By Daniel Kofi Awuku-Asare
In our fast-paced world of economic advancement, nations around the world are better integrated into our globalization agenda when the economies of both the advanced and developing world is attracted to each other in an economic model where free flow of goods and services are regulated and yet not unnecessarily restricted.
It is quite obvious to argue that the developing economies depend very much on the technological advancement and financial infrastructural capacity of the developed world in order to continuously upgrade their economic fortunes. Conversely, the advanced economies rely very much on the natural resource capacity of many developing economies to advance their economic capabilities.
From this ratio, one would agree perfectly that an economic module that informs a harmonious merger of the economic and technological infrastructural endowments of the developed economies and the natural resource holdings of the developing world helps on the aggregate to achieve a global balance of improved economic activities of trade, job creation, employment, wealth creation and a positioning of a middle-income economic status for all the economies of the world.
Any attempts by the government and the private sector to cohesively propel the engine of economic growth, require a fraternal business relationship between and among the nations of the world. It is touted that the private sector is the main engine of economic growth especially, under a free enterprise economic module.
It is in the light of this practical understanding, that the nations of the world are seeking economic partnership both under the domestic and international business climates.
To effectively achieve our global aim as espoused under Goal 8 of the Sustainable Development Goals (SDGS) of the United Nations, state institutions and international organizations are highly encouraged to promote friendly global environments for effective negotiations, eradication of nuisances, red taping and bureaucratic challenges in intra-national and international trade agreements and to consequently, attract Foreign Direct Investments into the economies of member nations around the world for economic growth and development.
Particularly, of significant mention is the infrastructural deficit gaps in developing economies which effectively hinder effective business operations.
Foreign Direct Investment is one key area that both the developed and developing economies seek to bridge the gap, particularly, in the case of the latter.
In promoting Foreign Direct Investment agenda, therefore, the government must actively engage the private sector not only in the economic operations itself, but also, in advocacy and partnership roles to promoting investment initiatives and drives among the business communities around the world.
Identifying this need and taking a corresponding action is what has brought the ERMCRI GROUP this far in the private sector initiative role to advancing the need for Foreign Direct Investment promotions, facilitations and partnership building, and in making sure, that the appropriate economic ecosystem is created to attract the relevant investors around the globe and to giving them the hope of a successful business operations with high rate of Return On Investment (ROI) measurement index, whilst, guaranteeing expanded economic output in the host economies.
The ERMCRI GROUP is a company poised and driven by the development of Africa and therefore, believes that the most efficient way to achieving this result is by empowering, enabling and encouraging global business entities and entrepreneurs through seamless expansion procedures and channels into Sub-Saharan Africa.
The ERMCRI GROUP, by its proactive initiatives and international liaison and diplomacy, provides a solution to the bureaucratic, logistical and infrastructural deficits commonly associated with the region. Headquartered in Ghana, the organization has sought to eliminate the undue red tapes, usually, entangling market entry and penetration of the international market with particular agenda on Foreign Direct Investment.
This kind of effective negotiations, legal alignments, and bureaucratic downsizing almost always, serves the interests of both the expatriate on one hand, and the domestic economy on the other.
Measuring the global economic index, the World Bank has indicated that at 2013 Africa was the world’s fastest-growing continent at 5.6% a year, and GDP is expected to rise by an average of over 6% a year between 2013 and 2023.
Ghana was experiencing some positive FDI inflows in the first half of 2021 as compared with the same period in 2020. In the first half of 2021, Ghana recorded a total of 122 projects (94 new projects and 28 existing projects), with a total estimated investment of US$874.01 million.
The FDI component and local components from these investments amounted to US$829.29 million and US$44.72 million respectively for the first half of 2021.
The FDI value of US$829.29 million gives an increase of 32.15% over the FDI value of US$627.52 million recorded in the first half of 2020. The total initial capital transfers recorded for the first half of 2021 also amounted to US$47.76 million according to the 2021 First Half Report of the Ghana Investment Promotions Center document.
The insatiable role of the private sector in investment promotion, advocacy and operations as well as in Foreign Direct Investment drive cannot be underestimated – at least, not in this era of the global challenges caused by the inimical Covid-19 pandemic. The United Nations Council on Trade and development has forecast, that irrespective of the high rate of FDI inflow into Africa, the negative repercussions of the global Covid-19 pandemic stand to weaken its hopes, and yet with the drive to positioning Africa to attract these potential investors to reignite the economic propensities of these African economies, there is a continuous need to engage the private sector to leverage the risks and boost investor confidence for continuous engagement.
