Mills: We’re ready for investors

President John Evans Atta Mills says government is adopting measures to reform and improve the legal and regulatory framework for doing business in the country to attract and retain foreign direct investment, and contribute to economic development efforts.

The reforms, the President said, include strengthening of the financial sector, improving access to land, and streamlining the business registration and licensing systems.

“In line with the government’s interest in ensuring a conducive environment for investment, the Investment Code, which already offers attractive investment incentives, is being reviewed to make it even more inventor-friendly in order to enhance the business environment.

“Government is also reforming customs administration and taxation, as well as developing infrastructure and institutional reforms. We do appreciate the fact that this requires the adoption of measures that will enable us to be competitive as an investment destination.”

President Mills said this to the investor community, international business executives and government officials as well as entrepreneurs in a speech read on his behalf at this year’s GIPC Invest in Ghana seminar, which was aimed at providing an opportunity for useful exchanges between Ghanaian and foreign investors.

Already, initial reforms undertaken by the government are yielding the necessary results, he said.

According to the country’s lead investment promoters, the Ghana Investment Promotion Centre, investments into the economy continue to grow year after year, creating useful partnerships, skills transfer and creating jobs.

GIPC figures show the total number of projects registered for the first half of 2011 was 236, with a total estimated value of US$978.74 million (GH¢1.47 billion). 213 projects were registered for the corresponding half of 2010 with a total estimated value of US$850.84 million (GH¢1.19 billion).

The total initial capital transfers amounted to US$165.93 million (GH¢248.90 million) for the period under review, while transfers in the corresponding half-year of 2010 amounted to GH¢42.50 million (US$30.36 million).

Of the 236 registered projects, 137 were wholly-owned foreign enterprises and 99 were joint ventures between Ghanaians and foreign partners.

The joint-venture projects were valued at US$635.96 million (GH¢953.94 million), and the wholly-owned foreign enterprises were valued at US$342.77 million (GH¢514.16 million).

The FDI component of the estimated value of projects registered during the first half of the year amounted to US$904.04 million (GH¢1.36 billion), and the local currency component amounted to US$74.68 million (GH¢112.03 million).

For the corresponding period in 2010, the FDI component of the estimated value of projects registered amounted to US$760.68 million (GH¢1.06 billion), and the local currency component amounted to US$90.16 million (GH¢126.23 million.

A total of 14,412 jobs are expected to be created by the registered projects from the first half of 2011. 13,170 of the total jobs to be created will be for Ghanaians and the remaining 1,242 will be for expatriates.

The GIPC seminar was also meant to link Ghanaian enterprises with foreign partners who have the potential to provide the required collaboration for economic growth to enable the county prosper in the emerging global economy of the 21st century.

Speaking under the topic, ‘Partnerships for Sustainable Economic Growth: The Role of the Domestic Investor,’ the President said: “I am aware that investors easily shy away from countries whose legal systems are not protective of investments.

“The country has signed bilateral Investment Promotion and Protection Agreements and Double Taxation Agreements with quite a few countries to provide further security for investors.”

He explained that government has sought to further deepen the democratic culture, encourage the smooth development of new democratic institutions and adhere strictly to the rule of law.

“This is because of our avowed belief in good governance as a sine qua non for the creation of an enabling environment for business and for rapid and sustainable development.

Mr. George Aboagye, Chief Executive Officer of the GIPC said: “Government recognises the private sector as a very important partner for national development and has implemented policies that are directed at ensuring that the private sector grows.”

Some of these policies are aimed at strengthening the framework for doing business to ensure that it is able to contain the growth of the private sector.

He revealed that the GIPC Act 478, which is currently under review, will see the Ghanaian private sector being empowered to enable it to contribute effectively to national development.

“The Centre as part of its efforts to promote investments into the economy has been engaged in both international and domestic investment drives.

“The GIPC, whose mandate is to encourage, promote facilitate and coordinate investments in the Ghanaian economy, sees the role of the private sector as very crucial at this stage of national development.

“The Centre has sought to engage the private sector, through undertaking outreach programmes to sensitise them on the functions of the Centre and the assistance that the GIPC can offer local investors. These sensitisation programmes have also enabled us to dispel the notion that the GIPC caters for only foreign investors,” Mr. Aboagye said.