Africa remains destination for FDIs
The Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Yofi Grant, has said the political instability in a few countries in Africa should not be a disincentive for business people to invest on the continent, particularly in Ghana.
According to him, there are many fundamental issues surrounding the disturbances but the rest of Africa remained resolute and ready to keep their doors open for investors.
Mr Grant made the call in brief remarks at a welcome reception hosted by the UP-Ghana Chamber of Commerce in Philadelphia, United States of America as a prelude to the 2nd US-Ghana Business Summit and Expo.
About 50 Ghanaian businesses from both the private and public sector are attending the expo.
Also attending the high profile event are individuals who are expected to explore major opportunities in their quest to either set up their own businesses or form joint ventures with their American counterparts.
An initiative of the Chamber, the event is meant to among other things help to deepen discussion and relationship with critical institutions that facilitate international business development and cooperation.
According to UNCTAD's World Investment Report 2022, FDI inflows to Ghana increased from USD 1.88 billion in 2020 to USD 2.61 billion in 2021, thanks to projects in extractive industries. The FDI stock reached USD 41 billion in 2021
In the last couple of years, some African countries have been hit by political instability with the latest being in Gabon.
Particularly in West Africa, the situation is worse, a development many fear will have a serious impact on Foreign Direct Investment inflows.
As the military rulers refuse to let off their grip at the helm of affairs, many are those who fear that soon, there will be greater instability, a development which will further cause investors to lose hope in the continent and in the worst case scenario, lead to capital flight.
Mr Grant said there are records to show that returns on FDIs in Africa is higher than anticipated and, therefore, unless potential investors disabuse their minds about the few negative stories about the continent, they will never be able to leverage the opportunities thereof.
He said the wrong perceptions about Africa must change, and now, to prevent investors from asking for too many incentives.
Narrowing to Ghana, he said a lot of effort have gone into ensuring stability and the government and people of the country will continue to protect that enviable record as a bacon of democracy and good governance on the continent.
The President of the chamber, Florence Torson-Hart, in her welcome address asked Ghanaian businesses attending the event to ensure that they follow-up on all the contacts they have made during the period.
“This is what will make you strike a deal and, therefore, that contact should not be taken for granted,” she said.
Mrs Torson-Hart said the event was a major one which should not be taken for granted and plead her commitment to ensure that the participants were ready for business.