CAMCHAM calls for more action to attract FDIs
The President of the Canada Ghana Chamber of Commerce, Mr Frederick Attakumah, has said Ghana as a country has largely met the basic requirements of being a stable and important investment destination in Africa but needs to attract further investments, both locally and foreign, in order to achieve its socio-economic growth and development objectives.
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Speaking at the chamber’s forum dubbed ‘Power Breakfast Event’ on the theme: “Promoting Joint Venture Partnerships with Foreign Investors” at the weekend, he applauded the government’s initiatives such as the Planting for Food and Jobs, which saw a major boost from the Government of Canada a few weeks ago to the tune of C$125 million in the Modernising Agriculture in Ghana programme.
He also mentioned the one-district, one-factory initiative, which seeks to push the country further up the industrialisation curve and noted that this was yet another major policy effort the government had commenced work on.
Mr Attakumah said the extractive sector, specifically oil and gas, mining (bauxite), among others had the potential to positively impact the business sector of the country.
According to him “all of these initiatives, present unique opportunities for Ghanaian businesses to effectively participate on their own, should their capabilities permit, or do so in partnership with foreign investors through joint ventures.”
Joint ventures
On joint ventures, he said, the chamber held a strong view that both the government and the business community should refocus on the opportunities presented by joint ventures “as we seek to speed up on our economic development journey”.
For these to be achieved, he said, the chamber believed that there should be work done on getting a one-stop-shop for business registration; competitiveness of business registration fees and minimum foreign equity requirements ($200,000 for Joint Ventures and $500,000 for wholly owned foreign entities; and elimination of fronting).
FDIs
The High Commissioner of Canada to Ghana, Madam Heather Cameron, said Foreign Direct Investment (FDI) and joint ventures depended on the ease of doing business.
“Ghana currently ranks 108 overall out of 190 countries, and the members here know better than I, the challenges faced day-to-day as each of you work to grow your businesses”, she said.
According to her, “In an increasingly competitive investment environment, ease of business is important, but equally, once investments have been made, investors want to see the government responding quickly for example, through licenses, purchasing or permits, so as to help get their investments operational.”
Madam Cameron said, “I am pleased to see the call for the Ghana Investment Promotion Centre to review and amend the GIPC Act 2013 (Act 865), particularly those provisions related to the minimum capital requirement of $200,000 to form a joint venture with Ghanaian entrepreneurs; When reviewed and amended, this will serve as a major boost to attracting new investment – and I met many members of the Ghanaian diaspora in Canada recently who are anxious to re-invest in Ghana when these requirements, and others, improve.”
She said other reforms in other areas were also needed, and the High Commission would be happy to promote to investors the outcome of those reforms.
Madam Cameron said as commerce became more global, and the potential in the West Africa region grew, investment was one of the most important components of their business relationship with Africa. — GB
