Ghana because of her stable political environment, young population, high level of security, and a growing economy despite external shocks.
Most Nigerian businesses agree with these sentiments as we have seen significant Nigerian investments in Ghana over the past five years. From 2017 to 2021, data from the Ghana Investment Promotion Centre (GIPC) indicate a total of 20 major investment projects totalling $ 63.5 million made by Nigerian investors in Ghana. This excludes other smaller investments that are not captured in the GIPC database.
Although there are multiple business opportunities in Ghana, some of the notable sectors that have attracted Nigerian investors are manufacturing, the services sector, and general trade. The manufacturing sector is a major sector of interest among Nigerian investors, recording 61% of total FDI within the period under consideration. Companies such as Dangote Cement, Bayswater Industries Limited, Ozoza Lifestyle Limited and Locegy Integrated Venture Limited have all made investments in Ghana's manufacturing sector.
The services sector in Ghana is also quite popular among Nigerian investors, particularly, when it comes to using technology to facilitate the production of goods and services. The service sector constitutes about 15.3% of the total Foreign Direct Investment (FDI) from Nigeria. Big brands from Nigeria such as Flutterwave, Plentiwaka, Remx Capital, Venture Garden, Multigate Solutions, Sendbox Software, Bento Technologies and Instant Payment Solutions have all set up shop in Ghana. More details on the distribution sector of Nigerian investments are highlighted in the chart below.
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