The GIPC Act, 2013 (Act 865), currently undergoing amendments, is expected to enhance Ghana’s global competitiveness and ensure a business-friendly investment environment.
The Act includes key features such as the development of a new investment code and an investor-driven mechanism system, all aligned with the government’s industrialisation drive, as disclosed by Deputy Minister of Finance, Alex Ampaabeng.
According to him, the government is deeply committed to creating a business-friendly environment and ensuring a fair and efficient tax system.
“The review of the GIPC Act 2013 (Act 865) aims to enhance Ghana’s global competitiveness. The development of a new investment code, an investor-driven mechanism system, and a comprehensive customer relationship management software also reflect our commitment to continuous improvement and digital transformation,” he said.
“Undoubtedly, more public-private collaboration will be crucial in driving our economic progress,” the Deputy Minister added.
Speaking at the 3rd edition of the Ghana Club (GC) 100 CEO’s Breakfast Meeting and the launch of the 21st Edition of the GC 100 Awards, he emphasized the importance of a business-friendly environment combined with a fair and efficient tax system. He highlighted the need to broaden the tax base and improve compliance to generate the necessary revenue for development.
“We have an ambitious agenda for the private sector. Combined with existing policies, it offers a compelling prospect to reposition us on the path of growth,” Dr. Ampaabeng noted.
He informed the high-level dignitaries that several initiatives are underway to further enhance Ghana’s investment climate.
Furthermore, he disclosed that a total of $13.1 billion has been invested across 1,193 projects in various sectors of the economy from 2017 to the first quarter of 2024. This development, he said, indicates strong investment trends and diverse economic opportunities.
Referring to the Finance Minister’s recent engagement with private sector players, Dr. Ampaabeng said it was aimed at supporting economic goals through private sector participation.
“We believe that leveraging the strengths of both the public and private sectors will accelerate our economic recovery and foster sustainable development,” he said.
Additionally, he noted that his office is actively working to create an enabling environment for businesses. He cited a recent engagement with stakeholders in May 2024 to discuss improving Ghana’s business climate and addressing investors’ concerns about the complex tax system.
“As a Deputy Minister in charge of revenue, this falls within my purview, and I have taken it on board critically to ensure we review the system, structures, and administrative processes. This will ensure that the business community enjoys operating in Ghana and that the country remains a destination of choice for foreign direct investments (FDIs),” he pointed out.
Policies and Reforms
The Chief Executive Officer of the Ghana Investment Promotion Center (GIPC), Yofi Grant, stated that to enhance collaboration between the government and the private sector, his office has been hosting quarterly CEO breakfast meetings. These meetings serve as a platform to advocate for policies and reforms that enhance Ghana’s business environment, welcoming both local and foreign businesses.
“At the GIPC, we believe that sustainable economic growth can be accelerated and effectively achieved through stronger, meaningful partnerships. Our role is to facilitate these partnerships by providing the necessary support and creating an enabling environment for businesses to thrive, in collaboration with the Ministry of Finance, the Ministry of Trade and Industry, and others like the Ministry of Energy,” he said.
Mr. Yofi Grant mentioned that the Center had strengthened its engagement with both local and foreign-owned businesses through its monitoring and evaluation, aftercare, business development, and diaspora divisions, as well as through various flagship events and programs.
“For instance, our country-wide regional sensitization talks are designed to assist businesses in positioning themselves for partnerships and capitalizing on opportunities arising from increased regional investments. These initiatives have contributed to a 15% increase in new business registrations over the past year alone,” he said.
The GIPC boss added, “Typically, most of our registrations come from foreign-guided investments. However, in 2023, there was a significant surge in Ghanaian investments registering at the GIPC, reaching $3.5 billion. This is a notable development, as it shows Ghanaians reinvesting boldly into the economy.”
Mr. Yofi Grant expressed his commitment to supporting businesses in attracting investments, partnering with foreign direct investors, and promoting Ghana as a premier investment and business destination.
“Our efforts in promoting digital infrastructure and innovation have led to a 12% growth in the tech sector, further diversifying our economic base. This is an area we would like to see more of in Ghana Club 100,” he added.
By Eugene Davis
