Impact of Foreign Direct Investment Flows on Poverty in Ghana

Ghana will need considerable external assistance to achieve its Poverty Reduction Strategy II and Millennium Development Goals by 2015. At present, foreign direct investment (FDI) outstrips overseas development assistance (ODA). Moreover, North-South flows of FDI are dwindling while South-South flows are increasing. This phenomenon raises the following questions. Why are South-South investments increasing and North-South investments declining? And, which type of FDI - South-South or North-South - is more favorable to export development, technology transfer and poverty reduction? The answers to these questions will indicate what policies should be put in place to, for example, encourage FDI and maximize the benefits from it. This grant will therefore support two surveys, the first of 200 foreign firms operating in Ghana, and the second of 400 domestic firms that supply goods or services to the foreign firms. A number of case studies will also be undertaken. The idea is to shed light on the role of FDI in Ghana's development efforts.

Project ID


Project status


Start Date

Wednesday, March 18, 2009

End Date

Tuesday, March 15, 2011


18 months

IDRC Officer

Melesse, Martha

Total funding

CA$ 192,100


Ghana, North of Sahara, South of Sahara


Employment and Growth

Project Leader

Professor K. N. Afful


University of Cape Coast

Institution Country