GIPC REGISTERS $3.8bn PROJECTS
-Of 62 Ghanaian companies in 2023
-Moves to addres exit of foreign companies
By Daniel NONOR and Isaac AIDOO, Accra
The Ghana Investment Promotion Center (GIPC) is concerned about the departure of foreign companies from the country and has initiated engagements to address the underlying factors. Despite this negative trend, there is positive news as 62 wholly owned Ghanaian companies, with a total investment volume of approximately $3.8 billion, registered with the Center in 2023. This contrasts with 122 international businesses registering within the same period, with investment volumes totaling 649.58 million.
In 2022, the country recorded foreign direct investment (FDI) totaling around $1.35 billion, showing a slight increase from the previous year’s figure of approximately $1.29 billion, representing a 4.22% rise.
In terms of domestic investments, 65 wholly Ghanaian-owned projects were registered, valued at $335.59 million, consisting of a foreign component of $74.61 million and a local component of $260.98 million.
Edward Ashong-Lartey, Director of Investor Services at the GIPC, highlighted these figures during an interview on the ZED in The Morning Show on Zed 101.FM.
He expressed encouragement at the significant investments made by indigenous Ghanaian companies despite economic challenges, indicating their confidence in the Ghanaian economy.
Ashong-Lartey further explained that the GIPC offers various hand-holding services and aftercare to ensure continuous integration of investors in the Ghanaian business environment. These services include facilitating registration processes through relevant agencies like the Registrar Generals Department and providing assistance with compliance and regulatory issues.
The GIPC also serves as a mediator between government and investors to facilitate investor-friendly policy formulation.
One significant challenge facing investors in the country, according to Ashong-Lartey, is access to genuine lands for their operations.
To address this, the GIPC has acquired a land bank in strategic parts of the country to facilitate business siting.
The Land bank manages a database containing information on lands and facilitates their acquisition for investors.
Regarding the exit of multinational companies from the Ghanaian market, the GIPC expressed concern and is engaging with some of the departed companies to address their concerns where feasible.
Over the past few months, some notable multinational companies have announced their decision to suspend their operations in the country citing varied reasons with the latest being French Bank Société Générale, marking an end to their 20-year presence in the country.
Companies like Glovo, Nivea and Jumia Foods abandon their operations citing profitability among other factors.
Unilever Ghana’s Lipton Tea, Dark and Lovely, BET 365, Game, and BIC, have also taken a decision to exit the Ghanaian market sparking concerns about the possible effect on job creation and broader economic growth issues.
Ashong-Lartey attributed the reasons for departure to global decisions by some corporations, unmet expectations, and currency instability, among others.
He mentioned that the government is working to restore macroeconomic stability to provide relief to struggling businesses.
The GIPC encourages businesses to utilize the Investor Grievance Mechanism to identify and track issues affecting investor operations in a timely manner.
The Center prioritizes aftercare services to ensure continuous support for businesses to deepen their footprints and expand beyond Ghana.
Success stories from the Center’s Aftercare unit have played a crucial role in assisting investors in navigating the regulatory landscape and overcoming compliance challenges.
