The Chief Executive for the Ghana Investments Promotion Centre (GIPC), Yofi Grant has defended the decision to amend the GIPC law to take out the capital requirements for foreign businesses.
According to him, the move is geared towards ensuring a more competitive business environment for Foreign Direct Investment. Mr. Grant was addressing the business community at the second Ghana European Union Business Forum in Accra. The forum was held under the theme, “Fostering an investment in non-traditional value chains under the EU Global Gateway Strategy”.
Speaking on a panel discussion, Mr. Grant said the old GIPC law is outdated, hence the need for the amendment.
“This requirement should not have been an issue because many of the investors will come in with more than $500, 000 anyway. However, it still poses a psychological barrier, especially when dealing with SMEs and SMIs in joint ventures”, he said.
“For instance, in a 50-50 joint venture, if the foreign partner must contribute at least $200,000, the local investor is also expected to match that amount. Unfortunately, many SMEs lack the necessary capital to invest in their businesses,” he added.
Mr. Grant expressed confidence that removing the capital requirement will support market competitiveness and attract more investors into the Ghanaian economy.
Speaking to Joy Business after addressing the forum, EU Ambassador to Ghana, Irchad Razaaly highlighted the importance of such events to the European business community.
He stated for example that Ghana can achieve economic transformation by overcoming challenges in the non-traditional sector.
“By exploring non-traditional sectors, we can unlock new opportunities, address challenges, and promote economic transformation”.
“Indeed this is what we are pursuing in our economic cooperation with Ghana, to support more value added products exported from Ghana to the EU and to the world, beyond the traditional raw materials exported (such as gold, petroleum, or cocoa)”, he added.
Mr. Razaaly said at the very essence of the European Union is the intention to join forces to achieve shared values and ambitions.
According to him, Ghana is one of the preferred destination to do business.
The Deputy Director General, Directorate General of the European Commission, Madam Myriam Ferran, said “European Union is committed to supporting Ghana’s development goals, and this investment in vaccine manufacturing and pharma is a testament to our partnership; this programme will not only enhance Ghana’s healthcare sector but also contribute to the growth of the country’s economy.”
Minister for Trade and Industry, KT Hammond used the platform to commend the EU for its role in promoting partnership between local and European businesses.
He pledged government’s support to work with the EU to boost trade activities between Ghana and the union to enhance Ghana’s foreign earnings.
The European Union has sign an agreement to award a €32million euros funding to the government of Ghana to support local vaccine production and boost pharmaceutical growth.
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