Country Senior Partner of global auditing firm, PriceWaterhouseCoopers (PwC), Vish Ashiagbor, has advised that foreign investment inflows into the country must seek to balance risk and reward, ensure reasonably value to host communities and structured systems that could develop supporting local systems and value chains.
Speaking at the second edition of the GIPC’s CEOs Breakfast Meeting in Accra, he said that “partners-for-growth” is the new perspective for foreign direct investment and local content wherein both parties recognize the need to leverage the synergy between them and channel their collective energies into creating shared socio-economic growth.
In balancing the risks, Mr. Ashiagbor proposed the diversification of FDIs beyond the extractives into lower pay-out sector such as agriculture and that was to be hinged on a win-win ownership structure backed by the right tax arrangements, legal regimes and government guarantees.
“Over time, and recognizing that delivering on their societal and human obligations in the communities in which they operate will lead to long-term business sustainability, FDI has adopted an impact approach to its local content relationship,” he added.
According to Mr. Ashiagbor, the relationship between investments and local content should be based on synergy and not friction in order to achieve the need technology and skills transfer, employment and reasonable business conduct.
The breakfast meeting convened the investing and business community and all related parties to discuss challenges and proffer workable recommendations that will advance the impact of sustainable and impact-driven investments on the economy.
It is organized periodically to bring together CEOs and business moguls, as well as government authorities, to deliberate on pertinent issues affecting business and investments in Ghana.
This year’s edition was on the theme “Promoting Sustainable Economic Growth: Balancing Foreign Domestic Investment (FDI) and Local Content in Ghana”.
Chief Executive Officer of the GIPC, Mr. Yofi Grant, said the abundant resources of the continent positions Africa as the new frontier of growth and wealth creation with the right level of foreign direct investments.
Added to this, he said, was the single continental tariff-free market which boasts a population of 1.4 billion people with a combined gross domestic product of US$3.4 trillion.
The GIPC boss advised that Africa must focus on attracting environmentally sustainable investments because the continent was heavily affected by the impact of climate change.
