GIPC  Economic Counsellors Dialogue 2017

19-05-2017

GIPC  Economic Counsellors Dialogue 2017

On the 11th of May, GNBCC was invited to participate in the Ghana Investment Promotion Centre’s (GIPC) Economic Counsellors Dialogue 2017 at the Tang Palace Hotel. This Dialogue engages stakeholders to solicit views on ways to make the Ghanaian business environment the  most competitive among its peers through legislation. The GIPC has set a target of US$ 5 Billion in Foreign Direct Investment (FDI). GIPC  wants  to do this by  creating an enabling environment for FDI. Yofi Grant, the CEO of the GIPC stated that “ Ghana has impeccable democratic credentials, it’s a happy place and everybody is now looking at Ghana. And so it’s important that we position ourselves as the regional hub. But we can do that once we do our reforms and open up our economy then we can attract the investors who will do things for West Africa from Ghana” . Ghana wants to be in the same league as the African favourite investment locations such as Mauritius, Rwanda, Kenya and Senegal. They all have embarked on reforms to attract investments .  GIPC is now talking about reforms.

After the investor friendly speech of Mr Yofi Grant,  a presentation was given by a GIPC legal representative who explained some of the reasons behind the current GIPC act from 2013 which includes  the increased  foreign capital requirements and the need to attack fronting, which is a way for foreign companies to  invest through a Ghanaian” front”   in order to avoid the high capital requirements set by the government.

In a debate which followed, many questions were asked about the  GIPC act.  Suggestions were made for the act to be reviewed and possibly revised especially  concerning the high thresholds of investments required of US$ 200,000 when investing in Ghana with a Ghanaian partner and US$ 500,000 when investing without a Ghanaian partner. Compared to Nigeria, the amounts are 10 times higher (US$ 50000) and is not very inviting to SME’s from Europe who want to invest in Ghana. Also, some of the audience members remarked  that GIPC needs to continue with its support to companies that have invested in Ghana in dealing with unfriendly government agencies

GNBCC hopes that very soon the GIPC  will announce amendments to the minimum foreign capital requirements.

 

Comment: Tjalling@gnbcc.net 

Source  1st paragraph: Graphic Business Tuesday May 16 – Monday May 22 2017, page 17, article “ GIPC boss upbeat of US$ 5 bn” by Ama Amankwah Baafi

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