The President of the Republic, John Dramani Mahama, has announced the removal of the minimum capital threshold required for foreign businesses operating in Ghana.
The move is part of government’s steps to amend the Ghana Investment Promotion Centre (GIPC) Act in order to encourage greater Foreign Direct Investment (FDI) into the local economy.
The announcement was made on the sidelines of the Presidential Investment Forum, held as part of the ongoing 9th Tokyo International Conference on African Development (TICAD IX).
Speaking to a community of investors in Japan on August 19, President Mahama explained that the intended reforms of the GIPC Act are designed to position Ghana as an ideal destination for foreign businesses and investors, with the aim of creating sustainable jobs for the youth and expanding opportunities for private sector-led growth.
“Ghana is open for business and business capital from all across the world to facilitate improved economic conditions for the economically active sections of our people. That is why my government is working to review the existing GIPC Act to match our commitment to this vision.
“In past years, there were impediments placed in the way of foreign entities who wanted to invest in Ghana, particularly regarding the amount required to qualify as a foreign investor. We are hopeful that once we complete the changes to the law, more businesses will take advantage of the opportunity to invest in Ghana,” he said.
President Mahama also commended the contributions of Japanese businesses to Ghana’s economy, highlighting their investments in sectors such as manufacturing, machinery, and ICT solutions, which provide employment to hundreds of Ghanaians.
“Japan is a key economic ally of our country and has walked the talk by investing in critical sectors like ICT-related services, and car manufacturing and assembling by Toyota and Honda using Ghana as a regional hub. These and other investments over the years amount to over $152 million in operations, while providing jobs that allow hundreds of Ghanaians to earn a decent living,” he noted.
In a related development, President Mahama stated that the planned repeal of sections of the GIPC Act forms part of the government’s broader $10 billion Big Push agenda and the flagship 24-Hour Economic Policy initiative, which was launched a few weeks ago.
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Story by Sika Togoh|univers.ug.edu.gh