The ERMCRI GROUP is a company dedicated to removing such bureaucratic nuances and red taping as a private sector advocate of Foreign Direct Investment, and additionally, helping inform international investors on prevailing indicators of the market delivery success rates, risk management guarantees and the operational viabilities of the profit making factor of Return On Investment (ROI ). They do this by means of professional advisory schemes, research of the market patterns, operational support, facilitation, partnership, and regulatory compliance and awareness creation through some major stages of the FDI attraction methodology viz.
1. Feasibility study and market security
2. % security of the capital holdings of the investor-through their legal tools of contractual formation, and international financial auditing and regulations of the Foreign Direct Investment initiation
3. Management operational support throughout the processes of entry, market penetration, establishment, execution, the supply chain value addition, and effective evaluation and feedback
4. Governmental coordination, negotiations, monitoring and capacity building – wherefore, the government, serving as the principal enabler of Foreign Direct Investment attraction initiatives is healthily partnered.
5. Active collaboration with relevant stakeholders such as the Chamber of Commerce in Ghana and beyond, the Ghana Investment Promotion Center, the Ministry of Trade and Industry, the Ministry of Foreign Affairs, the embassies and consulates in the country and other diplomatic envoys to ensuring the sharing of information on viable opportunities and best practices and to minimizing unnecessary risks.
Among its remarkable feats chalked so far, the ERMCRI GROUP has successfully, executed phenomenal and landmark projects already, including:
1. Affordable Housing Infrastructural provision through its subsidiary organization called SuCasa Properties Ghana
2. Key Stakeholder Engagement Partnerships such as it has established through SuCasa Properties Ghana with:
A. The UK-Ghana Chamber of Commerce (UK-GCC)
B. The Ministry of Foreign Affairs and Regional Integration
C. Ministry of Works and Housing
D. The Diaspora Affairs Unit of the Office of the President (Jubilee House)
E. Beyond the Return Secretariat of the Ghana Tourism Authority of the Ministry of Tourism and Culture
F. The African Continental Free Trade Area – Policy Network ( AfCFTA – APN)
3. No. 1, No. 2, No. 3 and No. 4 O’Grantson Communities in East Legon Hills and Ayi Mensah in the Greater Accra Region of Ghana
These and many more projects are on its execution schedule, and as such they believe that a noble and cordial partnership or facilitation of Foreign Direct Investment initiatives between any international or local company on one hand, and theirs on the other would help guarantee a free flow of the market scissors of demand and supply of the Foreign Direct Investment mobilization and output at equilibrium towards the realization of the Goal ( 8) eight of the Sustainable Development Goals (SDGs) of the United Nations in promoting economic growth and development, realization of middle income economic status across the board, wealth creation, and environmental sustainability in business as well as adding to the fortunes of the framework of the African Continental Free Trade Area ( AfCFTA)
Other expected projects, awaiting execution, span from a myriad of industry needs in Agriculture, Manufacturing, Oil and Gas, Fintech, Real Estate and urbanization, Public Transportation, Healthcare, Education, Telecommunication, Infrastructure, ICT, E-commerce, Tourism, Apparel and Retail and many others.
The ERMCRI GROUP, through its international partnerships, and facilitation of Foreign Direct Investment (FDI) advocacy, genuinely, seeks to expand the infrastructural endowment in the African sub-region, create more jobs for the youth, increase the standard of living of the citizenry, abate abject poverty if not completely eradicated, and effectively, bridge the wealth- gap between the developed and the developing nations, by expanding economic output through increased production to increase the per capita income of the economies of the African countries in a favorable comparison to their developed nation counterparts.
And to so effectively, nip the deficit situation and its attendant precarious repercussions permanently in the bud. They aim to achieve that through a conscientious effort to manage all the factors of production judiciously, and in a collaborative manner with its international participants – suitable to the economic climate of the African region, and to further ensure investor confidence in its reputable organization and the African economies as a whole, consistent with the global agenda, espoused in Goal Eight (8) of the Sustainable Development Goals of the United Nations.
Article by Daniel Kofi Awuku-Asare (PRO, SUCASA PROPERTIES GHANA)