President John Dramani Mahama has disclosed to Japanese investors that his government is reviewing the Ghana Investment Promotion Centre (GIPC) Act, 2013 (Act 865) to remove what he said were barriers to foreign investment in the country.
Speaking at the Presidential Investment Forum at the ongoing Ninth Tokyo International Conference on African Development (TICAD-9) in Yokohama, Japan, yesterday, President Mahama said the move is intended to attract more investments into the country.
“We are open for business and are busy at work reviewing the Ghana Investment Promotion Centre Act. Some barriers were put to foreign investment.
“You had to prove that you had brought in a certain amount of money to be classified as a foreign investor. In the reviewed Ghana Investment Promotion Centre Act, we’re removing those minimal capital investments. This will enable any investor, however little money you have, US$100,000, US$50,000, to be able to come in and set up a business in Ghana,” President Mahama said.
Under the existing GIPC Act, a foreign investor who partners a Ghanaian in a joint enterprise is required to invest not less than US$200,000 in cash or capital goods relevant to the investment or a combination of both.
Where the enterprise is wholly owned by a foreigner, the Act stipulates that the investor must invest a foreign capital of not less than US$500,000 in cash or capital goods relevant to the investment or a combination of both by way of equity capital in the enterprise.
Removing the threshold, President Mahama said would ease entry into the country’s investment space and create an environment for small and medium-scale investments to thrive.
Ghana, President Mahama said, has an enviable track record for hosting Japanese companies and cherishes that relationship.
According to him, about US$152 million Japanese investments have been recorded over the years, expressing optimism that there is more room for improvement and expanded investment from Japan.
“We’re moving just not only from overseas development assistance, but we’re moving to trade and investment and the private sector will be that engine of growth,” he indicated.
“Ghana”, President Mahama lobbied, “is a stable, democratic, business-friendly, gateway to West Africa and the continent. We have a growing consumer market with improving macroeconomic fundamentals, clear reforms to lower the cost of doing business, and abundant opportunities for technology transfer”.
He said the country is strategically located, English speaking, a youthful, skilled and hospitable population, hosts the headquarters of the African Continental Free Trade Area, an initiative which ensures tariff-free access to over 50 African countries, amongst other considerations, which makes Ghana the ideal place for investments.
Under the protocols of the free trade area, President Mahama enticed the investors that “once you register your product and it meets all the standards, you can export duty-free and tariff-free into each other’s markets.
“The sub-regional market, which is West Africa, is 400 million people. Ghana is 33 million people. And the continental market is 1.4 billion people. And so with the vehicle of the African Continental Free Trade Area, you potentially can export into 1.4 billion markets.”
President Mahama said there were investment opportunities in the areas of energy, agriculture, transportation, agrobusiness, aviation, and manufacturing amongst others worth exploring.
“Ghana is a land of opportunity and many nationals from all over the world are investing in Ghana. As I said, we wish to, because of the discipline, quality standards, and industrial wisdom that Japanese businessmen have, we wish to encourage Japanese businessmen to look towards Ghana. Africa is the next frontier for investment.”
BY JULIUS YAO PETETSI
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