Investors must go through right procedure — GIPC
The Ghana Investment Promotion Centre (GIPC) has entreated foreign investors to go through the right procedure to establish and conduct their business transactions in the country.
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The centre gave the assurance that in accordance with Act 865 of the GIPC, it will continue to promote investments and provide the framework for the creation of an attractive, transparent and a facilitating environment for investors to operate their business.
In a presentation made by the Director of Monitoring and Tracking at the GIPC, Mr Edward Ashong-Lartey, at the Ghana-Nigeria Business Council (GNBC) meeting in Accra on Thursday, he stated that the GIPC registers and keeps all records of businesses that have been established in Ghana.
“The GIPC formulates investment policies and plans promotional incentives and marketing strategies to attract foreign and local investments. This allows us to register all businesses and constantly monitor their progress,” he said.
The GIPC Act 865
THE GIPC Act 865 was introduced in November 2013 and made significant changes to the old Act 478. It contains the legal regime governing investment in Ghana and allows the registration of wholly owned Ghanaian enterprises with the centre after being incorporated to fully enjoy the benefits applicable to the Act.
Establishing a business in Ghana
He said registration with the GIPC entitles investors to the incentives and guarantees established under Act 865 and added that the amount required to set up a business in Ghana varied based on the type of ownership.
Trading enterprises, joint ventures and wholly foreign-owned businesses required a minimum amount of $1,000,000, $200,000 and $500,000 respectively.
Mr Ashong-Lartey explained that the establishment of the GNBC would provide an avenue for Nigerian investors to transact their business through legal means and also secure the safety of their income.
“Ghana and Nigeria have been conducting business in the informal sector over the years but with the GNBC in place, it will provide a channel through which all legal and necessary requirements needed to establish a business will be provided,” he said.
He explained that agencies such as the Minerals Commission, Petroleum Commission and the Ghana Free Zones Board (GFZB) had also been mandated to transact business with foreign investors in the areas of their jurisdiction.
Benefits of investments
In an interview with the Daily Graphic, the Deputy Minister for Trade and Industry, Mr Ibrahim Murtala Mohammed, said the stability of the country was one which could be capitalised on to attract foreign investors.
“Ghana has a stable economy as well as democracy and these are things that investors look out for before establishing their business in any country,” he said.
He said the GNBC would demystify the perception that Ghana was not interested in trade activities with Nigeria.
Talking about the benefits of investments, he said it expanded the economy and introduced more resources which would allow government to review its revenue rates.
He also said it allowed for the creation of job opportunities for the ordinary Ghanaian. That, he said, would help reduce the rate of unemployment.
For his part, the Chairman of the GNBC, Omo’ba Bambo Ademiluyi, said the membership of the council had been encouraging since its initiation, and was looking forward to more of both Ghanaian and Nigerian investors to come on board.
He said due to the friendly relations that had existed between the two countries over the years, there had not been any formal agreement to conduct trade in the most corporate way.
Mr Ademiluyi was optimistic that with the rulers and regulations guiding the council, Nigerians would be assured of the safest and secured way of transacting business and it would encourage them to invest more in Ghana.